Court Opinion

ID: 9722349
Source: CourtListenerOpinion
Date Created: 2023-08-26 09:26:34.830849+00
Date Added: 2024-06-11T18:22:44.162995
License: Public Domain

LUI, J., Dissenting.
I agree with the majority’s view that a true conflict exists in the case at bench. The interests of California in regulating insurers and protecting third parties directly conflicts with Oklahoma’s interest in *848protecting its insurers. However, my analysis of the interests involved compels a conclusion that California law applies.
The California Legislature enacted the Unfair Trade Practices Act, in part, to provide relief against unfair settlement practices of insurance companies operating in this state. (See Ins. Code, § 790 et seq.) Our Supreme Court’s decision in Royal Globe Ins. Co. v. Superior Court (1979) 23 Cal.3d 880, 884 [153 Cal.Rptr. 842, 592 P.2d 329], specifically holds that a third party claimant may sue an insurer for violations of Insurance Code section 790.03, subdivision (h)(5), relating to unfair settlement practices.
Plaintiff, as the majority notes, became a resident of the State of California shortly after the accident. He alleges in his complaint, which allegations we must accept as true since this is an appeal from the sustaining of a demurrer without leave to amend, that he was in California during the entire time Allstate committed the alleged unfair trade practices against him.
I see no reason why California law should not apply since the impact of a contrary ruling upon California residents would be severe. Even if we assume the acts of Allstate’s agents may have physically occurred in the State of Oklahoma, the impact of respondent’s acts upon plaintiff are alleged to have occurred in California, and not in Illinois, his residence at the time of the accident, or in Oklahoma, the place of the auto accident. Furthermore, Allstate is a nationwide company, doing substantial business in California. 1
The majority fears a decision in plaintiff’s favor would encourage forum shopping. There is simply no evidence in this record to indicate that plaintiff shopped for California as his forum. In addition, the majority’s reasoning would apply Oklahoma law even if plaintiff had been a lifetime resident of California, who returned to California after the Oklahoma accident and was dealt with unfairly by Allstate’s agents who refused to transfer the claim file to California in order to avoid the holding in Royal Globe. I am simply not persuaded by respondent’s plea concerning plaintiff’s forum shopping.
Allstate enjoys significant financial benefits of doing business in California. It is a nationwide enterprise that should be held to the higher California standard when its has dealings with California claimants injured by its insureds.
*849Because the governmental interests of California would be more impaired than those of Oklahoma (Offshore Rental Co. v. Continental Oil Co. (1978) 22 Cal.3d 157, 164-166 [148 Cal.Rptr. 867, 583 P.2d 721]), I conclude that the trial court erred in applying Oklahoma law. I therefore dissent from the majority’s decision affirming the sustaining of Allstate’s demurrer to plaintiff’s complaint.

 The complaint alleges that “one of Allstate’s Los Angeles attorneys” revealed the policy limits to plaintiff’s attorney about a month before trial. Although the litigation was set for trial in federal court in Oklahoma, Allstate’s California counsel was aware of the lawsuit. This circumstance highlights the national nature of Allstate as well as its ties with California, which has an interest in regulating the conduct of insurers doing business in this state.