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LENNAR CORP. v. TRANSAMERICA INS. CO.

No. 1 CA-CV 10-0141.

256 P.3d 635 (2011)

LENNAR CORPORATION, a Delaware corporation; Lennar Communities Development, Inc., a Delaware corporation; Lennar Homes of Arizona, Inc., an Arizona corporation, Counterclaimants/Appellants, v. TRANSAMERICA INSURANCE COMPANY (now known as TIG Insurance Company), and United States Fidelity & Guaranty Company, Counterdefendants/Appellees. Lennar Corporation, a Delaware corporation; Lennar Communities Development, Inc., a Delaware corporation; Lennar Homes Of Arizona, Inc., an Arizona corporation, Third-Party Plaintiffs/ Crossclaimants/Appellants, v. United States Fire Insurance Company, Cross-Claim Defendant/Appellee.

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

July 5, 2011.

Attorney(s) appearing for the Case

Fennemore Craig, P.C. by Timothy Berg, John J. Balitis, Jr., Theresa Dwyer-Federhar, Phoenix, and Payne & Fears LLP by Scott S. Thomas, pro hac vice, J. Kelby Van Patten, pro hac vice, Irvine, CA, Attorneys for Counterclaimants, Crossclaimants, Third-Party Plaintiffs/Appellants.

Burke Panzarella Rich by Thomas P. Burke, II, Elizabeth L. Fleming, Phoenix, and Harrington, Foxx, Dubrow & Canter, LLP by Mark. W. Flory, pro hac vice, Michael C. Denlinger, pro hac vice, Los Angeles, CA, Attorneys for Counterdefendants/Appellees, TIG Insurance Co. and United States Fidelity & Guaranty Co.

Broening, Oberg, Woods & Wilson, P.C. by Terrence P. Woods, Marilyn D. Cage, Phoenix, Attorneys for Cross-Claim Defendant/Appellee United States Fire Insurance Co.

OPINION (As Modified)

JOHNSEN, Judge.

¶ 1 The insurers in this appeal argue we should affirm their summary judgment on the insured's claim for breach of the covenant of good faith and fair dealing because the insurers sought a declaratory judgment on coverage and obtained a ruling, later reversed, in their favor. We reverse because questions of material fact prevent summary judgment in the insurers' favor. We also hold that under the circumstances presented...

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