Szeto v. Aps ( 2021 )


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  •                                    IN THE
    ARIZONA COURT OF APPEALS
    DIVISION ONE
    CHAO XIE SZETO, et al., Plaintiffs/Appellants,
    v.
    ARIZONA PUBLIC SERVICE COMPANY, Defendant/Appellee.
    No. 1 CA-CV 20-0609
    FILED 11-30-2021
    Appeal from the Superior Court in Maricopa County
    No. CV2017-011033
    CV2017-056792
    CV2018-004433
    The Honorable Christopher A. Coury, Judge
    REVERSED AND REMANDED
    COUNSEL
    Merlin Law Group, P.A., Phoenix
    By Michael Ponzo
    Counsel for Plaintiffs/Appellants
    Gaona Law Firm, Phoenix
    By David F. Gaona
    Counsel for Defendant/Appellee
    SZETO, et al. v. APS
    Opinion of the Court
    OPINION
    Judge Paul J. McMurdie delivered the Court’s opinion, in which Presiding
    Judge Peter B. Swann and Judge David D. Weinzweig joined.
    M c M U R D I E, Judge:
    ¶1            Plaintiffs Chao Xie Szeto, Yit Kiu Szeto, and Lydia Briones
    appeal from the superior court’s summary judgment for Defendant
    Arizona Public Service Company (“APS”). We hold the superior court erred
    by ruling that APS’s tariff bars a claim for property damage caused by a fire
    allegedly resulting from negligent maintenance of the utility’s power lines.
    We, therefore, reverse the judgment and remand for further proceedings
    consistent with this opinion.
    FACTS AND PROCEDURAL BACKGROUND
    ¶2            In August 2020, a fire destroyed two homes, one owned by
    the Szetos and occupied by Briones. Briones testified that she saw loose
    power lines dancing and sparking on the utility pole between her home and
    the house next door just before the fire. Briones and her son fled to the street
    in front of their home, where she heard an explosion from the backyard.
    Besides destroying the home, the fire also damaged Briones’ personal
    property. A fire investigator found that arcing in the overhead electrical
    wires on the utility pole between the two homes caused the fire.
    ¶3              The Szetos and Briones sued APS, alleging that APS
    negligently maintained the power lines, causing the fire. APS moved for
    summary judgment, asserting that its public utility tariff exempted it from
    liability for ordinary negligence. The relevant section of the tariff provides:
    5.3    Service Interruptions: Limitations on Liability of
    Company
    5.3.1   Company shall not be liable to the customer
    for any damages occasioned by Load Serving
    2
    SZETO, et al. v. APS
    Opinion of the Court
    ESP’s1 equipment or failure to perform,
    fluctuations, interruptions or curtailment of
    electric service, except where due to
    Company’s willful misconduct or gross
    negligence. Company may, without incurring
    any liability therefore, suspend the customer’s
    electric service for periods reasonably
    required to permit Company to accomplish
    repairs to or changes in any of Company’s
    facilities. The customer needs to protect their
    own sensitive equipment from harm caused
    by variations or interruptions in power
    supply.
    ¶4            Focusing on the exculpatory clause’s reference to a “failure to
    perform,” the superior court found that APS could be liable in connection
    with providing electric service only if it committed willful misconduct or
    gross negligence. As a result, the court entered summary judgment against
    the Szetos and Briones, who had alleged mere negligence on the part of
    APS. The Szetos and Briones appealed, and we have jurisdiction under
    A.R.S. § 12-2101(A)(1).
    DISCUSSION
    ¶5             On appeal from a summary judgment, we view the facts in
    the light most favorable to the party against whom judgment was granted,
    Riley, Hoggatt & Suagee, P.C. v. English, 
    177 Ariz. 10
    , 12 (1993), and
    “determine de novo whether there are any genuine issues of material fact
    and whether the trial court erred in its application of the law,” Sign Here
    Petitions LLC v. Chavez, 
    243 Ariz. 99
    , 104, ¶ 13 (App. 2017) (quoting L. Harvey
    Concrete, Inc. v. Agro Constr. & Supply Co., 
    189 Ariz. 178
    , 180 (App. 1997)).
    A. A Tariff Approved by the Corporation Commission is Binding on a
    Public Service Corporation’s Customers and May Limit Certain
    Liabilities.
    ¶6           Article 15, Section 3 of the Arizona Constitution authorizes
    the Corporation Commission to “prescribe just and reasonable . . . rates
    1       APS acknowledged during argument in the superior court,
    “Load-Serving ESP” does not refer to APS. ESPs are companies that supply
    electricity in competition with APS under Ariz. Admin. Code R14-2-1601
    to -1618. See ¶ 11 infra.
    3
    SZETO, et al. v. APS
    Opinion of the Court
    and charges to be made and collected[] by public service corporations
    within the state for services rendered therein.” Under this authority, the
