Kerman v. Swafford

680 P.2d 622, 101 N.M. 241
CourtNew Mexico Court of Appeals
DecidedMarch 27, 1984
Docket7245
StatusPublished
Cited by14 cases

This text of 680 P.2d 622 (Kerman v. Swafford) 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
Kerman v. Swafford, 680 P.2d 622, 101 N.M. 241 (N.M. Ct. App. 1984).

Opinion

OPINION

MINZNER, Judge.

Kerman brought suit against Swafford in order to recover possession of and quiet title to a 180-acre ranch. Kerman moved for a default judgment, and one day later Swafford filed an Answer. The Answer partially confessed judgment and raised counterclaims. The court granted judgment by default but denied a motion to strike the counterclaims. Kerman then moved for summary judgment on the counterclaims. The trial court granted summary judgment with respect to the counterclaim that asserted ownership of three portable buildings located on the ranch. The other claims were settled by stipulated judgment.

Swafford appeals the trial court’s grant of summary judgment. He claims that Kerman failed to meet his obligation under NMSA 1978, Civ.P.Rule 56 (Repl.Pamp. 1980), to establish that there were no genuine issues of material fact and that he was entitled to judgment as a matter of law. Swafford also claims on appeal that the trial court abused its discretion in granting a protective order limiting Swafford to deposing Kerman in Rockville, Maryland, Kerman’s place of residence.

We affirm the trial court.

Summary Judgment on the Buildings.

The trial court properly granted summary judgment to Kerman. As the movant, Kerman was obligated to make a prima facie showing of entitlement to judgment recognizing his ownership of the buildings. He need not demonstrate beyond all possibility that no genuine factual issue existed. McFarland v. Helquist, 92 N.M. 557, 591 P.2d 688 (Ct.App.1979). A prima facie showing contemplates such evidence as is sufficient in law to raise a presumption of fact or establish the fact in question unless rebutted. Goodman v. Brock, 83 N.M. 789, 498 P.2d 676 (1972). Once a prima facie showing has been made, the moving party is entitled to judgment unless the party resisting the motion demonstrates at least a reasonable doubt as to whether a genuine issue exists. Cargill v. Sherrod, 96 N.M. 431, 631 P.2d 726 (1981).

Swafford purchased the buildings in 1971 while he was in possession of the ranch and in business as a rancher and horse breeder. The record does not indicate the precise nature of Swafford’s interest in the ranch in 1971 or what, if any, relationship existed between Kerman and Swafford at that time. The record does reflect that a deed from a third party to Swafford was recorded in 1974.

The buildings are metal and were prefabricated at the factory. They were assembled at the ranch by Swafford’s agent and installed by attaching them to concrete slabs with bolts. The buildings include (1) a horse barn, with a dirt floor middle, measuring 60' x 170' x 14'; (2) an office, trophy room, and tack room measuring 60' X 36' x 12'; and (3) a hay shed measuring 50' X 96' X 14' which is open-air with no siding. They have not been moved since assembly and installation.

The record reflects a history of litigation between the parties. A federal court action that resulted in a 1973 judgment for Kerman was’ settled when Swafford delivered two promissory notes and a deed of trust on the ranch property to Kerman. Swafford defaulted on the promissory notes, and Kerman instituted litigation to foreclose in Dona Ana County District Court.

Judgment was entered for Kerman on September 12, 1978, in the amount of $280,-735.87. The judgment “forever barred” Swafford from claiming any interest in the property aside from his statutory right of redemption, which Swafford never exercised. The judgment does not mention the buildings or indicate whether they passed with title to the ranch.

Kerman purchased the ranch at the foreclosure sale. He allowed Swafford to remain on the ranch rent-free until a tenant or buyer was found. Kerman was assessed property taxes on the buildings following his purchase of the ranch. Swafford filed a claim of lien on the ranch property in 1982 upon learning that Kerman had found a buyer for the ranch, alleging that he had an implied contract for services rendered to protect the land and buildings from 1978-82. Kerman then sued to recover possession and to quiet title.

These facts are sufficient to justify a finding that the three buildings are part of the real estate Kerman purchased at the foreclosure sale. Intent, adaptation, and annexation are the three relevant factors which determine whether an article is a fixture to be treated as part of the realty. Southwestern Public Service Co. v. Chaves County, 85 N.M. 313, 512 P.2d 73 (1973). Adaptation and annexation are principally relevant as indicators of intent, which our courts have recognized as the controlling consideration and the chief fixture test. Boone v. Smith, 79 N.M. 614, 447 P.2d 23 (1968). Although the question of intent is typically a fact question for the jury, Maxey v. Quintana, 84 N.M. 38, 499 P.2d 356 (Ct.App.), cert. denied, 84 N.M. 37, 499 P.2d 355 (1972), intent regarding fixture determination is a different question. Intent must affirmatively and plainly appear. Boone v. Smith. Where a court finds sufficient objectively manifested intent, however, a fixture may be presumed or inferred from the circumstances. Patterson v. Chaney, 24 N.M. 156, 173 P. 859 (1918). See also Taylor v. Shaw, 48 N.M. 395, 151 P.2d 743 (1944).

In Patterson v. Chaney, the Supreme Court found that a dwelling house, windmill, garage, chicken house, and fencing erected by a predecessor in interest in compliance with homestead requirements were fixtures:

The nature of the property, the manner of its construction, and its intended use all go to show that it was the intention of the party who made the improvements that they should be permanent additions to the land. There is no evidence tending to show a contrary intent. Under such circumstances the articles, so attached, are presumed to have become a part of the realty * * *.

24 N.M. at 160, 173 P. at 860 (emphasis added). The house was set on a stone foundation, while the windmill and garage were bolted to foundations set in the earth. Having found objectively manifested intent, the court sustained a directed verdict on the ground that fixtures properly had been presumed.

Similarly, here, the nature of the property, the manner of its construction, and its intended use all go to show that Swafford intended to make permanent additions to the land. The Southwestern court reaffirmed the unique nature of buildings when it indicated that a substantial building is real estate absent some controlling contractual relationship. 85 N.M. at 317, 512 P.2d at 77. See also Taylor v. Shaw. The buildings here are substantial. They were attached with bolts to concrete slabs, and they are necessary and useful to the operation of the ranch.

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Bluebook (online)
680 P.2d 622, 101 N.M. 241, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kerman-v-swafford-nmctapp-1984.