Gulf Ins. Co. of Dallas v. Pappas

The Pappas building in Laredo is a three-story brick structure, operated as an apartment house. It is owned by Santiago Pappas and mortgaged to Mrs. Ida Stephenson. It was insured against fire by several companies for an aggregate amount of $35,000. On May 15, 1932, while so insured, a fire occurred in the ground floor of the building and a disagreement arose between the insurers and the insured and mortgagee, as to the amount of the fire loss. Thereupon the parties submitted that question to arbitration under the following provision in the policies here sued on:

"In the event of disagreement…