Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)

Citation: Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Parent Document: Kavanau v. Santa Monica Rent Control Board, 16 Cal. 4th 761 (1997)
Jurisdiction: California (state)
Effective Date: 1997-08-26
Original Source: https://www.courtlistener.com/opinion/5607899/kavanau-v-santa-monica-rent-con... ↗

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Similarly, regulation that set rates for insurers at less than a fair rate of return in order to compensate for supposedly excess profits was determined to be a violation of due process in Calfarm Ins. Co. v. Deukmejian (1989) 48 Cal.3d 805, 819 [258 Cal.Rptr. 161, 771 P.2d 1247]. “[T]he concept that rates may be set at less than a fair rate of return in order to compel the return of past surpluses is not one supported by precedent.” (Ibid.) Again, this aspect of the law was declared unconstitutional because it failed to pursue a legitimate state purpose—an essentially substantive due process violation— not because it resulted in fact in the undermining of the financial integrity of the various insurance companies.

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