    Commission requires electric public service corporations to file proposed
    tariffs that “list the services and products offered by the utility and which
    set forth the terms and conditions and a schedule of the rates and charges,
    for those services and products.” Ariz. Admin. Code (“A.A.C.”)
    §§ R14-2-201.4.42, R14-2-212(F); A.R.S. § 40-365. Once approved by the
    Commission, a tariff governs the relationship between the public service
    corporation and its customers. US Airways, Inc. v. Qwest Corp., 
    238 Ariz. 413
    ,
    416, ¶ 11 (App. 2015), aff’d and ordered depublished in part, 
    241 Ariz. 182
    (2016). The tariff becomes a binding contract between the utility and its
    customers. Sommer v. Mountain States Tel. & Tel. Co., 
    21 Ariz. App. 385
    ,
    387-88 (1974).
    ¶7               Our constitution does not expressly authorize the
    Commission to limit the liability of public service corporations. But the
    rate-setting process requires the Commission to consider a utility’s
    liabilities, so the Commission necessarily has the authority to limit certain
    liabilities. See Qwest Corp. v. Kelly, 
    204 Ariz. 25
    , 30, ¶ 13 (App. 2002) (“[T]he
    [C]ommission’s power goes beyond strictly setting rates and extends to
    enactment of the rules and regulations that are reasonably necessary steps
    in ratemaking.”) (quoting State ex rel. Corbin v. Ariz. Corp. Comm’n, 
    174 Ariz. 216
    , 218 (App. 1992)). Thus, the Commission may limit a utility’s liability
    for economic damages resulting from service interruptions, which are
    appropriately considered in ratemaking decisions because of their
    contractual nature and potential magnitude, but may not limit liability for
    personal injury and property damages, which are not. See Pub. Serv. Comm’n
    v. Mo. Gas Energy, 
    388 S.W.3d 221
    , 231–32 (Mo. App. 2012) (Missouri Public
    Service Commission acted beyond its authority by limiting a public utility’s
    liability for personal injury and property damages because “limitations of
    liability involving economic damages are the types of limitations that
    would be involved in establishing a utility company’s rates[, but the] same
    cannot be said of limitations of liabilities in a negligence action involving
    personal injury or property damage.”).
    B. The Tariff Does Not Preclude APS’s Liability for Property Damage
    Resulting from a Breach of its Duty to Exercise the Highest Degree of
    Skill and Care for the Protection of Life and Property in the
    Generation and Distribution of Electricity from its Plant to its Patrons.
    ¶8              In determining APS’s liability, the superior court relied on the
    first clause of § 5.3.1, focusing specifically on the term “failure to perform.”
    The court read this provision as eliminating liability for APS’s failure to
    4
    SZETO, et al. v. APS
    Opinion of the Court
    perform its obligations to transmit and distribute electricity safely. But as
    noted below, “failure to perform” refers only to a failure to perform by
    third-party companies called “Load Serving ESPs,” not to any failure to
    perform by APS.
    ¶9             Tariff interpretation generally presents a question of law
    which we review de novo. Harby v. Saadeh, 
    816 F.2d 436
    , 439 (9th Cir. 1987)
    (Tariff interpretation presents a question of law.). We use contract
    principles to construe tariffs and look first to the tariff’s plain meaning to
    determine its intended effect. 73B C.J.S. Public Utilities § 7 (2021). In
    addition, “[w]ords are to be given the meaning that proper grammar and
    usage would assign them.” Antonin Scalia & Bryan A. Garner, Reading Law:
    The Interpretation of Legal Texts, at 140 (2012). Grammar is not “a category of
    indication separate from textual meaning.” Id. at 141. It is one of the ways
    the sense of a statute is conveyed. Id.; see also Brett M. Kavanaugh, Fixing
    Statutory Interpretation, 129 Harv. L. Rev. 2118, 2144 (2016) (book review)
    (“First, courts could determine the best reading of the text of the statute by
    interpreting the words of the statute, taking account of the context of the
    whole statute, and applying any other appropriate semantic canons of
    construction.”).
    ¶10           The first sentence of § 5.3.1 states:
    Company shall not be liable to the customer for any
    damages occasioned by Load Serving ESP’s equipment or
    failure to perform, fluctuations, interruptions or
    curtailment of electric service, except where due to
    Company’s willful misconduct or gross negligence.
    Usually, one applies a prepositive modifier to each element of a list
    possessing a straightforward parallel construction. Scalia, supra, at 147–51.
    For example, in the phrase “charitable institutions or societies,”
    “charitable” applies to both “institutions” and “societies.” Id. at 147. We
    refer to this canon of construction as the series-qualifier canon. Id.
