Applied Underwriters Awarded Summary Judgment on Unfair Competition Claims

SACRAMENTO, Calif. — A federal judge has awarded Applied Underwriters Captive Risk Assurance Company Inc. (AUCRA) and its affiliates summary judgment in a lawsuit targeting their EquityComp workers’ compensation program and reinsurance participation agreement, ruling that the plaintiff lacked standing to sue under the state’s unfair competition law.

In a Sept. 11 order, Judge William Shubb of the U.S. District Court for the Eastern District of California ruled that because the RPA is not illegal, the employer’s transaction under that contract is not an economic loss. The judge further found the employer failed to offer any other theory of loss.