July 31, 2013

Two unfair competition opinions filing tomorrow

The Supreme Court tomorrow will file two opinions concerning California’s Unfair Competition Law (Bus. & Prof. Code, § 17200). Both cases were argued on the court’s early-May calendar.

Zhang v. Superior Court raises the issues: (1) Can an insured bring a cause of action against its insurer under the Unfair Competition Law (Bus. & Prof. Code, § 17200) based on allegations that the insurer misrepresents and falsely advertises that it will promptly and properly pay covered claims when it has no intention of doing so? (2) Does Moradi-Shalal v. Fireman’s Fund Ins. Companies (1988) 46 Cal.3d 287 bar such an action?

In Rose v. Bank of America, the court will decide whether a cause of action under the Unfair Competition Law (Bus. & Prof. Code, § 17200 et seq.) can be predicated on an alleged violation of the Truth in Savings Act (12 U.S.C. § 4301 et seq.), despite Congress’s repeal of the private right of action initially provided for under that Act.

Disclosure: Horvitz & Levy participated in both cases. In Zhang, the firm represents the real party in interest. It filed an amicus brief in Rose.

The opinions can be viewed online tomorrow beginning at 10:00 a.m.

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