Court of Appeal Upholds Right To Seek Declaratory and Injunctive Relief Against Insurer For Improper Method of Depreciation


In a published opinion, the California Court of Appeal ruled that the firm’s client properly invoked the court’s jurisdiction to determine whether the manner in which insurer CSAA applies depreciation to its policyholders’ claims violates the Insurance Code. The trial court previously rejected CSAA’s argument that CSAAs insureds are is required to seek an appraisal of their claims before asking the court to rule on the legality of CSAA’s adjustment policy. The Court of Appeal affirmed the court’s denial of CSAA’s motion to compel appraisal. The Court noted that the declaratory and injunctive relief would head off duplicative actions against CSAA. The complaint against CSAA asserts unfair competition, breach of contract, and bad faith claims on behalf of a class of policyholders who have been subjected to CSAA’s depreciation policy.  Read the Court’s opinion.

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