Arguedas v. Seawright

CourtNew Mexico Court of Appeals
DecidedJanuary 28, 2019
DocketA-1-CA-35699
StatusUnpublished

This text of Arguedas v. Seawright (Arguedas v. Seawright) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arguedas v. Seawright, (N.M. Ct. App. 2019).

Opinion

This memorandum opinion was not selected for publication in the New Mexico Appellate Reports. Please see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. Please also note that this electronic memorandum opinion may contain computer-generated errors or other deviations from the official paper version filed by the Court of Appeals and does not include the filing date.

1 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

2 ARTHUR ARGUEDAS, BARBARA 3 ARGUEDAS AND HELEN BRANSFORD,

4 Plaintiffs-Appellants,

5 v. No. A-1-CA-35699

6 GARRETT SEAWRIGHT,

7 Defendant-Appellee.

8 APPEAL FROM THE DISTRICT COURT OF SANTA FE COUNTY 9 Sarah M. Singleton, District Judge

10 Berardinelli Law Firm 11 David J. Berardinelli 12 Santa Fe, NM

13 Fuqua Law & Policy, PC 14 Scott Fuqua 15 Santa Fe, NM

16 for Appellants

17 Guebert Bruckner Gentile P.C. 18 Terry R. Guebert 19 Albuquerque, NM

20 Miller Stratvert P.A. 21 Todd A. Schwarz 22 Albuquerque, NM 1 for Appellee

2 Brownstein Hyatt Farber Schreck, LLP 3 Harold D. Stratton, Jr. 4 Veronica C. Gonzales-Zamora 5 Albuquerque, NM

6 for Amicus Curiae Washington Legal Foundation

7 Modrall, Sperling, Roehl, Harris 8 & Sisk, P.A. 9 Jennifer G. Anderson 10 Albuquerque, NM

11 King & Spalding LLP 12 Ashley C. Parrish 13 Justin A. Torres 14 Washington, D.C.

15 for Amicus Curiae The Albuquerque Hispano Chamber 16 of Commerce, Association of Commerce and Industry 17 of New Mexico, Chamber of Commerce of the 18 United States of America

19 Allen Law Firm, LLC 20 Meena H. Allen 21 Albuquerque, NM

22 for Amicus Curiae Independent Insurance Agents of 23 New Mexico National Association of Mutual Insurance 24 Companies Washington Legal Foundation

25 MEMORANDUM OPINION

26 ZAMORA, Chief Judge.

27 {1} Arthur Arguedas, Barbara Arguedas, and Helen Bransford (Plaintiffs) appeal

28 the district court’s order granting Defendant Garrett Seawright’s motion to dismiss 2 1 Plaintiffs’ amended complaint (Amended Complaint) with prejudice. In this

2 appeal, we are asked to consider whether NMSA 1978, Section 57-12-10(E) (2005)

3 permits recovery of statutory damages by class members who have suffered no

4 actual damages (non-injury class members). We hold that statutory damages are

5 not properly recoverable under Section 57-12-10(E) for non-injury class members,

6 and therefore, affirm the district court’s dismissal of the class claims. We further

7 hold that because Plaintiffs voluntarily dismissed their individual claims brought

8 under Section 57-12-10(B), this Court lacks jurisdiction to review those claims.

9 BACKGROUND

10 {2} Plaintiffs brought this putative class action on behalf of themselves and

11 similarly situated State Farm Mutual Automobile Company (State Farm)

12 policyholders under the New Mexico Unfair Practices Act (UPA), NMSA 1978,

13 Sections 57-12-1 to -26 (1967, as amended through 2009), seeking $100 in

14 statutory damages for every individual insured by State Farm in New Mexico who

15 carried less than the liability coverage limits in uninsured motorist insurance

16 between May 2004 and June 2011. Plaintiffs also alleged individual claims against

17 Defendant seeking recovery of statutory damages pursuant to Section 57-12-10(B).

3 1 {3} Plaintiffs contend that between May 20, 2004 and June 12, 2011, all 479

2 licensed and appointed New Mexico State Farm insurance agents (Agents) 1

3 routinely conducted uninsured/underinsured motorist (UM) sales transactions using

