Quihuis v. State Farm Mutual Automobile Insurance

Vice Chief Justice PELANDER,

opinion of the Court:

¶ 1 The United States Court of Appeals for the Ninth Circuit has certified the following question for our review:

Whether a default judgment against insured-defendants that was entered pursuant to a Damron agreement that stipulated facts determinative of both liability and coverage has (1) collateral estoppel effect and precludes litigation of that issue in a subsequent coverage action against the insurer, as held in Associated Aviation Underwriters v. Wood, [209 Ariz. 137,] 98 P.3d 572 ([ ]App.2004), or (2) no preclusive or binding effect, as…