Albuquerque National Bank v. Clifford Industries, Inc.

571 P.2d 1181, 91 N.M. 178
CourtNew Mexico Supreme Court
DecidedDecember 5, 1977
Docket11315
StatusPublished
Cited by5 cases

This text of 571 P.2d 1181 (Albuquerque National Bank v. Clifford Industries, Inc.) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Albuquerque National Bank v. Clifford Industries, Inc., 571 P.2d 1181, 91 N.M. 178 (N.M. 1977).

Opinion

OPINION

FEDERICI, Justice.

This action was brought by Albuquerque National Bank (appellee) in the District Court of Bernalillo County, to recover payment made on an overdraft. The overdraft resulted from a check drawn by Clifford Ellard (appellant) on the Clifford Industries, Inc. account at the appellee bank. The suit was brought against Clifford Industries, Inc., Clifford Ellard and Bruce Lipes.- Bruce Lipes was removed from the litigation when the district court granted summary judgment in his favor. Thereafter, the case was tried to the court without a jury and judgment was entered against Clifford Ellard, secretary-treasurer of the defendant corporation. Clifford Ellard appeals. We reverse the judgment of the district court and remand the cause for further proceedings consistent with this opinion.

On March 25, 1975, Clifford Ellard and Bruce Lipes opened a checking account at the East Menaul office of the Albuquerque National Bank in the name of Clifford Industries, Inc., listing themselves as authorized signatories on the account. Three checks drawn on a Phoenix, Arizona bank were deposited to fund the new Clifford Industries, Inc. account. Appellee’s teller told appellant Ellard at the time of the deposit of each of the checks that the deposit would not be honored until the checks cleared. All three of the deposited checks were subsequently dishonored by the Phoenix bank for insufficient funds.

On March 27, 1975, after deposit, but before dishonor of the three checks, appellant Ellard wrote a check on the Clifford Industries account in the amount of $2,500 and payable to one Cliff Goode, President of Clifford Industries, Inc. This check was endorsed by the payee (Goode), cashed by the appellee, 'and charged to the Clifford Industries account. The bank alleged in Count I of the complaint, that the $2,500 payment on that check was an overdraft on the corporate account and that the bank was entitled to recover the full amount from the defendant corporation.

In Count II of its complaint, appellee bank alleged that Ellard and Lipes were individually liable on the overdraft because they had failed to fully incorporate Clifford Industries, Inc.; had failed to follow corporate formalities and requirements; had ignored the incorporation; had used the corporation as their alter ego; and had used the corporation to perpetrate a fraud and inequity on the appellee. The trial court allowed an amended complaint to be filed which added an alternate theory of recovery, i. e., that the $2,500 check to Cliff Goode was signed by appellant Ellard without a showing of representative capacity and that pursuant to § 50A-3-403, N.M. S.A. 1953, he was personally liable as an endorser. The record is devoid of any indication that the trial court relied upon this latter theory in reaching its judgment.

At the trial, the judge permitted the appellee bank to introduce into evidence, as part of its case, selected answers made by defendant Ellard to plaintiff’s interrogatories. After presentation of the plaintiff’s case, appellant’s counsel offered in evidence, as part of his case, the deposition of defendant Ellard, who had remained at his home in Louisiana and was not present at trial. The trial court ruled that the deposition was not admissible when offered by the deponent himself, stating in effect that the fact that Mr. Ellard had been in Albuquerque one week before the trial constituted evidence sufficient to make it appear that his subsequent absence from the trial was procured by himself. The trial court then stated that in its view no evidence of financial or other inability to attend trial sufficient to overcome the appearance of procurement was presented to it by Mr. Ellard.

Subsequently, appellant’s counsel attempted to reopen his case to permit him to introduce into evidence the remaining answers made by defendant-appellant Ellard to plaintiff’s interrogatories. The trial court ruled that the answers were inadmissible, on the same ground on which it refused to admit the deposition.

Appellant relies on two points for reversal. First, appellant asserts that the trial court committed reversible error: (1) when it refused to allow into evidence the deposition taken of him by the plaintiff-appellee; and (2) when it refused to allow into evidence the remainder of the answers made by him to plaintiff-appellee’s interrogatories. Second, appellant argues that he is not personally liable for the overdraft on the Clifford Industries account.

As to the deposition, the specific question presented is whether an absent party may, under the circumstances of this case, have his own deposition, taken by an adverse party, introduced into evidence as part of his own case-in-chief. The trial court ruled that appellant’s deposition was not so admissible, stating:

As I read the rule, it’s inadmissible on the ground that his absence is procured by himself and he has the freedom of coming or going. I don’t feel that there’s been any evidence of financial inability to be here as evidenced by the fact he was here a week ago would seem to lend credence to the fact that if he could be here a week ago, he could be here today for trial.

The soundness of this ruling by the trial court depends upon the proper construction to be given to Rule 26(d) of the New Mexico Rules of Civil Procedure [§ 21—1—1(26)(d), N.M.S.A. 1953 (Repl.1970)], which provides:

(d) Use of Depositions. At trial or upon the hearing of a motion or an interlocutory proceeding, any part or all of a deposition, so far as admissible under the rules of evidence, may be used against any party who was present or represented at the taking of the deposition or who had due notice thereof, in accordance with any one of the following provisions:
(1) Any deposition may be used by any party for the purpose of contradicting or impeaching the testimony of deponent as a witness.
(2) The deposition of a party or of anyone who at the time of taking the deposition was an officer, director, or managing agent of a public or private corporation, partnership, or association which is a party may be used by an adverse party for any purpose.
(3) The deposition of a witness, whether or not a party, may be used by any party for any purpose if the court finds: 1, That the witness is dead; or 2, that the witness is at a greater distance than 100 miles from the place of trial or hearing, or is out of the state, unless it appears that the absence of the witness was procured by the party offering the deposition; or 3, that the witness is unable to attend or testify because of age, sickness, infirmity, or imprisonment; or 4, that the party offering the deposition has been unable to procure the attendance of the witness by subpoena; or 5, upon application and notice, that such exceptional circumstances exist as to make it desirable, in the interest of justice and with due regard to the importance of presenting the testimony of witnesses orally in open court, to allow the deposition to be used.
(4) If only part of a deposition is offered in evidence by a party, an adverse party may require him to introduce all of it which is relevant to the part introduced, and any party may introduce any other parts.

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Cite This Page — Counsel Stack

Bluebook (online)
571 P.2d 1181, 91 N.M. 178, Counsel Stack Legal Research, https://law.counselstack.com/opinion/albuquerque-national-bank-v-clifford-industries-inc-nm-1977.