Freedom Mortgage v. Stevens

CourtNew Mexico Court of Appeals
DecidedFebruary 21, 2023
StatusUnpublished

This text of Freedom Mortgage v. Stevens (Freedom Mortgage v. Stevens) 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
Freedom Mortgage v. Stevens, (N.M. Ct. App. 2023).

Opinion

The slip opinion is the first version of an opinion released by the Chief Clerk of the Supreme Court. Once an opinion is selected for publication by the Court, it is assigned a vendor-neutral citation by the Chief Clerk for compliance with Rule 23-112 NMRA, authenticated and formally published. The slip opinion may contain deviations from the formal authenticated opinion.

1 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

2 Opinion Number: _____________

3 Filing Date: February 21, 2023

4 No. A-1-CA-39476

5 FREEDOM MORTGAGE CORPORATION,

6 Plaintiff-Appellee,

7 v.

8 KEN STEVENS, Personal Representative 9 of the ESTATE OF JESSICA M. SAXON, 10 Deceased; UNITED STATES OF AMERICA 11 by and through the INTERNAL REVENUE 12 SERVICE,

13 Defendants-Appellees, 14 ____________________________________

15 ROBERT J. ASHTON,

16 Petitioner in Redemption/Respondent-Appellee,

17 and

18 MAK INVESTMENTS LLC,

19 Intervenor/Petitioner-Appellant.

20 APPEAL FROM THE DISTRICT COURT OF SAN JUAN COUNTY 21 Sarah V. Weaver, District Court Judge 1 Michael L. Danoff & Associates PC 2 Brett J. Danoff 3 Albuquerque, NM

4 for Appellee Stevens

5 Lorenz Law 6 Alice T. Lorenz 7 Albuquerque, NM

8 Risley Law Firm PC 9 Gary E. Risely 10 Farmington, NM

11 for Appellee Ashton

12 Higgins Law Firm 13 John F. Higgins 14 Albuquerque, NM

15 for Appellant 1 OPINION

2 BOGARDUS, Judge.

3 {1} MAK Investments LLC (MAK) appeals various district court orders arising

4 from Robert Ashton’s redemption of property purchased by MAK at a foreclosure

5 sale. MAK contends the district court erred by (1) granting summary judgment that

6 Ashton’s redemption was valid, (2) dismissing MAK’s petition for declaratory relief

7 in which MAK asked the district court to declare Ashton’s redemption invalid, and

8 (3) reducing the amount of money Ashton needed to redeem the property. We affirm

9 the district court’s orders granting summary judgment in favor of Ashton and

10 dismissing MAK’s petition for declaratory relief, but reverse the district court’s

11 judgment reducing the redemption amount.

12 BACKGROUND

13 {2} Freedom Mortgage Corporation (FMC) brought an action to foreclose on

14 property (the Property) owned by Jessica Saxon. Because Saxon had died, FMC

15 named as defendant in its foreclosure complaint Ken Stevens, the personal

16 representative of Saxon’s estate. When Stevens failed to file an answer to the

17 complaint, FMC moved for default judgment, which the district court granted. The

18 Property was sold in June 2019 at a judicial sale to MAK, which was the highest

19 bidder at $283,000. At least one member of MAK began occupying the Property. 1 {3} In September 2019 Stevens assigned his right to redeem the Property to

2 Ashton, and Ashton filed a petition for a certificate of redemption in the district

3 court. Along with his petition, Ashton tendered to the district court $283,000 plus

4 interest, which represented the amount necessary to redeem the property under New

5 Mexico’s redemption statute. See NMSA 1978, § 39-5-18 (2007).

6 {4} MAK intervened in the foreclosure action, claiming that Ashton’s

7 redemption of the Property was void. Ashton then filed a motion to dismiss or, in

8 the alternative, for summary judgment on MAK’s claims. The district court

9 granted summary judgment in favor of Ashton, ruling that Ashton’s petition for

10 redemption was valid. MAK appeals.

11 DISCUSSION

12 {5} MAK’s appeal requires us to determine whether the district court erred in

13 entering three different orders arising from Ashton’s redemption: (1) the order

14 granting summary judgment in favor of Ashton based on the district court’s

15 determination that Ashton’s redemption was valid; (2) the order dismissing MAK’s

16 petition for declaratory relief in which MAK again challenged the validity of

17 Ashton’s redemption; and (3) the order reducing the amount of money required to

18 redeem the Property. We review each order in turn.

2 1 I. The District Court Did Not Err in Granting Summary Judgment That 2 the Redemption Was Valid

3 {6} As discussed, the district court granted summary judgment in favor of Ashton,

4 ruling that Ashton’s redemption petition was valid. The district court reasoned that

5 MAK had not established a legal or factual basis that the assignment of Stevens’

6 redemption right to Ashton (the assignment) was invalid. MAK argues the district

7 court improperly granted summary judgment in favor of Ashton.

