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 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