DESERT MOUNTAIN v. LIBERTY MUTUAL FIRE INSURANCE

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SUPREME COURT OF ARIZONA En Banc DESERT MOUNTAIN PROPERTIES LIMITED PARTNERSHIP, Plaintiff/Appellee/ Cross-Appellant, v. LIBERTY MUTUAL FIRE INSURANCE COMPANY, Defendant/Appellant/ Cross-Appellee. _________________________________ ) ) ) ) ) ) ) ) ) ) ) ) ) ) Arizona Supreme Court No. CV-10-0339-PR Court of Appeals Division One No. 1 CA-CV 08-0802 Maricopa County Superior Court No. CV2003-009686 O P I N I O N 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. By J. Randall Jefferies Timothy Berg Theresa Dwyer-Federhar Louis D. Lopez Meredith K. Marder Attorneys for Desert Mountain Properties Limited Partnership Phoenix DAVID BELL & ASSOCIATES, P.L.L.C. By David M. Bell Howard L. Andari Attorneys for Liberty Mutual Fire Insurance Company Phoenix HARALSON, MILLER, PITT, FELDMAN & MCANALLY, P.L.C. By Stanley G. Feldman Tucson And POLI & BALL, P.L.C. By Michael N. Poli Phoenix And KNAPP & ROBERTS, P.C. By David L. Abney Attorneys for Amici Curiae Arizona Association for Justice/Arizona Trial Lawyers Association and United Policyholders Scottsdale LEWIS AND ROCA, L.L.P. By Randy S. Papetti Phoenix ________________________________________________________________ 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 Court After considering the briefs and oral arguments, the 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 -