Gallegos v. Frezza

2015 NMCA 101, 8 N.M. Ct. App. 623
New Mexico Court of Appeals·Decided March 19, 2015·No. 32,605 32,606·Published·Cited by 4 cases

Opinion

1 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO 2 Opinion Number: _______________ 3 Filing Date: March 19, 2015 4 NOS. 32,605 & 32,606 (Consolidated) 5 FERNANDO GALLEGOS, 6 Plaintiff-Appellant, 7 v. 8 ELDO FREZZA, M.D., 9 Defendant-Appellee, 10 and

11 PRESBYTERIAN HEALTH PLAN, INC., 12 A New Mexico Domestic For-Profit Corporation,

13 Defendant. 14 Consolidated With 15 NELLIE GONZALES, 16 Plaintiff-Appellant, 17 v. 18 ELDO FREZZA, M.D., 19 Defendant-Appellee, 20 and 1 PRESBYTERIAN HEALTH PLAN, INC., 2 A New Mexico Domestic For-Profit Corporation,

3 Defendant.

4 APPEAL FROM THE DISTRICT COURT OF SANTA FE COUNTY 5 Sarah M. Singleton, District Judge

6 Jones, Snead, Wertheim & Clifford, P.A. 7 Jerry Todd Wertheim 8 Roxie P. Rawls-De Santiago 9 Samuel C. Wolf 10 Elizabeth C. Clifford 11 Santa Fe, NM

12 for Appellants

13 Hinkle, Hensley, Shanor & Martin, LLP 14 William P. Slattery 15 Dana S. Hardy 16 Zachary T. Taylor 17 Santa Fe, NM

18 for Appellee

19 Brown & Gay, P.C. 20 Remo E. Gay 21 Melissa A. Brown 22 Albuquerque, NM

23 for Defendant Presbyterian Health Plan, Inc.

1 OPINION 2 BUSTAMANTE, Judge. 3 {1} Plaintiffs Nellie Gonzales and Fernando Gallegos appeal the district court’s 4 dismissal of their medical malpractice suit against Dr. Eldo Frezza, a Texas resident, 5 for lack of personal jurisdiction. On appeal, we examine whether Dr. Frezza has 6 sufficient contacts with the State of New Mexico to permit the state courts to assert 7 either general or specific personal jurisdiction over him. We conclude that most of 8 the asserted contacts with this state are insufficient to establish general jurisdiction. 9 We remand for further proceedings, however, because the record on appeal is 10 insufficient to address whether personal jurisdiction exists based on an arrangement 11 between New Mexico Presbyterian Health Plan and Texas Tech Physicians 12 Associates through which Dr. Frezza was referred New Mexico residents for care. 13 I. BACKGROUND 14 {2} After undergoing bariatric surgery, New Mexico residents Nellie Gonzales and 15 Fernando Gallegos (collectively, Plaintiffs) sued Dr. Eldo Frezza for medical 16 malpractice and Presbyterian Health Plan (Presbyterian) for breach of contract and 17 negligent referral. Both surgeries took place in Lubbock, Texas at the Texas Tech 18 University Health Sciences Center (the Center). Dr. Frezza was an employee of the 19 Center, which is a governmental unit of the State of Texas. See Tex. Tech Univ.

1 Health Scis. Ctr. v. Ward, 280 S.W.3d 345, 348 (Tex. App. 2008) (stating that the 2 Center is a governmental unit). 3 {3} Both Plaintiffs were employees of the State of New Mexico and covered by 4 Presbyterian. When they sought insurance coverage for the bariatric procedure, they 5 were directed to Dr. Frezza by Presbyterian. No other bariatric surgeons were in the 6 Presbyterian network at that time. 7 {4} Dr. Frezza moved for dismissal based on the lack of personal jurisdiction and 8 Plaintiffs’ failure to state a claim. See Rule 1-012(B)(2), (6) NMRA. After a hearing 9 at which it considered documentary evidence, the district court found that it did not 10 have personal jurisdiction over Dr. Frezza and dismissed the complaint. The district 11 court did not rule on Dr. Frezza’s other motion. Plaintiffs appealed. Plaintiffs also 12 filed a motion for reconsideration in the district court under Rule 1-060(B)(6) 13 NMRA. Such motion “does not affect the finality of a judgment or suspend its 14 operation.” Id. As of the time that briefs were submitted, the district court had not 15 ruled on the motion for reconsideration. Additional facts are provided as pertinent 16 to our discussion. 17 {5} We note that these cases are two of three presently before the Court of Appeals 18 that are based on a similar set of facts. See Montaño v. Frezza, COA No. 32,403. In 19 Montaño, filed concurrently, we hold that the Second Judicial District Court did not