    ¶11           And though the series at issue is less straightforward than the
    example, we apply the canon to each sublist in the series. Because there is a
    conjunction rather than a comma between “equipment” and “failure to
    perform,” the two terms make up a single compound item in the series—a
    sort of list within the list. See Scalia, supra, at 161 (“Punctuation is a
    permissible indicator of meaning.”). In the context of the whole series, the
    punctuation means that “Load Serving ESP’s” modifies both “equipment”
    and “failure to perform,” so that the liability limitation applies to a “Load
    5
    SZETO, et al. v. APS
    Opinion of the Court
    Serving ESP’s equipment” and a “Load Serving ESP’s failure to perform.”
    And, as APS concedes, there is no question that “Load Serving ESP” does
    not refer to APS. The tariff always calls APS the “Company,” and A.A.C.
    R14-2-1601 defines “ESPs” as “Electric Service Providers,” which are
    companies that supply the electricity in competition with APS under A.A.C.
    R14-2-1601 to -1618. Giving the provision its fair meaning, we conclude the
    tariff eliminates APS’s liability for damages caused by Load Serving ESP’s
    equipment or failure to perform but does not apply to a failure to perform
    by APS itself.
    ¶12             Although the superior court relied only on the term “failure
    to perform,” APS argues that the provision’s reference to “fluctuations”
    also disclaims liability in this case. But this argument fails because arcing
    along a service line is not a fluctuation in electric service. By disclaiming
    liability for damages occasioned by a fluctuation in electric service, the tariff
    eliminates liability for economic damages incurred when a customer
    receives voltage that is too high or too low to serve its purpose. But it does
    not eliminate liability for a fire caused by arcing on a service line.
    ¶13            This interpretation also tracks the title of the subsection in
    which the provision is found, “Service Interruptions: Limitations on
    Liability of Company.” And though APS argues that the title of the heading
    is not part of the term itself, “we consider a provision’s meaning in the
    context of the entire contract.” Terrell v. Torres, 
    248 Ariz. 47
    , 50, ¶ 14 (2020).
    Of course, we recognize that titles do not constitute part of the law when
    interpreting statutes because A.R.S. § 1-212 provides as much. Still, in the
    context of a public utility tariff, we will not ignore a subsection’s title in
    determining the meaning of the subsection.
    ¶14            In addition, the policy supporting the limitation of liability for
    economic damages caused by service interruptions does not support
    eliminating liability for damages to property caused directly by unsafe
    transmission lines. In US Airways, we articulated the policy considerations
    at issue. 238 Ariz. at 417, ¶ 12. Like other jurisdictions, we recognized that
    defining and limiting a public utility’s liability allows it to provide service
    at reasonable rates. Id. at 417, ¶ 12 (App. 2015); see also In re Ill. Bell Switching
    Station Litig., 
    641 N.E.2d 440
    , 446 (1994) (speculating that the plaintiffs
    might well end up owning the telephone company if unlimited liability for
    economic damages were allowed to flow from a major utility outage). But
    while policy favors limiting liability for damages resulting from service
    interruptions that can have far-reaching effects, no such policy
    consideration supports eliminating liability when a public utility
    company’s negligence causes property damage or a personal injury.
    6
    SZETO, et al. v. APS
    Opinion of the Court
    ¶15            Thus, § 5.3 of the tariff does not disclaim APS’s liability for
    property damage caused by a breach of its duty to exercise the highest
    degree of skill and care to protect life and property in the generation and
    distribution of electricity from its plant to patrons. See Phoenix Light & Fuel
    Co. v. Bennett, 
    8 Ariz. 314
    , 322 (1903) (defining a utility’s standard of care).
    Thus, the superior court erred by reading the tariff as disclaiming APS’s
    liability for fire damage to property caused by mere negligence in
    maintaining its service lines.
    ¶16            As noted in the section that follows, our interpretation avoids
    a constitutional issue that would arise if the tariff were read as eliminating
    the Szetos’ and Briones’ right to bring a negligence claim in this case. See
    Smith v. Ariz. Bd. of Regents, 
    195 Ariz. 214
    , 219, ¶¶ 9, 24 (App. 1999)
    (construing a statute strictly “to avoid any overbroad statutory
    interpretation that would give unintended immunity and take away a right
    of action” and declining to address a constitutional argument because the
    statute as strictly interpreted did not apply); see also Hayes v. Cont’l Ins. Co.,
    
