Opinion
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)
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
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.
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. [<J[] Plaintiffs reserve the right to further respond to this interrogatory.”
In its separate statement of undisputed facts, defendant cited as evidence plaintiffs’ responses to admissions requests Nos. 5 and 6. Defendant likewise relied upon the answers to interrogatory No. 17.1. Also, defendant attached the response to admissions request No. 4 in which plaintiffs admitted defendant “took no inappropriate action in connection with its role in the
Plaintiffs’ response to the separate statement of undisputed facts relied upon several declarations which attached documents relating to the loan. The declarations contained statements by investors: concerning disappearance of monies; relating to the seriousness of the financial losses incurred by the investors in NMR Investors Fund I; a belief that defendant was responsible for the losses; and that there were unanswered questions concerning where the money invested in the limited partnership had gone.
The respondent court denied the summary judgment motion.
2
Defendant filed a petition for writ of mandate as permitted by section 437c, subdivision (l). We issued an alternative writ of mandate and the cause was orally argued.
(Alexander
v.
Superior Court
(1993)
IV. Discussion
Summary judgment is granted when a moving party establishes the right to the entry of judgment as a matter of law. (§ 437c, subd. (c).) We review the trial judge’s decision not to grant the summary judgment motion de novo.
(Jambazian
v.
Borden
(1994)
Defendant’s summary judgment motion was premised on the contention that defendant never made any fraudulent representations to any plaintiff nor
Defendant contends that the factually devoid answers to the Judicial Council form interrogatories were sufficient to require plaintiffs to prove their case concerning the alleged misrepresentations and fraudulent conspiracy. Defendant further argues that plaintiffs failed to provide substantial
In reaching this conclusion, it is necessary we consider the effect of the 1992 and 1993 amendments to section 437c (Stats. 1992, ch. 1348; Stats. 1993, ch. 276) on our prior decision in
Barnes
v.
Blue Haven Pools, supra,
Our analysis in
Barnes
was widely accepted by the Courts of Appeal as a correct statement of the moving defendant’s burden of proof at the summary
However, the 1992 and 1993 amendments to section 437c have legislatively overruled the prior decision of this court in
Barnes.
Former section 437c, subdivision (n)(2), enacted in 1992 and effective January 1, 1993, added for the first time to the summary judgment law the following statement of a moving defendant’s burden of proof which stated in pertinent part: “A defendant ... has met his or her burden of showing that a cause of action has no merit if that party has shown that one or more elements of the cause of action, even if not separately pleaded, cannot be established .... Once the defendant ... has met that burden, the burden shifts to the plaintiff... to show that a triable issue of one or more material facts exists as to that cause of action.” (Stats. 1992, ch. 1348.) In 1993, section 437c was once again amended and the relevant language in subdivision (n)(2) was moved to subdivision (o)(2), where it presently states in its entirety: “A defendant or cross-defendant has met his or her burden of showing that a cause of action has no merit if that party has shown that one or more elements of the cause of action, even if not separately pleaded, cannot be established, or that there is a complete defense to that cause of action. Once the defendant or cross-defendant has met that burden, the burden shifts to the plaintiff or cross-complainant to show that a triable issue of one or more material facts exists as to that cause of action or a defense thereto. The plaintiff or cross-complainant may not rely upon the mere allegations or denials of its pleadings to show that a triable issue of material fact exists but, instead, shall set forth the specific facts showing that a triable issue of material fact exists as to that cause of action or a defense thereto.” (Stats.
The language in the present section 437c, subdivision (o)(2), providing for shifting the burden of proof if “one or more elements of the cause of action, even if not separately pleaded, cannot be established . . .”, did not appear in the pre-January 1, 1993, summary judgment law. This language was first inserted in the summary judgment law in the 1992 amendment to former section 437c, subdivision (n)(2). (Stats. 1992, ch. 1348.) In applying section 437c, subdivision (o)(2), we are required to carry out the Legislature’s intent.
