FIRST NAT. BANK IN ALAMOGORDO v. Cape

673 P.2d 502, 100 N.M. 525
CourtNew Mexico Supreme Court
DecidedDecember 21, 1983
Docket14758
StatusPublished
Cited by6 cases

This text of 673 P.2d 502 (FIRST NAT. BANK IN ALAMOGORDO v. Cape) 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
FIRST NAT. BANK IN ALAMOGORDO v. Cape, 673 P.2d 502, 100 N.M. 525 (N.M. 1983).

Opinion

OPINION

FEDERICI, Justice.

This action originated as a Petition for Interpleader brought by the First National Bank of Alamogordo (Bank) in the District Court of Otero County. The Bank interpled all documents held in escrow pertaining to a tract of land with improvements near Cloudcroft, New Mexico, title to which is in issue here. The district court held that title to the property should be vested in Slover T. Cape and Louise Cape (appellees) subject to an equitable resulting trust in the amount of $6,614.55, with interest, in favor of the estate of Dora Mullins McKee-man (estate). All other claims were dismissed with prejudice. Heather Badin Mullins, as personal representative of the estate (appellant) appeals. We affirm.

In May 1977, appellees sold the real estate involved (A-frame cabins) to Donald McKeeman, a single man and prior employee of the appellees. Mr. McKeeman financed the purchase through the use of a real estate contract with monthly payments to be made to appellees. Numerous documents involved in this sale were held in escrow by the Bank. The down payment on the real estate contract was $5,000, $4,500 of which was traceable directly to separate funds of Dora Mullins McKeeman. Additionally, five monthly payments in a total amount of $2,114.55 were made on the contract using Dora Mullins McKeeman’s separate funds.

In July 1977, a marriage ceremony was performed for Donald McKeeman and Dora Mullins McKeeman. The question of the validity of that marriage is not at issue here. Four months after this marriage, Mr. McKeeman defaulted on the real estate contract by failing to make the November 1977 payment.

In March 1978, Dora Mullins McKeeman was killed in an automobile accident. On June 19, 1978, appellant filed suit against Mr. McKeeman for an accounting of funds, and for a declaration that the A-frame cabins belonged to the estate. On that same date, a notice of lis pendens was filed against the property. Immediately after Mr. McKeeman was served with notice of the suit he contacted appellees. On June 22, 1978, appellees sent Mr. McKeeman a default letter giving him thirty days to become current on the real estate contract. Mr. McKeeman again contacted appellees to accelerate default and on June 26, 1978 signed an affidavit purporting to give up his claim to the A-frame cabins.

In July 1978, Mr. McKeeman filed for bankruptcy. This temporarily stayed any further action in State court against Mr. McKeeman. Appellant obtained a court order allowing her to proceed in State court. After several proceedings in the State court, the trial court in the original case held that the estate would be deemed the purchaser of the realty and could assume all rights and obligations as purchaser under the real estate contract. A court-appointed Special Master transferred the A-frame cabins from Mr. McKeeman to the estate by warranty deed. This action, however, did not involve appellees and therefore the holding only determined the rights to the A-frame cabins as between appellant and Mr. McKeeman. Thereafter, appellant continually offered to bring all payments current on the real estate contract. All such offers have been refused by appellees.

Subsequent to a trial on the merits in the case at bar, the United States Bankruptcy Court for the District of New Mexico filed a memorandum opinion and final judgment against Mr. McKeeman, denying discharge-ability of the debt on the A-frame cabins. The bankruptcy court reached this determination on the grounds that Mr. McKeeman’s actions in giving up his rights to the A-frame cabins to appellees were made in an attempt to defraud appellant of the estate’s interest in the property. The memorandum and order opinion of the United States Bankruptcy Court was not available to the parties in the case before us at the time of trial.

The trial court in the present case filed a judgment and a supplemental judgment in which it held that appellant was entitled to an equitable resulting trust against the A-frame cabins in the amount of $6,614.55, with interest, from June 19, 1978, the date of the recording of the lis pendens. The court further held that the real estate contract would not be reinstated and that all escrowed documents should be released to appellees. It is from that judgment and supplemental judgment that this appeal is taken.

Appellees raise as a threshold issue the technical sufficiency of appellant’s brief in chief. Substantially the same argument was raised in Huckins v. Ritter, 99 N.M. 560, 661 P.2d 52 (1983). In that case, we stated that a technical violation of our rules will not preclude this Court from considering an appeal as long as the briefs, when considered with the transcripts and the record, are sufficient to present the essential question for review on the merits. See also Petty v. Williams, 71 N.M. 338, 378 P.2d 376 (1963); Trujillo v. Tanuz, 85 N.M. 35, 508 P.2d 1332 (Ct.App.1973); Ortiz v. Ortiz & Torres Dri-Wall Co., 83 N.M. 452, 493 P.2d 418 (Ct.App.1972). Cf. McLam v. McLam, 85 N.M. 196, 510 P.2d 914 (1973); Rael v. Cisneros, 82 N.M. 705, 487 P.2d 133 (1971); Springer Corp. v. American Leasing Co., 80 N.M. 609, 459 P.2d 135 (1969). We find that appellant’s brief in chief is technically sufficient, and when read with the transcript of record, presents the essential question for review on the merits.

The primary issue on appeal is whether the district court erred in not ordering a reinstatement of the real estate contract. Real estate contracts containing the type of forfeiture provisions at issue here are generally enforceable in New Mexico. Upon default, the vendor may terminate the contract, regain possession of the property, and retain the payments made prior to default. An exception to the enforceability of such forfeiture provisions is recognized when enforcement of the literal terms would result in a forfeiture or unfairness which would shock the conscience of the court. Huckins v. Ritter, 99 N.M. 560, 661 P.2d 52 (1983); Hale v. Whitlock, 92 N.M. 657, 593 P.2d 754 (1979); Eiferle v. Toppino, 90 N.M. 469, 565 P.2d 340 (1977); Bishop v. Beecher, 67 N.M. 339, 355 P.2d 277 (1960).

The facts here support the result reached by the trial court. They do not support an exception to the general rule. The real estate contract at issue was entered into between appellees and Donald McKeeman, an unmarried man. The contract contained a forfeiture provision of a type which is enforceable in New Mexico. Two months after the formation of the contract Donald McKeeman and Dora Mullins McKeeman were purportedly married. Neither appellant nor Dora Mullins McKee-man were parties to the real estate contract.

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Bluebook (online)
673 P.2d 502, 100 N.M. 525, Counsel Stack Legal Research, https://law.counselstack.com/opinion/first-nat-bank-in-alamogordo-v-cape-nm-1983.