Court Cites Federal Abstention Doctrines in Dismissing Bad-Faith Claim Against Commissioner

A federal judge in Sacramento said the doctrine of prior exclusive jurisdiction or a similar practice of discouraging federal courts from interfering with state judicial proceedings prohibits him from hearing a complaint accusing regulators of bad faith and constitutional abuses in seeking a conservation order California Insurance Co. The Department of Insurance in November 2019 announced that the San Mateo County Superior Court granted an order placing California Insurance Co. in conservation. The department said in a statement that it requested the order after company officials attempted to...