(Freedom Newspapers, Inc.
v.
Orange County Employees Retirement System (1993) 6
Cal.4th 821, 826 [
The 1992 amendment was introduced on February 11, 1992, as Assembly Bill No. 2616. When originally introduced on February 11, 1992, Assembly Bill No. 2616 did not contain the language in subdivision (n)(2) which in 1993 was moved to subdivision (o)(2). (Assem. Bill No. 2616 (1991-1992 Reg. Sess.) Feb. 11, 1992.) When Assembly Bill No. 2616 first passed the Assembly, the language which later would appear in former section 437c, subdivision (n)(2) was not present at that time. (Assem. Bill No. 2616 (1991-1992 Reg. Sess.) as amended May 13, 1992.) The language in former section 437c, subdivision (n)(2) was first proposed on June 1, 1992, while Assembly Bill No. 2616 was still pending in the Senate Committee on Judiciary. ((Assem. Bill No. 2616 (1991-1992 Reg. Sess.) as amended June 1, 1992.) The first committee report to discuss the language at issue was prepared for an August 18, 1992, hearing before the Senate Committee on Judiciary. The report stated: “The most significant of the proposed changes is set forth in the new subdivision (n) to CCP Section 437c. The provision
Prior to the insertion of the language at issue in the last sentence of section 437c, subdivision (o), Assembly Member Jan Goldsmith, the sponsor of Assembly Bill No. 498, was provided with a resolution of the State Bar Conference of Delegates which sought to “overrule cases such as
Barn[e]s
v.
Blue Haven Pools.”
(Letter of Theresa D. Taylor, Legis. Counsel of State Bar of California to Assembly Member Jan Goldsmith dated Jan. 7, 1993, contained in Sen. Com. on Judiciary file for Assem. Bill No. 498 (1993-1994 Reg. Sess.).) On March 5, 1993, Assembly Member Goldsmith submitted to the Assembly Committee on Judiciary the State Bar resolution which indicated the decision in
Barnes
v.
Blue Haven Pools, supra,
On March 31, 1993, the bill was amended to add the language concerning the responding party’s duty to rely on specific facts once the burden of proof shifted. Later, at the April 28,1993, hearing before the Assembly Committee on Judiciary, the report prepared for that date stated: “Specifies that once the burden shifts, ... the opposing party may not rely ‘upon the mere allegations or denials of the pleadings’ to show that a triable issue of material fact exists but, instead, must ‘set forth the specific facts showing that a triable issue of material fact exists’ as to the cause of action or a defense thereto.” (See Assem. Com. on Judiciary Rep. on Assem. Bill No. 498 (1993-1994 Reg. Sess.) p. 1.) On May 10, 1993, Assembly Bill No. 498 was unanimously approved and sent to the Senate.
In the Senate, a hearing was held on June 29, 1993, before the Senate Judiciary Committee. A report prepared for that date contained similar explanatory language as appeared in the Assembly Committee on Judiciary written analysis. However, the Senate report also made specific reference to rule 56 of the Federal Rules of Civil Procedure (28 U.S.C.). The report stated: “Federal Rule of Civil Procedure 56 governs summary judgment. Rule 56(e) specifically requires the opposing party to set forth specific facts showing that there is a genuine issue for trial. The notes of the Advisory Committee on Rules to the United Supreme Court states, that Rule 56(e) was added to overcome a line of cases that impaired the utility of the summary
The express language and legislative history of the 1992 and 1993 amendments to section 437c indicate the following. Two separate Legislatures unanimously intended unequivocally to substantially change a portion of California’s summary judgment law. Taken together, the 1992 and 1993 amendments to section 437c legislatively overruled this division’s holding in
Barnes
v.
