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PUEBLO SANTA FE TOWNHOMES OWNERS' ASS'N v. TRANSCONTINENTAL INSURANCE CO.

No. 1 CA-CV 07-0215.

178 P.3d 485 (2008)

PUEBLO SANTA FE TOWNHOMES OWNERS' ASSOCIATION, Inc., an Arizona non-profit corporation, Plaintiff/Appellee, v. TRANSCONTINENTAL INSURANCE COMPANY and Transportation Insurance Company, Defendants/Appellants.

Court of Appeals of Arizona, Division 1, Department B.

March 13, 2008.

Attorney(s) appearing for the Case

Meagher & Geer, P.L.L.P. By Thomas H. Crouch, Scottsdale, and Nixon, Peabody, LLP By Walter T. Johnson, San Francisco, Attorneys for Defendants/Appellants.

Mann, Berens & Wisner, LLP By Jay M. Mann, Scott F. Frerichs, Phoenix, Attorneys for Plaintiff/Appellee.

OPINION

JOHNSEN, Judge.

¶ 1 This is an appeal of a judgment entered after a subcontractor and a homeowners association entered into a Morris agreement1 assigning the subcontractor's rights under an insurance policy issued by Transcontinental Insurance Company ("CNA"). The superior court found that because CNA delayed for 18 months before informing the subcontractor that it reserved its right to deny indemnity coverage...

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