Hollingsworth v. Farmers Insurance Co.

HALL, Chief Justice:

Plaintiffs commenced this action against their insurance carrier, Fire Insurance Exchange (Insurer), to recover for the loss of their residence occasioned by a fire. Alleging arson on the part of plaintiffs, Insurer denied liability and refused to make payment. Thereupon, plaintiffs’ “mortgagee,” IDS Life Insurance Company (IDS), intervened in the action as a defendant, cross-claimed against Insurer for payment of the policy proceeds, and counterclaimed against plaintiffs for foreclosure to collect any sums due under its Note and Trust Deed not recoverable under the policy…