Source: s3://data.kl3m.ai/documents/govinfo/USCOURTS/USCOURTS-azd-3_06-cv-03114/USCOURTS-azd-3_06-cv-03114-0/pdf.json

Nature of Suit Code: 110
Nature of Suit: Insurance
Cause of Action: 28:2201 Declaratory Judgment

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NOT FOR PUBLICATION

IN THE UNITED STATES DISTRICT COURT

FOR THE DISTRICT OF ARIZONA

Mt. Hawley Insurance Co., 

Plaintiff, 

vs.

Yavapai Plumbing & Electrical, Inc., 

Defendant. 

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No. CV-06-03114-PHX-FJM

ORDER

The court has before it defendant's motion to dismiss (doc. 11), plaintiff's petition to

set bond amount (doc. 13), plaintiff's response to defendant's motion (doc. 14), defendant's

reply in support of its motion (doc. 15), and plaintiff's reply in support of its petition (doc.

16). Defendant moves to dismiss for failure to comply with A.R.S. § 20-405. Motion to

Dismiss at 1-2. Plaintiff petitions for us to set a bond in the amount of $25,000 in order to

bring it in compliance with A.R.S. § 20-405. Petition at 13. Defendant argues that $50,000

is a more appropriate bond amount. Defendant's Reply at 1. 

Plaintiff's complaint seeks a declaration that the commercial liability policy plaintiff

issued defendant (1) does not require plaintiff to indemnify defendant in a pending state court

action, and (2) that the policy is rescinded. Complaint (doc. 1) at 2-8. Given the nature of

plaintiff's claims, this case will likely be decided by a pretrial motion. Further, plaintiff

contends that discovery will be limited to matters involving defendant, and will not include

the parties in the state court action. Plaintiff's Reply at 2. Therefore, we anticipate that

Case 3:06-cv-03114-NVW Document 17 Filed 04/18/07 Page 1 of 2
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defendant's fees and costs will not exceed $25,000, and grant plaintiff's petition. As a result,

we deny defendant's motion to dismiss on grounds of mootness.

THEREFORE, IT IS ORDERED GRANTING plaintiff's petition to set bond

amount (doc. 13) and DENYING defendant's motion to dismiss (doc. 11). IT IS

FURTHER ORDERED that plaintiff shall post a bond of $25,000 by April 30, 2007, absent

which this case will be dismissed. 

DATED this 17th day of April, 2007.

Case 3:06-cv-03114-NVW Document 17 Filed 04/18/07 Page 2 of 2