U.S. Supreme Court
Todd v. Romeu, 217 U.S. 150 (1910)
Todd v. Romeu
Submitted January 10, 1910
Decided April 4, 1910
217 U.S. 150
In Porto Rico, a cautionary notice must be filed in accordance with the local law in order to render an innocent third party liable to dismemberment of ownership by reason of purchase during pendency of a suit to set aside a simulated sale. Romeu v. Todd, 206 U. S. 358.
The right to file a cautionary notice in Porto Rico under the existing mortgage law is not absolute in all cases; in certain classes of cases, chanroblesvirtualawlibrary
the right but depends on an express permissive order of the court, and one having knowledge of a suit to dismember title of his grantor in which such order is not a matter of right and no such order is applied for or granted is not bound because he had general knowledge of the pendency of the suit.
Quaere whether one buying property in Porto Rico with actual knowledge of pendency of a suit to dismember title for fraud in which the law gives an absolute right to a cautionary notice without the prerequisite of judicial permission would be liable for the ultimate result of the suit even if no cautionary notice were registered.
The facts are stated in the opinion. chanroblesvirtualawlibrary