Wolfrich Corp. v. United Services Automobile Association

Plaintiffs/appellants Wolfrich Corporation and its two shareholders, Wolfgang and Erica Kleczek (Wolfrich), appeal from orders granting summary judgment in favor of defendants/respondents United Services Automobile Association (USAA), an insurance carrier, and judgment on the pleadings in favor of its attorneys.

The principal issue is whether the complaint states a cause of action against the attorneys representing USAA for conspiracy to violate, and violation of Insurance Code section 790.03, subdivision (h)(5). 1 We conclude that the complaint states a cause of action against the attorneys for conspiracy to violate section 790.03, subdivision (h)(5) and that the summary judgment for the carrier must be reversed due to the existence of triable issues of material facts.

The complaint alleges, inter alia, the following: (1) an automobile owned by plaintiffs and driven by one Lawrence Conway was damaged as a result of Conway’s negligence; (2) Conway was insured by USAA and filed a claim with USAA for damage to the automobile, which USAA did not pay; (3) USAA knew Conway was at fault for the damage and knew Conway had admitted liability; (4) plaintiffs demanded payment…