CDI Opposes IIABCal Amicus Brief In Litigation

The California Department of Insurance has urged the Los Angeles County Superior Court trial judge in the litigation surrounding CDI replacement cost regulations to reject an amicus letter brief filed Dec. 21 by IBA West.

In the letter brief, IBA West told the Court that CDI did not have sufficient statutory authority to promulgate the regulations, which among other things requires homeowners' insurers to use a set of mandatory factors in calculating a replacement cost estimates, producers to disclose detailed information on how the estimates were calculated, and detailed record keeping.

Attorneys for CDI argued that IBA West should have followed procedures that apply to appellate court interventions, which require either advance permission from the Supreme Court, or formal requests for full intervention.

IBA West decided not to file any response to the CDI's arguments because the appellate procedures cited by CDI lawyers clearly have no application to trial court proceedings, and because trial courts have abundant discretion to accept letter briefs, IBA West General Counsel Steve Young said.

"Besides, by filing an objection, the CDI lawyers have succeeded only in calling more attention to our letter, ensuring the Court reads our letter even if it declines to officially accept the brief," Young said.

The Court had scheduled a hearing for this week on a motion brought by the plaintiffs--the Association of California Insurance Companies, and the Personal Insurance Federation of California--for judgment on the pleadings.  However, today, the court postponed that hearing until January 24, 2012.

To read the opposition filed by the Attorney General on behalf of the CDI, click here.