State Ex Rel. Metz v. Ccc Information Services, Inc.

This appeal arises out of a qui tam action filed by plaintiff and appellant John Metz on behalf of the State of California, alleging defendant and respondent CCC Information Services, Inc., violated Insurance Code section 1871.7 by making false or misleading statements in connection with the settlement of Metz’s 1999 automobile insurance claim under a policy issued by Farmers Insurance Company, following an accident in which Metz’s 1992 Mitsubishi Galant suffered a total loss. As more fully explained below, the statements at issue consisted of the “comparable automobile” valuations CCC provided to Farmers in the claim settlement process— valuations Metz contends were made in violation of applicable regulations and designed to induce a fraudulently low insurance settlement, one that failed to adequately compensate for a total loss.

The trial court entered judgment in favor of CCC after sustaining a demurrer to Metz’s first amended complaint without leave to amend, finding the action barred by the applicable three-year statute of limitations and, alternatively, by section 1871.7, subdivision (e)(5)’s requirement that only the district attorney or Insurance Commissioner may…