    178 Ariz. 264
    , 273 (1994) (We favor a construction that allows us “to avoid
    unnecessary resolution of constitutional issues.”).
    C. The Question of Liability Here Cannot Be Determined Through a
    Direct Application of US Airways. If Interpreted as Disclaiming
    APS’s Liability for Property Damage Caused by its Ordinary
    Negligence, the Tariff Would Implicate the Anti-Abrogation Clause.
    ¶17            The Szetos and Briones argue on appeal that the superior
    court’s interpretation of the tariff violates the anti-abrogation clause of the
    Arizona Constitution. Under Article 18, Section 6 of the Arizona
    Constitution, “[t]he right of action to recover damages for injuries shall
    never be abrogated, and the amount recovered shall not be subject to any
    statutory limitation.” The provision preserves “the ability to invoke judicial
    remedies for those wrongs traditionally recognized at common law,”
    Boswell v. Phoenix Newspapers, Inc., 
    152 Ariz. 9
    , 17 (1986), and protects claims
    that evolved from common law antecedents. Hazine v. Montgomery Elevator
    Co., 
    176 Ariz. 340
    , 344 (1993). In addition, protection under the provision “is
    not limited to those elements and concepts of particular actions which were
    defined in our pre-statehood case law.” Boswell, 
    152 Ariz. at 18
    .
    ¶18           A statute that effectively deprives a claimant of the ability to
    bring an action protected by the anti-abrogation clause violates the
    constitution. Barrio v. San Manuel Div. Hosp. for Magma Copper Co., 
    143 Ariz. 101
    , 106 (1984). And as is relevant here, a statute is unconstitutional if it
    requires a plaintiff suing for negligence to show that the defendant engaged
    7
    SZETO, et al. v. APS
    Opinion of the Court
    in conduct more culpable than ordinary negligence. See Young ex rel. Young
    v. DFW Corp., 
    184 Ariz. 187
    , 190 (App. 1995) (holding statute
    unconstitutional under the anti-abrogation clause because it eliminated
    dram shop liability except when a driver is obviously intoxicated, and
    thereby deprived plaintiffs injured by intoxicated drivers of a reasonable
    alternative to the general negligence action for dram shop liability).
    ¶19           The anti-abrogation clause does not prevent parties to a
    contract from waiving a cause of action. Lindsay v. Cave Creek Outfitters,
    L.L.C., 
    207 Ariz. 487
    , 494, ¶ 24 (App. 2003) (“The law allows a party to
    voluntarily enter into a contract releasing another party of liability.”). But
    no law may require such a waiver. The anti-abrogation clause “was
    intended to take the right to seek justice out of executive and legislative
    control, preserving the ability to invoke judicial remedies for those wrongs
    traditionally recognized at common law.” Boswell, 
    152 Ariz. at 17
    ; see also
    Hayes, 
    178 Ariz. at 272
     (Under the Arizona Constitution, the right to pursue
    common law damage remedies is protected explicitly from legislative or
    executive abrogation.).
    ¶20           The anti-abrogation clause applies to utility tariffs because
    they carry the force of law. See US Airways, 238 Ariz. at 416, ¶ 11; see also US
    W. Commc’ns, Inc., 
    131 P.U.R.4th 4862
     (Ariz. Corp. Comm’n Mar. 27, 1992)
    (“Once the tariff is accepted by the [C]ommission, the tariff, including the
    limitation of liability provision, takes on the force and effect of law and
    governs every aspect of the utility’s rates and practices. Neither the utility
    nor the customer may depart from that tariff’s measure of compensation, or
    the standard of liability contained therein.”).
    ¶21            Although we have upheld tariffs limiting purely economic
    damages incurred when a public service corporation’s ordinary negligence
    causes an interruption in service, we have never considered whether a tariff
    can disclaim a public service corporation’s liability for personal injury or
    property damage caused by negligence. And while the constitutionality of
    the tariff was not raised before the superior court, we exercise our discretion
    and consider the anti-abrogation clause’s effect on the tariff provision,
    given that it shapes our de novo review of the tariff itself. State v. Boteo-Flores,
    
