Advertisement

Cedillos Testing Co. Sues Insurer for $30 Million : Lawsuit: Owner of the Long Beach firm, which burned down in April, alleges Golden Eagle refused to pay his claim.

Share
TIMES STAFF WRITER

Cedillos Testing Co., a Long Beach aerospace testing company whose plant burned down in April, has sued a San Diego insurance company, alleging that the insurer failed to pay an insurance claim and asking for $30 million in damages.

Ron Cedillos, a Huntington Beach resident and well-known activist on behalf of the aerospace industry, said Golden Eagle Insurance Co. refused to pay his company’s claim because of a “technical” mistake. The suit, which alleges fraud and negligence, was filed earlier this week in Los Angeles Superior Court.

Grant Luna, an attorney for Golden Eagle, said that part of Cedillos’ claim was paid and that the rest is under investigation. The company has 40,000 policyholders and is owned by John Mabee, a well-known horse breeder in San Diego.

Advertisement

“Golden Eagle did a good job of investigating,” Luna said. “It acted reasonably and prudently. Part of the claim required proof, and that was not forthcoming. Good faith is a two-way street.”

Cedillos said Golden Eagle notified him that it would not pay his claim because Cedillos Testing did not have an automatic fire alarm as indicated on its insurance application.

“My case is just one small example of the larger insurance picture,” Cedillos said. “Golden Eagle’s refusal to make payment has destroyed a 20-year-old, multimillion-dollar company.”

Cedillos said the error on his insurance application was made by Golden Eagle’s authorized sales representative. The application, Cedillos said, was never submitted to him for approval.

Cedillos Testing burned to the ground on April 4 for unknown reasons, Cedillos said. About 100 employees were put out of work by the blaze, he said, and most have not found new jobs.

Cedillos served as a member of Peter V. Ueberroth’s California Council on Competitiveness last year and also founded Californians for Aerospace Leadership, a group formed last year to support the state’s aerospace industry.

Advertisement

Bill Schulz, spokesman for the state Department of Insurance, said a number of complaints have been received about Golden Eagle. He would not be more specific.

Advertisement