Maler

Petitioners Lewis Maler, Sidney Dinow, Vikron Inc., a California corporation, Vikron-Agoura Company, a limited partnership, and Deauville Financial Co., Inc., a California corporation (collectively, plaintiffs) seek a peremptory writ of mandate directing the superior court to overrule the demurrers of real parties in interest Federal Insurance Company, a corporation, and Pacific Indemnity Co., Inc., a California corporation (collectively, defendants) to Maler’s eighth cause of action for violation of Insurance Code section 1861.03.

The essential issue presented is whether section 1861.03, enacted as part of Proposition 103, superseded Moradi-Shalal v. Fireman's Fund Ins. Co. (1988) 46 Cal.3d 287 [ 250 Cal.Rptr. 116 , 758 P.2d 58 ], so as to allow a private litigant to maintain a cause of action under section 790.03.

Because section 1861.03 makes the business of insurance subject to California laws applicable to any other business, but does not in itself give rise to an independent cause of action, the petition is denied.

Factual and Procedural Background

The plaintiffs are insured individuals, builders and contractors who purchased liability policies from defendants.…