    230 Ariz. 551
    , 553, ¶ 7 (App. 2012) (“[W]aiver is a procedural concept that
    we do not rigidly employ in a mechanical fashion, and we may use our
    2      Decision may also be found at US W. Commc’ns, Inc., Decision No.
    57794           at         56         (April         2,           1992),
    https://docket.images.azcc.gov/H000000728.pdf?i=1637175913318.
    8
    SZETO, et al. v. APS
    Opinion of the Court
    discretion in determining whether to address issues not raised below.”)
    (citations omitted).
    ¶22             In US Airways, we upheld a tariff provision that limited
    damages caused by a service interruption. 238 Ariz. at 419–20, ¶¶ 22–23. In
    that case, a construction company informed Qwest, a telecommunications
    company, of its intent to excavate in an area where Qwest had underground
    cables. Id. at 415, ¶ 2. Qwest hired another company to locate and mark the
    cables. Id. Because Qwest maintained inaccurate underground cable maps,
    the company could not find the cables and marked the area safe for
    excavation. Id. at 415, ¶ 3. The construction company then severed the cable,
    causing the plaintiff, a data center, to experience a four-hour interruption
    in the telecommunications services it received from a third party. Id. The
    data center sued Qwest for negligence for failing to use reasonable care to
    locate and mark the underground cable. Id. at ¶ 4. Qwest argued its tariff
    limited damages to the actual cost of the lost service. Id. at ¶ 5. The plaintiff
    countered that the tariff’s liability limitation did not apply to it because it
    was not a Qwest customer and that such a restriction would violate the
    anti-abrogation clause of the Arizona Constitution. Id. at 416, 418, ¶¶ 8, 17;
    see also Ariz. Const. art. 18, § 6. We held that the tariff did not violate the
    anti-abrogation clause because Arizona’s common law had not recognized
    the duty of a public utility to exercise reasonable care in providing
    uninterrupted service. Id. at 418–19, ¶ 19. Thus, the tariff properly limited
    liability for damages caused by a breach of the utility’s statutorily imposed
    duty to provide service. Id. at 420, ¶ 22; see also Cronin v. Sheldon, 
    195 Ariz. 531
    , 539, ¶ 37 (1999) (A tort claim alleging wrongful discharge in violation
    of the Arizona Civil Rights Act did not exist at common law when Arizona
    became a state, did not evolve from common-law antecedents, and was
    therefore not protected by the anti-abrogation clause.).
    ¶23           Here, the superior court relied on US Airways to conclude that
    APS was not liable for the alleged damages, but US Airways is easily
    distinguished. Economic loss caused by a service interruption is
    meaningfully different from property damage or personal injury caused by
    the negligent maintenance of a service line.
    ¶24           In Arizona, we have long recognized that “economic losses
    are best handled by contract law rather than tort law.” Arrow Leasing Corp.
    v. Cummins Ariz. Diesel, Inc., 
    136 Ariz. 444
    , 449 (App. 1983). Commercial
    losses suffered by a plaintiff when the defendant fails to provide a
    contracted service are generally recoverable in a breach of contract action
    as consequential damages, McAlister v. Citibank, 
    171 Ariz. 207
    , 211 (App.
    1992), but are unrecoverable in a negligence action because of the economic
    9
    SZETO, et al. v. APS
    Opinion of the Court
    loss doctrine. Flagstaff Affordable Hous. Ltd. P’ship v. Design All., Inc., 
    223 Ariz. 320
    , 323, ¶ 11, 326, ¶ 28 (2010) (“‘Economic loss,’ as we use the phrase,
    refers to pecuniary or commercial damage, including any decreased value
    or repair costs for a product or property that is itself the subject of a contract
    between the plaintiff and defendant, and consequential damages such as
    lost profits.” And a contracting party is limited to contract remedies for
    purely economic loss.). Thus, an exculpatory clause that eliminates liability
    for a failure to provide a contracted service generally waives only a
    plaintiff’s right to seek contract damages and does not offend the traditional
    notion that “[t]he law disfavors contractual provisions by which one party
    seeks to immunize himself against the consequences of his own torts.” See
    Salt River Project Agric. Improvement & Power Dist. v. Westinghouse Elec. Corp.,
    
