Opinion ID: 552337
Heading Depth: 2
Heading Rank: 1

Heading: Discovery Provision

Text: 7 The district court found that no tolling of the discovery or notice period was available to the insured because, even if the principle of equitable tolling were applicable, the undisputed facts revealed that the dishonest employees had not exerted adverse domination and control over the company. The district court stated that the principle of equitable tolling applied in Kehoe v. Peerless Insurance Co., [1980 Transfer Binder] Fed.Sec.L.Rep. (CCH) p 97,583 and in Admiralty Fund v. Peerless Insurance Co. 143 Cal.App.3d 379, 191 Cal.Rptr. 753 (1983), should be distinguished as the limited exceptions to the general rule which they represent, and which are apparent from their facts. 8 We agree with the district court's distinction of the Kehoe and Admiralty cases. In these cases the courts found that summary judgment was precluded because the facts indicated an issue as to whether adverse domination and control existed. Clearly, in both cases the use of the equity tolling principle was a result of legislative concern for the protection of innocent investors. In the instant situation the critical distinguishing element is that appellant was in control and was defrauded by those employees over whom it had control. There being no disputed fact, and the law being properly applied, we reject appellant's argument.