Sanzaro v. United Service Auto. Assn. CA4/2 (2013) · DecisionDepot
Sanzaro v. United Service Auto. Assn. CA4/2
California Court of Appeal Jul 17, 2013 No. E054546Unpublished
Filed 7/17/13 Sanzaro v. United Service Auto. Assn. CA4/2
NOT TO BE PUBLISHED IN OFFICIAL REPORTS California Rules of Court, rule 8.1115(a), prohibits courts and parties from citing or relying on opinions not certified for publication or ordered published, except as specified by rule 8.1115(b). This opinion has not been certified for publication or ordered published for purposes of rule 8.1115.
IN THE COURT OF APPEAL OF THE STATE OF CALIFORNIA
FOURTH APPELLATE DISTRICT
DIVISION TWO
MICHAEL SANZARO et al.,
Plaintiffs and Appellants, E054546
v. (Super.Ct.No. HEC020316)
UNITED SERVICES AUTOMOBILE OPINION ASSOCIATION,
Defendant and Respondent.
APPEAL from the Superior Court of Riverside County. John Vineyard, Joan F.
Burgess and Patricia Rich,* Judges. Affirmed.
Michael Sanzaro and Deborah Sanzaro, in pro. per., for Plaintiffs and Appellants.
Daniels, Fine, Israel, Schonbuch & Lebovits, Maureen M. Michail and Bernadette
C. Brouses for Defendant and Respondent.
* Joan F. Burgess and Patricia Rich are temporary judges pursuant to California Constitution, article VI, section 21.
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I
INTRODUCTION
Plaintiffs Deborah Sanzaro and Michael Sanzaro were insured under a renter’s or
homeowner’s insurance policy issued by defendant United Services Automobile
Association. This appeal involves plaintiffs’ claims for insurance coverage for several
thefts from their home in December 2004, April 2005, and February 2006.
Plaintiffs appeal from a judgment entered on September 14, 2011, after an order
granting a summary judgment motion (MSJ) in favor of defendant. Plaintiffs are
representing themselves in propria persona. We have given full consideration to their
contentions and we affirm the judgment.
II
FACTUAL AND PROCEDURAL BACKGROUND
A. The August 2006 MSJ on the Original Complaint
The original verified complaint was filed individually by one plaintiff, Michael
Sanzaro, in November 2005. The original complaint involved a claim for losses
occurring from a burglary in April 2005. Defendant filed a general denial in January
2006.
Various proceedings occurred, which involved a proposed first and second
amended complaint. Finally, on June 6, 2006, according to the parties’ stipulation, the
court ordered that the original complaint was the operative complaint and that it be
amended to include a request for damages in excess of $25,000.
On May 12, 2006, defendant filed a motion for summary judgment. Defendant’s
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motion and plaintiff’s pending motion to file a second amended complaint (SAC) were
set for hearing on the same date, August 9, 2006. The basis for the motion was plaintiff’s
failure to submit to an examination under oath (EUO) as required by the insurance policy
and California law. Plaintiff opposed the summary judgment motion.
On August 15, 2006, the superior court issued its written ruling granting
defendant’s motion for summary judgment–which it treated as a motion for judgment on
the pleadings–but also granting plaintiff’s motion to amend the complaint for other losses
than those incurred in April 2005.1 The court found: “It is undisputed that plaintiff
refused to submit to an examination under oath and answer the questions asked.
Plaintiff’s compliance with the policy requirement of submitting to an examination under
oath is a prerequisite to the right to receive benefits under the policy as stated in Brizuela
v. Cal. Farms Ins. Co. (2004) 116 Cal.App.4th 578.”
B. Demurrers to the SAC and the TAC
In September 2006, both plaintiffs, Michael Sanzaro and Deborah Sanzaro, filed
their verified SAC seeking recovery for losses occurring in December 2004 and February
2006.
Defendant filed a demurrer and motion to strike to the SAC. The court sustained
the demurrer with leave to amend.
Plaintiff Deborah Sanzaro individually filed a separate action in March 2007,
claiming recovery for the April 2005 losses. Defendant again prevailed on a summary
1 Plaintiff filed an appeal of the court’s order granting summary judgment but plaintiff dismissed that appeal (E041664) in April 2007.
