Cruz v. FTS Construction, Inc.

2006 NMCA 109, 142 P.3d 365, 140 N.M. 284
CourtNew Mexico Court of Appeals
DecidedJune 29, 2006
DocketNo. 25,708
StatusPublished
Cited by16 cases

This text of 2006 NMCA 109 (Cruz v. FTS Construction, 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
Cruz v. FTS Construction, Inc., 2006 NMCA 109, 142 P.3d 365, 140 N.M. 284 (N.M. Ct. App. 2006).

Opinion

OPINION

PICKARD, Judge.

{1} This ease involves two lawsuits — one that is presently pending before the district court on de novo appeal from the magistrate court and one (the action on appeal here) that was originally filed in the district court. We examine a doctrine most recently articulated in Valdez v. Ballenger, 91 N.M. 785, 786, 581 P.2d 1280, 1281 (1978), which we term “priority jurisdiction.” The purpose of the doctrine is to prevent the same lawsuit from being litigated twice. We hold that under the circumstances of this ease, the district court did not err in dismissing Plaintiffs complaint under the doctrine of priority jurisdiction. Rejecting several additional arguments made by Plaintiff, we affirm the district court’s dismissal, and we clarify that Plaintiffs complaint should have been dismissed without prejudice to her right to recover in the other proceeding pending in district court.

FACTS AND PROCEDURAL BACKGROUND

{2} Plaintiff entered into a contract to purchase a newly constructed house from Defendants. In 2001, Plaintiff filed a pro se complaint in magistrate court, alleging that Defendants had failed to “repair major cracks” in the house and had failed to finish a block wall on the premises. Plaintiff prevailed in magistrate court and was awarded a judgment of $7,500 plus costs, which was the largest amount the magistrate court had jurisdiction to award at that time. See NMSA 1978, § 35-3-3(A) (amended effective July 1, 2001, to raise jurisdictional limit from $7,500 to $10,000). Defendants then filed a notice of appeal, invoking their right to a de novo trial in the district court. See N.M. Const, art. VI, § 27 (providing for de novo appeal to the district court from inferior courts). That appeal is still pending in the district court.

{3} Nine months after Defendants appealed to the district court, Plaintiff filed a separate action — the case on appeal here — in district court. The new case was assigned to a different division of the Valencia County District Court. The new complaint also related to Defendants’ construction of Plaintiffs house and alleged negligence, negligent misrepresentation, fraud, unfair trade practices, breach of the duty of good faith, prima facie tort, and emotional distress. Plaintiffs position is that the house has developed new problems, which she was unaware of at the time she filed the complaint in magistrate court, and that these problems will be far more costly to repair than she could have anticipated at that time. Defendants strongly disagree with this assertion.

{4} After more than two years of litigation, Defendants filed a “Motion to Dismiss and for Summary Judgment.” In that motion, Defendants argued that the complaint should be dismissed under a doctrine that they termed “prior exclusive jurisdiction.” Alternatively, Defendants argued on the merits that Plaintiffs claims failed as a matter of law. The district court denied the “summary judgment portion” of Defendants’ motion as untimely. The court determined that Defendants’ argument regarding “prior exclusive jurisdiction” raised jurisdictional issues that should be addressed despite the untimeliness of the motion.

{5} After briefing and argument, the district court dismissed the complaint and entered the following four conclusions of law:

1. A judgment entered by the Magistrate Court is final even if appealed.
2. The fact that the District Court is rendering an independent decision on an appeal from a judgment entered by the Magistrate Court does not mean that the matter is not an appeal, as the District Court is still bound by the jurisdiction of the magistrate court.
3. It is in the same manner that the Court of Appeals reviews matters of law de novo from the District Court, that the District Court reviews matters de novo from the Magistrate Court.
4. The Defendants^] position that this cause of action must be abated and dismissed in favor of Defendants’ appeal from the judgment entered by the ... Magistrate Court ... is well taken.

{6} On appeal, Plaintiff makes four arguments: (1) the district court misapplied the doctrine of “prior exclusive jurisdiction” because its elements were not satisfied in this case; (2) the district court erred in dismissing the complaint because Sanchez v. Reilly, 54 N.M. 264, 267, 221 P.2d 560, 562 (1950), specifically permits Plaintiff to file a new complaint in district court despite the prior magistrate court proceedings; (3) the dismissal infringed on Plaintiffs constitutionally protected right of access to the courts; and (4) the de novo appeal to the district court “annulled” the magistrate court judgment.

DISCUSSION

1. The District Court Did Not Err in Dismissing the Complaint Under the Doctrine of Priority Jurisdiction

{7} Plaintiff argues that the district court erred in dismissing the complaint because the elements of the doctrine that the court applied were not satisfied. Because the case was disposed of on a motion to dismiss, we will accept all of Plaintiffs facts as true, and we will review de novo the question of whether the district court properly applied the law to those facts. See R & R Deli Inc. v. Santa Ana Star Casino, 2006-NMCA-020, ¶ 2, 139 N.M. 85, 128 P.3d 513. We hold that the district court did not err in dismissing the complaint.

{8} In their motion to dismiss, Defendants asserted that Plaintiffs complaint should be dismissed under the doctrine of “prior exclusive jurisdiction.” Defendants cited Valdez, 91 N.M. at 786, 581 P.2d at 1281, which reads as follows:

Generally, a second suit based on the same cause of action as a suit already on file will be abated where the first suit is entered in a court of competent jurisdiction in the same state between the same parties and involving the same subject matter or cause of action, if the rights of the parties can be adjudged in the first action.

Id. (internal quotation marks and citation omitted).

{9} For the sake of clarity, we begin by noting that Valdez does not use the term “prior exclusive jurisdiction.” In fact, we have found no published New Mexico case that uses that term. “Prior exclusive jurisdiction” appears to be a doctrine that would not be applicable in this case because it applies only to in rem actions. See Black’s Law Dictionary 1231 (8th ed.2004) (defining the doctrine as “[t]he rule that a court will not assume in rem jurisdiction over property that is already under the jurisdiction of another court of concurrent jurisdiction”); see also State Eng’r of Nev. v. S. Fork Band of the Te-Moak Tribe of W. Shoshone Indians of New., 339 F.3d 804, 809 (9th Cir.2003) (stating that prior exclusive jurisdiction means that “when a court of competent jurisdiction has obtained possession, custody, or control of particular property, that possession may not be disturbed by any other court.” (internal quotation marks and citation omitted)).

{10} Rather, the rule stated in Valdez refers to the doctrine of “priority jurisdiction.” See, e.g., Long v.

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Cite This Page — Counsel Stack

Bluebook (online)
2006 NMCA 109, 142 P.3d 365, 140 N.M. 284, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cruz-v-fts-construction-inc-nmctapp-2006.