Lovato v. Crawford & Co.

2003 NMCA 088, 73 P.3d 246, 134 N.M. 108
CourtNew Mexico Court of Appeals
DecidedMay 13, 2003
DocketNo. 22,373
StatusPublished
Cited by13 cases

This text of 2003 NMCA 088 (Lovato v. Crawford & Co.) 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
Lovato v. Crawford & Co., 2003 NMCA 088, 73 P.3d 246, 134 N.M. 108 (N.M. Ct. App. 2003).

Opinion

OPINION

PICKARD, Judge.

{1} Plaintiffs, Leonard, Mary, and Monica Lovato, appeal the trial court’s denial of their motion to amend their complaint, filed three weeks before trial, to add claims of breach of contract, unfair trade practices, and unfair claims practices. They argue that the trial court abused its discretion in denying the motion and that the error was not harmless, entitling them to a new trial on all issues. We disagree and affirm. We base our decision on a combination of (1) the lack of clarity with which Plaintiffs presented their new theories to Defendant in the trial court, (2) the near total failure to call the trial court’s attention to Plaintiffs’ having ever raised their new theories prior to their motion to amend, and (3) Plaintiffs’ inability to cogently articulate their theories even as late as their tender of jury instructions and on appeal. In particular, Plaintiffs still have not described for us the theories, including the factual bases therefor, that were within what Defendant had notice of and that would not have required further discovery, and yet that were not foreclosed by the jury’s vei'dict.

FACTS AND BACKGROUND

{2} This action arose because of two fires that occurred at Plaintiffs’ residence. The relatively minor damage from the first fire was adjusted by Defendant, Crawford & Co., which was hired by Plaintiffs’ homeowner’s insurance carrier.- The day after the first fire, a representative from Crawford came to the residence for the adjustment. Arriving at the same time as the adjuster, and apparently called by Defendant, was Bill McMullen, described by Plaintiffs as a janitor, and by Defendant as a fire restoration contractor. Mary Lovato signed an agreement with McMullen authorizing him to begin clean-up, which he started immediately. Several days later, while McMullen was still restoring the house from the small fire, the home and contents were completely destroyed by a propane fire. There was evidence at trial indicating that a flexible hose connecting the stove to the propane source was damaged when McMullen pulled the stove out to clean behind it, which allowed propane to escape and build up under the house. There was also evidence that the probable source of the ignition was the electricity McMullen temporarily installed to the house to keep his equipment running.

{3} Plaintiffs originally filed suit against McMullen and attempted to join Defendant in that action, but the suit was vacated due to McMullen’s bankruptcy. Plaintiffs then filed a complaint in July 1999, naming Crawford as Defendant, alleging negligence on the part of McMullen and Defendant, and asking for unspecified damages. Defendant removed the case to the United States District Court for the District of New Mexico in August 1999. While this case was pending in federal court, Defendant filed a motion for summary judgment in April 2000 and again filed a motion for partial summary judgment in September 2000. Both parties submitted numerous memoranda and responses regarding these summary judgment motions, none of which was ruled upon by the federal court. A pretrial order was filed in June 2000. In late October 2000, the federal court remanded the case back to state court because it determined that it lacked subject matter jurisdiction over the ease.

{4} On February 22, 2001, eighteen months after filing the initial complaint and three weeks before trial, Plaintiffs moved to amend their complaint, pursuant to Rule 1-015 NMRA 2003, adding claims titled “bad faith breach of duties under claims adjustment contract” and “unfair practices act.” (Emphasis deleted.) There is no indication in the record that Plaintiffs requested a hearing on this motion, perhaps because the motion was filed so late that there was inadequate time for Defendant to respond. See Rule LR1-306(H) NMRA 2003 (“After the filing of the motion, response and reply or the expiration of the applicable time limit in the absence of filing, the movant shall request a hearing ... by filing a request for hearing (LRl-Form A) with the clerk[.]”). Nor did Plaintiffs avail themselves of the trial court’s expedited procedures designed for just this purpose. See Rule LR1-306(I). Accordingly, the trial court did not hear this motion until Plaintiffs requested to argue it at a presentment hearing on the day before trial.

