Beavers v. Johnson Controls World Services, Inc.

859 P.2d 497, 116 N.M. 29
CourtNew Mexico Court of Appeals
DecidedSeptember 13, 1993
Docket13610
StatusPublished
Cited by2 cases

This text of 859 P.2d 497 (Beavers v. Johnson Controls World Services, Inc.) 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
Beavers v. Johnson Controls World Services, Inc., 859 P.2d 497, 116 N.M. 29 (N.M. Ct. App. 1993).

Opinion

OPINION

BIVINS, Judge.

The opinion filed May 24, 1993, is withdrawn and the following substituted therefor.

Defendants appeal from the judgment on a verdict awarding Plaintiff $76,000 for mental and emotional damages proximately resulting from treatment by her immediate supervisor, Defendant Arthur DaSilva, while employed by Defendant Johnson Controls World Services, Inc. Plaintiffs cause of action went to trial under the prima facie tort theory adopted in Schmitz v. Smentowski, 109 N.M. 386, 785 P.2d 726 (1990). Although Defendants raise five issues on appeal, we conclude that the first issue is dispositive and therefore do not reach the remaining issues. The first issue is whether prima facie tort applies retroactively to conduct that took place before that cause of action was recognized. Holding that it does not, we reverse.

The facts giving rise to Plaintiffs cause of action arose in 1987. In January of that year, Plaintiff was transferred to a position as secretary for Defendant DaSilva. She claimed at trial that she was harassed, belittled, and humiliated by DaSilva and, as a result, suffered mental and emotional damages.

Almost three years after the events giving rise to Plaintiffs cause of action, our Supreme Court handed down its decision in Schmitz. That case, for the first time in New Mexico, recognized a cause of action for prima facie tort. At that time, only two jurisdictions had recognized prima facie tort as a specific tort cause of action. See id. at 393-94, 785 P.2d at 733-34. According to Schmitz, “[t]he theory underlying prima facie tort is that a party that intends to cause injury to another should be liable for that injury, if the conduct is generally culpable and not justifiable under the circumstances.” Id. at 394, 785 P.2d at 734 (citing Restatement (Second) of Torts § 870 (1977)). Thus, the elements of prima facie tort are: (1) the defendant’s intentional, lawful act; (2) the defendant’s intent to injure the plaintiff; (3) injury to the plaintiff; (4) no justification or insufficient justification for the defendant’s acts. Schmitz, 109 N.M. at 394, 785 P.2d at 734.

As stated in Maxwell v. Ross Hyden Motors, Inc., 104 N.M. 470, 471, 722 P.2d 1192, 1193 (Ct.App.1986):

Courts have broad authority in determining whether to grant prospective or retroactive application of a new rule. Lopez v. Maez, 98 N.M. 625, 651 P.2d 1269 (1982). The choice generally depends on policy considerations, judicial philosophy and fairness. Justice Cardozo, in commenting on a state court’s broad discretion in this area, noted: “The choice for any state [between prospective or retroactive] may be determined by the juristic philosophy of the judges of her courts, their conceptions of law, its origin and nature. We review not the wisdom of their philosophies, but the legality of their acts.” Great Northern Railway Co. v. Sunburst Oil & Refining Co., 287 U.S. 358, 365, 53 S.Ct. 145, 148, 77 L.Ed. 360 (1932).

To decide whether Schmitz should be applied prospectively or retroactively, we apply a three-factor test:

(1) whether the decision establishes a new principle of law, either by overruling clear precedent on which litigants may have relied, or by deciding an issue of first impression whose resolution was not clearly foreshadowed; (2) the inequity imposed by retrospective application; (3) the merits and demerits of each case must be weighed by looking to the history of the rule in question, the rule’s purpose and effect, and whether retrospective operation of the rule will further or retard its operation.

Kennecott Copper Corp. v. Chavez, 109 N.M. 439, 442, 786 P.2d 53, 56 (Ct.App.1990) (citing Chevron Oil Co. v. Huson, 404 U.S. 97, 92 S.Ct. 349, 30 L.Ed.2d 296 (1971)); see also Stroh Brewery Co. v. Department of Alcoholic Beverage Control, 112 N.M. 468, 468-75, 816 P.2d 1090, 1090-97 (1991) (applying Chevron Oil test). We hold that, under the Chevron Oil test, Schmitz should not be applied retroactively-

Schmitz did not overrule clear precedent, but it did decide an issue of first impression whose resolution was not clearly foreshadowed. While the Schmitz Court stated that “[p]rima facie tort is not a recent innovation,” Schmitz, 109 N.M. at 394, 785 P.2d at 734, and that recognizing it as a cause of action was consistent with New Mexico’s recognition of other intentional torts, id. at 396, 785 P.2d at 736, the Court also acknowledged that, at the time of its decision, only two states had recognized prima facie tort as a specific cause of action. Id. at 393-94, 785 P.2d at 733-34. More to the point, recognition of prima facie tort as a cause of action “imposes significant new duties and conditions and takes away previously existing rights.” Lopez, 98 N.M. at 632, 651 P.2d at 1276. As stated by the United States District Court for the District of New Mexico:

The prima facie tort takes away the right to exercise legal rights without fear of liability. It imposes a legal duty not to exercise legal rights if one of your motives is to harm another. An individual can no longer assume that because an action is lawful it will not incur liability. Under the Lopez standard, the prima facie tort should only be applied prospectively.

Energy Fuels Dev. Corp. v. Howe-Baker Eng’rs, Inc., No. CIV-88-150-M, 1990, Pt. 3 USDCNM 2064, 2066 (D.N.M. July 9, 1990). While we recognize that Energy Fuels is not binding precedent on this Court, we adopt its succinct reasoning.

The imposition of new duties and removal of preexisting rights also is pertinent to the second Chevron Oil factor, the inequity imposed by retroactive application. Prima facie tort, by definition, punishes conduct that would otherwise be lawful. See Schmitz, 109 N.M. at 396, 785 P.2d at 736 (the theory underlying prima facie tort is “to provide remedy for intentionally committed acts that do not fit within the contours of accepted torts”). Thus, it punishes conduct that was lawful in New Mexico until Schmitz was decided. Indeed, New Mexico’s version of prima facie tort allows recovery for actions that, while partially malicious, also have acceptable and legitimate goals. Id. at 395, 785 P.2d at 735 (“the act must be committed with the intent to injure ... but it need not be shown that the act was solely intended to injure”). We can perceive an inequity in opening the way for potentially huge tort liability to be imposed for actions that were lawful at the time they were taken and that may even have been partly motivated by acceptable and legitimate goals.

Finally, we examine the third Chevron Oil factor, whether retrospective application will further the purposes of prima facie tort.

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Related

Beavers v. Johnson Controls World Services, Inc.
901 P.2d 761 (New Mexico Court of Appeals, 1995)
Beavers v. Johnson Controls World Services, Inc.
881 P.2d 1376 (New Mexico Supreme Court, 1994)

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859 P.2d 497, 116 N.M. 29, Counsel Stack Legal Research, https://law.counselstack.com/opinion/beavers-v-johnson-controls-world-services-inc-nmctapp-1993.