Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-2_08-cv-00965/USCOURTS-azd-2_08-cv-00965-3/pdf.json

Nature of Suit Code: 190
Nature of Suit: Other Contract Actions
Cause of Action: 28:1332 Diversity-Contract Dispute

---

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

WO

NOT FOR PUBLICATION

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Conlon Group Arizona, LLC, 

Plaintiff, 

vs.

CNL Resort Biltmore Real Estate, Inc.;

KSL Biltmore Resort, Inc., 

Defendants. 

)

)

)

)

)

)

)

)

)

)

)

)

)

No. CV-08-0965-PHX-FJM

ORDER

The court has before it Conlon’s “Motion to Recalculate Claim Accrual Date for

Statute of Limitations” (doc. 157), which we construe as a motion for reconsideration of our

order dated July 27, 2009 (doc. 155). 

Conlon asks us to reconsider our conclusion that the discovery rule is not available

to toll the accrual dates of the breach of contract claims. We noted in our order that the

“discovery rule does not apply where a party fails to ‘exercise[ ] reasonable diligence in

monitoring the performance of another under the contract.’ ” Order at 7 (citation omitted).

We found that, although the assignor villa owners had a contractual right to review the

Hotel’s rental pool books and records, there is no allegation that any assignor villa owner

sought to review those records at any time, or otherwise attempted to monitor the Hotel’s

performance under the contract. Therefore, we concluded that the assignor villa owners

Case 2:08-cv-00965-FJM Document 165 Filed 08/27/09 Page 1 of 2
1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

- 2 -

failed to demonstrate the exercise of reasonable diligence required for application of the

discovery rule. 

We reject Conlon’s argument that the assignor villa owners are entitled to demonstrate

their exercise of diligence through Conlon’s efforts. As an assignee, Conlon steps into the

shoes of the assignor villa owners and its rights and defenses are strictly derivative of the

rights and defenses held by the assignors. See Stephens v. Textron, Inc., 127 Ariz. 227, 230,

619 P.2d 736, 739 (1980). Because the assignor villa owners did not exercise reasonable

diligence, the discovery rule is not available to them.

IT IS ORDERED DENYING Conlon’s “Motion to Recalculate Claim Accrual Date

for Statute of Limitations” (doc. 157).

DATED this 26th day of August, 2009.

Case 2:08-cv-00965-FJM Document 165 Filed 08/27/09 Page 2 of 2