{5} At that hearing on Friday, March 9, 2001, the trial court signed the order granting Defendant’s motion for partial summary judgment on Plaintiffs’ emotional distress claims, and denied Plaintiffs’ motion to amend the complaint, determining that there would be substantial prejudice to Defendant to permit statutory and contractual claims that “had not ... been sufficiently raised to this point.” Trial commenced the following Monday morning, March 12,2001, addressing the negligence claims only, and resulted in a jury finding no negligence on the part of McMullen or Defendant and no liability on the part of Defendant. Plaintiffs appeal only the trial court’s denial of their motion to amend the complaint.

STANDARD OF REVIEW, INCLUDING STANDARD GOVERNING AMENDMENT OF PLEADINGS

{6} A motion to amend is addressed to the discretion of the trial court and will not be disturbed unless an abuse of discretion has occurred. Constructors, Ltd. v. Garcia, 86 N.M. 117, 118, 520 P.2d 273, 274 (1974). “An abuse of discretion occurs when the court exceeds the bounds of reason, considering all the circumstances before it.” Rivera v. King, 108 N.M. 5, 9, 765 P.2d 1187, 1191 (Ct.App.1988), limited on other grounds by Williams v. Cent. Consol. Sch. Dist., 1998-NMCA-006, ¶ 14, 124 N.M. 488, 952 P.2d 978. Amendments to the pleadings are favored and should be liberally permitted as justice requires. Rule 1-015. Amendments should be denied only where the motion is unduly delayed or where amendment would unduly prejudice the non-movant. Hourigan v. Cassidy, 2001-NMCA-085, ¶29, 131 N.M. 141, 33 P.3d 891. Thus, we must examine whether there was an abuse of discretion under the lens of the liberal pleading rule.

DISCUSSION

{7} Plaintiffs argue that the claims at issue in the motion to amend were already part of the pleadings and this motion merely clarified the claims they had been litigating all along. They argue that the federal court’s pretrial order, which included “breach of contractual fiduciary duty” and “breach of insurance laws” as contested issues of law, should be binding upon the trial court. Plaintiffs assert that even if an amendment was required despite the federal court’s pretrial order, they have shown excusable neglect because they believed the pretrial order was binding and they were only making explicit “what [they] thought was implicit throughout.” See State v. Elec. City Supply Co., 74 N.M. 295, 299, 393 P.2d 325, 327-28 (1964) (quoting the court below in suggesting that excusable neglect may justify failure to file motion to amend pleadings).

{8} Defendant argues that Plaintiffs did not offer a credible reason to explain their failure to amend the complaint until the day before trial.

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

Related

Ryan v. Garrison
New Mexico Court of Appeals, 2024
State v. Vento
2012 NMCA 099 (New Mexico Court of Appeals, 2012)
Running Bear v. City of Las Vegas
New Mexico Court of Appeals, 2012
Financial Indem. Co. v. Cordoba
2012 NMCA 16 (New Mexico Court of Appeals, 2011)
Buttke v. Brown Family
New Mexico Court of Appeals, 2010
State v. Ortiz
2009 NMCA 092 (New Mexico Court of Appeals, 2009)
State v. Q Ransom
New Mexico Court of Appeals, 2009
Reule Sun Corp. v. Valles
2008 NMCA 115 (New Mexico Court of Appeals, 2008)
Amica Mutual Insurance v. McRostie
2006 NMCA 046 (New Mexico Court of Appeals, 2006)
United Properties Ltd. v. Walgreen Properties, Inc.
2003 NMCA 140 (New Mexico Court of Appeals, 2003)

Cite This Page — Counsel Stack

Bluebook (online)
2003 NMCA 088, 73 P.3d 246, 134 N.M. 108, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lovato-v-crawford-co-nmctapp-2003.