Plaintiff's Claim Alleging a Violation of the Unfair Competition Law
Procedural Posture
Plaintiff appealed from an order of the Superior Court of Los Angeles County (California), which sustained without leave to amend a demurrer to the class action allegations of her first amended complaint. Defendant petitioned for a writ commanding the superior court to sustain a demurrer to plaintiff's claim alleging a violation of the unfair competition law, Cal. Bus. & Prof. Code §§17200- 17209.
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Overview
Plaintiff, a consumer, alleged defendant, an insurance company, made false representations to induce plaintiff and other consumers to cancel existing term and whole life insurance policies underwritten by defendant's competitors and replace those policies with defendant's universal life insurance policies. The trial court sustained a demurrer to plaintiff's request for class certification. The appellate court reversed. Although plaintiff ultimately might not be able to establish all prerequisites for class certification, plaintiff adequately alleged the existence of an ascertainable class and her allegations indicated that she might be able to demonstrate a community of interest as to the elements of her fraud claims. On a separate issue, the appellate court denied defendant's petition for a writ of mandate to compel the trial court to sustain defendant's demurrer to plaintiff's claims alleging violation of California's unfair competition law, Cal. Bus. & Prof. Code §§17200- 17209. Plaintiff's second amended complaint clearly alleged a pattern of behavior or course of conduct constituting an unfair business practice or practices.
Outcome
Order sustaining demurrer to request for class action reversed. Petition for writ of mandate denied. Although plaintiff ultimately might not prove all elements necessary for class action, her allegations were sufficient to survive defendant's demurrer. Plaintiff's allegations described immoral, unethical, and unscrupulous conduct, i.e., unfair business practices.