1 err in concluding that application of Texas law would violate New Mexico public 2 policy and denying Dr. Frezza’s motion to dismiss for failure to state a claim. 3 II. DISCUSSION 4 A. The Law of Personal Jurisdiction 5 {6} The question before us on appeal is whether the district court properly 6 concluded that it could not fairly exert jurisdiction over Dr. Frezza because he did not 7 have sufficient contacts with New Mexico. See Zavala v. El Paso Cnty. Hosp. Dist., 8 2007-NMCA-149, ¶ 10, 143 N.M. 36, 172 P.3d 173 (“[F]or purposes of personal 9 jurisdiction, we . . . focus on . . . whether [the defendants] had the requisite minimum 10 contacts with New Mexico to satisfy due process.”). “[T]he minimum contacts 11 required for the state to assert personal jurisdiction over a defendant depends on 12 whether the jurisdiction asserted is general (all-purpose) or specific (case-linked).” 13 Sproul v. Rob & Charlies, Inc., 2013-NMCA-072, ¶ 9, 304 P.3d 18. More 14 specifically, “[a] state exercises general jurisdiction over a nonresident defendant 15 when its affiliations with the state are so continuous and systematic as to render it 16 essentially at home in the forum state.” Id. ¶ 12 (alterations, internal quotation marks, 17 and citation omitted). Specific jurisdiction may apply “if [a] defendant’s contacts do 18 not rise to the level of general jurisdiction, but the defendant nevertheless 19 purposefully established contact with New Mexico.” Id. ¶ 16 (internal quotation

1 marks and citation omitted). “In contrast to general, all-purpose jurisdiction, specific 2 jurisdiction is confined to adjudication of issues deriving from, or connected with, the 3 very controversy that establishes jurisdiction.” Goodyear Dunlop Tires Operations, 4 S.A. v. Brown, 131 S. Ct. 2846, 2851 (2011) (internal quotation marks and citation 5 omitted). In analyzing a defendant’s contacts with New Mexico, our focus is on the 6 “defendant’s activities which . . . provide the basis for personal jurisdiction, not the 7 acts of other defendants or third parties.” Visarraga v. Gates Rubber Co., 1986- 8 NMCA-021, ¶ 18, 104 N.M. 143, 717 P.2d 596. 9 {7} “Once it has been decided that a defendant purposefully established minimum 10 contacts within the forum [s]tate, these contacts may be considered in light of other 11 factors to determine whether the assertion of personal jurisdiction would comport 12 with fair play and substantial justice.” Burger King Corp. v. Rudzewicz, 471 U.S. 13 462, 476 (1985) (internal quotation marks and citation omitted). Thus, as part of the 14 overall analysis of whether exercise of jurisdiction would comport with constitutional 15 due process, we may consider “the burden on the defendant, the forum [s]tate’s 16 interest in adjudicating the dispute, the plaintiff’s interest in obtaining convenient and 17 effective relief, the interstate judicial system’s interest in obtaining the most efficient 18 resolution of controversies, and the shared interest of the several [s]tates in furthering

1 fundamental substantive social policies.” Id. (internal quotation marks and citation 2 omitted). 3 B. Standard of Review 4 {8} Here, the district court concluded that it had neither general nor specific 5 jurisdiction over Dr. Frezza. We review this conclusion de novo. Cronin v. Sierra 6 Med. Ctr., 2000-NMCA-082, ¶ 10, 129 N.M. 521, 10 P.3d 845. Our approach to 7 review was stated succinctly in Cronin:

8 If[] . . . a district court bases its ruling upon the parties’ pleadings and 9 affidavits, the applicable standard of review largely mirrors the standard 10 that governs appeals from the award or denial of summary judgment. In 11 this respect, both a district court and this appellate court must construe 12 the pleadings and affidavits in the light most favorable to the 13 complainant. The complainant need only make a prima facie showing 14 that personal jurisdiction exists when a district court does not hold an 15 evidentiary hearing.

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