Bernier v. Bernier

2013 NMCA 074, 4 N.M. 276
CourtNew Mexico Supreme Court
DecidedMay 23, 2013
DocketDocket No. 31,607
StatusPublished
Cited by1 cases

This text of 2013 NMCA 074 (Bernier v. Bernier) 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
Bernier v. Bernier, 2013 NMCA 074, 4 N.M. 276 (N.M. 2013).

Opinion

OPINION

SUTIN, Judge.

In this case, the district court assessed a sanction under Rule 1-011 NMRA against the named Plaintiff, Therese Bernier (Mrs. Bernier), where her son, Ronald Bernier (Ronald), acting as Mrs. Bernier’s attorney in fact, commenced and prosecuted a lawsuit that lacked good ground. Within that context, we are called upon to determine whether the district court erred in sanctioning Mrs. B ernier under Rule 1-011 in the amount of attorney fees for Defendant Harold Bernier (Harold), deceased, represented by William Douglas Bernier (William), as substitute representative, for Ronald’s wrongful conduct. We also consider whether the court abused its discretion in awarding William’s costs pursuant to Rule 1-054 NMRA.

We hold that the district court did not err in determining that Ronald lacked a good ground on which to file the underlying lawsuit. We also hold that because Ronald was acting pursuant to Mrs. Bernier’s power of attorney, Mrs. Bernier was liable for Ronald’s wrongful acts. Thus, the district court did not abuse its discretion by sanctioning Mrs. Bernier and in awarding William his costs. Accordingly, we affirm the district court. Finally, although William asks for his attorney fees on appeal, we conclude that there exists no basis upon which we can award such fees.

BACKGROUND

The following undisputed facts were found by the district court. At the center of this case was a Walgreen Company (Walgreen) stock certificate that evidenced ownership of 25,696 shares of stock in that company. The certificate was in the name of Therese Bernier and also in the name of her trust. The stock certificate represented a portion of the stock that Mrs. Bernier’s late husband had accumulated over the course of his working life with Walgreen. Mrs. Bernier was in her nineties throughout the underlying proceedings, and on June 17, 2012, while this appeal was pending, Mrs. Bernier died.

Before the start of litigation in this matter, Mrs. Bernier granted Ronald her power of attorney to, among other things, act on her behalf as her “agent” in “claims and litigation.” In April 2007, acting pursuant to that power of attorney as Mrs. Bernier’s attorney-in-fact, Ronald retained legal counsel to commence litigation in this matter on behalf of Mrs. Bernier. At all times during the underlying proceedings, Ronald represented and acted on behalf of Mrs. Bernier as her attorney-in-fact, and when Mrs. Bernier died, Ronald, as personal representative of Mrs. Bernier’s estate, was substituted as the plaintiff in this case.

Harold Bernier was the brother of Mrs. Bernier’s late husband and, therefore, he was also Ronald’s uncle. In 2006, Ronald and his sister, Beverly Kedzior (who was Mrs. Bernier’s daughter and Harold’s niece), approached their uncle Harold and asked him to hold the Walgreen stock certificate because they wanted a trusted third party to hold it until they both agreed that it should be returned to Ronald when it was needed for Mrs. Bernier’s care. Harold agreed to hold the stock certificate until Ronald and Beverly reached an agreement about its distribution or until a court ordered its relinquishment.

In December 2006, Beverly filed a petition for guardianship and conservatorship against Mrs. Bernier in a sequestered case presided over by then district court judge, Judge Barbara Vigil1 (the sequestered case). The sequestered case was based on Beverly’s allegations that Mrs. Bernier was not competent to manage her own affairs and that Ronald was misappropriating or mismanaging Mrs. Bernier’s estate. Harold knew about the sequestered case, and he also knew that there was an ongoing dispute between Ronald and B everly that included concerns regarding Mrs. Bernier’s ability to manage her own finances and Ronald’s management of Mrs. Bernier’s finances.

In January 2007, Ronald caused a letter to be sent to Harold, on Mrs. Bernier’s behalf, by an attorney, demanding that Harold return the stock certificate to Mrs. Bernier. Harold did not return the certificate. Ronald knew that Harold did not have any financial interest in or claim to the stock certificate, nor was Harold claiming any fees for holding the certificate.

On April 30,2007, through legal counsel, Ronald caused a complaint to be filed in Mrs. Bernier’s name as Plaintiff, against Harold, for replevin, declaratory judgment, temporary injunction, fraud, breach of contract, resulting trust, and prima facie tort. Among other averments, the complaint alleged that Mrs. Bernier entrusted the stock certificate to Harold and that Harold, by failing to comply with a demand to return the certificate, wrongfully refused to return the certificate.

Harold’s answer to the complaint explained that Ronald had asked him to hold the stock certificate because Ronald and Beverly wanted a trusted third party to hold it until they both agreed that it should be returned. Harold specifically disclaimed any personal or financial interest in the stock certificate and explained that he did not return it to Mrs. Bernier upon her demand because, among other reasons, Ronald and Beverly were engaged in a dispute regarding Ronald’s management of Mrs. Bernier’s finances. With his answer to the complaint, Harold filed a claim for interpleader,2 asking the court to hold the stock certificate until the dispute between Ronald and Beverly was settled. Ronald then caused a motion to be filed for partial summary judgment for replevin and declaratory relief and for dismissal of the counterclaim for interpleader. The district court granted the interpleader and accepted possession of the stock certificate, and it denied the motion for partial summary judgment because, among other reasons, “there was a big hole in the evidence as to where [the stock] went” as between Mrs. B ernier and her trust.

In February 2008, Ronald caused a renewed motion for partial summary judgment for replevin and declaratory relief and for dismissal of the counterclaim for interpleader to be filed. In May 2008, the district court held a hearing on Ronald’s renewed motion. Satisfied that Mrs. Bernier was the rightful owner of the stock, the district court granted “a partial summary judgment^ as ... to replevin[] of the stock certificate and the declaratory relief’ and simultaneously acknowledged that by determining that the stock certificate should go to Mrs. Bernier, Harold “acheivfed] the interpleader^]” See Rule 1-022(D) NMRA (explaining that “[t]he decree of the district court shall determine the disposition of the [interpleaded] . . . thing in dispute”). Therefore, Mrs. Bernier’s motion to dismiss the counterclaim for interpleader was denied. Because, at that point, the sequestered case was ongoing, the district court ordered Mrs. Bernier’s counsel to apprise Judge Barbara Vigil of its determination so that questions of how the stock certificate would be handled, to whom it would go, and whether it would be used for Mrs. Bernier’s benefit, could be resolved in the sequestered case. The district court concluded that its order resolved all claims, leaving only the issue of damages that resulted from Harold’s alleged wrongful retention of the stock certificate.

Harold died on April 26, 2009. Because Ronald insisted that the case against Harold proceed, Harold’s son, William, presumably as representative of Harold’s estate, was substituted as Defendant on June 23, 2009.

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Related

Bernier v. Bernier
2013 NMCA 74 (New Mexico Court of Appeals, 2013)

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Bluebook (online)
2013 NMCA 074, 4 N.M. 276, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bernier-v-bernier-nm-2013.