    143 Ariz. 368
    , 383 (1984) (abrogated on other grounds).
    ¶25            A waiver of tort remedies provided by contract is enforceable
    only when there has been “an intentional relinquishment of a known right.”
    Salt River, 
    143 Ariz. at 385
    . Our supreme court has explained that even
    waivers of tort remedies in commercial contracts between sophisticated
    parties, which are subject to a more relaxed standard, will only be enforced
    where “parties have equal bargaining positions so that the choice was freely
    and fairly made and not forced by the circumstances,” and that “the parties
    must have negotiated the specifications of the product and have knowingly
    bargained for the waiver.” Id.; Morganteen v. Cowboy Adventures, Inc., 
    190 Ariz. 463
    , 466 (App. 1997) (Courts take the most relaxed view of tort liability
    waiver when parties are business entities.). Just as express contractual
    waivers of tort remedies are disfavored, such waivers are disfavored in the
    context of public utility tariffs. See, e.g., Uncle Joe’s Inc. v. L.M. Berry & Co.,
    
    156 P.3d 1113
    , 1119 (Alaska 2007) (“[A]ll the reasons for disfavoring
    [exculpatory] clauses in contracts also apply to tariffs.”); Forte Hotels, Inc. v.
    Kan. City Power & Light Co., 
    913 S.W.2d 803
    , 806 (Mo. App. 1995)
    (disfavoring contract or tariff provisions that purport to absolve public
    utilities from liability for negligence).
    ¶26            Recognizing an exception to the rule that purely economic
    damages are not recoverable in tort between contracting parties, some
    jurisdictions subject public utilities to tort liability for failing to provide
    service. See, e.g., S. E. Ind. Nat. Gas Co. v. Ingram, 
    617 N.E.2d 943
    , 951 (Ind.
    App. 1993); Floyd & Co. v. Cincinnati Gas & Elec. Co., 
    120 N.E.2d 596
    , 599
    (Ohio App. 1954). Such liability is based on “the old tort duty to serve all
    comers which arose as to common callings before the idea of contract had
    developed.” W. Page Keeton et al., Prosser and Keeton on the Law of Torts
    662-63 (5th ed. 1984); Ingram, 
    617 N.E.2d at 951
    . But because of the “huge
    magnitude of liability to which a utility might be exposed from a single
    10
    SZETO, et al. v. APS
    Opinion of the Court
    failure to provide service that affects hundreds, thousands, or, in the case
    of an electrical blackout, millions of people,” some states allow public
    utilities to limit their liability for service interruptions through its tariff
    using an exculpatory clause. Restatement (Third) of Torts § 42 (2012). While
    there are many examples of courts upholding tariffs with provisions
    limiting liability for a utility’s failure to provide service,3 it is more difficult
    to find examples of tariffs that eliminate liability for a straightforward
    negligence action in which personal injury or property damage was caused
    by something other than an interruption in service. But see Mo. Gas Energy,
    388 S.W.3d at 232, n.8 (Mo. App. 2012) (listing cases).
    ¶27            The Szetos and Briones seek to recover property damages
    caused by APS’s negligence, not economic damages caused by a service
    interruption.4 Arizona has long recognized a right of action for property
    damage caused by negligence. Phoenix Light & Fuel Co., 8 Ariz. at 322
    (recognizing electric company’s common law duty to exercise the highest
    degree of skill and care to protect life and property in generating and
    distributing electricity from its plant to its patrons). In fact, in US Airways,
    we cited with approval Lips v. Scottsdale Healthcare Corp., 
    224 Ariz. 266
    , 268,
    ¶ 11 (2010), for the proposition that “[c]ourts have not recognized a general
    duty to exercise reasonable care for the purely economic well-being of
    3        There is variation among the states, but exculpatory provisions in
    public utility tariffs generally disclaim or limit liability for failure to furnish
    service. Richard J. Pierce, Jr., Regional Transmission Organizations: Federal
    Limitations Needed for Tort Liability, 23 Energy L.J. 63, 66, n.12 (2002) (citing,
    inter alia, L.A. Cellular Tel. Co. v. Superior Court, 
    65 Cal. App. 4th 1013
     (1998);
    Ill. Bell Switching Station Litig., 
    641 N.E.2d 440
    , 441–45 (1994); Angelo Pavone
    Enters. v. S. Cent. Bell Tel. Co., 
    459 So.2d 1223
    , 1226 (La. App. 1984); Olson v.
    Mountain States Tel. & Tel. Co., 
    119 Ariz. 321
    , 323 (App. 1978); S. Bell Tel. &
    Tel. Co. v. Invenchek, Inc., 
    204 S.E.2d 457
    , 460 (Ga. App. 1974); Burdick v. Sw.
    Bell Tel. Co., 
    675 P.2d 922
    , 925 (Kan. App. 1984); Comput. Tool & Eng’g. Inc.
    v. N. States Power Co., 
    453 N.W.2d 569
    , 573 (Minn. App. 1990); Bulbman, Inc.
    v. Nev. Bell, 825 P.2d. 588, 590 (Nev. 1992); Coachlight Las Cruces, Ltd. v.
    Mountain Bell Tel. Co., 
    664 P.2d 994
    , 1000 (N.M. App. 1983); Lee v. Consol.
    Edison Co., 
    413 N.Y.S.2d 826
    , 823 (1978)).
    4      APS argues that the status of Szetos’ and Briones’ damages as
    economic is a factual issue not before the court, but the fire damaged the
    Szeto’s home and Briones’ personal property. And the status of damages to
    real and personal property as a category of noneconomic damages is a legal
    issue properly considered in our de novo review of the summary judgment.
    11
    SZETO, et al. v. APS
    Opinion of the Court
    others, as distinguished from their physical safety or the physical safety of their
    property.” 28 Ariz. at 421, ¶ 30 (emphasis added). If the tariff disclaimed
    liability for a house fire caused by APS’s failure to perform its duty to
    deliver electricity safely, it would implicate the anti-abrogation clause.
    CONCLUSION
    ¶28           We reverse and remand for further proceedings consistent
    with this opinion.
    AMY M. WOOD • Clerk of the Court
    FILED: AA
    12
    

