Garamendi

These consolidated appeals seek review of a trial court decision affirming the rejection by the Insurance Commissioner (commissioner) of certain claims against defendant Golden Eagle Insurance Company (Golden Eagle), an insurance company in conservatorship. Appellants, two former employees of Golden Eagle, filed claims in the conservatorship proceedings to recover for alleged fraudulent inducement of their employment contracts, wrongful discharge, defamation, and intentional infliction of emotional distress. After investigation, the commissioner rejected the claims as factually and legally unfounded.

In an order to show cause (OSC) proceeding brought in the trial court to review the commissioner’s rejections, appellants submitted a substantial quantity of evidence that had not been considered by the commissioner during the investigation of the claims. The trial court refused to consider this evidence in reviewing the validity of the commissioner’s decisions, but the court offered to send the matter back to the commissioner for further consideration in light of the additional evidence. When appellants declined this opportunity, the trial court ruled that the…