Fidelity National Title Insurance v. Centerpoint Mechanic Lien Claims, LLC

OPINION

CATTANI, Judge:

¶ 1 In this case, we address whether a title insurance company is liable under United Services Automobile Ass’n v. Morris, 154 Ariz. 113, 741 P.2d 246 (1987), for damages agreed to by its insureds in a settlement agreement resolving third-party mechanics’ lien claims against the insureds’ interest in a real estate development. Under Morris, when an insurer agrees to defend its insured against a third-party liability claim, but reserves the right to challenge coverage under the insured’s policy, the insured may independently settle with the third-party claimant without…