Dawley v. La Puerta Architectural Antiques, Inc.

2003 NMCA 029, 62 P.3d 1271, 133 N.M. 389
CourtNew Mexico Court of Appeals
DecidedDecember 19, 2002
Docket22,063
StatusPublished
Cited by20 cases

This text of 2003 NMCA 029 (Dawley v. La Puerta Architectural Antiques, 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
Dawley v. La Puerta Architectural Antiques, Inc., 2003 NMCA 029, 62 P.3d 1271, 133 N.M. 389 (N.M. Ct. App. 2002).

Opinion

OPINION

BOSSON, Chief Judge.

{1} In this appeal from a judgment for the tort of malicious abuse of process, we discuss the element of misuse of process in the context of a civil lawsuit for damages filed without probable cause. Finding that substantial evidence supports the district court’s conelusion that the underlying lawsuit was brought without the necessary probable cause, we affirm the judgment. We also discuss the contours of when a trial judge must recuse upon being accused of bias and partiality toward one of the parties.

BACKGROUND

{2} In February 1997, James Dawley and La Puerta Architectural Antiques entered into a written contract, whereby La Puerta agreed to construct thirteen custom doors and two other items for a ranch home that Dawley was building in Ridgeway, Colorado. The ranch is situated on approximately 257 acres and consists of four buildings, covering 25,000 square feet. The construction cost of the Ridgeway project was “about 10 or 11 million dollars,” which Dawley testified that he paid for “out of pocket.” At the time of trial, the ranch was for sale at an asking price of twenty-seven million dollars.

{3} Dawley chose La Puerta because he was interested in doors constructed of antique mesquite and sabino (bald cypress) wood and La Puerta works with these scarce materials. The total contract price was $70,200, after La Puerta agreed to discount the original price by 10 percent. The contract required a deposit of half the contract price, or $35,100, of which Dawley paid only $20,000.

{4} Dawley hired several agents to assist with the Ridgeway project, including an architect, a contractor, a project manager, and an on-site liaison. Dawley hired the architect to design the project and “make sure that [his] vision was carried out.” Dawley also hired a professional building contractor and a project manager who were responsible for overseeing the construction and managing subcontracts. Finally, Dawley hired an on-site liaison to act as his local representative and to assist in expediting various aspects of the project, such as negotiating discounts and other details with La Puerta. Dawley testified that he communicated regularly with these agents, who were authorized to act on his behalf, and routinely received copies of field reports and project meeting minutes. The roles of these various agents appeared to overlap at times. For example, the on-site liaison testified that three different agents would have spoken with La Puerta about the construction of a preliminary door sample.

{5} After numerous communications between La Puerta and Dawley’s agents, La Puerta submitted a 2-by 2-foot corner section sample of a door for approval by Dawley and his architect. Dawley’s on-site liaison was aware that the corner section sample would be constructed of fir, rather than sabino, and that the design would be cut using La Puerta’s stock shaper knives, rather than the custom blades that would be required to match the architect’s design specifications. Because Dawley was demanding an additional discount, La Puerta viewed the sample as a means of illustrating ways they could accommodate Dawley’s demands for a price reduction and as “part of a ‘dialogue’ in the ongoing negotiations over the choices of woods and other details.”

{6} By this time, the contract had already been informally modified by the parties. Some of the items originally ordered had been cancelled or put on hold. Dawley had also agreed to the use of a laminate or veneer process, partly because solid mesquite and sabino would be very heavy and might cause structural problems, and partly because it was questionable whether these rare, antique woods could be obtained in the dimensions necessary for solid construction.

{7} When Dawley and his architect received the corner section sample in April 1997, they were highly displeased. Not only was the sample constructed of fir, rather than sabino, but Dawley and his architect were dissatisfied with the workmanship and felt the sample did not conform to the design specifications. At Dawley’s request, his building contractor sent La Puerta a letter which cancelled the contract and requested the return of the $20,000 deposit.

{8} When La Puerta did not return the deposit in full, Dawley filed a lawsuit, alleging breach of contract, violation of the Unfair Practices Act, violation of the Uniform Commercial Code, conversion, and fraud. Only the breach of contract claim and the Unfair Practices Act claim remained by the close of trial.

{9} La Puerta brought numerous counterclaims against Dawley. The district court granted Dawley’s motion for summary judgment on La Puerta’s counterclaims for tortious interference with contract and intentional infliction of emotional distress. By the time of trial, two counterclaims remained: one for breach of contract and one for malicious abuse of process.

{10} Following a three-day bench trial, the district court determined that “the contract was ignored by Dawley and, to a large extent, by La Puerta.” Because of this course of conduct between the parties, the court ruled that neither party had a valid claim for breach of contract. The court concluded that “[i]n legal effect, the parties mutually consented to the termination of the contract, disagreeing only on the appropriate disposition of the $20,000 deposit.”

{11} The court then dismissed Dawley’s last remaining claim against La Puerta under the Unfair Practices Act, and granted judgment for La Puerta on its counterclaim for malicious abuse of process. The court awarded compensatory damages in the amount of La Puerta’s attorney fees and punitive damages in the amount of the original contract price. Dawley appeals that judgment on La Puerta’s counterclaim.

DISCUSSION

Malicious Abuse of Process

{12} Dawley challenges the legal and factual sufficiency of the district court’s judgment on La Puerta’s counterclaim for malicious abuse of process. In determining whether the evidence is legally sufficient to support the district court’s decision, we resolve all disputes of fact in favor of the successful party and indulge all reasonable inferences in support of the judgment. Las Cruces Prof'l Fire Fighters v. City of Las Cruces, 1997-NMCA-044, ¶ 12, 123 N.M. 329, 940 P.2d 177. On appeal, we do not re-weigh the evidence or substitute our judgment for that of the fact-finder, but determine whether substantial evidence supports the result reached. Id.

{13} Although we apply a substantial evidence standard of review, we are mindful that the tort of malicious abuse of process must be construed narrowly to protect the right of access to the courts. DeVaney v. Thriftway Mktg. Corp., 1998-NMSC-001, ¶ 19, 124 N.M. 512, 953 P.2d 277 (stating that tort is traditionally disfavored because of “potential chilling effect on the right of access to the courts”); see also Weststar Mortgage Corp. v. Jackson, 2002-NMCA-009, ¶¶ 59, 62, 131 N.M. 493, 39 P.3d 710 (Sutin, J., dissenting in part) (arguing that “[e]ourt scrutiny of malicious abuse of process actions is more demanding than that required in garden variety tort actions,” while acknowledging that sufficiency of evidence is the appropriate standard of review).

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Cite This Page — Counsel Stack

Bluebook (online)
2003 NMCA 029, 62 P.3d 1271, 133 N.M. 389, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dawley-v-la-puerta-architectural-antiques-inc-nmctapp-2002.