Jevne v. Kooi

CourtNew Mexico Court of Appeals
DecidedMarch 26, 2020
StatusUnpublished

This text of Jevne v. Kooi (Jevne v. Kooi) 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
Jevne v. Kooi, (N.M. Ct. App. 2020).

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 Refer to Rule 12-405 NMRA for restrictions on the citation of unpublished decisions.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-36611

DENISE JEVNE,

Plaintiff/Counterdefendant-Appellant,

v.

MARI KOOI,

Defendant/Counterclaimant-Appellee.

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

Marrs Briebel Law Ltd. Clinton W. Marrs Albuquerque, NM

for Appellant

Sommer, Udall, Hardwick & Jones, P.A. Jack N. Hardwick Santa Fe, NM

for Appellee

MEMORANDUM OPINION

VANZI, Judge

{1} Plaintiff appeals from the district court’s judgment awarding Defendant compensatory and punitive damages on Defendant’s counterclaim against Plaintiff for abuse of process. Having reviewed the record and considered the parties’ arguments on appeal, we affirm.

BACKGROUND {2} Plaintiff and Defendant were involved in business dealings regarding stock market forecasting software developed by Plaintiff. Plaintiff sued Defendant for fraud, breach of contract, conversion, unjust enrichment, use of trade secrets, and unauthorized use of proprietary information. Defendant counterclaimed, alleging abuse of process and misrepresentation. The case proceeded to trial, where the jury found against Plaintiff on all of her claims and in favor of Defendant on her malicious abuse of process counterclaim. The jury awarded Defendant $160,000 in compensatory damages and $100,000 in punitive damages.

DISCUSSION

{3} On appeal, Plaintiff argues that the district court erred in denying her motions for a directed verdict and for judgment notwithstanding the verdict, contending that there was insufficient evidence to support the jury’s award of Defendant’s attorney fees, which apparently form the sole basis of Defendant’s compensatory damage award. A party who moves for a directed verdict after all the evidence has been presented maintains its “right to challenge on appeal the sufficiency of the evidence supporting the jury’s verdict.” Andrus v. Gas Co. of N.M., 1990-NMCA-049, ¶ 12, 110 N.M. 593, 798 P.2d 194. On appeal from a motion for directed verdict, we will not reweigh the evidence. Gonzales v. Surgidev Corp., 1995-NMSC-036, ¶ 35, 120 N.M. 133, 899 P.2d 576. “We only examine whether substantial evidence supports the denial of a directed verdict after viewing the facts and all reasonable inferences in the light most favorable to the party resisting the motion.” Id. Similarly, “denial of a judgment notwithstanding the verdict is reviewed for substantial evidence.” In re Estate of Strozzi, 1995-NMCA-099, ¶ 13, 120 N.M. 541, 903 P.2d 852.

{4} In a malicious abuse of process claim, “[a] plaintiff may recover the normal expenses of defending against the underlying claim.” DeVaney v. Thriftway Mktg. Corp., 1998-NMSC-001, ¶ 38, 124 N.M. 512, 953 P.2d 277, overruled on other grounds by Durham v. Guest, 2009-NMSC-007, 145 N.M. 694, 204 P.3d 19. “[T]he tort of malicious abuse of process allows for recovery of attorney fees as compensatory damages.” Chapman v. Varela, 2008-NMCA-108, ¶ 56, 144 N.M. 709, 191 P.3d 567, rev’d on other grounds by, 2009-NMSC-041, ¶¶ 1-2, 146 N.M. 680, 213 P.3d 1109. Plaintiff concedes that attorney fees are recoverable as damages in a malicious abuse of process claim. However, on appeal, she argues that Defendant was required to distinguish the costs associated with her defense of the wrongful litigation from those in pursuit of her counterclaims, and that she inadequately did so.

{5} Plaintiff argues that, in New Mexico, damages in a malicious abuse of process case should only be recoverable for defense against the wrongful suit, not for pursuit of the tort of malicious abuse of process itself, citing New Mexico cases along with out-of- state case law and treatises, in support of her position. See Millennium Equity Holdings, LLC v. Mahlowitz, 925 N.E.2d 513, 529 (Mass. 2010) (citing C. McCormick, Damages § 66 (1935) (“a claimant in a malicious prosecution or abuse of process action can recover attorney fees incurred in defending against the prior wrongful litigation; however, under the general rule, he or she cannot recover attorney fees incurred in bringing the malicious prosecution or abuse of process action itself”)); 54 C.J.S. Malicious Prosecution § 97 (1987) (same). We need not address this issue at this time because even if we assume Plaintiff is correct, see Chapman, 2008-NMCA-108, ¶ 56 (“[T]he tort of malicious abuse of process allows for recovery of attorney fees as compensatory damages.”); Dawley v. La Puerta Architectural Antiques, Inc., 2003- NMCA-029, ¶ 43, 133 N.M. 389, 62 P.3d 1271 (reiterating “that New Mexico follows the [so-called] American Rule, which does not ordinarily allow the recovery of attorney fees” in tort cases); see also Tech. Computer Servs., Inc. v. Buckley, 844 P.2d 1249, 1256 (Colo. App. 1992) (“Logically, the same rule should apply if the abuse of process claim is brought as a counterclaim to wrongful litigation rather than as a later separate action.”); 2 D.B. Dobbs, Law of Torts § 440, at 1242 (2001) (stating that recovery for malicious abuse of process generally does not include counsel fees resulting from the “plaintiff’s own counterclaims in the original suit”), we may still affirm in the present case, based on our conclusion that there was sufficient evidence to support the jury award for defense against the claims, as discussed further below.

{6} We therefore turn to the undisputed facts to evaluate the sufficiency of the evidence regarding Defendant’s attorney fees for defense of Plaintiff’s claims against her. As pertinent to this issue, Defendant testified on direct examination as follows:

Q. Have you incurred attorney[] fees and expenses from defending this lawsuit?

A. Yes.

Q. So far, how much have you incurred in defending this lawsuit?
A. Including this week, which is expensive, over [$]160,000.

On cross-examination, Defendant testified that she did not know whether the attorneys’ billing statements she received separately stated the time billed defending claims, from the time billed for prosecuting her counterclaims.

Q. So you don’t know how much he charged defending against the claims versus prosecuting your counterclaim?

A. I answered that question already.
Q. And you answered you don’t know?
A. I don’t know.

This is the only evidence presented at trial regarding Defendant’s damages—i.e., her attorney fees. {7} The jury was instructed that if they decided in favor of Defendant on the malicious abuse of process claim, they “must then fix the amount of money which will reasonably and fairly compensate [Defendant] for any of the following elements of damages proved by the [Defendant] to have resulted from the malicious abuse of process: The attorney fees and expenses that [Defendant] incurred in connection with the defense of the lawsuit filed by [Plaintiff].” See Muncey v.

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Jevne v. Kooi, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jevne-v-kooi-nmctapp-2020.