Cinema Schools, Inc. v. Westchester Fire Ins.

Defendant, in consideration of a premium duly received, issued its policy insuring plaintiff against loss or damage by fire, in an amount not exceeding $5,000, to certain personal property contained in the building wherein the corporate plaintiff conducted a school for the instruction of students in the art of motion picture acting. The policy was on the standard form of the state of California, and was to be in force from noon of July 16, 1928, to noon of July 16, 1929. Upon February 16, 1929, a fire occurred, destroying a large portion of the insured property, and damaging the remainder. The direct loss and damage claimed by plaintiff, and after taking account of salvage in the sum of $238.38, amounted to $36,607.50. Insurance in force on the insured property, other than that carried by defendant, aggregated $33,500. After giving effect to the coinsurance provisions of the policies, the liability which plaintiffs here assert against defendant is in the sum of $4,751.65, with interest thereon from the date of the loss.

Defendant denies, generally, that it is under any obligation to pay the loss. In addition to the defense thus pleaded, it sets up the following:

1. The actual…