Fremont Indemnity v. Fremont General
Fremont Indemnity Company (Indemnity) appeals a judgment dismissing its complaint against Fremont General Corporation (Fremont General) and Fremont Compensation Insurance Group, Inc. (Insurance Group), after the court sustained demurrers without leave to amend. Indemnity, by and through the Insurance Commissioner as its liquidator, sued Fremont General and Insurance Group in two separate actions alleging the misappropriation of funds. In this action, known as the NOL action, Indemnity alleges that the defendants misappropriated its net operating losses. In a separate action known as the Comstock action, Indemnity alleges that the same defendants misappropriated net operating losses of its predecessor in interest, Comstock Insurance Company (Comstock), and misappropriated other assets of a former subsidiary of Indemnity, Fremont Reinsurance Company, Ltd. (Bermuda). The Comstock action is the subject of a separate appeal.
The judgment is reversed with directions to the superior court to (1) vacate its order sustaining the demurrer to eleven counts alleged in the first amended complaint without leave to amend, and enter a new order sustaining the demurrer without leave to amend as to counts eight and nine only and overruling the demurrer as to counts one through six and ten through twelve; and (2) vacate its order sustaining the demurrer to each count alleged in the third amended complaint without leave to amend, and enter a
new order overruling the demurrer in its entirety. Indemnity is entitled to recover its costs on appeal.
Comments on Fremont Indemnity v. Fremont General