A fire broke out in a canyon and hillside area 1 1/2 miles north of Boat Canyon in Laguna Beach shortly after 1 p.m., burning about 35 acres of light to medium brush before being brought under control. More than 120 firefighters, assisted by bulldozers and water-dropping helicopters, battled the blaze, according to Capt. Lou Furst of the county Fire Department. Their effort was hampered by the rugged terrain. There were no injuries, and no structures were damaged or threatened.