Farmers Wins Delay in Its Court Fight Against Batus

Los Angeles Superior Court Judge Kurt J. Lewin on Wednesday granted Farmers Group a three-week postponement of a hearing on Batus Inc.’s lawsuit against California Insurance Commissioner Roxani M. Gillespie.

The hearing, now scheduled for July 29, will consider Batus’ contention that Gillespie was incorrect in disapproving its $4.35-billion hostile offer for Farmers because government-related agencies based outside California own more than 10% of BAT Industries, Batus’ London-based parent. Batus is asking Lewin to overturn Gillespie’s decision.

The judge also told lawyers for both sides that he refused to be bound by published speculation that he would rule on the case within several days of hearing it.

As a condition of the postponement, Lewin required both sides to file any appeals within three days of his ruling. The agreement removes one means for Farmers, a Los Angeles insurance holding company, to achieve further delays. Before granting the postponement, Lewin also obtained promises from both sides not to ask later for a different judge, another possible source of delay.

Farmers had initially asked for a 60-day postponement. But even moving the hearing date to July 29 represents at least a temporary setback for Batus, which began pursuing Farmers last September and launched its hostile bid Jan. 12.