Knowledge A-Z, Inc. v. Sentry Insurance

857 N.E.2d 411, 2006 Ind. App. LEXIS 2422, 2006 WL 3392788
CourtIndiana Court of Appeals
DecidedNovember 27, 2006
Docket29A04-0604-CV-218
StatusPublished
Cited by21 cases

This text of 857 N.E.2d 411 (Knowledge A-Z, Inc. v. Sentry Insurance) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Knowledge A-Z, Inc. v. Sentry Insurance, 857 N.E.2d 411, 2006 Ind. App. LEXIS 2422, 2006 WL 3392788 (Ind. Ct. App. 2006).

Opinion

OPINION

SHARPNACK, Judge.

Knowledge A-Z, Inc., ("Knowledge") appeals the trial court's grant of summary judgment to Sentry Insurance ("Sentry"). 1 Knowledge raises six issues, which we consolidate and restate as:

T. Whether the trial court erred by denying Knowledge's motion to disqualify counsel and motion to strike Sentry's motion for summary judgment;
II. - Whether the trial court erred by granting Sentry's motion for summary judgment regarding Sentry's claims;
Whether the trial court erred by granting Sentry's motion for summary judgment regarding Knowledge's counterclaim; and IIL.
IV. Whether the trial court abused its discretion by awarding sanctions to Sentry.

We affirm. 2

The relevant designated facts follow. Knowledge entered into an insurance contract with Sentry with effective dates of *415 July 1, 2002, to July 1, 2008. The policy provided the following:

3. DUTIES IN THE EVENT OF LOSS OR DAMAGE
a. You must see that the following are done in the event of loss or damage to Covered Property:
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(6) As often as may be reasonably required, permit [Sentry] to inspect the property proving the loss or damage and examine [the insured's] books and records.
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(8) Cooperate with us in the investigation or settlement of the claim
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b. We may examine any insured under oath while not in the presence of any other insured and at such times as may be reasonably required, about any matter relating to this insurance or the claim including an insured's books and records. In the event of an examination, an insured's answers must be signed.

Appellee's Appendix at 48-49.

In December 2002, Knowledge alleged that it had sustained a loss of $1,337,012.00 due to an employee's theft of computer hardware and software. Knowledge filed a proof of loss with Sentry, and Sentry attempted to investigate the claim. After a dispute regarding Knowledge providing documents to Sentry and submitting to examinations under oath, Sentry filed a complaint for declaratory judgment on June 21, 2004. In the complaint, Sentry alleged that "[blased upon the failure of Nigam Arora to submit to an Examination Under Oath, the failure to provide requested financial records and documents, and a failure to cooperate, Knowledge has acted in contravention of the terms of the Policy and is not entitled to coverage under it." Appellant's Supp. Appendix at 4. Knowledge responded by filing a counterclaim in which it alleged that Sentry had "no legitimate basis" for denying payment on Knowledge's claim, that "Sentry's denial was not made in good faith and upon a rational basis," and that Knowledge was entitled to punitive damages. Id. at 10.

On May 17, 2005, Sentry filed a motion for summary judgment claiming that it was entitled to judgment regarding liability for coverage because Knowledge repeatedly refused and failed to submit to examination under oath as required by the policy and failed to provide documentation regarding the value of the stolen property. Sentry also argued that it was entitled to summary judgment on Knowledge's bad faith counterclaim.

On July 21, 2005, Knowledge filed a motion to alter the time for responding to Sentry's motion for summary judgment, *416 which the trial court granted, giving Knowledge until August 21, 2005, to respond to Sentry's motion for summary judgment. Knowledge did not respond to the motion for summary judgment by August 21, 2005, and on September 2, 2005, Sentry filed a motion to preclude the filing of a response or further extension of time.

Knowledge then filed a motion to disqualify counsel and motion to strike Sentry's motion for summary judgment. Knowledge alleged that Sentry's motion for summary judgment was based upon letters from Sentry's counsel to Knowledge, that Sentry's counsel was a necessary witness in the case, and that his "testimony" was "hotly disputed" by Knowledge. Appellee's Appendix at 188. Knowledge attached as an exhibit a letter from Arora to Sentry's counsel dated March 24, 2004, but allegedly sent on April 24, 2004. Sentry then filed a motion to strike Knowledge's improper submission of evidence (the March 24th letter), an objection to the motion to disqualify counsel, and a petition for fees pursuant to Ind. Code § 34-52-1-1.

Knowledge responded by filing: (1) a "Preliminary Response" to Sentry's motion for summary judgment limited to the failure of Sentry's prima facie showing; (2) a "Supplemental Authority" regarding Sentry's failure to make a prima facie showing; (8) "Supplemental Authority on the Fatal Defect of [Sentry's]) Motion for Summary Judgment"; (4) a "Supplemental Response to Motion for Summary Judgment Based on [Sentry's] Submission of Record That [Sentry] Has Failed to Make A Pri-ma Facie Showing and [Knowledge's] Motion for Leave to File A Full Response to [Sentry's) Motion for Summary Judgment." Appellant's Appendix at iv-vi.

After a hearing, the trial court entered an order denying Knowledge's motion to disqualify Sentry's counsel, denying Knowledge's motion to strike Sentry's motion for summary judgment, granting Sentry's motion to strike Knowledge's improper submission of evidence, striking Knowledge's supplemental authority as to Sentry's failure to make a prima facie showing "to the extent that the legal authority cited therein has been vacated and the citation to it is therefore improper," and granting Sentry's motion for attorney fees. Appellant's Appendix at 2. Further, the trial court granted Sentry's motion for summary judgment. The trial court noted that Knowledge had failed to file a response or designate evidence to meet its burden under Ind. Trial Rule 56. The trial court found no genuine issue of material fact regarding the following:

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a. On or about July 1, 2002, [Sentry] issued an insurance contract to [Knowledge]. - Pursuant to the terms, conditions and requirements of the policy, [Knowledge] was required to permit [Sentry] to examine their books and records as often as may reasonably be required.
b. Pursuant to the terms, conditions and requirements of the policy, [Knowledge] was required to cooperate with [Sentry] in the investigation or settlement of the claim.
c. Pursuant to the terms, conditions and requirements of the policy, [Sentry] was granted the right to examine any insured under oath while not in the presence of any other insured and at such times as may reasonably be required.
d.

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Bluebook (online)
857 N.E.2d 411, 2006 Ind. App. LEXIS 2422, 2006 WL 3392788, Counsel Stack Legal Research, https://law.counselstack.com/opinion/knowledge-a-z-inc-v-sentry-insurance-indctapp-2006.