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judgment motion based on plaintiff’s failure to submit to an EUO.2
Both plaintiffs filed their verified third amended complaint (TAC) in March 2007.
Defendant again filed a demurrer and motion to strike. On June 18, 2007, the court
sustained the demurrer without leave to amend on the first through eighth causes of
action and overruled the demurrer on the ninth cause of action for declaratory relief as to
benefits claimed for loss of property in February 2006. The motion to strike was deemed
moot.
C. The August 2011 MSJ on the Ninth Cause of Action
Defendant filed its verified answer to the TAC on July 17, 2007.3 In May 2011,
defendant filed a third summary judgment motion. Plaintiffs did not oppose the motion.4
The court granted the motion on August 30, 2011, and entered final judgment on
September 14, 2011.
In its order, the court ruled that: “. . . the subject USAA insurance policy is void
as to all insureds, and that USAA has an absolute and complete affirmative defense to
plaintiffs’ sole remaining cause of action for declaratory relief in their Third Amended
Complaint. Specifically, there is no triable issue of material fact on plaintiffs’
declaratory relief cause of action, and USAA is entitled to judgment thereon as a matter
of law, because Mr. Sanzaro intentionally concealed or misrepresented material facts or
2 We grant defendant’s request for judicial notice filed June 25, 2012.
3 After further proceedings–including a second motion for summary judgment, which was denied–and a dismissal, the case was reinstated in October 2010. 4 The motion is not included in the record on appeal.
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circumstances; engaged in fraudulent conduct; and made false statements relating to this
insurance, after reporting the February 2006 alleged theft to USAA, which voids the
policy by its terms and California law.”
In September 2011, plaintiffs filed a notice of appeal from the order entered on
August 30, 2011, and the judgment entered after the order granting summary judgment.
III
DISCUSSION
In summarizing their appeal, plaintiffs ask this court (1) to reverse the superior
court’s order on August 15, 2006, granting summary judgment, and (2) to reverse the
superior court’s order sustaining defendant’s demurrer without leave to amend to the
first, second, third, fourth, seventh, and eighth causes of action of the TAC. As set forth
in their notice of appeal, plaintiffs also appeal from the final judgment entered in
September 2011 after the superior court granted summary judgment on the remaining
ninth cause of action. Defendant tries to argue that the appeal is limited to challenging
the August 2006 order and the order sustaining the demurrer. In our view, however, a
fair reading of plaintiffs’ notice of appeal and plaintiffs’ appellate briefs indicates that
plaintiffs’ appeal from the final judgment incorporates all three matters, including the
final judgment in September 2011.
A. The August 2006 Summary Judgment
We conduct an independent review of an order granting summary judgment. As
stated by this court: “On appeal from the trial court’s grant of defendants’ motion for
summary judgment, ‘. . . we review the trial court’s decision de novo, applying the rule
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that “[a] defendant is entitled to summary judgment if the record establishes as a matter
of law that none of the plaintiff’s asserted causes of action can prevail. [Citation.] To
succeed, the defendant must . . . demonstrate that under no hypothesis is there a material
issue of fact that requires the process of a trial.” [Citation.]’ (Flatt v. Superior Court
(1994) 9 Cal.4th 275, 279.)” (Miscione v. Barton Development Co. (1997) 52
Cal.App.4th 1320, 1324-1325; Brizuela v. CalFarm Ins. Co., supra, 116 Cal.App.4th at
p. 586.)
The following material facts were undisputed in the August 2006 MSJ. Defendant
issued a homeowner’s insurance policy to plaintiffs that was in effect from February 10,
2005, to February 10, 2006. In May 2005, Michael Sanzaro gave a recorded statement,
making a claim for personal property taken in the home robbery in April 2005, including
a 60-inch television, large appliances, and furniture.
The policy required the insured to participate in an EOU if the insurer so elects. In
November 2005, when defendant’s representative attempted to conduct an EOU with
Michael Sanzaro, he terminated the examination after about 45 minutes and declined to
complete it.5 In opposition, plaintiffs asserted that Michael Sanzaro had terminated the
EOU because the examiner was asking irrelevant questions and repeating questions that
had already been asked in the recorded statement from May 2005. However, the
recorded statement from May 2005 was not a sworn statement and was not an EOU, as
plaintiffs persistently and incorrectly assert. As the examiner explained to Michael
5 In oral argument, plaintiff conceded that he “blew up and got mad.”
6
Sanzaro, the EUO was a separate examination from the recorded statement. Therefore, it
is not subject to dispute that plaintiffs refused to complete an EOU in November 2005.
