Aetna Casualty & Surety Company v. Superior Court
In Aetna Casualty & Surety Company v. Superior Court, 161 Ariz. 437, 778 P.2d 1333 (App. 1989), the Court reversed the denial of an insurer's motion for summary judgment on a claim for breach of the duty of good faith. 161 Ariz. 437, 440, 778 P.2d 1333, 1336.
On appeal, we rejected the argument that the insurer breached by failing to investigate the claim because the insured failed to cite any material fact the insurer would have discovered if it had investigated. Id.
The Court observed, "Regardless of the eventual outcome of this question on appeal, the fact that two courts agreed that plaintiff was not covered by the policy, after hearing the arguments of counsel for both parties, clearly demonstrates that the insurance company had a reasonable basis for denying the claim." Id.