DOCTORS'CO. INS. SERVICES v. Superior Court

Plaintiffs, minor Stacy Nicole Marchand and her parents Diane and Roderick Marchand, filed this action against defendant the Doctors’ Company Insurance Services doing business as the Doctors’ Company (Doctors’), alleging Insurance Code violations in connection with Doctors’ handling of the Marchands’ prior medical malpractice action against Doctors’ insured, Dr. Raymond Blain. The complaint alleged Doctors’ (and retained counsel) misrepresented the admitted liability of its insured by advising Dr. Blain and another doctor to lie at their depositions. After its demurrer to the second amended complaint was overruled, Doctors’ petitioned for a writ of mandate, which we initially denied. Upon direction of the California Supreme Court, we have issued an alternative writ in light of (inter alia) Moradi-Shalal v. Fireman’s Fund Ins. Companies (1988) 46 Cal.3d 287 [ 250 Cal.Rptr. 116 , 758 P.2d 58 ]. We conclude the complaint is barred by Moradi-Shalal and the litigation privilege of Civil Code section 47, subdivision 2 (hereafter section (47(2)). Therefore, we will issue a peremptory writ directing the trial court to enter an order sustaining Doctors’ demurrer without leave to…