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Video Broadcast Party at the Fund Runtime 2:10 Real Media 56k | Broadband Windows Media Player 56k | Broadband Quicktime 56k | Broadband

State Fund employees most likely acquired their celebratory distilled spirits from a liquor vendor other than A&J, April 7, after a long awaited victorious day in court.

Many were sweating the outcome of the A&J Liquor Co. Inc., et al. vs. State Fund case because the potential $1 billion plus judgment, most likely, would have pulled the pin out on the state’s workers’ compensation system.

But contrary to many Fund skeptics the San Francisco judge ruled that State Fund acted within the bounds of the law between 1987 and 1994 when it was accused of over-reserving.

Getting the official word out to its employees State Fund President Dianne C. Oki fired off an internal memo following the decision.

In the memo she stated, “Today State Fund received the best possible news in the tentative decision on A&J Liquors.”

She also cited the concluding statement in the 113-page decision, which read:

"Based on the findings and conclusions set forth above, the Court determines that the plaintiffs have failed to prove that there has been a breach of the implied covenant of good faith and fair dealing; or that there has been a breach of contract; or that there has been fraud or deceit; or that there has been violation of California's unfair competition law. Likewise, on each of these theories of recovery, plaintiffs also have failed to prove causation and damages. Plaintiffs shall recover nothing in this action. State Fund, by motion, may request an award of costs of suit."

To sum up the mindset and mood at the Fund one adjuster put it this way, “This was a titanic victory for SCIF.”