Arguedas v. Seawright

New Mexico Court of Appeals·Decided January 28, 2019·No. A-1-CA-35699·Unpublished

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 Please see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions.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

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).

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.

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