Bills v. Arizona Property and Casualty Insurance Guaranty Fund2/2/1999
AFFIRMED
Plaintiff/appellant Marie Bills appeals from the trial court's entry of partial summary judgment for defendant/appellee Arizona Property and Casualty Insurance Guaranty Fund pursuant to Rule 54(b), Ariz. R. Civ. P., 16 A.R.S. We affirm.
BACKGROUND
The facts pertinent to this appeal are undisputed. In an underlying wrongful death action arising from a 1993 motor vehicle accident in which her husband was killed, plaintiff alleged "dram shop" liability against KTTL, Inc., doing business as Pacific Beach Club, Inc. (PBC). PBC was insured by Prestige Casualty Insurance Co., with a policy liability limit of $1,000,000. During the course of that litigation, Prestige became insolvent and was placed into receivership. The Fund then assumed all outstanding covered claims against PBC, including its defense of plaintiff's wrongful death action. Contrary to the advice and recommendations of PBC's defense counsel, the Fund refused to pay any amount to settle plaintiff's claim.
After a jury trial resulted in a verdict for plaintiff in the wrongful death action, she obtained a judgment against PBC for $401,706.34, which PBC appealed. Thereafter, the Fund unsuccessfully attempted to settle plaintiff's claim against PBC for $60,000. Plaintiff and PBC then entered into a "Damron" agreement under which PBC dismissed its appeal and assigned to plaintiff any rights it had against the Fund.
Plaintiff, individually and as PBC's assignee, then brought this action against the Fund and others. Claiming negligence, breach of contract, and bad faith, plaintiff alleged that the Fund had unreasonably refused to settle her claim before trial, had failed to post any supersedeas bond for PBC's appeal, and had offered only $60,000 post-trial to settle the claim and satisfy her judgment. In response, the Fund alleged that it "enjoy immunity pursuant to A.R.S. § 20-675(A)" and moved for summary judgment on that basis. This appeal followed the trial court's entry of partial summary judgment for the Fund as to plaintiff's "causes of action sounding in tort."
DISCUSSION
Citing Wells Fargo Credit Corp. v. Arizona Property and Casualty Insurance Guaranty Fund, 165 Ariz. 567, 799 P.2d 908 (App. 1990), the trial court ruled that plaintiff's tort claims against the Fund are barred by § 20-675. The court further ruled that § 20-675 is "not unconstitutional." Plaintiff contends the trial court erred in several respects, arguing that Wells Fargo was wrongly decided by Division One of this court, § 20-675 "does not purport to grant immunity to the Fund," and if so interpreted, would violate the following provisions in Arizona's Constitution: article 18, § 6 (anti-abrogation clause); article 2, § 31 (no damage limitation clause); and article 2, § 13 (equal protection).
"When reviewing a grant of summary judgment where the facts are undisputed, we determine whether the trial court correctly applied the substantive law to the undisputed facts." Carden v. Golden Eagle Ins. Co., 190 Ariz. 295, 296, 947 P.2d 869, 870 (App. 1997). We review de novo statutory interpretation issues and constitutional claims and, if possible, will decide the case on non-constitutional grounds. Little v. All Phoenix South Community Mental Health Ctr., 186 Ariz. 97, 919 P.2d 1368 (App. 1995). In interpreting statutes, our primary mission is "to find and give effect to legislative intent." Mail Boxes, Etc. v. Industrial Comm'n, 181 Ariz. 119, 121, 888 P.2d 777, 779 (1995). We focus first on the statutory wording and, if it is ambiguous or inconclusive, we consider the statute's "context, subject matter, historical background, effects, consequences, spirit,
Page 1 2 3 4 5 6 7 8 9 10 Arizona Employee Leasing Services
Employee Leasing Services
|