No Default Judgments Allowed In Quiet Title Cases: Court

Law360, New York (December 20, 2011, 8:56 PM EST) -- A California state appeals court on Monday overturned a 2004 precedent in a land dispute between the mortgage services division of HSBC Holdings PLC and real estate company Harbour Vista LLC, ruling that a lower court had erred in granting default judgment in favor of Harbour Vista.

In its opinion reversing the lower court's decision and remanding the case, the appeals panel said that under California law, judges are prohibited from entering default judgments in so-called quiet title cases, which occur when a landowner wants to...
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