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In MacKay v. Superior Court (October 6, 2010) ___ Cal.App.4th ___ the Second District Court of Appeal threw out a class action challenging an insurer’s rating practices on the ground that California law prohibits insureds from challenging rates approved by the California Department of Insurance (“DOI”) through a civil action. Writing for the court, Justice Croskey concluded that the “filed rate doctrine” applies to California insurance ratemaking, despite the voters’ enactment of Proposition 103, and that the exclusive remedy for challenging an insurer’s approved rating practices was through a statutory administrative review process.
Continue Reading The Second District Court of Appeal Applies the “Filed Rate Doctrine” to California Insurance Ratemaking, and Holds that the Use of Approved Insurance Rates Cannot Create Tort Liability Against an Insurer in a Class Action

In Wallace v. GEICO General Insurance Company (April 19, 2010) __ Cal.App.4th __, the Fourth District Court of Appeal confirmed that a defendant cannot “pick off” a potential class representative by tendering payment of their claim in a class action alleging violations of California’s Unfair Competition Law, Business and Professions Code section 17200 et seq. (“UCL”). The no “pick off” rule stems from the California Supreme Court’s holding in La Sala v. American Savings & Loan Ass’n, 5 Cal.3d 864 (1971), that an involuntary settlement of the named plaintiff’s claim does not necessarily divest him or her of standing to continue the action on behalf of the class. Under Wallace, as long as the class representative “suffered injury in fact” and “lost money or property” as of the filing of the lawsuit, he or she may still serve as the representative plaintiff in a UCL class action.
Continue Reading Fourth District Court of Appeal Confirms that the No “Pick Off” Rule Applies to a Potential UCL Class Action