Wagner v. Arizona Municipal Risk Retention Pool, No. 1 CA-CV 24-0562 (App. Div. I, January 7, 2026) (J. Furuya) https://coa1.azcourts.gov/Portals/1/OpinionFiles/Div1/2026/1%20CA-CV%2024-0562%20Wagner%20v.%20Arizona%20Municipal.pdf?ver=A3A_Sik1XegPDINxYwZfyw%3D%3D

ARIZONA MUNICIPAL RISK RETENTION POOL IS  A “PUBLIC ENTITY” REQUIRING THE TIMELY SERVICE OF A N0TICE OF CLAIM BEFORE A BAD FAITH ACTION CAN BE MAINTAINED AGAINST IT/THE POOL IS LIABLE FOR ALLEGED BAD FAITH CONDUCT OF ITS AGENT THIRD PARTY ADMINISTRATOR HANDLING WORKERS COMP CLAIMS BUT ADMINISTRATOR OWES NO INDEPENDENT DUTY DIRECTLY TO WORKERS COMP CLAIMANT AND IS NOT ENGAGED IN A JOINT VENTURE WITH THE POOL

Plaintiff, Zaki Wagner, a City of Maricopa police officer brought a workers compensation claim against the Arizona Risk Retention Pool [Risk Pool].   The claim was administered by third-party Berkley Risk Administrators Company [Berkley].  The Risk Pool insures a number of cities and towns in Arizona including the City of Maricopa.  Plaintiffs claim was initially accepted by Berkley and benefits were paid but over time claims for benefits were denied, closed and reinstated. Warner ultimately sued the Risk Pool and Berkley for bad faith. The trial court granted Berkley's motion for summary judgment based upon the statute of limitations. Wagner appealed and the Risk Pool cross-appealed the trial court's finding that it was not a public entity requiring a timely notice of claim by Wagner.   The Arizona Court of Appeals reversed in part, vacated and remanded in part and affirmed in part.

A.R.S. § 12-821.01(A) requires a plaintiff suing a public entity first serve upon that public entity a notice of claim within 180 days of the claim accruing.  Wagner did not serve a timely notice of claim on the Risk Pool which the court of appeals finds to be governed by the notice of claim statute as a public entity.

[T]he Risk Pool finds its genesis within statutory

authority because it was formed by its member

municipalities pursuant to A.R.S. Section 11-952.01.

The legislature expressly granted authority to

municipalities to form entities like the Risk Pool to aid

in their compliance with the state's liability and workers'

compensation insurance requirements. A.R.S. § 11-952.01(B).

Because it exists under the auspices of that authority expressly

granted to municipalities, the Risk Pool is a creature of statute.

Further, the Risk Pool is governed by a board of trustees, elected officials, appointed by the governor, themselves being political subdivisions. See A.R.S. § 11-952.01(H).  The Risk Pool is also governed by a “ bundle of statutes” and the Industrial Commission. Finally, the Risk Pool uses public funds for a public purpose. All of these facts  establish the Risk Pool to be a public entity requiring service of a notice of claim.