Rawlings V. Apodaca

This case arises out of a fire which occurred on West Elliot Road in Laveen, Arizona on July 25, 1979. The fire engulfed property owned by the defendants Apodaca on the west, a dairy farm to the east owned by the plaintiffs Rawlings, and a vacant lot in between these two properties. At the time of the fire, the Rawlingses were leasing a portion of their dairy farm to William Raney. The Rural Metro Fire Department was called to the scene and eventually succeeded in putting out the fire, but not before considerable damage had been done to the property of the Rawlingses and the Raneys. The Rawlingses and the Raneys filed separate actions against the Apodacas alleging that the damage to their property resulted from the negligence of the Apodacas. The two actions were consolidated for trial. The action filed by the Rawlingses included a claim against Farmers Insurance Company of Arizona (hereinafter "Farmers") which insured a portion of their property for losses and which also provided homeowner's liability insurance to the Apodacas. The Rawlingses alleged that Farmers had breached its duty of good faith and fair dealing to them in regard to an investigative report that Farmers had made concerning the fire.