Document Info

Docket Number: 1 CA-CV 20-0609

Filed Date: 11/30/2021

Precedential Status: Precedential

Modified Date: 11/30/2021

Authorities (25)

Forte Hotels, Inc. v. Kansas City Power & Light Co. , 1995 Mo. App. LEXIS 1742 ( 1995 )

Computer Tool & Engineering, Inc. v. Northern States Power ... , 1990 Minn. App. LEXIS 321 ( 1990 )

Southern Bell Telephone & Telegraph Co. v. Invenchek, Inc. , 130 Ga. App. 798 ( 1974 )

Boswell v. Phoenix Newspapers, Inc. , 152 Ariz. 9 ( 1986 )

Hayes v. Continental Insurance , 178 Ariz. 264 ( 1994 )

Olson v. Mountain States Telephone & Telegraph Co. , 119 Ariz. 321 ( 1978 )

Floyd & Co. v. Cincinnati Gas & Electric Co. , 96 Ohio App. 133 ( 1954 )

Salt River Project Agricultural Improvement & Power ... , 143 Ariz. 368 ( 1984 )

South Eastern Indiana Natural Gas Co. v. Ingram , 1993 Ind. App. LEXIS 846 ( 1993 )

Ahmed Al Harby v. David E. Saadeh, Doing Business as the ... , 816 F.2d 436 ( 1987 )

McAlister v. Citibank , 171 Ariz. 207 ( 1992 )

State Ex Rel. Corbin v. Arizona Corp. Commission , 174 Ariz. 216 ( 1992 )

Riley, Hoggatt & Suagee, P.C. v. English , 177 Ariz. 10 ( 1993 )

Cronin v. Sheldon , 195 Ariz. 531 ( 1999 )

Barrio v. San Manuel Division Hospital for Magma Copper Co. , 143 Ariz. 101 ( 1984 )

Smith v. Arizona Board of Regents , 195 Ariz. 214 ( 1999 )

Lindsay v. Cave Creek Outfitters, L.L.C. , 207 Ariz. 487 ( 2003 )

Young Through Young v. Dfw Corp. , 184 Ariz. 187 ( 1995 )

Qwest Corp. v. Kelly , 204 Ariz. 25 ( 2002 )

L. Harvey Concrete, Inc. v. Agro Construction & Supply Co. , 189 Ariz. 178 ( 1997 )

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