Farmers Insurance Exchange v. Superior Court
California Supreme Court
826 P.2d 730 (1992)
The California attorney general (plaintiff) sued several insurance companies (defendants) in state court, alleging they violated the state's unfair business practices statute by refusing to extend a good driver discount to all eligible applicants, a question that turned on whether the insurers' underlying rates and eligibility criteria complied with state insurance regulations. The insurers argued the court lacked jurisdiction until the state insurance commissioner, who has a dedicated regulatory complaint process for rate and underwriting disputes, first heard the claims. The trial court found it had jurisdiction, and the Court of Appeal affirmed.
Whether a court must suspend the judicial process and refer issues to an administrative agency when a claim, though originally cognizable in court, requires resolving questions within that agency's specialized expertise.