Quackenbush

Petitioner, Charles Quackenbush, Insurance Commissioner of the State of California (Commissioner), seeks a writ of mandate directing the superior court to vacate its May 19, 1999 order granting the motion for summary adjudication of the professional negligence cause of action brought by real party in interest Arthur Andersen LLP (AA).

I. Factual and Procedural Background

Cal-American Insurance Company was, until May 1993, an insurance company issuing policies within the State of California. AA audited the financial statements of Cal-American in 1990 and 1991, and issued audito-pinions in connection with each of those audits. Cal-American was AA’s audit client in connection with the 1990 and 1991 audits. In May 1993, Cal-American was placed in conservatorship, and, pursuant to California Insurance Code section 1010 et seq., the Commissioner became Cal-American’s conservator. Subsequently, the conservation proceedings against Cal-American was converted into liquidation proceedings, and the Commissioner became the liquidator for Cal-American.

In 1996, the Commissioner filed a first amended complaint for professional negligence and negligent misrepresentation in connection…