Plaintiff sued to impose a constructive trust on property purchased by the Defendant LLC at a foreclosure sale. It alleged that some of the members of the Defendant LLC had been members of the LLC which had defaulted on the mortgage loan in question. Plaintiff contended that it was "inequitable for [the Defendant] to own and possibly profit from the Property."
The Court rejected this argument and dismissed the claim. It observed that the property "was lawfully purchased at a foreclosure sale with a valid upset bid." There was therefore no fraud, no breach of fiduciary duty, and no inequitable circumstance that warranted the imposition of a constructive trust.
The Court also ordered the cancellation of a notice of lis pendens filed by the Plaintiff, concluding that a lis pendens is appropriate only when the case involves an action affecting title to real property. The Court held that "a lis pendens . . . does not properly apply to actions brought for the purpose of securing a personal money judgment. . . ."