NOONAN, Circuit Judge:
James and Nancy Matison ("the Matisons") sued Transamerica Title Insurance Company ("Transamerica"), a California corporation, for breach of a contract to insure title and for tortious breach of good faith in settling a claim against the Matisons. Transamerica removed the case to the federal district court. The case turns on Arizona law concerning the insurer's duty to its insured.
FACTS
In 1981 Transamerica issued a standard...
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