United States Ninth Circuit

In an action arising from the 1991 insolvency and subsequent rehabilitation of an insurer following the largest insurance failure in California history, wherein California's Insurance Commissioner alleged intentional misrepresentation, concealment and conspiracy to defraud, a judgment and award for the Commissioner is affirmed, reversed, and vacated in part where: 1) an order vacating a $700 million punitive damages award was proper as the award was invalid under California law; 2) the jury's verdicts could not be reconciled in favor of either side, and a new damages phase trial was warranted on one theory; 3) thus, a restitution award is necessarily vacated; and 4) defendant's motion for summary judgment on res judicata grounds was properly denied.

Appellate Information

• Argued 12/05/2007
• Decided 08/25/2008
• Published 08/25/2008

Judges

• BYBEE, Circuit Judge:, Before: T.G. NELSON, RICHARD A. PAEZ, and JAY S. BYBEE, Circuit Judges.

Court

• United States Ninth Circuit

Counsel

• For Appellant:
  
• Cindy C. Oliver and Craig R. Welling, Rothberger, Johnson & Lyons, LLP, Denver, CO, for the intervenors-appellants.


• For Appellees:
  
• Kevin Russell, Howe & Russell, P.C., Washington, D.C.;  Gary L. Fontana and Jennifer R. McGlone, Thelen Reid & Priest, LLP, San Francisco, CA, for the appellant/cross-appellee., James P. Clark, Gibson, Dunn & Crutcher, LLP, Los Angeles, CA;  Robert L. Weigel, Gibson, Dunn & Crutcher, LLP, New York, NY, for the appellee/cross-appellant.