Barnes

This is a class action brought on behalf of the policyholders of the defendant and respondent State Farm Mutual Automobile Insurance Company (State Farm) by the plaintiff and appellant Benjamin G. Barnes (Barnes). By this action, in its final form prior to appeal, Barnes sought to preclude State Farm from spending premium revenues on political activities opposed by dissenting policyholders; in addition, Barnes also sought to compel State Farm to distribute “excess” surplus funds to its policyholders in the form of an extraordinary dividend. The trial court sustained State Farm’s demurrer to these two claims and dismissed the action. We conclude that Barnes has not stated a cause of action for relief on either of his claims and we therefore affirm the judgment.

Factual and Procedural Background

Barnes, a policyholder of State Farm, filed this action on August 15,1988. In his original complaint he alleged four causes of action: (1) a claimed violation of his freedom of speech, (2) unfair and misleading business practices, (3) breach of fiduciary duty and (4) declaratory relief.

The thrust of Barnes’s original complaint was to preclude the expenditure of funds by State…