Bank of America v. Apache Corp.

2008 NMCA 054, 184 P.3d 435, 144 N.M. 123
CourtNew Mexico Court of Appeals
DecidedFebruary 1, 2008
Docket26,828, 27,062, 26,658
StatusPublished
Cited by2 cases

This text of 2008 NMCA 054 (Bank of America v. Apache Corp.) 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
Bank of America v. Apache Corp., 2008 NMCA 054, 184 P.3d 435, 144 N.M. 123 (N.M. Ct. App. 2008).

Opinion

OPINION

FRY, Judge.

{1} This opinion resolves two separate appeals that we address together because they raise the same issue. We consider whether venue that is proper as to one or more defendant foreign corporations with a statutory agent for service of process may establish venue for either (1) a defendant foreign corporation with a statutory agent in a county other than the county where venue is asserted, or (2) a defendant New Mexico corporation with a statutory agent and principal place of business in a county or counties other than the county where venue is asserted. With respect to the district courts’ dismissal as to the defendants in the first category, we affirm, holding that venue that is proper for one foreign corporation defendant with a statutory agent cannot establish venue for another foreign corporation defendant if the other’s agent is maintained in a separate county. With respect to the defendants in the second category, under a recent decision by our Supreme Court in Gardiner v. Galles Chevrolet Co., 2007-NMSC-052, 142 N.M. 544, 168 P.3d 116, we reverse the district courts in part, holding that venue that is proper for a foreign corporation defendant with a statutory agent may indeed establish venue for a New Mexico corporation even though the New Mexico corporation maintains an agent for service of process and a principal place of business in another county. BACKGROUND

{2} Although the two cases on appeal, S & D Ranch, L.L.C. v. Chesapeake Operating, Inc. (S & D) (No. 26,658), and Bank of America v. Apache Corporation (No. 26,828), are separate lawsuits arising from two separate events, they share the same legal issues and have remarkably similar facts. We first set out the facts of each case separately.

S & D Ranch, L.L.C. and Leo V. Sims, L.L.C. v. Chesapeake Operating, Inc.

{3} S & D Ranch, L.L.C. and Leo Y. Sims, L.L.C. (collectively, Plaintiffs S & D-Sims) own the surface estate rights of a ranch located in Lea County, New Mexico. Plaintiffs brought suit in Santa Fe County against multiple entities, alleging that Defendants, in conducting oil and gas operations on Plaintiffs S & D-Sims’ property, caused damage by contaminating the surface and subsurface soils and the freshwater aquifer.

{4} We group the various Defendants in four categories, which we refer to as (1) the Santa Fe County Defendants, which are foreign corporations with statutory agents in Santa Fe County, the county where the lawsuit was filed; (2) the Lea County Defendants, which are foreign corporations with statutory agents in Lea County; (3) the Foreign Defendant, which is a foreign corporation without a registered agent in New Mexico; and (4) the New Mexico Defendant, which is a New Mexico corporation that maintains its principal place of business in Lea County and has a statutory agent for receiving service of process in Eddy County.

{5} Among other motions to dismiss, the Lea County Defendants and the New Mexico Defendant filed motions to dismiss for improper venue under NMSA 1978, § 38-3-1(F) (1988), which is the subsection of the venue statute that applies to foreign corporations. Three Defendants, Chesapeake Operating, Inc. (Chesapeake), Dynegy Midstream Services (Dynegy), and John H. Hendrix Corporation (Hendrix), which we refer to collectively as the Cross-Appeal Defendants, also filed motions to dismiss, but their motions were based on Section 38-3-l(D), which is the subsection of the venue statute applicable when lands or any interest in lands are the object of the suit.

{6} The district court granted the motions to dismiss filed by the Lea County Defendants and the New Mexico Defendant pursuant to Section 38-3-1 (F). Applying the ruling the district court had made on a similar motion in a different case, Jay Anthony v. Texaco Exploration & Production, Inc. (Anthony), First Judicial District Court Case No. CV-2005-00910, the district court held that “venue was improper in Santa Fe County for [Plaintiffs S & D-Sims’] claims against the foreign corporation defendants who have appointed an agent for service of process who does not reside in Santa Fe County as well as any New Mexico corporation ... whose registered agent does not reside in Santa Fe County.” However, the district court denied the motion brought under Section 38-3-l(D) by the Cross-Appeal Defendants.

{7} Plaintiffs S & D-Sims appeal the district court’s order dismissing their claims against the Lea County Defendants and the New Mexico Defendant. The Cross-Appeal Defendants cross-appeal the district court’s denial of their motion to dismiss that was based on Section 38-3-l(D).

Bank of America v. Apache Corporation

{8} The facts of Bank of America are very similar to those in S & D. Bank of America, as the trustee of the Millard Deck Estate (Plaintiff Bank), owns the surface rights to a ranch in Lea County, New Mexico. Plaintiff Bank brought suit against multiple entities in Santa Fe County alleging that Defendants contaminated the surface and subsurface soils of the ranch and the fresh water aquifer on the ranch while Defendants were engaged in oil and gas operations on the ranch.

{9} We group Defendants in five categories: (1) the Santa Fe County Defendants, which are foreign corporations with statutory agents in Santa Fe County, the county where the lawsuit was filed; (2) the Lea County Defendants, which are foreign corporations admitted to do business in New Mexico with statutory agents in Lea County; (3) the San Juan County Defendant, which is a foreign corporation with a statutory agent in San Juan County; (4) the Foreign Defendants, which are foreign corporations without statutory agents for receiving service of process; and (5) the New Mexico Defendant, which is a New Mexico corporation with its principal place of business in Lea County.

{10} The Lea County Defendants, the San Juan County Defendant, and the New Mexico Defendant all filed motions to dismiss for improper venue under Section 38-3-l(F). In granting the motions, the district court cited the order from Anthony and the order of dismissal in S & D. The district court ruled that venue was not proper as to the multiple Defendants who were foreign corporations with statutory agents in counties other than Santa Fe County and as to the New Mexico Defendant. Plaintiff Bank appeals the district court’s order of dismissal.

DISCUSSION

{11} We first address whether a foreign corporation defendant with a statutory agent in Santa Fe County can determine venue for another foreign corporation defendant with a statutory agent in a different county. Second, we consider whether a foreign corporation defendant with a statutory agent in Santa Fe County can establish vénue for a New Mexico corporation defendant. Third, we briefly discuss the issue raised on cross-appeal in S & D. We refer to Plaintiffs Bank and S & D-Sims collectively as “Plaintiffs” and also refer to them individually for purposes of our discussion as necessary.

{12} A district court’s ruling on a motion to dismiss for improper venue is a question of law that we review de novoi Gardiner, 2007-NMSC-052, ¶ 4, 142 N.M. 544, 168 P.3d 116.

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Cite This Page — Counsel Stack

Bluebook (online)
2008 NMCA 054, 184 P.3d 435, 144 N.M. 123, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bank-of-america-v-apache-corp-nmctapp-2008.