Kelliher v. Soundy
Annotate this CaseMichael Kelliher and Travis Soundy had equal membership rights in Clover Investments, LLC, which purchased a bar. Soundy then purchased Kelliher’s interest in Clover. Kelliher and Soundy subsequently negotiated an agreement for Kelliher to earn back his interest in Clover that required Kelliher to manage the bar and make capital improvements. Kelliher fulfilled his duties under the management agreement. Soundy subsequently terminated the management agreement, and the next year, Clover sold the bar to Schijohn, LLC. Kelliher sued Soundy, Clover, and Schijohn and filed a notice of lis pendens against the property. The district court granted partial summary judgment in favor of Schijohn on Kelliher’s quiet title claim. Before trial on the remainder of Kelliher’s claims, the court canceled the notice of lis pendens based on its earlier dismissal of the claim against Schijohn. The Supreme Court reversed, holding (1) this Court had jurisdiction over the appeal under the collateral order doctrine; and (2) the district court erred when it cancelled the notice of lis pendens, as the perceived merits of the underlying action were not good cause to cancel the notice while time for appeal remained.
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