Representative Cases

PacifiCare Life and Health Insurance v. Jones (2018); 27 Cal. App.5th 391.
The case involved a long, complicated battle between PacifiCare and California’s Insurance Commissioner. The Commissioner alleged in an administrative action that PacifiCare committed more than 900,000 violations of Insurance Code section 170.03(h) which involved unfair settlement practices. PacifiCare challenged the administrative finding that the allegations were true and the imposition of fines totaling more than $170 million by seeking injunctive relief in the Superior Court. The trial court enjoined the Insurance Commissioner from further enforcement of the administrative regulations. Justice Goethals wrote the court’s published opinion which reversed the trial court’s finding that the regulations promulgated by the Commissioner were invalid and vacated the injunctive relief granted. The matter was then remanded for further proceedings.

Hedayati v. Interinsurance Exchange of the Automobile Club (2021); 67 Cal. App. 5th 833.
The plaintiff, a recent medical school graduate, was crossing the street in a crosswalk when the defendant’s insured ran a red light and struck her. As a result of the accident, plaintiff suffered multiple bone fractures, lost her leg, and was left in a coma. The plaintiff’s family retained counsel who repeatedly demanded policy limits information from the defendant. The Auto Club initially declined to provide any policy information; when it finally responded to counsel’s request, it refused to do so in writing. Ultimately, the Auto Club failed to settle plaintiff’s claims within its insured’s $25,000 policy limit. Plaintiff thereafter secured a $26 million judgment against the insured driver along with his rights to pursue a claim against the Auto Club for breaching its covenant of good faith and fair dealing as to him. When the plaintiff thereafter sued the Auto Club, it responded by filing a motion for summary judgment which the trial court granted. Justice Goethals wrote the court’s published opinion which reversed the trial court’s ruling and sent the case back for trial.