Blue Haven Pooh, supra,
1 Cal.App.3d at pages 126-128, insofar as it prohibited a summary judgment motion from being granted when a moving defendant merely relies on a plaintiff’s factually devoid interrogatory answers. Whatever uncertainty may have existed after the 1992 legislation was approved by the Governor as to the continued viability of
Barnes,
Applying the foregoing to the present case, we conclude defendant is entitled to summary judgment. Defendant’s separate statement cites facts which prove that the repossession of the scanner took place in accord with the terms of the lending documents; plaintiff’s interrogatory responses
The sole remaining cause of action was for an accounting. The grounds alleged in the accounting cause of action were that: there was a breach of fiduciary duty; the accounts were complicated; and fraud. These are proper grounds for an accounting.
(Smith
v.
Blodget
(1921)
IV. Disposition
A petition for writ of mandate is to issue directing the respondent court to set aside its order entered on July 6, 1994, denying the summary judgment motion. A new order is to be entered granting the summary judgment motion. Defendant, Union Bank, is to recover its costs incurred in connection with these extraordinary writ proceedings jointly and severally from plaintiffs.
Grignon, J., and Armstrong, J., concurred.
A petition for a rehearing was denied February 1,1995, and the petition of real parties in interest for review by the Supreme Court was denied March 23, 1995. Mosk, J., and Kennard, J., were of the opinion that the petition should be granted.
Notes
All future statutory references are to the Code of Civil Procedure.
The respondent court granted the summary issue adjudication motion as to the cause of action for breach of fiduciary duty. The court determined that no fiduciary relationship existed between defendant, a lender exercising its rights to foreclose on a medical scanner, and the limited partners of a partnership defaulting on the payment of rent. There is no issue concerning the correctness of the respondent court’s order granting summary issue adjudication because no mandate petition has been filed by plaintiffs to set it aside. In any event, the respondent court was correct. No fiduciary relationship existed.
(Kim
v.
Sumitomo Bank
(1993)
Plaintiffs had a duty to answer the form interrogatories as completely and straightforwardly as possible given the information available to them. Section 2030, subdivision (f)(1) requires interrogatory answers to meet the following standard of responsiveness: “Each answer in the response shall be as complete and straightforward as the information reasonably available to the responding party permits. If an interrogatory cannot be answered completely, it shall be answered to the extent possible.” The duty to truthfully and fully respond has been described as follows, “Parties must ‘state the truth, the whole truth, and nothing but the truth in answering written interrogatories’ [citation] . . . .”
(Guzman
v.
General Motors Corp.
(1984)
Section 2030, subdivision (m) states, “Without leave of court, a party may serve an amended answer to any interrogatory that contains information subsequently discovered, inadvertently omitted, or mistakenly stated in the initial interrogatory.” (See Civil Discovery Practice in Cal., supra, Interrogatories, § 8.82, p. 507.)
In 1969, at the time
Barnes
decision was filed, section 437c provided: “In superior courts and municipal courts if it is claimed the action has no merit, or that there is no defense to the action, on motion of either party, after notice of the time and place thereof in writing served on the other party at least 10 days before such motion, supported by affidavit of any person or persons having knowledge of the facts, the answer may be stricken out or the complaint may be dismissed and judgment may be entered, in the discretion of the court unless the other party, by affidavit or affidavits shall show such facts as may be deemed by the judge hearing
The California Supreme Court never adopted the Barnes analysis that when a moving defendant relies on a plaintiff’s discovery responses to demonstrate there is no evidence an essential allegation in the complaint is provable, summary judgment may not be entered. We have been unable to find any case where the Supreme Court considered this precise issue.
The reference to
Celotex Corp.
v.
Catrett
(1986)
When Assembly Bill No. 2616 was before the Legislature, the judicially declared rule was that a moving defendant had a duty to negate an essential element of an adversary’s cause of action. (See
Molko
v.
Holy Spirit Assn.
(1988)
The only firm contradictory legislative history is a letter inserted in the Assembly Daily Journal dated September 8, 1993, by Assembly Member Peace, the sponsor of the 1992 amendment, which states: “It has come to my attention that there is some confusion as to the burden of proof allocated to parties on motions for summary judgment as a result of my AB 2616 chaptered last year. The allocation of the burden of proof pre AB 2616 is set forth in cases such as
Chevron, U.S.A.
v.
