Safeco Insurance of America v. Superior Court

Safeco Insurance Company of America (Safeco) and First National Insurance Company of America (First National) challenge an order granting a motion by the plaintiffs’ class representative, Lisa Kaman, for precertification discovery for the purpose of finding a new class representative. Kaman is not a member of the class she purports to represent. She seeks to identify potential class members and substitute a new class representative in her place. We conclude that the trial court properly exercised its discretion by weighing the potential for abuse of the class action procedure against the rights of the parties in these circumstances and that defendants have shown no error in the granting of the motion.

FACTUAL AND PROCEDURAL BACKGROUND

1. Complaint, Demurrer, and Stays

The Proposition 103 Enforcement Project (the Project) filed a complaint against Safeco and First National in January 2002, alleging that defendants charged higher premiums to drivers with no prior automobile insurance coverage or no continuous coverage, in violation of Insurance Code section 1861.02, and that they failed to report their tme underwriting practices, in violation of Insurance Code section…