Neblett

This appeal presents another phase of the protracted litigation which has followed the seizure of the business and assets of the Pacific Mutual Life Insurance Company of California by the insurance commissioner for purposes of rehabilitation or liquidation. Since that time the legality of the seizure, the lawfulness of the plan of rehabilitation through organization of a new company, the propriety of an order providing for liquidation of the old company, and the validity of a voting trust agreement under which the stock of the new company was transferred from the commissioner to five voting trustees, have been upheld in a sequence of decisions on appeal. (Carpenter v. Pacific Mutual Life Ins. *397 Co., 10 Cal.2d 307 [ 74 P.2d 761 ], affirmed in Neblett v. Carpenter, 305 U.S. 297 [ 59 S.Ct. 170 , 83 L.Ed. 182 ]; Id., 13 Cal. 2d 306 [ 89 P.2d 637 ]; Id., 14 Cal.2d 704, 711 [ 96 P.2d 796 ]; Caminetti v. Pacific Mutual Life Ins. Co., this day filed, ante, pp. 344 [ 139 P.2d 908 ] and 386 [ 139 P.2d 930 ].) All prior attacks were made in the statutory proceeding. The present appeal, however, arises out of a contemporaneous, independent action in equity in which certain policyholders…

I dissent.

By this independent action in equity certain policyholders and stockholders of the Pacific Mutual Life Insurance Company of California seek to annul, on the ground of extrinsic fraud, all orders made in the statutory proceeding by which the commissioner took over the assets of that company and sought to rehabilitate it. These plaintiffs appeal from the judgment upholding all of such orders. The commissioner separately appeals from that portion of the judgment sustaining the validity of the orders relating to the voting trust fully discussed in Caminetti v. Neblett, L. A. 17678, supra, p. 344. I agree with the majority opinion insofar as it affirms the judgment holding that none of the orders was affected by extrinsic fraud. *402 I disagree with that opinion insofar as it affirms that portion of the judgment upholding the orders relating to the voting trust. For reasons fully stated in the dissent in Caminetti v. Neblett, L. A. 17678, supra, that portion of the judgment should be reversed.

Traynor, J., concurred.

Appellants' petition for a rehearing was denied July 22, 1943. Traynor, J., and Peters, J. pro tern., voted for a rehearing.