STORY FROM: Reinsurance & Arbitration

Applied Underwriters Fraud Action Remanded to Calif. State Court

LOS ANGELES - A California federal judge has remanded to state court a lawsuit accusing Applied Underwriters Inc. of fraudulently marketing and selling its EquityComp workers' compensation program, noting that only state law claims remain in the case.

In a March 15 order, Judge Michael Fitzgerald of the U.S. District Court for the Central District of California noted the Applied defendants did not respond to an order to show cause why the action should not be remanded. The order was issued following the court’s dismissal of the plaintiff’s Racketeer Influenced and Corrupt Organizations Act claims.

BSA Framing Inc., a California ...

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