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CUMBRE, INC. v. STATE COMP. INS. FUND

No. E048799.

189 Cal.App.4th 1381 (2010)

117 Cal. Rptr. 3d 582

CUMBRE, INC., et al., Plaintiffs and Appellants, v. STATE COMPENSATION INSURANCE FUND, Defendant and Respondent.

Court of Appeals of California, Fourth District, Division Two.

November 9, 2010.

Attorney(s) appearing for the Case

Nossaman, James C. Powers , K. Erik Friess and David J. Farkas for Plaintiffs and Appellants.

Sheppard, Mullin, Richter & Hampton, Andre J. Cronthall , Whitney Jones Roy and Alison N. Kleaver for Defendant and Respondent.

CERTIFIED FOR PARTIAL PUBLICATION*

OPINION

RAMIREZ, P. J.—

Cumbre, Inc., and Coachella Valley Insurance Service, Inc. (Cumbre), acted as preferred brokers for the State Compensation Insurance Fund (SCIF) until 2003, when the Department of Insurance pressured SCIF to terminate unprofitable brokers. Because Cumbre's loss ratio was consistently over 80 percent over a three-year period, its contract...

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