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Callies v. United Heritage Prop. & Cas. Ins. Co.
Arizona Court of Appeals
2014 WL 1048846
Kenneth and Dorene Callies (plaintiffs) purchased homeowners’ insurance for their Oregon home from United Heritage Property & Casualty Insurance Company (United) (defendant), which was incorporated and had its principal place of business in Idaho. The policy covered the Callieses’ personal property anywhere in the world. While moving to Arizona, the Callieses’ personal property was stolen in Arizona. The Callieses filed a claim with United. After United initially indicated coverage, the Callieses purchased a home in Arizona. United then began a fraud investigation. Kenneth had emotional and behavioral problems because of the fraud investigation, his mental health deteriorating until he had to be committed to an Oregon mental-health facility. The Callieses filed a tort claim for insurance bad faith in Arizona state court. United moved to dismiss, arguing that Oregon law applied and Oregon did not recognize a tort for first-party insurance bad faith. The trial court granted United’s motion. The Callieses appealed.
Rule of Law
Holding and Reasoning (Jones, J.)
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