Ramona Tire Inc. is accused of intentionally underfunding a captive reinsurer, leaving a financially-strapped insurer with $360,000 in unpaid workers' compensation claims.
Earlier this month, a southern California federal judge denied Ramona's motion to dismiss the suit, which was filed by the California Insurance Commissioner as rehabilitator of Frontier Insurance Co.
The first amended complaint seeks relief for fraud, false promise, negligent misrepresentation, unjust enrichment, money had and received, conspiracy and breach of contract. (Howard Mills v. Ramona Tire Inc., et al., No. 07-CV-0052 H [AJB], S.D. Calif.; 2007 U.S. Dist. LEXIS 89438).