Knapp v. VICTORY CORPORATION

Ness, Justice.

Appellants Knapp and Bernstein brought this declaratory judgment action to determine the parties’ rights to fire insurance proceeds of $225,000.00. The master-in-equity held the respondent mortgagor was entitled to the proceeds, rather than the mortgagees. We reverse.

The first mortgagee, appellant Appalachian National Life Insurance Company, contends it is entitled to the entire proceeds as the remaining balance on its mortgage exceeds $225,000.00.

Appellants Knapp and Bernstein, holders of a second mortgage on the damaged property, claim entitlement to the proceeds remaining…