What follows is an opinion from a United States Court of Appeals. Your task is to identify the state or territory in which the case was first heard. If the case began in the federal district court, consider the state of that district court. If it is a habeas corpus case, consider the state of the state court that first heard the case. If the case originated in a federal administrative agency, answer "not applicable". Answer with the name of the state, or one of the following territories: District of Columbia, Puerto Rico, Virgin Islands, Panama Canal Zone, or "not applicable" or "not determined".

Opinion:
ROCKY MOUNTAIN FIRE & CASUALTY COMPANY, a Washington corporation, Plaintiff-Appellant, v. DAIRYLAND INSURANCE COMPANY, a Wisconsin corporation, Defendant-Appellee.
No. 71-1836.
United States Court of Appeals, Ninth Circuit.
Dec. 7, 1971.
Rehearing Denied Jan. 18, 1972.
Robert A. Guyer, of Burch, Cracchiolo, Levie, Guyer & Weyl, Phoenix, Ariz., for plaintiff-appellant.
M. B. Moseley, of Andrews, Marenda & Moseley, P.A., Phoenix, Ariz., for defendant-appellee.
Before MERRILL, BROWNING, and CHOY, Circuit Judges.
PER CURIAM:
Rocky Mountain Fire & Casualty Company appeals from the district court’s dismissal of its diversity action against Dairyland Insurance Company. The district court determined that Rocky Mountain had failed to state a claim recognized by Arizona law. We affirm.
Hugh Tillery wrecked an automobile owned by Buck Cook. An injured passenger sued Tillery. Dairyland had insured the automobile, and was the primary carrier. Rocky Mountain had issued a policy to Tillery, and was liable for damages in excess of the ten thousand dollar limits of Cook’s policy.
After a jury gave the injured passenger a $12,500 verdict, Dairyland moved for a new trial. The plaintiff offered to settle for $12,000. Rocky Mountain agreed to contribute $2,000 toward the $12,000 sum, but Dairyland refused to settle. The second trial ended with a jury award of $21,500. Dairyland paid to its $10,000 limit; Rocky Mountain paid the remaining $11,500.
Rocky Mountain then commenced this action against Dairyland, seeking damages on the theories that (1) Dairyland owed a duty of good faith to the excess insurer and breached that duty by refusing to offer to pay its policy limits in settlement, and (2) Rocky Mountain, as subrogee of Tillery’s rights, can recover for Dairyland’s alleged breach of its duty to Tillery to negotiate in good faith.
The opinion of the Arizona Supreme Court in Universal Underwriters Insurance Co. v. Dairyland Mutual Insurance Co., 102 Ariz. 518, 433 P.2d 966 (1968), fairly read, rejects both contentions. A federal court exercising diversity jurisdiction is bound to follow the considered dicta as well as the holdings of state court decisions. United States Fidelity & Guaranty Co. v. Anderson Construction Co., 260 F.2d 172, 176 (9th Cir. 1958).
Affirmed.

Question: In what state or territory was the case first heard?

Choices:
not
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Connecticut
Delaware
Florida
Georgia
Hawaii
Idaho
Illinois
Indiana
Iowa
Kansas
Kentucky
Louisiana
Maine
Maryland
Massachussets
Michigan
Minnesota
Mississippi
Missouri
Montana
Nebraska
Nevada
New
New
New
New
North
North
Ohio
Oklahoma
Oregon
Pennsylvania
Rhode
South
South
Tennessee
Texas
Utah
Vermont
Virginia
Washington
West
Wisconsin
Wyoming
Virgin
Puerto
District
Guam
not
Panama

Answer: 3