Smith v. State Farm Mutual Automobile Insurance

In this class action, the representative plaintiffs allege that the defendant insurers conspired together to require their customers, who sought liability coverage on multiple vehicles, to either purchase uninsured motorist coverage for each vehicle or waive it as to all vehicles. Plaintiffs alleged that the defendant insurers claimed that this result was compelled by applicable law. The defendant insurers repeatedly demurred to the plaintiffs’ complaint. Finally, the trial court concluded that the third amended complaint failed sufficiently to allege a conspiracy by or among the defendant insurers to engage in any unlawful or unfair conduct with respect to their insureds, including plaintiffs. Concluding that the defendant insurers had done nothing that was not compelled by the relevant uninsured motorist provisions of the Insurance Code, the trial court sustained the demurrer to the third amended complaint without leave to amend.

After a careful review of the allegation of plaintiffs’ complaint and the applicable law, we are persuaded that the trial court correctly sustained the demurrer without leave to amend as to certain of the insurer defendants, but as to others…