Desert Mountain Prop v. Liberty Mutual Fire Ins

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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 -