Woody

Action for declaratory relief concerning right to money paid by insurance company to cover loss upon a fire insurance policy. As against the claims of the owners of the property the trial court ruled that respondent Lytton Savings and Loan Association, the holder of the first trust deed upon the premises, was entitled to same for application to a loan secured by said trust deed in accordance with the terms thereof. Plaintiff owners appeal.

Prior to the fire which gave rise to this action plaintiffs H. R. Woody and Ethel Potts were the owners of certain property known as Hollywood Plantation Hotel. Defendant Lytton Savings and Loan Association was the holder of the first trust deed upon the property made in its favor as security for a loan of $63,000. Lorene Paulos held a second trust deed securing an indebtedness of $18,000 and Ruth C. White a third trust deed for $5,000. Pursuant to the requirement of the Lytton trust deed plaintiffs Woody and Potts purchased from The Canadian Fire Insurance Company and The Canadian Indemnity Company (hereinafter referred to collectively as Canadian or Insurance Company) a fire insurance policy covering the hotel property, naming said plaintiffs…