In Re Glacier General Ins. Co.

E. Paul Tonkovich and Mary Aileen Matheis for Movants and Appellants.

Daniel E. Lungren, Attorney General, and Edmond B. Mamer, Deputy Attorney General, for Objector and Respondent.

OPINION

WALLIN, J.

Paradise Investments, Inc., International Central Bank and Trust Corporation (trustee for the benefit of James A. Rowland), Wanda King, Floyd A. Hollingshead and Norma R. Hollingshead (collectively, the secured creditors) appeal the denial of their motion for relief from the blanket stay order issued in the liquidation proceedings of Glacier General Insurance Company (Glacier), contending the trial court abused its discretion. We reverse.

In 1985, the trial court ordered the Insurance Commissioner of the State of California (the Commissioner) to liquidate Glacier. It also "enjoined" all persons "from instituting or prosecuting any action [or] proceedings," or making "any levy" against Glacier. The dispute we consider here arose in 1990, when the secured creditors filed a motion seeking permission to foreclose on a first trust deed on property owned by Glacier (the Rockridge property). [1]

In support of the motion, one of their attorneys submitted a declaration averring the…