Union Bank v. Superior Court

31 Cal. App. 4th 573, 37 Cal. Rptr. 2d 653, 95 Daily Journal DAR 597, 95 Cal. Daily Op. Serv. 358, 1995 Cal. App. LEXIS 24
CourtCalifornia Court of Appeal
DecidedJanuary 12, 1995
DocketB085357
StatusPublished
Cited by213 cases

This text of 31 Cal. App. 4th 573 (Union Bank v. Superior Court) is published on Counsel Stack Legal Research, covering California Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Union Bank v. Superior Court, 31 Cal. App. 4th 573, 37 Cal. Rptr. 2d 653, 95 Daily Journal DAR 597, 95 Cal. Daily Op. Serv. 358, 1995 Cal. App. LEXIS 24 (Cal. Ct. App. 1995).

Opinion

Opinion

TURNER, P. J.

I. Introduction

Defendant, Union Bank, seeks a writ of mandate pursuant to Code of Civil Procedure section 437c, 1 subdivision (/), compelling the respondent court to enter a summary judgment on the first amended complaint against plaintiffs who are 11 individuals, a trust, and an individual retirement account. We conclude that: defendant could rely on plaintiffs’ Judicial Council form interrogatory answers as an evidentiary basis for its separate statement; despite a request for such information, the interrogatory answers contained no evidence to support a theory of liability on defendant’s part; the interrogatory responses, when relied upon by defendant in its separate statement of undisputed facts, were sufficient to shift the burden of proof to plaintiffs pursuant to section 437c, subdivision (o)(2) to demonstrate there was a triable issue concerning the correctness of their claims; and plaintiffs failed to present sufficient evidence to create a triable issue of material fact. In reaching this determination, we conclude that, together, the 1992 and 1993 amendments to section 437c have overruled the prior decision of this division in Barnes v. Blue Haven Pools (1969) 1 Cal.App.3d 123, 126-128 [81 Cal.Rptr. 444] to the limited extent that the opinion bars a defendant from securing a summary judgment premised upon a plaintiff’s factually devoid interrogatory answers. Accordingly, because the summary judgment motion should have been granted, we issue our writ of mandate.

II. Scope of Issues Raised by the Pleadings

The operative pleading is the 229-page first amended complaint which contains causes of action for: intentional misrepresentation; negligent misrepresentation; fraud based on concealment of facts; fraud premised upon a *577 promise to perform and without the intent to do so; conspiracy to defraud; legal and accounting malpractice; fiduciary duty breach; and for an accounting. There are 40 codefendants. Defendant is named in all of the causes of action except in connection with the legal and accounting malpractice claim. Plaintiffs alleged: plaintiffs were investors and limited partners in NMR Investors Fund I, a limited partnership; on October 15, 1985, defendant lent money to United Medical Leasing Company, Inc., a codefendant; the money was lent in connection with the lease of a medical scanner from United Medical Leasing Company, Inc., to the limited partnership of which, as previously noted, plaintiffs were limited partners; as security for the lease, all of the rights, including the authority to repossess the scanner in the event of a default in rental payments, were assigned to defendant; the limited partnership, NMR Investors Fund I, defaulted in payments to the lessor, United Medical Leasing Company, Inc., which meant defendant could lawfully repossess the scanner; and in June 1991, defendant repossessed the scanner after it was abandoned by the limited partnership. The first amended complaint alleged that plaintiffs, the limited partners, were defrauded by: the general partner, NMR Inc.; the general partner’s shareholders; an advertising firm; the partnership’s accountants and attorneys; various financial advisers to the partnership; certain medical related entities; the lessor of the scanner, United Medical Leasing Company, Inc.; and defendant, the lender who repossessed the scanner. The first amended complaint alleged that misrepresentations were made in connection with a private placement memorandum which was utilized to solicit plaintiffs as investors. The allegations involving defendant were as follows: “[Defendant], a California financial corporation, doing business in the State of California, located at 225 South Lake Avenue, Pasadena, California 90071 and 445 South Figueroa Street, Los Angeles, California 90071, gave advise [sic] and opinions to [NMR Inc., the general partner and NMR Investors Fund I, the limited partnership]. Based on currently available information, plaintiffs are informed and believe and thereon allege that Union Bank participated in the acts, practices, conspiracy, common course of conduct and transactions hereinafter alleged.”

III. Summary Judgment Motion

Defendant moved for summary judgment. As to the fraud causes of action, the grounds of the motion were that defendant neither made any fraudulent representations nor was it a member of a conspiracy to defraud plaintiffs. In support of its motion, defendant relied on plaintiffs’ responses to admissions requests and Judicial Council form interrogatories. (§ 2033.5; see Cal. Judges Benchbook, Civil Proceedings Discovery (1994) § 13.9, p. 187; Civil Discovery Practice in Cal. (Cont.Ed.Bar 1988) Interrogatories, § 8.36, pp. 472-473.) Defendant propounded seven separate requests for admissions. *578 Defendant proffered two admissions requests which are pertinent to the fraud issues in the present case. In request number 5, defendant requested that plaintiffs admit as follows, “Admit that [defendant] committed no fraud or deceit upon you.” In their verified response to admissions request number 5, plaintiffs refused to admit defendant “committed no fraud or deceit . . . .” Further, in request number 6, defendant requested that plaintiffs admit the following: “Admit that [defendant] did not participate in any conspiracy to defraud you.” Plaintiffs likewise refused to admit that defendant did not participate in a fraudulent conspiracy.

In connection with the summary judgment motion, defendant also relied on answers to Judicial Council form interrogatory No. 17.1. Concurrently with the service of the admissions requests, defendant served Judicial Council form interrogatory No. 17.1, which states: “Is your response to each request for admission served with these interrogatories an unqualified admission? If not, for each response that is not an unqualified admission: ['JO (a) state the number of the request; [OD (b) state all facts upon which you base your response; [OD (c) state the names, Addresses, and telephone numbers of all Persons who have knowledge of those facts; [*J0 (d) identify all Documents and other tangible things that support your response and state the name, Address, and telephone number of the Person who has each Document or thing.” Because plaintiffs refused to unqualifiedly admit defendant neither defrauded them nor participated in a conspiracy to do so, they were required to provide answers to form interrogatory No. 17.1. As to admissions request No. 5 concerning whether defendant had committed fraud upon plaintiffs, they responded pursuant to form interrogatory No. 17.1(b) that all of the facts supporting their denial were as follows: “Plaintiffs believe that Union Bank knowingly and fraudulently took the assignment of all the assets of NMR Investors Fund I to secure the loan it made with United Medical Leasing Company, Inc. [*jn Plaintiffs reserve the right to further respond to this interrogatory.” As to admissions request No. 6, which asked whether they unqualifiedly admitted defendant was not a member of a fraudulent conspiracy, plaintiffs gave the following answer to interrogatory No. 17.1(b): “Plaintiffs believe that [defendant] knowingly and fraudulently took the assignment of all the assets of NMR Investors Fund I to secure the loan it made with United Medical Leasing Company, Inc.

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Bluebook (online)
31 Cal. App. 4th 573, 37 Cal. Rptr. 2d 653, 95 Daily Journal DAR 597, 95 Cal. Daily Op. Serv. 358, 1995 Cal. App. LEXIS 24, Counsel Stack Legal Research, https://law.counselstack.com/opinion/union-bank-v-superior-court-calctapp-1995.