Wheeler v. Insurance Company - 101 U.S. 439 (1879)
U.S. Supreme Court
Wheeler v. Insurance Company, 101 U.S. 439 (1879)
Wheeler v. Insurance Company
101 U.S. 439
1. Where, by his covenant or otherwise, a mortgagor is bound to insure the mortgaged premises for the better security of the mortgagees, the latter have, to the extent of their interest in the property destroyed, an equitable lien upon the money due on a policy taken out by him.
2. This equity exists although the covenant provides that in case of the mortgagor's failure to procure the insurance and assign the policy, the mortgagees may procure it at his expense.
3. This equitable doctrine obtains in Louisiana.
The facts are stated in the opinion of the Court.