Garbis Satamian v. Great Divide Insurance Co., et al.1 min read

Arizona Supreme Court:     No. CV-23-0085-PR     Filed Date: April 9, 2024

Garbis Satamian v. Great Divide Insurance Co., et al.

ISSUES:

1. When do negligent procurement of insurance and promissory estoppel claims accrue for statute of limitations purposes?
2. Does the discovery rule toll the statute of limitations for these claims?
3. Should accrual rules from bad faith insurance cases apply to negligent procurement and promissory estoppel claims?

DECISION:

1. These claims accrue when the insured incurs litigation costs to defend against a claim due to lack of coverage.
2. The discovery rule did not toll the statute of limitations because A.C. Watercraft knew or should have known of its injury by May 2017 when it began incurring legal costs.
3. Accrual rules from bad faith cases do not apply because negligent procurement and promissory estoppel claims have different elements and accrue earlier.