City of Laporte v. Northern Trust Co.

Citations

• 187 F. 20
• 109 C.C.A. 74
• 1911 U.S. App. LEXIS 4480

Syllabus

<p>1. Lis Pendens (§ 13*) — Construction oe Statute — Actions Affected.</p> <p>The lis pendens statute of Indiana (Burns’ Ann. St. 1891, § 327), providing that “whenever any person shall have commenced a suit to enforce any lien upon, right to or interest in any real estate, upon any claim not founded upon an instrument executed by the party having the legal title to such real estate, as appears from the proper records of such county and recorded as by law required, it shall be the duty of such person to file a written notice,” etc., does not apply to suit on behalf of taxpayers to enjoin alleged illegal action of a city council in attempting to increase the city indebtedness, which is governed by the common-law rule as to lis pendens.</p> <p>[Ed. Note. — For other cases, see Ms Pendens, Cent. Dig. § 23; Dec. Dig. § 13.*]</p> <p>2. Lis Pendens (§ 25*) — Persons Bound by Judgment — Mortgagees of Corboration.</p> <p>The general rule of lis pendens that all persons dealing with property are bound to take notice of a suit pending with regard to the title thereto, and will at their peril purchase the same from any of the parties to the suit, is subject to exception in case of negotiable securities purchased before maturity and articles of ordinary commerce sold in the usual way; but such exception rests on grounds of public policy due to the transitory nature of the property, and does not extend to a corporate mortgage given to secure bonds, whether by a strictlj private or a public service corporation, covering real estate or chattels affixed to realty, which is governed by tho. general rule, and all rights thereunder are subject to the issue of a suit affecting the property pending at the time of its execution.</p> <p>[Ed. Note. — For other cases, see Lis Pendens, Dec. Dig. § 25.*]</p> <p>3. Lis Pendens (§ 25*) — Operation and Effect — Mortgage Made by Corporation Pendente Lite.</p> <p>A city owning a waterworks plant, but at the time without a supply of water suitable