State Farm Insurance Company v. Jean Brijlal

Reasons for Decision

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Civil procedure — Injunctions — Considerations affecting grant — Serious issue to be tried or strong prima facie case — Preservation of property — Mareva injunctions — The plaintiff successfully sought a Mareva injunction, and it was granted leave to issue a certificate of pending litigation against the property — It had established a prima facie case that the defendant wife had fraudulently conveyed her interest in the property in question to her husband in order to frustrate the plaintiff's action against her for $122,284 in damages for fraud.

Real property law — Registration of documents — Lis pendens (certificate of pending litigation) — When available — Title to land in issue — The plaintiff successfully sought a Mareva injunction, and it was granted leave to issue a certificate of pending litigation against the property — It had established a prima facie case that the defendant wife had fraudulently conveyed her interest in the property in question to her husband in order to frustrate the plaintiff's action against her for $122,284 in damages for fraud.

The plaintiff insurance company moved ex parte for a Mareva injunction for leave to register a certificate of pending litigation against the defendant's property — In the underlying action, the plaintiff sought to set aside as fraudulent a conveyance of the defendant wife's undivided 1/2 interest in a residential property to her husband, for an order vesting her joint interest into the plaintiff's name, damages for depletion in the value of the property and for breach of trust, and a Mareva injunction — Two months after pleading guilty to defrauding the plaintiff company, her employer, of thousands of dollars, the defendant wife had conveyed her interest in the property to her husband for nominal consideration — The plaintiff had commenced an action seeking $122,284 in damages against the wife — HELD: The Mareva injunction issued as sought and the plaintiff was granted leave to issue a certificate of pending litigation — As to its claim for fraudulent conveyance, the plaintiff had a strong prima facie case on the merits — The evidence also established that there was a prima facie case that the defendants were diminishing the net value of the property in an effort to defeat the plaintiff's claim by subsequently acquiring three mortgages on the property.

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Published In: Civil Procedure Updates, Civil Remedies Updates, General Business Updates, Insurance Updates

Reference Info:Decision | State, D.C. Circuit, D.C. | United States

DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Pamela Pengelley, Cozen O'Connor | Attorney Advertising

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