Top Calif. Court Paves Way For UCL Claims Against Insurers

Law360, New York (August 1, 2013, 5:11 PM EDT) -- In a much-anticipated decision, California's highest court held Thursday that insurers that run afoul of a state law targeting unfair insurance practices are not immune from unfair competition claims over the conduct, resolving a deep split among courts on the question.

The high court was unswayed by California Capital Insurance Co.'s arguments that the California Supreme Court's 1988 ruling in Moradi-Shalal v. Fireman's Fund Insurance Cos. blocked unfair competition, or UCL, claims brought by plaintiff Yanting Zhang.

While agreeing that the Moradi-Shalal decision barred private actions under...
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