American Equit. Assur. v. Newman

INSURANCE ? APPEAL AND ERROR ? LIENS ? SUBROGATION ? MORTGAGES ? CONTRACTS. 1. Insurance ? Insurance proceeds on equitable lien. If a mortgage contains a covenant that property shall be kept insured by mortgagor for security of mortgage, and, pursuant to his covenant mortgagor takes out policy of insurance covering mortgaged premises, mortgagee will be entitled to proceeds on an equitable lien even though policy contains no mortgage clause. 2. Appeal and Error ? Equitable lien part of doctrine of subrogation. The equitable lien theory is part and parcel of the doctrine of subrogation, and mere fact that defendant had relied, in insurers interpleader suit, on subrogation theory would not preclude defendant from relying, on appeal, on equitable lien theory. 3. Subrogation ? Nature of Subrogation. The doctrine of subrogation is the substitution of one party in place of another and rests upon principles of natural justice and is an equitable result purely, depending on facts to develop its necessity that justice may be done. 4. Liens. Equitable lien is obtained by means of subrogation. 5. Insurance ? Insurer had right of subrogation. Under fire policy, providing that insurer might require from insured an assignment of all rights of recovery against any party for loss to extent that the payment therefor had been made by insurer, insurer had right to be subrogated to whatever right insured had, whether asserted by the latter or not. 6. Insurance ? Vendor entirely compensated for fire loss. That vendor was entirely compensated for fire loss by his assignee prior to assignment, and thus allegedly had "nothing left to assign," would not preclude assignee from recovering on policies issued to purchaser for benefit of vendor, or, if purchaser had breached contract and procured only policies on his own right in property, from asserting an equitable lien upon proceeds of such policies.