Southwest Metalsmiths, Inc. v. Lumbermens Mutual Casualty Co.
Opinion
Lead Opinion
MEMORANDUM *
Lumbermens Mutual Casualty Company (“LMC”) appeals summary judgment in favor of Southwest Metalsmiths, Inc. (“SMI”) in a dispute over the scope of insurance coverage available to SMI under a Commercial General Liability policy (“CGL policy”) issued by LMC. LMC also appeals the award of attorneys fees to SMI by the district court. Under Arizona choice of law principles, Arizona contract law applies to this dispute. See Klaxon v. Stentor Elec. Mfg., 313 U.S. 487, 496 , 61 S.Ct. 1020 , 85 L.Ed. 1477 (1941); Aries v. Palmer Johnson, 153 Ariz. 250 , 735 P.2d 1373, 1380-81 (1987).
Interpreting the Commercial General Liability policy de novo under Arizona contract law, we determine that coverage exists under the policy and that none of the exclusions propounded by LMC apply to preclude coverage. We also believe that the district court properly exercised its discretion under Arizona law in awarding attorneys fees and conclude that a reasonable basis exists for the award. Because this is so, we will not substitute our discretion for that of the district court. See Newbery Corp. v. Fireman’s Fund Ins. Co., 95 F.3d 1392 , 1406 (9th Cir.1996).