Jose R. Cruz and Julita S. Cruz v. Pacific American Insurance Corporation, a Corporation

On August 21, 1962, appellants, owners of a retail store in Dededo, Guam, obtained from the appellee, Pacific American Insurance Corporation, a policy of typhoon insurance. On November 11, 1962, the typhoon “Karen” struck the isle of Guam. This “valued” policy was issued in the principal sum of $2,647.61 on store equipment and $22,592.39 on stock in trade, for a period of one year.

Appellants claimed a loss of $22,240, and furnished Proof of Loss in that sum on January 9, 1963. When payment was not made within sixty days, appellants sued.

By an amended complaint, appellants increased their demands for the loss claimed to those granted by Section 43407 of the Government Code of Guam. That section reads: ^

Appellants’ amended complaint prayed for interest; 12% for statutory damages on the loss alleged, or $2,668.83; for attorneys’ fees of $8,169; and for costs of suit.

Appellee first made a motion to dismiss on the ground the Bank of America, to whom appellants’ claim had been assigned, was the real party in interest. A “Second Amended Petition” was then filed, in which Bank of America, in a second cause of action, was joined as plaintiff.

Appellee then put in an answer with…