This section contains the nature of the case and procedural background.

Lewis (P) contracted to buy a residence from Shipley for $2.3 million. P opened escrow and just a few days before they acquired title, Fontana Films recorded a lis pendens. The lis pendens was recorded on February 24, but was not indexed until February 29th; the day after P acquired title. Under the contract of sale, P paid Shipley $350,000. P then gave Shipley a note for $1,950,000, which they paid in March 1992. P then spent an additional $1,050,000 in renovating the property. In September 1993, P was served with the lawsuit. P sued for summary judgment to remove the lis pendens and clear title. The trial court denied that motion. P appealed.

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