Textron Financial Corp. v. National Union Fire Ins. Co

In Textron Financial Corp. v. National Union Fire Ins. Co. (2004) 118 Cal.App.4th 1061, the plaintiff was a secured party with respect to the subject vehicle and alleged that when the owner cancelled coverage, the insurer failed to notify the plaintiff. The complaint alleged that the insurer " 'used misleading documents to falsely suggest that it would provide insurance ... where it had no intention to do so,' 'falsely suggested that it would ... provide timely notice of policy cancellations,' 'misrepresented the terms and meaning of its policies, and engaged in a pattern and practice of wrongful and false cancellations of insurance policies ... .' " (Textron Financial, supra, 118 Cal.App.4th at p. 1070.) In upholding the trial court's ruling sustaining the defendant insurer's demurrer to the UCL cause of action, the Court of Appeal commented that: "The specific allegations of wrongful conduct contained in plaintiff's fourth cause of action, using misleading documents and misrepresenting both the terms of the insurance policies and its obligations under them for its own benefit, are the type of activities covered by the Unfair Insurance Practices Act. (Ins. Code, 790.03, subds. (a) & (h).)" (Textron Financial, supra, 118 Cal.App.4th at p. 1070.)