Court Invalidates Insurance Commissioner's Order of Suspension Against American Liberty Bail Bonds.LOS ANGELES Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. -- On Wednesday, March 9, 2005, the Los Angeles Superior Court ruled that the California Insurance Commissioner California Insurance Commissioner is an elected executive office position in California who is in charge of the California Department of Insurance. The current Insurance Commissioner is Steve Poizner. had no right to suspend operations of American Liberty Bail Bonds A written promise signed by a defendant or a surety (one who promises to act in place of another) to pay an amount fixed by a court should the defendant named in the document fail to appear in court for the designated criminal proceeding at the date and time specified. , a family-owned bail bond agency. Judge Dzintra Janavs found Insurance Commissioner John Garamendi's Suspension Order was illegal. American Liberty Bail Bonds, Inc. v. Garamendi, L.A.S.C. Case No. BS 093031. Garamendi issued the order under section 1748.5 of the Insurance Code based on allegations of wrongdoing wrong·do·er n. One who does wrong, especially morally or ethically. wrong  do against American Liberty in its bail bond business, but the Court ruled that a Suspension Order against a production agency is not authorized by that section. American Liberty obtained a writ of mandate writ of mandate (mandamus) n. a court order to a government agency, including another court, to follow the law by correcting its prior actions or ceasing illegal acts. from the Court, which invalidated in·val·i·date tr.v. in·val·i·dat·ed, in·val·i·dat·ing, in·val·i·dates To make invalid; nullify. in·val the order and prohibited the Insurance Commissioner from enforcing it. As a result, American Liberty is permitted to transact new bail bond business, effective immediately. Prior to the issuance of the suspension order, American Liberty was one of the largest bail agents in California, with offices in 19 locations, and employing over 35 transactors. Candace Wilson, Vice President of American Liberty, expressed that the suspension of the agency's business has been a humbling and educational process Robert W. Hogeboom of Barger & Wolen, counsel for American Liberty, said the Court decision was worth the six month fight. "American Liberty now can rebuild its business," Hogeboom said, "this ruling is not only a just result for American Liberty, it's a victory for all insurance agencies in California because it prohibits the Commissioner from summarily suspending the operations of a production agency without due process of law." For more information, contact Robert Hogeboom at 213-614-7304 or Robert Cerny at 213-614-7333. |
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