equitable lien


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equitable lien

n. a lien on property imposed by a court in order to achieve fairness, particularly when someone has possession of property which he/she holds for another. (See: equity, constructive trust, lien)

References in periodicals archive ?
An equitable lien was recognized as a claim in equity if the property
Equitable lien claims are typically based on theories of either equitable estoppel or unjust enrichment.
The basic premise of an equitable lien by agreement is that, rather than physically taking the plaintiff's property, the defendant constructively possesses a fund to which the plaintiff is entitled," Thomas writes in the opinion for the majority.
398) Accordingly, when the damage occurs, the mortgage lender is deemed to have an equitable lien on the proceeds of the insurance.
The Court contrasted that situation from when a plaintiff seeks to impose a constructive trust or equitable lien upon a specifically identified piece of property or fund.
Accordingly, the broker sued the buyer for the commissions on the legal theory that it had an equitable lien for her commissions.
Sometimes courts seem to say that any payment on a bonded project can never be a preference, because the funds were subject to the bonding company's equitable lien and never became property of the bankruptcy estate.
The trust sought either a declaration that the estate held the property on constructive trust (and consequential orders), or an equitable lien over the property to secure the payment of a sum equal to the difference between the market value of the property and the amount paid for it by the family member.
In contrast, a plaintiff could seek restitution in equity, ordinarily in the form of a constructive trust or an equitable lien, where money or property identified as belonging in good conscience to the plaintiff could clearly be traced to particular hinds or property in the defendant's possession.
The district court held that, under Vermont law, a contingent fee agreement between taxpayer and attorney gives rise to an equitable lien in favor of the attorney on the taxpayer's recovery, effecting a transfer to the attorney of a proprietary interest in the taxpayer's claim under Est.
Preferential transfer to subcontractor is protected from avoidance under new value exception based on release of bonding company's contingent equitable lien in contract balance held by owner.