United States Fidelity & Guaranty Co. v. Superior Court

In these consolidated proceedings United States Fidelity and Guaranty Company (USF&G) seeks primarily to overturn the Cumis decision (San Diego Federal Credit Union v. Cumis Ins. Society, Inc. (1984) 162 Cal.App.3d 358 [ 208 Cal.Rptr. 494 , 50 A.L.R.4th 913 ]). USF&G asks that we order the trial court to enter judgment in its favor with respect to two issues in its unsuccessful motion for summary adjudication. USF&G prays for a judgment that it is not required to permit its named insured, Mayzar Realty Inc. (MRI), to select its own Cumis counsel, now Marc I. Kent, or to control at USF&G’s expense the litigation in San Diego Judicial Council Coordination Proceedings No. 2067 (Coordinated Action) involving multiple claims of fraud, securities violations, and punitive damages against the insured in connection with certain oil and gas investments. USF&G also seeks to require the trial court to enter judgment permitting USF&G to control the defense of the Coordinated Action to the extent USF&G is paying for MRI’s defense. (D007745.)

Cumis counsel and his clients pursue a writ commanding the trial court to vacate its March 22, 1988, order directing a reference to retired…