Bell v. Farmers Insurance Exchange

In this class action lawsuit to recover for nonpayment of overtime compensation, the defendant, Farmers Insurance Exchange (hereafter FIE), appeals an interim order awarding attorney fees, which was entered following an order granting summary adjudication in favor of plaintiffs on defendant’s fourth affirmative defense. We find no error in the decisional underpinning of the award but reverse it on statutory grounds.

Procedural Background

FIE is one of a group of affiliated insurance companies doing business under the service name of Farmers Insurance Group of Companies. The Personal Lines Division of the company issues automobile insurance policies and homeowners policies to private individuals in California. Claims arising in California from these policies, as well as from similar policies issued by other affiliated companies, are normally processed by claims representatives working in some 70 branch claims offices in the state. Employees in these branch claims offices, including clerical and supervisory employees as well as claims representatives, constitute the majority of FIE’s workforce in California. Though claims representatives regularly work over 40 hours a…