COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2011

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

COMMITMENTS AND CONTINGENCIES:

The Company leases some of its offices under non-cancelable operating leases that expire at various dates through 2014.  Rent expense for the years ended December 31, 2011, 2010 and 2009 for office space was $754,000, $745,000, and $788,000, respectively.

Future minimum payments under all operating leases for the years ending December 31 are as follows (in thousands):

2012	$	761
2013	690
2014	592
2015	440
2016	376
Thereafter	856
Total	$	3,715

The Company is subject to various other litigation matters that arise in the ordinary course of its business. Certain of our insurance subsidiaries are frequently a party in claims proceedings and actions regarding insurance coverage, all of which are considered routine and incidental to our business. Based upon information presently available, management is of the opinion that resolution of such litigation will not likely have a material effect on the consolidated financial position, results of operations, or cash flows of the Company. Neither PICO nor its subsidiaries are parties to any potentially material pending legal proceedings other than the following.

PICO Holdings, Inc:

On August 16, 2011 and August 26, 2011, Ronald Dennis and George Assad, respectively, each filed a shareholder derivative complaint, purportedly on behalf of the Company, against the Company's directors in the Superior Court of California, County of San Diego, (the "Derivative Actions"). The Derivative Actions allege a combination of claims for breach of fiduciary duty, gross mismanagement, contribution and indemnification, abuse of control, waste of corporate assets and unjust enrichment in connection with the May 13, 2011 shareholder advisory vote on the Company's 2010 executive compensation pursuant to the Dodd-Frank Wall Street Reform and Consumer Protection Act and the 2010 executive compensation underlying the vote. On September 30, 2011, the Company removed each of the Derivative Actions to the United States District Court, Southern District of California. On October 7, 2011, the Company filed motions to dismiss each of the Derivative Actions. On October 13, 2011, the plaintiff in each of the Derivative Actions filed a motion to remand the Derivative Actions to the Superior Court of California, County of San Diego, and on October 24, 2011 the plaintiff in each of the Derivative Actions filed an opposition to the Company's motions to dismiss. On October 31, 2011, the Company filed an opposition to the plaintiffs' motions to remand and reply briefs in support of the Company's motions to dismiss. On November 7, 2011, the plaintiff in each of the Derivative Actions filed a reply brief in support of their motions to remand. Hearings on the motions to dismiss and motions to remand will be held upon request of the Court. On January 6, 2012, the District Court granted in part, the Company's motion to dismiss, dismissing plaintiff's claim for a declaratory judgment that the May 13, 2011, adverse shareholder advisory vote rebutted the business judgment rule. The District Court declined to rule on the Company's motion to dismiss the remaining claims alleged by plaintiffs. The District Court, in its January 6, 2012 order, also granted plaintiff's motion to remand in part and remanded plaintiff's remaining causes of action to State Court. On February 3, 2012, the plaintiff appealed the order dismissing the plaintiff's claim. On February 9, 2012, the Company filed a cross-appeal on the order remanding the remaining claims. The plaintiff will file and serve its opening brief on May 14, 2012 and the Company will file its answering brief on June 13, 2012. The plaintiff will file its reply brief on July 13, 2012. On remand, on February 17, 2012, the Superior Court of California signed a stipulation consolidating this case with a related action titles Assad v. Hart, et al. On March 1, 2012, the Company filed a motion to stay.

A hearing on the Company's motion to stay is scheduled for March 29, 2012. An estimate of the possible range or outcome of this litigation cannot be made. However, the Company does not believe this litigation will result in a material impact to the consolidated financial statements.

Fish Springs Ranch, LLC:

The Company’s settlement agreement with the Pyramid Lake Paiute Tribe of Indians relating to the exportation of water from the properties owned by Fish Springs Ranch, LLC is pending ratification by the United States Congress, but we cannot be certain as to when the United States Congress will act on this matter. No material developments occurred relating to this dispute or the settlement agreement during 2011.