Badilla v. Wal-Mart Stores East, Inc.

2013 NMCA 058, 4 N.M. 65
CourtNew Mexico Supreme Court
DecidedMay 10, 2013
DocketNo. 34,085; Docket No. 31,162
StatusPublished
Cited by1 cases

This text of 2013 NMCA 058 (Badilla v. Wal-Mart Stores East, 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
Badilla v. Wal-Mart Stores East, Inc., 2013 NMCA 058, 4 N.M. 65 (N.M. 2013).

Opinion

OPINION

KENNEDY, Chief Judge.

This case requires us to determine whether a complaint based solely on the Uniform Commercial Code’s (UCC) provisions for breach of warranty, but seeking personal injury damages, is a claim under the UCC or a tort claim for personal injury. The determination affects which statute of limitation applies and, thus, whether the claim was properly dismissed as barred under the three-year limit on personal injury actions. We hold that the three-year personal injury statute of limitation applies because the essence of the claim is for personal injury, even though it is presented as a breach of warranty. Such a determination is in keeping with New Mexico’s historical distinction between tort and contract claims based on the nature of the claimant’s injury and the primacy of our tort statute of limitation in the absence of a more specific statute. Because the statute of limitation issue is dispositive, we need not address the merits of the claim under contract law. We affirm the district court’s dismissal of the case as time barred.

I. BACKGROUND

Plaintiff Kenneth Badilla worked as a tree trimmer. He bought a pair of work boots at Wal-Mart on October 19, 2003. The boots’ label stated “IRON TOUGH[, rjugged [ljeather [bjoots” that “[mjeets or exceeds ASTM F 2413-05 standards,” which provides for sp ecification for performance requirements for foot protection.1 Badilla wore the boots between eight and twelve hours per day, six days a week, for the next nine months, between 1871 and 2805 hours. He stated that as “the boots wear down[,] the yellow rubber piece tends to unglue itself and roll up as you are walking, making it very dangerous when working.” Badilla neither attempted to return the boots nor obtain a refund. He also stated that he was unaware of any defect in the boots that made them unsafe.

On July 28, 2004, Badilla tripped while lifting a large log. He could not get out of bed the following morning. He was driven to the hospital and was told that “he had two ruptured or bulging discs.” Badilla eventually had surgery. He pursued a workers’ compensation case and received a stipulated compensation order.

Badilla filed a complaint against WalMart on September 20, 2007, alleging breach of express and implied warranties ofthe boots. Wal-Mart moved for summary judgment, claiming that Badilla’s lawsuit was barred by the statute of limitation for personal injury claims. The district court granted the motion, despite Badilla’s assertion that his claims should be governed by the four-year statute of limitation under the UCC’s warranty provisions. Badilla appealed the dismissal of his complaint.

II. DISCUSSION

The sole issue we face is whether a breach of warranty lawsuit that only seeks damages for personal injury should be governed by the tort statute of limitation or that governing the sale of goods. We must determine whether to apply the limitation governing the named cause of action or the one based upon the essence of the claim.

W e review grants of summary judgment under a de novo standard of review. Self v. United Parcel Serv., Inc., 1998-NMSC-046,¶ 6, 126 N.M. 396, 970 P.2d 582 (stating that “[sjummary judgment is appropriate where there are no genuine issues of material fact and the movant is entitled to judgment as a matter of law”); City of Albuquerque v. BPLW Architects & Eng’rs, Inc., 2009-NMCA-081, ¶ 7, 146 N.M. 717, 213 P.3d 1146 (holding that “if no material issues of fact are in dispute and an appeal presents only a question of law, we apply de novo review”).

The UCC provides that “[a]n action for breach of any contract for sale must be commenced within four years after the cause of action has accrued” and that “[a] cause of action accrues when the breach occurs, regardless of the aggrieved party’s lack of knowledge of the breach.” NMSA 1978, § 55-2-725 (1), (2) (1961). In contrast, NMSA 1978, Section 37-1-8 (1976) provides generally that “[ajctions must be brought. . . for an injury to the person or reputation of any person, within three years.”

Badilla’s injuries were personal, rather than related to any failure of the purchase of the boots. He stated that his “objective was not to recoup the cost of the boots but to recover damages.” His amended complaint stated that the loose sole of the boots led to his personal injury, by causing “[Badilla] to fall backwards with extensive force causing [him] to suffer damages, including severe, painfulf,] and permanent mental and physical injury, loss of earningsf,] and medical expenses.” In seeking redress for his injury, however, he couched his claim under contract law, suing Wal-Mart on three counts: breach of express warranty, breach of implied warranty of merchantability, and breach of implied warranty of fitness for a particular purpose. These causes of action are found in New Mexico’s adoption of the UCC, NMSA 1978, §§ 55-2-313 to -315 (1961).

Although other jurisdictions have addressed the issue of whether personal injury or UCC time limits apply to such cases with disparate results, New Mexico lacks a definitive rule. Some courts, in facing claims for personal injury under breach of warranty theories, have applied the UCC statute of limitation period regardless of what type of remedy is sought. See, e.g., Wieser v. Firestone Tire & Rubber Co., 596 F. Supp. 1473, 1475 (D. Colo. 1984) (stating that applying the UCC limitations period is the majority rule); Sille v. McCann Contsr. Specialties Co., 638 N.E.2d 676 (Ill. App. Ct. 1994); Daugherty v. Farmers Coop. Ass’n, 689 P.2d 947 (Okla. 1984); Garcia v. Texas Instrument, Inc., 610 S.W.2d 456 (Tex. 1980).

However, other jurisdictions have applied the tort limitations period, reasoning that the essence of the claim determines the applicable statute of limitation. See, e.g., Follette v. Wal-Mart Stores, Inc., 41 F.3d 1234 (8th Cir. Ark. 1994); Abate v. Barkers of Wallingford, Inc., 229 A.2d 366 (Conn. C.P. 1967); Waldron v. Armstrong Rubber Co., 236 N.W.2d 722 (Mich. Ct. App. 1975). These courts reasoned that, “[wjhere the injury is personal, the statute relating to personal injury actions applies.” Kinney v. Goodyear Tire & Rubber Co., 367 A.2d 611, 681 (Vt. 1976). This rationale is consistent with our practice in New Mexico to “look to the nature of the right sued upon, and not the form of action or relief demanded, to determine the applicability of the statute of limitations to a cause of action.” Martinez v. Cornejo, 2009-NMCA-011, ¶ 29, 146 N.M. 223, 208 P.3d 443 (alterations, internal quotation marks, and citation omitted).

New Mexico has historically distinguished claims for personal injuries from contractual claims, thereby aligning New Mexico more closely with this second line of cases. Chavez v. Kitsch, 70 N.M. 439, 374 P.2d 497 (1962); Kilkenny v. Kenney, 68 N.M.

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Related

Badilla v. Wal-Mart Stores East, Inc.
2013 NMCA 58 (New Mexico Court of Appeals, 2013)

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2013 NMCA 058, 4 N.M. 65, Counsel Stack Legal Research, https://law.counselstack.com/opinion/badilla-v-wal-mart-stores-east-inc-nm-2013.