Liens

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7^th Circuit Court of Appeals

Case Name: Larry H. Liebzeit v. Intercity State Bank, et al

Case No.: 15-1970

Officials: POSNER, RIPPLE, and HAMILTON, Circuit Judges

Focus: Liens

Mortgage Company can attach a lien to a vendor’s interest in a land contract under WI law.

“Consistent with First National Bank v. Chafee, the language of the mortgage here is broad enough to encompass a land contract vendor’s interest as collateral, even without a specific mention of a land contract. The best reading of the mortgage is that it was secured by the Blanchards’ interest as land contract vendors, the entire interest they possessed in the land when the mortgage was executed. The mortgage included “all privileges, hereditaments, easements and appurtenances, all rents, leases, issues and profits, all claims, awards and payments made as a result of the exercise of the right of eminent domain, all existing and future improvements and all goods that are or are to become fixtures.” Black’s Law Dictionary defines “rents, issues, and profits” as “The total income or profit arising from the ownership or possession of property.” Rents, Issues, and Profits, Black’s Law Dictionary (10th ed. 2014). This language was broad enough to grant the bank a lien on the land contract payments, which are included in the Blanchards’ “total income” arising from their ownership of bare legal title in the land.”

Affirmed

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Attorney Derek A. Hawkins is the managing partner at Hawkins Law Offices LLC, where he heads up the firm’s startup law practice. He specializes in business formation, corporate governance, intellectual property protection, private equity and venture capital funding and mergers & acquisitions. Check out the website at www.hawkins-lawoffices.com or contact them at 262-737-8825.