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TUCSON AIRPORT AUTH. v. CERTAIN UNDER.

No. 2 CA-CV 95-0052.

186 Ariz. 45 (1996)

918 P.2d 1063

TUCSON AIRPORT AUTHORITY, a nonprofit corporation, Plaintiff/Appellant, v. CERTAIN UNDERWRITERS AT LLOYD'S, LONDON and Various London Market Insurance Companies subscribing to policy nos. 75ZW1770, 76ZW1770, 77ZW1770, AW177078, AW177079, AW177080, AW177081, AW177082, AW177083, AW177084, AW177085, and AW177086; Associated Aviation Underwriters; Federal Insurance Company; United States Aviation Underwriters, Inc.; United States Aircraft Insurance Group, an unincorporated association of insurance carriers; United States Fidelity & Guaranty Company, a representative insurer of USAIG; the Aetna Casualty and Surety Company, a representative insurer of USAIG, Defendants/Appellees.

Court of Appeals of Arizona, Division 2, Department A.

Review Denied June 19, 1996.

Attorney(s) appearing for the Case

Anderson, Kill, Olick & Oshinsky by David A. Paige, Tucson, for Plaintiff/Appellant.

Gust Rosenfeld by H. William Fox and Peter Collins, Jr., Phoenix and Tucson, for Associated Aviation Underwriters and Federal Insurance Company.

Mitten, Goodwin & Raup by R.C. Mitten, Edward R. Glady, Jr., and David F. Froeb, Phoenix, for United States Aviation Underwriters, Inc., United States Aircraft Insurance Group, United States Fidelity & Guaranty Company, and the Aetna Casualty and Surety Company.

Lesher & Lesher by Robert O. Lesher, Tucson, and Lord, Bissell & Brook by Gary Westerberg and Victoria Rohner, Chicago, IL, for Certain Underwriters at Lloyd's London, and Various London Market Insurance Companies.

OPINION

FERNANDEZ, Judge.

Tucson Airport Authority (TAA) brought this bad faith claim against its insurers, alleging that they had breached their duty to treat TAA fairly. The insurers argued that their conduct was absolutely privileged and moved to dismiss the claim pursuant to Rule 12(b)(6), Ariz.R.Civ.P., 16 A.R.S. The trial court granted the motion and TAA appealed. We reverse.

A dismissal for failure to state a claim on which relief...

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