Combined Communications Corporation, an Arizona Corporation, Cross v. Seaboard Surety Company, a New York Corporation, Cross-Appellee

Seaboard Surety Company appeals from a summary judgment entered in favor of combined Communications Corporation. Combined Communications cross appeals from the district court’s failure to use its suggested form of judgment and from a denial of attorneys’ fees.

Seaboard, an insurance underwriter, issued a Broadcasters Liability Policy to Combined Communications to cover damages caused by the insured’s radio and television broadcasts. The policy stated that “$5,000 for each claim shall be deducted from the total amount of all sums which the Company agrees to pay.... ” Multiple plaintiffs sued Combined Communications in three separate actions. Seaboard argues that the $5,000 deductible amount applies to each claim filed by a plaintiff against Combined Communications. Combined Communications contends that only one $5,000 sum is deductible in connection with each liability-producing broadcast. The district court, agreeing with Combined Communications, granted it summary judgment. We reverse.

The dispute is over the meaning of Endorsement 4 of the insurance policy. Arizona law requires that unclear or ambiguous insurance contracts be construed most favorably to the insured. Parks v.…