Desert Mountain Prop v. Liberty Mutual Fire Ins

SUPREME COURT OF ARIZONA
En Banc

DESERT MOUNTAIN PROPERTIES ) Arizona Supreme Court
LIMITED PARTNERSHIP, ) No. CV-10-0339-PR
)
Plaintiff/Appellee/ ) Court of Appeals
Cross-Appellant, ) Division One
) No. 1 CA-CV 08-0802
v. )
) Maricopa County
LIBERTY MUTUAL FIRE INSURANCE ) Superior Court
COMPANY, ) No. CV2003-009686
)
Defendant/Appellant/ ) O P I N I O N
Cross-Appellee. )
_________________________________ )

Appeal from the Superior Court in Maricopa County
The Honorable Robert E. Miles, Judge

AFFIRMED
________________________________________________________________

Opinion of the Court of Appeals, Division One
225 Ariz. 194, 236 P.3d 421 (App. 2010)

AFFIRMED
________________________________________________________________

FENNEMORE CRAIG, P.C. Phoenix
By J. Randall Jefferies
Timothy Berg
Theresa Dwyer-Federhar
Louis D. Lopez
Meredith K. Marder
Attorneys for Desert Mountain Properties
Limited Partnership

DAVID BELL & ASSOCIATES, P.L.L.C. Phoenix
By David M. Bell
Howard L. Andari
Attorneys for Liberty Mutual Fire
Insurance Company
HARALSON, MILLER, PITT, FELDMAN & MCANALLY, P.L.C. Tucson
By Stanley G. Feldman

And

POLI & BALL, P.L.C. Phoenix
By Michael N. Poli

And

KNAPP & ROBERTS, P.C. Scottsdale
By David L. Abney
Attorneys for Amici Curiae Arizona
Association for Justice/Arizona Trial
Lawyers Association and United Policyholders

LEWIS AND ROCA, L.L.P. Phoenix
By Randy S. Papetti
Attorneys for Amicus Curiae Complex
Insurance Claims Litigation Association
________________________________________________________________

B E R C H, Chief Justice

¶1 We granted review in this case to consider (1) whether

a commercial general liability (CGL) policy covers an insured’s

contractual liability for damage that caused only economic loss,

(2) whether the CGL policy’s contractual liability exclusion

applies only when an insured has “assumed” another’s liability

by agreeing to indemnify or hold another harmless, and (3)

whether an insured’s voluntary expenditures to repair property

damage caused by construction defects resulted from a “legal

obligation” to pay “damages.” We have jurisdiction under

Article 6, Section 5(3) of the Arizona Constitution and A.R.S.

§ 12–120.24 (2003).

- 2 -
¶2 After considering the briefs and oral arguments, the

Court affirms the opinion of the court of appeals on these

issues for the reasons set forth therein.

__________________________________
Rebecca White Berch, Chief Justice

CONCURRING:

_____________________________________
Andrew D. Hurwitz, Vice Chief Justice

_____________________________________
W. Scott Bales, Justice

_____________________________________
A. John Pelander, Justice

_____________________________________
Robert M. Brutinel, Justice

- 3 -