American International Underwriters Agency Corp. v. Superior Court

Petitioner, American International Underwriters Agency, seeks a writ of mandate directing the superior court to vacate an order denying petitioner’s motion for summary judgment against real party/plaintiff Jo Henry Fuentez on real party’s second amended complaint accusing petitioner and other insurance companies of (1) unfair insurance practices in violation of Insurance Code section 790.03, subdivision (h)(5); and (2) conspiracy to violate Insurance Code section 790.03. Real party brought the action as a third party claimant pursuant to Royal Globe Ins. Co. v. Superior Court (1979) 23 Cal.3d 880 [ 153 Cal.Rptr. 842 , 592 P.2d 329 ].

In Royal Globe, the court held that under Insurance Code section 790.03, subdivisions (h)(5) and (h)(14), a private litigant could bring an action to impose civil liability on an insurer for engaging in unfair claims settlement practices. (23 Cal.3d at pp. 885-888.) The court further held (id. at pp. 888-890) that such an action could be brought against the insurer by either the insured or a third party claimant, that is, “an individual who is injured by the alleged negligence of an insured” (id. at p. 884). The court ruled that Insurance…