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

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