High Plains Livestock, LLC v. Allen

CourtNew Mexico Court of Appeals
DecidedSeptember 19, 2024
DocketA-1-CA-40463
StatusUnpublished

This text of High Plains Livestock, LLC v. Allen (High Plains Livestock, LLC v. Allen) 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
High Plains Livestock, LLC v. Allen, (N.M. Ct. App. 2024).

Opinion

This decision of the New Mexico Court of Appeals was not selected for publication in the New Mexico Appellate Reports. Refer to Rule 12-405 NMRA for restrictions on the citation of unpublished decisions. Electronic decisions may contain computer- generated errors or other deviations from the official version filed by the Court of Appeals.

IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

No. A-1-CA-40463

HIGH PLAINS LIVESTOCK, LLC, a Texas limited company d/b/a PRODUCERS LIVESTOCK AUCTION; MICHAEL FLEN, individually; CALVIN and DARCIE PAREO, husband and wife, individually,

Plaintiffs-Appellants,

v.

BARRY ALLEN; SHAWN DAVIS; RAY BACA, individually, and in their official capacities; and NEW MEXICO LIVESTOCK BOARD,

Defendants-Appellees.

APPEAL FROM THE DISTRICT COURT OF ROOSEVELT COUNTY Drew D. Tatum, District Court Judge

Gary C. Mitchell, P.C. Gary C. Mitchell Ruidoso, NM

Sandra A. Gallagher Portales, NM

Wesley O. Pool Clovis, NM

for Appellants

Spencer Fane, LLP Randy S. Bartell Shelly L. Dalrymple Santa Fe, NM for Appellees

MEMORANDUM OPINION

BUSTAMANTE, Judge, retired, sitting by designation.

{1} Plaintiffs High Plains Livestock, LLC, Michael Flen, Calvin Pareo, and Darcie Pareo (collectively, Plaintiffs) appeal the district court’s grant of a motion to dismiss in favor of Defendants Barry Allen, Shawn Davis, Ray Baca, and the New Mexico Livestock Board (the Board) (collectively, Defendants). Plaintiffs argue that (1) the New Mexico Civil Rights Act (the CRA), NMSA 1978, §§ 41-4A-1 to -13 (2021), waives sovereign immunity as a defense for Defendants; (2) Defendants were given proper notice and their claims were made within the statute of limitations, pursuant to the New Mexico Tort Claims Act (the TCA), NMSA 1978, §§ 41-4-1 to -30 (1976, as amended through 2020); (3) Defendants cannot claim sovereign immunity based on the CRA; (4) their state law claims are not barred by res judicata; (5) they stated a claim for which relief can be granted regarding their malicious abuse of process, defamation, violation of property rights, due process, and equal protection claims; and (6) their claim for injunctive relief was improperly denied. We reverse the dismissal of Plaintiffs’ tort-based claims for defamation, and otherwise affirm.

BACKGROUND

{2} Flen owns High Plains Livestock, a Texas limited liability company, d/b/a Producers Livestock Auction, that was licensed to do business in New Mexico. Darcie worked as the office manager for High Plains Livestock, and Calvin, her husband, was not an employee but was involved and affiliated with High Plains Livestock. High Plains Livestock operated a “seller’s auction” for livestock in which it attempted to obtain the highest price it could for the sellers of livestock.

{3} Over a period of over ten years, Plaintiffs allege they were in conflict with the Board, Allen, a law enforcement agent of the Board, Davis, a law enforcement agent of the Board, and Baca, the acting executive director of the Board. This conflict culminated with the Board executing a search warrant of High Plains Livestock’s business records on January 21, 2015. Plaintiffs filed a tort claim notice on April 20, 2015, ninety days after the search warrant was executed.

{4} In 2015, after the search warrant was executed, both Darcie and Calvin were charged with 139 felonies. These charges were dismissed because Darcie and Calvin were not permitted to testify to the grand jury before they were indicted. The dismissals were upheld by this Court. State v. Pareo, 2018-NMCA-040, 420 P.3d 605. Darcie and Calvin were later charged with fifty-one felonies in 2019. In October 2021, they each pleaded no contest to misdemeanor offenses, contrary to NMSA 1978, Section 77-10- 3(E) (1999).1

{5} In January 2017, Plaintiffs filed a complaint against Defendants in district court, and quickly filed a first amended complaint. Plaintiffs’ first amended complaint was promptly removed to federal court. In federal court, Plaintiffs filed a second amended complaint. In the second amended complaint, Plaintiffs made claims against Defendants for malicious prosecution, abuse of process, libel, slander, defamation of character, violation of property rights, deprivation of any rights, privileges, or immunities secured by the constitution and laws of the United States or New Mexico, due process, and equal protection pursuant to the TCA. They also made claims pursuant to 42 U.S.C. § 1983 for violations of the Fourth Amendment, Sixth Amendment, due process, equal protection, and malicious abuse of process. Finally, they requested preliminary and permanent injunctive relief. Defendants Allen, Davis, and Baca filed a motion to dismiss Plaintiffs’ federal claims. After briefing, the federal court granted the motion to dismiss the federal claims and remanded the remaining claims to the district court. Plaintiffs did not appeal the dismissal of their federal claims, and actively supported the remand. Once the case was back in state district court, Defendants filed a motion to dismiss or in the alternative for summary judgment regarding the remaining claims. Without responding to the motion, Plaintiffs filed a motion to stay the proceeding until the end of the criminal proceedings, based on Darcie and Calvin’s 2019 charges for fifty-one felonies, which the district court granted.

{6} Once the criminal proceedings were finished, the parties completed their briefing on Plaintiffs’ motion and the stay was lifted. After a hearing on the motion, the district court issued a letter decision explaining its decision to grant Plaintiffs’ motion. The district court explained that it was granting the motion to dismiss on several grounds. First, it determined that the federal court’s dismissal of Plaintiffs’ federal constitutional claims was not res judicata since they were part of the same proceeding. It concluded that the TCA did “not provide for claims or causes of action under the New Mexico Constitution” and other statutes did not permit Plaintiffs to seek damages under the New Mexico Constitution, so Plaintiffs failed to state a claim for which relief could be granted. The district court determined that sovereign immunity was not waived for claims before January 21, 2015 based on the TCA’s notice requirement. The district court concluded that the CRA—effective on July 1, 2021—acted prospectively only, and thus the individual defendants were entitled to qualified immunity when the claims arose. Regarding the claims of malicious prosecution and abuse of process, the district court determined the claims based on occurrences in 2009 were time-barred for failure to provide notice and that “Plaintiffs failed to allege sufficient factual support for the allegations the actions of . . . Defendants’ were illegitimate, and due to the misdemeanor convictions of . . . Calvin and Darcie . . . , Calvin and Darcie . . . lost the challenge regarding probable cause.” The district court also specifically determined that the claims of libel, slander and defamation of character were alleged to have occurred in 2009 and were time-barred, also that Plaintiffs failed to sufficiently plead facts to support

1“A person who violates Chapter 77, Article 10 NMSA 1978 . . . is guilty of a misdemeanor upon conviction.” NMSA 1978, § 77-10-10 (1999). the claims. Finally, the district court concluded that Plaintiffs were not entitled to injunctive relief as they failed to sufficiently plead or allege irreparable harm or a substantial likelihood of prevailing on the merits. The district court then filed a final judgment and order granting the motion. Plaintiffs appeal.

DISCUSSION

{7} We start by addressing Plaintiffs’ briefing.

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High Plains Livestock, LLC v. Allen, Counsel Stack Legal Research, https://law.counselstack.com/opinion/high-plains-livestock-llc-v-allen-nmctapp-2024.