Under Insurance Code section 2071, an insurance provision requiring an EOU is
valid. The failure to comply means an insured cannot bring a legal action:
“In West v. State Farm Fire and Cas. Co. (9th Cir. 1989) 868 F.2d 348, the
insured refused to answer questions before a court reporter because he had previously
given an informal statement. Applying California law, the West court held the insurer’s
request that its insured submit to examination under oath was entirely reasonable and
affirmed the granting of summary judgment to the insurer holding the insurer could not
properly process the claim until the insured complied with the terms of the policy. (Id. at
p. 351.)” (Globe Indemnity Co. v. Superior Court (1992) 6 Cal.App.4th 725, 731;
California Fair Plan Assn. v. Superior Court (2004) 115 Cal.App.4th 158, 161-162, 167.)
More recently, in Brizuela v. CalFarm Ins. Co., supra, 116 Cal.App.4th at pages
582-585, the insurer, as part of an arson investigation first obtained the insured’s
recorded statement. Then the insured delayed and refused to complete an EOU. After
the insured sued the insurer, the trial court granted the insurer’s summary judgment
motion because the insured had not completed the requested EOU. (Id. at pp. 585-586.)
The appellate court affirmed.
The foregoing cases are exactly like the present case in which plaintiffs argue that
they did not have to complete an EOU because Michael Sanzaro had already given a
statement and defendant was using the EOU to find a reason to deny coverage. Plaintiffs’
refusal to complete an EOU effected a forfeiture of their rights under the insurance
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policy. (Brizuela v. CalFarm Ins. Co., supra, 116 Cal.App.4th at p. 590, Robinson v.
Cal.App.3d 3d 926, 936.) Additionally, the court’s ruling on the August 2011 MSJ,
discussed below, would preclude any recovery by plaintiffs for the February 2006 claim.
In view of the deficiencies in the first through eight causes of action of the TAC,
the trial court did not abuse its discretion by sustaining defendant’s demurrer without
leave to amend. (Schifando v. City of Los Angeles (2003) 31 Cal.4th 1074, 1081.)
C. The August 2011 MSJ on the Ninth Cause of Action
The August 2011 MSJ concerning the ninth cause of action for declaratory relief
was not opposed by plaintiffs and the only part of the motion that appears in the appellate
record is the court’s written ruling granting the motion. The ninth cause of action sought
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a declaration that plaintiffs were entitled to coverage under the insurance policy for their
February 2006 loss. As already noted, the court found that the insurance policy was void
because Michael Sanzaro had intentionally concealed and misrepresented material facts
and committed insurance fraud. Because they did not oppose the motion in the trial
court, plaintiffs cannot challenge these findings on appeal.
IV
DISPOSITION
The trial court properly granted the 2006 and 2011 motions for summary judgment
involving plaintiffs’ claims for the April 2005 and February 2006 losses. The court also
properly sustained defendant’s demurrer without leave to amend on the TAC involving
the December 2004 and February 2006 losses.
We affirm the judgment. In the interests of justice, we order the parties to bear
their own costs on appeal.
NOT TO BE PUBLISHED IN OFFICIAL REPORTS
CODRINGTON J.
We concur:
McKINSTER Acting P. J.
KING J.
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AI Brief
AI-generated · verify before citing
Holding. The court affirmed the summary judgments and the sustaining of the demurrer, holding that the insureds' refusal to submit to an examination under oath (EUO) forfeited their rights under the policy and that the policy was voided by the insured's intentional misrepresentation and fraud.
Issues
Whether the trial court properly granted summary judgment due to the insureds' failure to submit to an examination under oath.
Whether the trial court properly sustained a demurrer to the third amended complaint regarding claims for replacement cost coverage and emotional distress.
Whether the trial court properly granted summary judgment on the declaratory relief claim based on the insured's fraudulent conduct.
Disposition. Affirmed
Quotations verified verbatim against the opinion
“the subject USAA insurance policy is void as to all insureds, and that USAA has an absolute and complete affirmative defense to plaintiffs’ sole remaining cause of action for declaratory relief”