Ina

AICCO, Inc., Granite State Insurance Company, and Northwestern Pacific Indemnity Company appeal, contending the trial court erred when it sustained a demurrer and dismissed the complaint in which they alleged respondent Insurance Company of North America (INA) and various related entities had violated the unfair competition law (hereafter UCL). (Bus. & Prof. Code, § 17200 et seq.) Appellants are entities transacting insurance-related business. Their complaint sought declaratory and injunc-tive relief on the issue of whether respondent INA could shed all liability under a class of policies providing asbestos and environmental coverage, by restructuring itself and assigning its liabilities to another company, without obtaining the consent of affected California policyholders.

We agree the court erred when it sustained the demurrer and abused its discretion when it dismissed the complaint for lack of a justiciable controversy. We will reverse the judgment in favor of INA.

I. Factual and Procedural Background

It is well settled that on review of an order sustaining a demurrer without leave to amend, we presume all material allegations of the complaint to be true. (Aubry v.…