Walker v. Brown - 165 U.S. 654 (1897)
U.S. Supreme Court
Walker v. Brown, 165 U.S. 654 (1897)
Walker v. Brown
Submitted January 13, 1896
Decided March 1, 1897
165 U.S. 654
Every express executory agreement in writing whereby the contracting party sufficiently indicates an intention to make some particular property, real or personal or fund, therein described or identified a security for a debt or other obligation, or whereby the party promises to convey or assign or transfer the property as security, creates an equitable lien upon the property so indicated which is enforceable against the property in the hands not only of the original contractor, but of his heirs, administrators, executors, voluntary assignees, and purchasers or encumbrancers with notice.
On the facts stated in the opinion of the Court, which can with difficulty be condensed without omitting something which might be deemed essential, and applying to those facts the principle of law stated in the preceding paragraph, held that Walker & Company had an equitable lien upon the bonds of Brown pledged to the Union National Bank, and that those bonds had been returned to Brown under such circumstances as to continue the lien against them in the hands of Mrs. Brown, to whom they had been given by him.
To dedicate property to a particular purpose to provide that a specified creditor, and that creditor alone, shall be authorized to seek payment from it or its value, is to create an equitable lien upon it.
For reasons stated in the opinion, interest is to be computed at the rate of six percent, not at the rate of ten percent.
The case is stated in the opinion.