9th Cir. Upholds Dismissal of Applied Underwriters’ Action Against Calif. Insurance Regulators

SAN FRANCISCO — The 9th Circuit U.S. Court of Appeals has upheld dismissal of Applied Underwriters Inc. (AUI)’s action accusing California insurance regulators of unlawfully planning to shut down its former affiliate, California Insurance Co. (CIC), as part of a long-running “vendetta” involving AUI’s “EquityComp” workers’ compensation program.

In a June 10 opinion, the panel ruled that the exclusive jurisdiction rule applies to the action, which was brought under 42 U.S.C. § 1983, because the insurance conservatorship was an in rem proceeding and the action seeking to end the conservatorship’s control over CIC’s assets were either in rem or quasi …