Superior Court,
(1992)
We may not rely on the September 8, 1993, letter as a statement of legislative intent. The California Supreme Court has held that a letter printed on motion in the Senate or Assembly Journal is admissible on the issue of legislative intent under these circumstances: “ ‘In construing a statute we do not consider the motives or understandings of individual legislators
Even if we were to consider it, we conclude that the September 8,1993, letter, written after the adoption of the 1993 amendment to section 437c, when weighed against the other evidence of legislative intent, is insufficient to support the conclusion that
Barnes
v.
Blue Haven Pools, supra,
1 Cal.App.3d at pages 126-128, is still a valid statement of California law insofar as it prohibits a defendant from securing a summary judgment based upon a plaintiff’s factually incomplete discovery responses. The standard of review of a letter purporting to reflect legislative intent when it conflicts with other documents reflecting a different design was set forth by the California Supreme Court as follows: “To say that the letter [of legislative intent printed on motion in the Senate Journal] properly bears upon the issue of legislative intent is not to hold that it necessarily concludes that issue. In many cases the indicia of intent are in conflict, and the proper construction of the statute requires us to impute weight to expressions in accord with their probative value. Thus, a motion to print a letter of legislative intent commands less respect than a formal resolution of legislative intent.
Likewise, an individual legislator’s recount of the argument preceding the passage of a bill probably merits less weight than extensive committee reports
on the bill or a formal record of the legislative debates.”
(In re Marriage of Bouquet, supra,
16 Cal.3d at pp. 590-591, italics added.) The point of the September 8, 1993, letter is that the holding of
Celotex Corp.
v.
Catrett, supra, 477
U.S. at pages 322-326 [91 L.Ed.2d at pages 273-276], applies to a summary judgment motion filed by a plaintiff but not by a defendant. However, the extensive committee reports indicate the Legislature, as a result of the 1992 and 1993 legislation, intended to revise the law of summary judgment as it related to the burden of proof of
both
plaintiffs and defendants who are moving parties. The only evidence that indicates a defendant’s burden was unaffected by Assembly Bill No. 2616 is the vaguely worded Assembly report prepared after the Senate passed the legislation on August 27, 1992. However, that report: conflicts with the Senate analysis; insofar as it suggests a defendant must “negate” an element of the plaintiff’s case is at odds with the statutory language; misapplies the
Celotex
Whatever uncertainty may have existed concerning the viability of Barnes v. Blue Haven Pools, supra, 1 Cal.App.3d at pages 126-128, as it related to a defendant relying on a plaintiff’s discovery responses, was resolved in 1993. Neither the Assembly nor Senate Committees on Judiciary reports indicated Celotex would apply to a plaintiff but not to a defendant. More critically, the committees were both reacting to a State Bar resolution calling for the legislative repeal of Barnes. (See Assem. Com. on Judiciary Rep. on Assem. Bill. No. 498, supra, pp. 1-2; Sen. Com. on Jud. Com. Rep. on Assem. Bill No. 498, supra, pp. 1-4.) The reports, as set forth in the body of this opinion, indicate that the purpose of the bill was to legislatively overrule Barnes and require a responding party to “set forth the specific facts showing that a triable issue of material fact exists as to that cause of action . . . .” (§ 437c, subd. (o)(2).) Accordingly, when we weigh all of the evidence concerning legislative intent, we conclude the Legislature, as a result of both the 1992 and 1993 legislation, intended to abrogate Barnes insofar as it prohibited a moving defendant from securing a summary judgment based upon factually inadequate discovery responses of a plaintiff. Respected California commentators are in accord with our analysis. (See, Weil & Brown, Cal. Practice Guide, supra, §§ 10:241-10:241.4, pp. 10-65-10-67.)
