Opinion ID: 1172244
Heading Depth: 2
Heading Rank: 3

Heading: The state's declaratory judgment action

Text: During the course of the tort litigation, the state filed this declaratory judgment action claiming it could not indemnify Heinze for Saunders' and Schallock's claims because his acts were outside the course and scope of his employment. In Schallock's trial, the judge directed a verdict on the vicarious liability issue, finding no factual support for the state's contention that Heinze's actions were not in the course and scope of his authority as APAAC's director. However, because the verdict was never reduced to judgment, the order directing a verdict on course and scope was never merged in a final judgment or appealable order. Because there was no judgment entered, the state claims there is no collateral estoppel on the issue of course and scope and the directed verdict therefore cannot be used to establish course and scope for insurance purposes under A.R.S. § 41-621(A)(3). On cross-motions for summary judgment, the trial judge in the declaratory judgment action relied on the doctrine of collateral estoppel flowing from the directed verdict in the tort case and concluded that under § 41-621 the state was required to indemnify Heinze.