State of California Automoblie Dismantlers Ass'n v. Interinsurance Exchange of the Automobile Club

This is an appeal from a judgment of partial dismissal after a demurrer was sustained to State of California Automobile Dismantlers Association’s (Association) first amended complaint (complaint) without leave to amend. The appeal primarily concerns construction of certain statutes affecting Association.

The Complaint

General Allegations

Association’s complaint alleges Interinsurance Exchange of the Automobile Club of Southern California (Exchange) is an automobile casualty insurance company doing business in Southern California. Association further alleges total loss salvage vehicles obtained by insurance companies from their insureds must be disposed of pursuant to Vehicle Code section 11515.

Paragraph six and seven of the complaint allege defendant County Auto Pool (Pool) holds auctions and disposes of total loss salvage vehicles as an agent for Exchange. Paragraph eight alleges Pool has sold total loss salvage vehicles to buyers who are not licensed as is Association. Paragraph nine alleges neither Pool nor these unlicensed buyers have appropriate resale numbers for exemption from the collection of sales taxes at the time of the purchase and Pool has not remitted…