Fernandez v. Char-Li-Jon, Inc.

888 P.2d 471, 119 N.M. 25
CourtNew Mexico Court of Appeals
DecidedSeptember 21, 1994
Docket15639
StatusPublished
Cited by8 cases

This text of 888 P.2d 471 (Fernandez v. Char-Li-Jon, 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
Fernandez v. Char-Li-Jon, Inc., 888 P.2d 471, 119 N.M. 25 (N.M. Ct. App. 1994).

Opinion

OPINION

BLACK, Judge.

On April 14, 1993, Tina Fernandez (“Plaintiff”) sued The Caravan East Nite Club, Inc. (“Caravan”), advancing one count of negligence and one count of strict liability in tort. Plaintiff alleged that she had been served a drink that contained pieces of glass at the Caravan East Nightclub (“the nightclub”) on April 20, 1990. Caravan had, however, sold its interest in the nightclub in 1972. Char-Li-Jon, Inc. (“CLJ”) was the owner of the nightclub at the time of the alleged injury. CLJ received a copy of the complaint on June 14, 1993. On August 9, 1993, Plaintiff filed an amended complaint naming CLJ and adding two counts of breach of warranty. CLJ moved to dismiss on the ground that the appropriate statute of limitations had run before it received notice or was named a defendant. The district court granted the motion. We affirm the dismissal of the negligence and strict liability counts but reverse on the warranty counts.

I. STANDARD OF REVIEW

A complaint is subject to dismissal if it does not allege facts which could entitle the plaintiff to relief. SCRA 1986, 1-012(B)(6) (Repl.1992) (“Rule 12”); Rummel v. Edgemont Realty Partners, Ltd., 116 N.M. 23, 25, 859 P.2d 491, 493 (Ct.App.), cert. denied, 115 N.M. 709, 858 P.2d 85 (1993). Rule 12 dismissal is a remedy not often justified. See Rummel, 116 N.M. at 25, 859 P.2d at 493. In reviewing a dismissal under Rule 12, we will accept as true all facts properly pleaded. Id.

II. BACKGROUND

The original summons was issued in the name of Caravan. Vonlo, Inc. was the registered owner of the nightclub at the time the original suit was filed and was served in May 1993. On May 26, 1993, Plaintiff applied to the court for an alias summons pursuant to SCRA 1986, 1-004(K) (Repl.1992). CLJ received the alias summons by mail on June 14, 1993. On August 9, 1993, more than three, but less than four years after the incident, Plaintiff filed an amended complaint first naming CLJ as an additional defendant. The new complaint also added claims for breach of the implied warranties of merchantability and fitness for a particular purpose.

III. TORT CLAIMS

A. Statute of Limitations

Plaintiff alleged her injury occurred on April 20, 1990. She filed her lawsuit on April 14, 1993, but did not serve CLJ until June 14, 1993. She did not serve CLJ with a complaint that named CLJ as a defendant until September 27, 1993. In addition to the warranty claims, both Plaintiffs original complaint and her amended complaint contained one count sounding in negligence and another based upon strict liability. An action seeking recovery for personal injury as a result of a defendant’s alleged negligence is governed by the three-year period of limitation contained in NMSA 1978, Section 37-1-8 (Repl.Pamp.1990). See New Mexico Elec. Serv. Co. v. Montanez, 89 N.M. 278, 281, 551 P.2d 634, 637 (1976) (citing the predecessor to Section 37-1-8). An action seeking recovery for personal injury under strict liability is governed by the same three-year statute of limitations. See Bassham v. Owens-Corning Fiber Glass Corp., 327 F.Supp. 1007, 1008 (D.N.M.1971) (citing the predecessor to Section 37-1-8).

Plaintiff did not name or serve CLJ as a defendant in this action until more than three years had passed. The counts seeking to recover for Plaintiffs personal injuries based on strict liability and CLJ’s alleged negligence are therefore barred by Section 37-1-8.

B. Relation Back

Plaintiff argues that the amended complaint against CLJ “related back” to the date of filing the original complaint and thus complied with Section 37-1-8. Plaintiff’s “relation back” argument is premised on SCRA 1986, 1-015(C) (Repl.1992) (“Rule 15”), which provides:

Whenever the claim or defense asserted in the amended pleading arose out of the conduct, transaction or occurrence set forth or attempted to be set forth in the original pleading, the amendment relates back to the date of the original pleading. An amendment changing the party against whom a claim is asserted relates back if the foregoing provision is satisfied and, within the period provided by law for commencing the action against him, the party to be brought in by amendment:
(1) has received such notice of the institution of the action that he will not be prejudiced in maintaining his defense on the merits; and
(2) knew or should have known that, but for a mistake concerning the identity of the proper party, the action would have been brought against him.

The notice requirements of Rule 15 protect a defendant’s right to invoke the statute of limitations. Romero v. Ole Tires, Inc., 101 N.M. 759, 762, 688 P.2d 1263, 1266 (Ct.App.1984). Absent such notice a defendant is entitled to assume that, if it is not joined ‘ prior to the limitations period, the statutory limit will serve as a bar to a plaintiffs claim. Id. at 763, 688 P.2d at 1267. Plaintiff does not contend she provided CLJ notice of her suit within the three years mandated by Section 37-1-8, or that there is any corporate affiliation between CLJ and either Caravan , or Vonlo. Rather, she argues that because each of these latter corporate entities had notice of the suit within the three-year statute of limitations, these “successive corporations owning the same business have an ‘identity of interest’ ” under Rule 15. Galion v. Conmaco Int’l., Inc., 99 N.M. 403, 658 P.2d 1130 (1983) (parent and its subsidiary have .“identity of interest”).

Since the federal version of Rule 15 in effect from 1966 to 1991 was virtually identical to the language of our rule, see 3 James W. Moore & Richard D. Freer, Moore’s Federal Practice ¶ 15.01[8] (2d ed. 1994), we will consider pre-1991 federal precedent in evaluating Plaintiffs argument, see Albuquerque Nat’l Bank v. Clifford Indus., Inc., 91 N.M. 178, 180-81, 571 P.2d 1181, 1183-84 (1977) (federal law and commentaries on the law are most helpful in considering meaning of New Mexico rule patterned on federal rule). The identity of interest test has been interpreted to require the parties to be “so closely related in their business operations or other activities that the institution of an action against one serves to provide notice of the litigation to the other.” 6A Charles A. Wright et al., Federal Practice and Procedure § 1499, at 146 (2d ed. 1990). For example, in Slack v. Treadway Inn, 388 F.Supp. 15, 18-19 (M.D.Pa.1974), the court found that a successor in interest in the operation of a lodge was “entirely different” from and independent of its predecessor, and therefore relation back under the federal counterpart to Rule 15 was improper.

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888 P.2d 471, 119 N.M. 25, Counsel Stack Legal Research, https://law.counselstack.com/opinion/fernandez-v-char-li-jon-inc-nmctapp-1994.