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State Compensation Insurance Fund v. Superior Court (Schaefer Ambulance Service Inc.)

Workers' compensation insurers not entitled to statutory immunity for allegedly misreporting of employers' financial information.

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The full case caption appears at the end of this opinion.

The issue in this case is whether a workers’ compensation insurer isimmune from civil liability under Insurance Code [FOOTNOTE 1] section 11758 for allegedly misallocating an insured employer’ sexpenses and reporting that misinformation to a ratemakingorganization, resulting in higher premiums for its insured. The trialcourt denied petitioner State Compensation Insurance Fund’ s (SCIF)motion for judgment on the pleadings, and the Court of Appealsummarily denied the insurer’ s petition for writ of mandate andrequest for immediate stay. While the question is close, we concludesection 11758 does not immunize SCIF from civil liability under thesecircumstances. We therefore affirm the judgment of the Court ofAppeal summarily denying the petition for writ of mandate anddischarge the order to show cause.

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