California Appellate Tracker

PSM Holding Corp. v. National Farm Financial Corp.

March 25, 2018

After reversal on appeal, the plaintiff must return to the defendant the subsidiary plaintiff seized in execution of judgment while an appeal was pending and is not entitled to compensation for losses the subsidiary sustained while in plaintiff’s hands.

PSM obtained a judgment against Nat’l Farm, and while Nat’l Farm’s appeal was pending, PSM executed on the judgment, taking possession of Nat’l Farm’s subsidiary, Business Alliance Ins. Co. PSM operated Business Alliance while the appeal was pending, sustaining losses from its operations. The judgment was reversed on appeal. This decision holds that under California law, PSM had to make restitution to Nat’l Farm by returning to it the shares of Business Alliance, but that PSM could not recover from Nat’l Farm the losses it had suffered from Business Alliance’s operations in the interim. Also, the district court did not abuse its discretion in refusing to allow PSM to rescind a quota share agreement with Business Alliance under which it assumed 90% of the risk on Business Alliance’s policies in return for 90% of the premiums. The district court did not clearly err in finding that the quota share agreement was an improvement not necessary maintenance of Business Alliance during the period PSM owned it.

Ninth Circuit Court of Appeals (Tashima, J.); March 7, 2018; 2018 WL 1178071

Subscribe to California Appellate Tracker

Thank you for your desire to subscribe to Severson & Werson’s Appellate Tracker Weblog. In order to subscribe, you must provide a valid name and e-mail address. This too will be retained on our server. When you push the “subscribe button”, we will send an electronic mail to the address that you provided asking you to confirm your subscription to our Weblog. By pushing the “subscribe button”, you represent and warrant that you are over the age of 18 years old, are the owner/authorized user of that e-mail address, and are entitled to receive e-mails at that address. Our weblog will retain your name and e-mail address on its server, or the server of its web host. However, we won’t share any of this information with anyone except the Firm’s employees and contractors, except under certain extraordinary circumstances described on our Privacy Policy and (About The Consumer Finance Blog/About the Appellate Tracker Weblog) Page. NOTICE AND AGREEMENT REGARDING E-MAILS AND CALLS/TEXT MESSAGES TO LAND-LINE AND WIRELESS TELEPHONES: By providing your contact information and confirming your subscription in response to the initial e-mail that we send you, you agree to receive e-mail messages from Severson & Werson from time-to-time and understand and agree that such messages are or may be sent by means of automated dialing technology. If you have your email forwarded to other electronic media, including text messages and cellular telephone by way of VoIP, internet, social media, or otherwise, you agree to receive my messages in that way. This may result in charges to you. Your agreement and consent also extend to any other agents, affiliates, or entities to whom our communications are forwarded. You agree that you will notify Severson & Werson in writing if you revoke this agreement and that your revocation will not be effective until you notify Severson & Werson in writing. You understand and agree that you will afford Severson & Werson a reasonable time to unsubscribe you from the website, that the ability to do so depends on Severson & Werson’s press of business and access to the weblog, and that you may still receive one or more emails or communications from weblog until we are able to unsubscribe you.

I Agree

Effective, Experienced, Exceptional.

California Appellate Tracker

PSM Holding Corp. v. National Farm Financial Corp.

Categories

San Francisco

Severson & Werson

Orange County

Severson & Werson