City of Sunland Park v. MacIas

2003 NMCA 098, 75 P.3d 816, 134 N.M. 216
CourtNew Mexico Court of Appeals
DecidedApril 25, 2003
Docket21,314
StatusPublished
Cited by41 cases

This text of 2003 NMCA 098 (City of Sunland Park v. MacIas) 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
City of Sunland Park v. MacIas, 2003 NMCA 098, 75 P.3d 816, 134 N.M. 216 (N.M. Ct. App. 2003).

Opinion

OPINION

BUSTAMANTE, Judge.

{1} In the continuing litigation over utilities and water rights between Doña Ana County (the County), and the City of Sunland Park (the City), the City appeals the dismissal of its petition for injunctive and declaratory relief. The district court did not reach the substantive issues argued by the parties, but instead dismissed the petition under Rule 1-012(B)(6) NMRA 2003, on the grounds of collateral estoppel and ripeness. On appeal, the City concedes that only the following issues remain to be decided: (1) whether the City was collaterally estopped from raising the issue that a clause in the County’s revenue bond ordinance violated the New Mexico Antitrust Act, NMSA 1978, §§ 57-1-1 to 57-1-19 (1979 as amended through 1987) (the Antitrust Act); and (2) whether this issue was ripe for review. We hold that the issue was not barred by collateral estoppel and was ripe for review. We also hold that the clause violates the Antitrust Act. We therefore reverse and remand for the district court to vacate its order dismissing the petition and to enter an order severing the clause in question.

FACTUAL AND PROCEDURAL BACKGROUND

{2} In a separate case, Board of County Commissioners of Doña Ana County v. Bankruptcy Estate of Phyllis Crowder, CV 98-1326, the County filed a petition for condemnation of a well. (Because of disqualifications of judges in the Third Judicial District, Judge John W. Pope from the Thirteenth Judicial District was designated to hear the case. We refer to his proceed-tags and decision as “the Pope case.”) The City was permitted to intervene in that action, and on May 20, 1999, during an evidentiary hearing on the County’s petition, the City moved orally to dismiss the petition on the grounds that the County was not authorized to construct a water and sewer system. The City based its argument, in part, on a factual dispute over whether the County’s net taxable value was sufficient to classify it as a Class A county, authorized under NMSA 1978, § 4-36-10(A) (1996), to construct water and sewer systems, and on its contention that the County was not building the system to benefit current residents.

{3} On October 13, 1999, before the court in the Pope case ruled on the County’s petition, the County passed a revenue bond ordinance, Doña Ana County, N.M. Ordinance 185-99 (Oct. 13, 1999), which authorized the issuance of $6,000,000 in water system revenue bonds. On November 12, the City filed an application for a preliminary injunction in the Pope case arguing that the County lacked authority to construct a water and sewer system, and that the ordinance authorizing the sale of revenue bonds was unlawful because it violated Section 57-l-3(A) of the Antitrust Act, and N.M. Const, art. IV, § 20 because it contained a clause prohibiting the licensing of any competing system within the County.

{4} On November 29, 1999, the County moved to dismiss the application in the Pope case on several grounds, including that (1) the application constituted a collateral attack on the ordinance, (2) the attack was not ripe, (3) the clause the City objected to could be severed, (4) the County was immune from antitrust laws, and (5) the City lacked standing. In its motion, the County' pointed out that the City had also filed an application for injunctive and declaratory relief in a new lawsuit assigned to a different judge (the ease before us on appeal) and argued that if the court did not dismiss on any of the grounds argued, it should defer to the other judge.

{5} Shortly afterwards, the court entered findings and conclusions in the Pope case, including findings that the County was a Class A county with authority to construct the system to provide service to County inhabitants, which the court found was a public use. On December 20, 1999, after the time for the City to respond to the County’s motion to dismiss its application for a preliminary injunction had expired, the court in the Pope case entered an order denying the City’s application. On October 17, 2000, Judge Pope entered a final judgment of condemnation. That judgment has not been appealed.

{6} As the County informed Judge Pope on November 15, 1999, the City filed a petition for injunctive and declaratory relief in a separate lawsuit. This is the case currently before this Court on appeal. In its petition, the City sought three specific forms of relief: (1) a preliminary and permanent injunction pursuant to Rule 1-066 NMRA 2003; (2) an injunction pursuant to the Antitrust Act; and (3) a judgment declaring that the County was not authorized to establish or operate a water and sewer utility, or authorized to finance the project under a revenue bond ordinance, and that the revenue bond ordinance was void under the Antitrust Act. The City’s allegations in this separate action were in substance essentially identical to those it made in the Pope case.

{7} The County moved to dismiss, arguing that it was fully authorized to issue revenue bonds and operate a water and sewer system. The County also argued that its authority to establish and operate a sewer utility to serve industrial and business uses had been fully litigated in the Pope case. The County also argued that it was immune under the state action doctrine from the City’s antitrust claims, and that those claims were not ripe for review. The district court dismissed the City’s petition. The transcript of the hearing on the County’s motion clarifies that the court based its decision on the doctrines of collateral estoppel and ripeness. See Ledbetter v. Webb, 103 N.M. 597, 604, 711 P.2d 874, 881 (1985) (stating that trial court’s verbal comments can be used to clarify a finding, but not to reverse a finding). This appeal followed.

DISCUSSION

{8} Because the City concedes in its brief in chief that the issues of whether the County had the authority to issue bonds and to operate the water and sewer utility are now moot, we address the following two main issues on appeal: (1) whether the City was collaterally estopped from arguing that a clause in the County’s revenue bond ordinance violated the Antitrust Act, and (2) whether this issue was ripe for review. The County urges us to affirm on the following additional grounds: (1) the County argues it is immune from antitrust actions under the state action immunity doctrine, (2) the City’s petition was barred by res judicata, and (3) the challenged clause in the bond ordinance can be severed.

{9} We review the granting of the motion to dismiss de novo. Padwa v. Hadley, 1999-NMCA-067, ¶ 8, 127 N.M. 416, 981 P.2d 1234. For purposes of a motion to dismiss, we accept all well-pleaded facts as true and consider whether the plaintiff might prevail under any state of facts provable under the claim. N.M. Life Ins. Guar. Ass’n v. Quinn & Co., 111 N.M. 750, 753, 809 P.2d 1278, 1281 (1991). A complaint should not be dismissed unless there is a total failure to allege some matter essential to the relief sought. Las Luminarias of the N.M. Council of the Blind v. Isengard, 92 N.M. 297, 300, 587 P.2d 444, 447 (Ct.App.1978).

Collateral Estoppel

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Bluebook (online)
2003 NMCA 098, 75 P.3d 816, 134 N.M. 216, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-sunland-park-v-macias-nmctapp-2003.