Clemens
Clemens v. American Warranty Corp.
Opinion
Opinion
Klein, J.
Plaintiff and appellant Richard M. Clemens (Clemens) appeals from a judgment of dismissal in favor of defendants and respondents American Warranty Corporation (AWC) and Rex Sluggett (Sluggett) (collectively, respondents).
Because the vehicle service contract (VSC) was not insurance, and because dismissal properly followed the sustaining of what was in effect an objection to all evidence, the judgment is affirmed.
Factual and Procedural Background
On March 7, 1978, Clemens purchased from Steve Taub Porsche-Audi, Inc. (Dealer) a new 1978 Audi automobile. At the same time, Clemens also bought a five-year/50,000 mile VSC for $275. The VSC provided that, subject to a $25 deductible for each repair for each component covered, the Dealer would repair, replace or reimburse Clemens for mechanical breakdowns. The VSC further recited the Dealer had appointed AWC as administrator, and “[a]s the administrator, AWC ha[d] no liability to [customer] under this agreement.”
Of the $275 paid by Clemens, the Dealer retained $125 and remitted $150 to AWC. AWC retained $50 as its administrative fee, and remitted $100 to United Equitable Insurance Company (United), its parent company. For…