8 {7} An order granting summary judgment “is appropriate where there are no

9 genuine issues of material fact and the movant is entitled to judgment as a matter of

10 law.” Tafoya v. Rael, 2008-NMSC-057, ¶ 11, 145 N.M. 4, 193 P.3d 551 (internal

11 quotation marks and citation omitted). This Court reviews an order granting

12 summary judgment de novo. See Beggs v. City of Portales, 2009-NMSC-023, ¶ 10,

13 146 N.M. 372, 210 P.3d 798. To the extent MAK’s claims require us to interpret the

14 redemption statute, our review is also de novo. See Chapel v. Nevitt, 2009-NMCA-

15 017, ¶ 25, 145 N.M. 674, 203 P.3d 889 (“Resolution of this issue requires us to

16 interpret the redemption statute, which is a matter of law that we review de novo.”).

17 {8} MAK argues the district court improperly granted summary judgment in favor

18 of Ashton based on the court’s erroneous conclusion that the assignment was valid.

19 MAK contends (1) the assignment was invalid because the redemption statute does

20 not permit the assignment, and (2) material disputed facts exist as to whether the

21 assignment failed for lack of consideration. We review each argument in turn.

3 1 A. The Redemption Statute Permitted the Assignment

2 {9} MAK first argues that the redemption statute did not permit the assignment.

3 MAK contends that only the previous version of the redemption statute permitted

4 assignment of the right to redeem and that Ashton’s redemption right was not

5 determined at a judicial foreclosure proceeding as required by the current version of

6 the statute. We disagree.

7 {10} We first address MAK’s argument that the redemption statute did not permit

8 the assignment. The redemption statute provides, in relevant part, “After sale of real

9 estate pursuant to the order, judgment or decree of foreclosure in the district court,

10 the real estate may be redeemed by the former defendant owner of the real estate . . .

11 whose rights were judicially determined in the foreclosure proceeding.” Section 39-

12 5-18(A) (emphasis added). Importantly for our purposes, “the redemption statute

13 identifies the term ‘owner’ as including an owner’s ‘personal representatives, heirs,

14 successors and assigns.’” BOKF, N.A. v. Unknown Heirs of Pacheco, 2021-NMCA-

15 010, ¶ 9, 484 P.3d 1020 (emphasis added) (quoting § 39-5-18(D)); see BOKF, N.A.,

16 ¶ 22 (“The statutory right to redeem treats certain categories of non-owners, such as

17 assignees, . . . as defendant owners.”). “Consistent with the express language of the

18 statute, New Mexico courts have held that the right of redemption is an assignable

19 right.” Id. ¶ 9. Accordingly, the statute authorized Stevens, as owner, to assign his

20 right of redemption to Ashton. See § 39-5-18(A), (D); BOKF, N.A., 2021-NMCA-

4 1 010, ¶¶ 9, 22; see also Chapel, 2009-NMCA-017, ¶ 25 (“[W]hen a statute’s meaning

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Beggs v. City of Portales
2009 NMSC 023 (New Mexico Supreme Court, 2009)
Chapel v. Nevitt
2009 NMCA 017 (New Mexico Court of Appeals, 2009)
Western Bank of Las Cruces v. Malooly
895 P.2d 265 (New Mexico Court of Appeals, 1995)
Hort v. General Electric Co.
588 P.2d 560 (New Mexico Court of Appeals, 1978)
Blauwkamp v. University of New Mexico Hospital
836 P.2d 1249 (New Mexico Court of Appeals, 1992)
Crutchfield v. New Mexico Department of Taxation & Revenue
2005 NMCA 022 (New Mexico Court of Appeals, 2004)
Tafoya v. Rael
2008 NMSC 057 (New Mexico Supreme Court, 2008)
State v. Vargas
2008 NMSC 019 (New Mexico Supreme Court, 2008)
Chase Manhattan Bank v. Candelaria
2004 NMSC 017 (New Mexico Supreme Court, 2004)
Guest v. Berardinelli
2008 NMCA 144 (New Mexico Court of Appeals, 2008)
Curry v. Great Nw. Ins. Co.
2014 NMCA 31 (New Mexico Court of Appeals, 2013)
Potter v. Pierce
2015 NMSC 2 (New Mexico Supreme Court, 2015)
Wood v. City of Alamogordo
2015 NMCA 059 (New Mexico Court of Appeals, 2015)
Investment Co. of the Southwest v. Reese
875 P.2d 1086 (New Mexico Supreme Court, 1994)
Cruz v. FTS Construction, Inc.
2006 NMCA 109 (New Mexico Court of Appeals, 2006)
Tucson Elec. Power Co. v. N.M. Taxation and Revenue Dep't
2020 NMCA 011 (New Mexico Court of Appeals, 2019)
Cordova v. Cline
2021 NMCA 022 (New Mexico Court of Appeals, 2021)

Cite This Page — Counsel Stack

Bluebook (online)
Freedom Mortgage v. Stevens, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freedom-mortgage-v-stevens-nmctapp-2023.