Quackenbush

20th Century Insurance Company and 21st Century Casualty Company appeal from a judgment sustaining a demurrer to their petition for writ of mandate. The trial court held that Charles Quackenbush, the Commissioner of Insurance of the State of California (Commissioner) did not exceed his statutory authority when he publicly disseminated his response to a homeowner’s inquiry concerning the application of the statute of limitations to claims for damage caused by the 1994 Northridge earthquake.

Facts

On April 28, 1997, the Commissioner replied by letter to an inquiry from attorneys for a homeowner named Barbara Shugar requesting his interpretation and opinion regarding the applicable limitations period for submitting earthquake damage claims arising out of the 1994 Northridge earthquake (Shugar letter). Shugar is insured by 20th Century Insurance Company and 21st Century Casualty Company (collectively 20th Century), and sued 20th Century after it denied her earthquake claims as untimely. The Commissioner also issued a press release stating that the Commissioner had “ruled in favor of homeowners hit by the 1994 Northridge earthquake by issuing a legal opinion.” Both the…