Feds make bombshell intervention into landmark California wildfire suit, crushing 'legal shield' loophole

The Department of Justice is weighing in on a landmark California case,
arguing federal law doesn’t shield 16 insurers accused of allegedly
conspiring to cancel homeowners’ fire coverage and push customers onto a
state-run plan. 

“The last thing the fire victims need is the improper use of certain
legal doctrines to deprive Angelenos of their day in court,” Deputy
Assistant Attorney General Charlie Beller of the Justice Department’s
Antitrust Division said in a statement. “The DOJ Antitrust Division is
monitoring insurer conduct across the country to ensure that an improper
understanding of federal law does not preclude state or federal
antitrust claims.” 

The DOJ is not taking sides on the merits of the case, but rather filed
a statement of interest on Monday in an effort to make sure the judge
properly understands the law. 

Last year, 60 homeowners filed a lawsuit in the state Superior Court of
Los Angeles County alleging the homeowner insurance companies jointly
conspired to cancel their fire insurance in the years leading up to the
Palisades and Eaton fire, resulting in the residents having to obtain
coverage under the California Fair Plan with with much less protective
coverage and higher out-of-pocket costs to rebuild their homes. 

While the case of Ferrier v. State Farm Fire and Casualty Company was
brought under California state antitrust law, the insurance companies
argue the homeowners claims should be dismissed under the
Noer-Pennington doctrine — a federal legal principle that shields
individuals and companies from antitrust liability when petitioning the
government 

“What we’re saying is, ‘No, what the plaintiffs say is not that it was
illegal to set up FAIR, but that it was illegal for the insurers to work
together to exclude them from certain plans under the FAIR plan,’” a
senior justice department official told The California Post. “So, in its
reasoning, essentially every time the government set up a FAIR like
program anything the insurers did would be protected.” 

 “We want to make sure that this doesn’t get dismissed particularly on a
 legal issue that we feel strongly about,” the senior justice department
 official said. 

Federal officials say the move is intended to deter insurers from
pursuing similar strategies in other states. 

“Our hope would be across the board, insurance  companies are just
thinking about what the legal risk is and then acting responsibly across
the country,” the senior DOJ official said.  

https://nypost.com/2026/05/04/us-news/doj-says-insurers-cant-hide-behind-
legal-shield-in-california-wildfire-coverage-case/ 


-- 
November 5, 2024 - Congratulations President Donald Trump.  We look 
forward to America being great again.

We live in a time where intelligent people are being silenced so that 
stupid people won't be offended.

Every day is an IQ test. Some pass, some, not so much.

Thank you for cleaning up the disasters of the 2008-2017, 2020-2024 Obama 
/ Biden / Harris fiascos, President Trump.

Under Barack Obama's leadership, the United States of America became the 
The World According To Garp.  Obama sold out heterosexuals for Hollywood 
queer liberal democrat donors.