Dion

FACTS AND PROCEDURAL HISTORY

I.

TERMINOLOGY

Generally, lawsuits to compel the Secretary to make payment from the fund consist of three separate phases. The terminology used to describe these phases and the events within them is critical to understanding the relevant statutory scheme. Thus, we begin by defining some of the terms used in this opinion. We refer to a person that submits a claim to the Secretary for payment from the fund as a “claimant” or “petitioner.” As for the different phases, the first phase is the initial lawsuit in which a claimant obtains a judgment against the corporation “based upon [its] fraud, misrepresentation, or deceit.” (§ 2282, subd. (a).) We generally refer to this initial lawsuit as the “underlying lawsuit,” the causes of action asserted therein as the “underlying causes of action,” and the resulting judgment as the “final judgment.” The second phase is the claimant’s application to the Secretary seeking payment from the fund of the unpaid portion of the final judgment.

3 (See § 2282, subd. (a).) We refer to a claim seeking payment from the fund as a “payment claim.” The third phase follows the Secretary’s denial (in whole or in part) of a…