Judge Tosses Suit Alleging Regulators Abused Authority In Pursuing Conservatorship

Mealey's (April 13, 2021, 8:56 AM EDT) -- SACRAMENTO, Calif. — A federal judge in California on March 31 dismissed the lawsuit of an insurer and its subsidiary alleging that the California insurance commissioner and his deputies violated their constitutional rights and acted in bad faith by filing a conservatorship against a workers’ compensation insurer that is party to a reinsurance participation agreement (RPA), finding that the doctrine of prior exclusive jurisdiction dictates dismissal and alternatively concluding that dismissal under Younger v. Harris is appropriate....