Motion to Enforce Equitable Lien 001: policy reformation for commercial policies in federal court:
Travis’ legal services – rendered in an effort to establish coverage – contributed significantly to insurers’ decisions to fund settlement of underlying cases.
Parties in possession of the fund took the fund with notice of Travis’ claim.
Court should use its equitable power to declare existence of an equitable lien on the settlement proceeds of the underlying lawsuits.
As applied to the relations of parties in this reformation action, general considerations of right and justice and the circumstances of their dealings warrant enforcement of an equitable lien.
Travis’ claim arises under a contract which shows an intention to charge particular property with a debt or obligation.
Travis’ liens will be enforced not only as between parties, but as against one who takes with notice, or, like an assignee or receiver, stands in shoes of debtors.