Continental Insurance v. Vanlue

— The appellee recovered judgment upon a policy of insurance issued to him by the appellant, and from that judgment this appeal is prosecuted.

The first question for our decision is whether there was ■such an encumbrance upon the property insured as avoided the policy. The words of the policy are sufficiently comprehensive to include all liens that constitute encumbrances in a legal sense, and if such an encumbrance exists the action must fail, for it is unquestionably the law that a legal -encumbrance will defeat the assured, where it is created or .suffered in violation of the terms of the…