Blanchard Corona Ranch v. Garcia Richard

CourtNew Mexico Supreme Court
DecidedApril 7, 2025
StatusUnpublished

This text of Blanchard Corona Ranch v. Garcia Richard (Blanchard Corona Ranch v. Garcia Richard) 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
Blanchard Corona Ranch v. Garcia Richard, (N.M. 2025).

Opinion

The slip opinion is the first version of an opinion released by the Chief Clerk of the Supreme Court. Once an opinion is selected for publication by the Court, it is assigned a vendor-neutral citation by the Chief Clerk for compliance with Rule 23-112 NMRA, authenticated and formally published. The slip opinion may contain deviations from the formal authenticated opinion.

1 IN THE SUPREME COURT OF THE STATE OF NEW MEXICO

2 Opinion Number:

3 Filing Date: April 7, 2025

4 NO. S-1-SC-39065

5 BLANCHARD CORONA 6 RANCH, LLC,

7 Plaintiff-Respondent, 8 v.

9 STEPHANIE GARCIA 10 RICHARD, Commissioner 11 of Public Lands of the State 12 of New Mexico,

13 Defendant-Petitioner.

14 ORIGINAL PROCEEDING ON CERTIORARI 15 John P. Sugg, District Judge 16 New Mexico State Land Office 17 Ari Biernoff, General Counsel 18 John L. Sullivan, Senior Counsel 19 Richard H. Moore, Associate Counsel 20 Santa Fe, NM

21 for Petitioner

22 Domenici Law Firm, P.C. 23 Pete V. Domenici, Jr. 24 Lorraine Hollingsworth 25 Albuquerque, NM

26 for Respondent 1 OPINION

2 VARGAS, Justice.

3 {1} This case asks us to clarify what it means for a suit to have an “interest in

4 lands” as its object under New Mexico’s venue statute. See NMSA 1978, Section

5 38-3-1(D)(1) (1988). In the underlying suit, Blanchard Corona Ranch, LLC

6 (Blanchard) seeks a judgment declaring that the Commissioner of Public Lands of

7 the State of New Mexico, Stephanie Garcia Richard (the Commissioner) violated

8 State Land Office rules when she issued two wind energy leases 1 that overlapped

9 with some of the land she had previously leased to Blanchard for grazing. On

10 interlocutory appeal, the Commissioner challenges the district court’s order that

11 venue is proper in Lincoln County under Section 38-3-1(D)(1). See § 38-3-1(D)(1)

12 (“When lands or any interest in lands are the object of any suit in whole or in part,

13 the suit shall be brought in the county where the land or any portion of the land is

14 situate.” (emphasis added)).

15 {2} Adopting the holding in Kaywal, Inc. v. Avangrid Renewables, LLC, 2021-

16 NMCA-037, ¶ 59, 495 P.3d 550, we conclude that venue is improper in Lincoln

The parties interchangeably refer to the two wind energy leases as the 1

“renewable energy leases,” “business leases,” “commercial wind leases,” and “commercial leases.” For consistency, we refer to them as the “wind energy leases.” 1 County under Section 38-3-1(D)(1) because the relief that Blanchard seeks does not

2 implicate an interest in lands as its object. We reverse the district court’s order and

3 remand to dismiss the case without prejudice for improper venue.

4 I. BACKGROUND

5 {3} In 2019, the Commissioner renewed Agricultural Lease No. GM-1324-0001

6 (the Agricultural Lease) between the Commissioner and Blanchard, providing for

7 grazing rights on 3478.40 acres of state trust land in Lincoln County for a five-year

8 term. Blanchard’s grazing rights are subject to reservations detailed in the

9 Agricultural Lease. The Commissioner reserved the right to execute additional

10 leases on the same land for mining and extracting purposes; to issue permits for

11 utility easements and rights-of-way; and to execute leases “for renewable energy

12 projects on the land.” Section 21 of the Agricultural Lease details the reservation

13 regarding renewable energy projects:

14 In addition to the reservations stated in [the Lease], . . . Lessor reserves 15 the right to execute leases for renewable energy projects on the land 16 hereby leased, lessee consents to any such lease and agrees to cooperate 17 in any such lease, and lessee’s failure to do so shall constitute a 18 violation [of the Lease].

19 {4} On February 20, 2020, Blanchard filed a complaint seeking declaratory and

20 injunctive relief related to the Commissioner’s auctioning of two wind energy leases

21 that overlapped with some of the land leased to Blanchard under the Agricultural

2 1 Lease. On June 1, 2020, while the claim above was pending, and with the auction

2 process complete, the Commissioner issued two wind energy leases “for the

3 planning and development of a wind power facility” for a term of fifty-five years on

4 land that overlapped with several hundred acres of the Agricultural Lease. The two

5 wind energy leases authorize the lessee to use the leased land for wind energy

6 development projects.

7 {5} Blanchard dismissed its initial complaint and subsequently re-filed on

8 September 10, 2020, forming the basis of this appeal. In its new complaint,

9 Blanchard requested that the district court enter a judgment declaring that the

10 Commissioner violated the requirements of State Land Office rules, 19.2.9.21(A)-

11 (B) NMAC, when she failed to (1) “make the necessary determinations . . . that the

12 proposed [wind energy] leases will not unreasonably interfere with [Blanchard’s]

13 authorized uses under [the] existing [Agricultural Lease]”; (2) “provide notice to

14 [Blanchard] that new [wind energy] leases were issued for lands that were already

15 subject to [the] existing [Agricultural Lease]”; (3) include “the necessary protections

16 for the existing [A]gricultural [L]ease in the new [wind energy] leases”; and (4)

17 “obtain [Blanchard’s] written consent to the new [wind energy] leases.” Lastly,

18 Blanchard asked the district court to declare that Section 21 of the Agricultural

19 Lease, reserving the right to execute leases for renewable energy projects to the

3 1 Commissioner, is “void and unenforceable” because it also violates State Land

2 Office rules.

3 {6} The Commissioner moved to dismiss the complaint, alleging, in pertinent part,

4 that venue in Lincoln County was improper. The Commissioner argued that Section

5 38-3-1(D)(1) does not control because the object of the suit “is not to determine

6 ownership or possessory interest in real estate but to challenge the lawfulness of the

7 Commissioner’s leasing process.” The district court denied the Commissioner’s

8 motion to dismiss, concluding that the declaratory judgment action “involves

9 [Blanchard’s] interest in land located in Lincoln County . . . [because Blanchard]

10 seeks a declaration from the [c]ourt as to what impact the [wind energy] leases issued

11 to [the wind energy company] have on [its] interest.”

12 {7} In the Court of Appeals, the Commissioner filed a writ of error and an

13 application for interlocutory appeal. The Court of Appeals denied both. The

14 Commissioner then filed a writ of certiorari with this Court. This Court granted

15 certiorari on one question: whether this suit has as its object an interest in lands under

16 Section 38-3-1(D)(1) of New Mexico’s venue statute.

4 1 II. DISCUSSION

2 A. Standard of Review

3 {8} The Commissioner asks the Court to reverse the district court and dismiss this

4 case without prejudice for improper venue. “A motion to dismiss for improper venue

5 involves questions of law that we review de novo.” Gardiner v. Galles Chevrolet

6 Co., 2007-NMSC-052, ¶ 4, 142 N.M. 544, 168 P.3d 116. In construing New

7 Mexico’s venue statute, “we keep in mind that our venue rules are meant to balance

8 the interests of defendants to be sued in a convenient forum against the interests of

9 plaintiffs to choose the forum in which to sue.” Id.

10 B. New Mexico Venue Statute

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