4 deceptive or unconscionable sales practices. The temporal boundaries of Plaintiffs’

5 claims represent the time period between our Supreme Court’s issuance of

6 Montano v. Allstate Indemnity Co., 2004-NMSC-020, ¶¶ 16-20, 135 N.M. 681, 92

7 P.3d 1255 (prospectively requiring disclosure of premium prices as part of every

8 New Mexico UM sales transaction to enable insureds to make “knowing and

9 intelligent” decisions about UM coverage), and its issuance some seven years later

10 of separate opinions in two companion cases, Progressive Northwestern Insurance

11 Co. v. Weed Warrior Services, 2010-NMSC-050, ¶ 15, 149 N.M. 157, 245 P.3d

12 1209 (holding that insurers must offer UM coverage in an amount equal to the

13 liability limits of the policy), and Jordan v. Allstate Insurance Co., 2010-NMSC-

14 051, ¶¶ 2, 19, 149 N.M. 162, 245 P.3d 1214 (applying Weed Warrior Services and

15 holding that a rejection of UM coverage is valid only if obtained in writing and

16 made part of the policy delivered to the insured).

17 {4} Plaintiffs alleged that Agents violated the UPA in the time frame between

18 Montano, Jordan, and Weed Warrior Services by failing to disclose the available

1 While Plaintiffs treat this as a case against all 479 Agents, service of process was only effectuated upon Defendant Seawright. In this posture, we will refer to Defendant Seawright as the singular “defendant” for purposes of this opinion. 4 1 limits of UM coverage, pre-populating the UM Selection/Rejection Sales Forms,

2 and advising consumers they did not need UM coverage, all claimed to be the

3 result of the Agent’s “knowing” and “uniform” efforts to “exploit the gullibility”

4 of the asserted class members. To support these contentions, Plaintiffs broadly

5 alleged that “every UM sales transaction conducted by [Defendant] between May

6 20, 2004 and June 12, 2011, . . . resulted in a total rejection of UM coverage or the

7 purchase of less than equal limits UM coverage.”

8 {5} Prior to class certification, Defendant moved to dismiss Plaintiffs’ individual

9 and class claims, asserting under Rule 1-012(B)(6) NMRA that Plaintiffs failed to

10 state a claim upon which relief could be granted because (1) Plaintiffs’ individual

11 UPA statutory damages claims are “legally infirm” in that Plaintiffs received an

12 affirmative benefit from the coverage; and (2) Plaintiffs’ UPA class claim is

13 invalid because the “UPA specifically prohibits a class from recovering statutory

14 damages.” Plaintiffs responded that (1) they are not “better off” as a result of the

15 coverage they received from State Farm, and (2) the UPA class remedy provided

16 for in Section 57-12-10(E) would “become a nullity” unless it is read to allow

17 unnamed, non-injury class members to recover statutory damages.

18 {6} At the hearing on Defendant’s dismissal motion, while discussing the

19 viability of Plaintiff’s individual claims, defense counsel suggested that Plaintiffs’

20 objective was not to proceed on individual claims, but rather to occasion an

5 1 appellate level ruling on the class remedy issue. In announcing its ruling, the

2 district court stated that the “Amended Complaint states a cause of action for a

3 deceptive trade practice[,]” but that “there is not a right of class members, not-

4 named class members, to recover statutory damages under the UPA.” Recognizing

5 that it did not appear that Plaintiffs’ counsel wanted to try a case “for three people

6 because nobody is going to be bound by it,” the district court said to Plaintiffs’

7 counsel, “I honestly don’t know what you want me to do.” Plaintiffs’ counsel

8 responded: “Without waiving anything that could be waived by asking you to do

9 this, . . . I think in the interest of judicial economy, the [c]ourt should probably

10 accept [defense counsel’s] suggestion and dismiss the case.” The district court

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Arguedas v. Seawright, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arguedas-v-seawright-nmctapp-2019.