Martinez v. Ye

CourtNew Mexico Court of Appeals
DecidedJune 28, 2021
StatusUnpublished

This text of Martinez v. Ye (Martinez v. Ye) 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
Martinez v. Ye, (N.M. Ct. App. 2021).

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 Refer to Rule 12-405 NMRA for restrictions on the citation of unpublished decisions.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-38031

HENRY JUARDO MARTINEZ,

Plaintiff-Appellant,

v.

JOHN C. YE and LAW OFFICES OF JOHN C. YE, A Professional Law Corporation,

Defendants-Appellees,

and

WILL FERGUSON & ASSOCIATES, P.C.,

Defendants.

APPEAL FROM THE DISTRICT COURT OF BERNALILLO COUNTY Denise Barela Shepherd, District Judge

Barber & Borg, LLC Nathan S. Anderson Albuquerque, NM

for Appellant

Rodey, Dickason, Sloan, Akin & Robb, P.A. Edward Ricco Charles J. Vigil Albuquerque, NM

for Appellees

MEMORANDUM OPINION

MEDINA, Judge. {1} This case arises from legal malpractice claims brought by Henry Juardo Martinez (Martinez) against Will Ferguson and Associates, P.C. (Ferguson defendants)1, a New Mexico law firm, and John C. Ye and the Law Offices of John C. Ye (Ye defendants), a California law firm. Martinez appeals the district court’s dismissal of the Ye defendants for lack of personal jurisdiction.

{2} We are asked to decide whether a nonresident law firm and lawyer must answer to legal malpractice claims in New Mexico arising from their representation in our courts of a nonresident in personal injury litigation vis-á-vis local counsel. Because we conclude that the Ye defendants had sufficient contacts with New Mexico to allow the district court to exercise personal jurisdiction consistent with due process, we reverse.

BACKGROUND

{3} Martinez was injured in a commercial motor vehicle accident on Interstate 40 in Bernalillo County, New Mexico in February 2012. At the time of the accident, Martinez was riding as a passenger in a commercial motor vehicle owned by Skyway, Inc. and driven by Marcos Rojas when it was hit by a commercial motor vehicle owned by Tiger Express, Inc. and driven by Lakhwinder Chatha. Immediately following the accident, Martinez returned to his home in California and retained the Ye defendants to provide legal services in connection with the accident.

{4} We cannot glean from the record before us what action the Ye defendants took to pursue Martinez’s possible legal claims, even as others involved in the accident were already litigating in the United States District Court for the District of New Mexico. Faced with a looming statute of limitations on Martinez’s claims, the Ye defendants emailed the Ferguson defendants in December 2014 to inquire whether their firm would be interested in “tak[ing] over [Martinez’s] case with a 50-50 split in attorney fees.” The Ferguson defendants agreed and memorialized the terms of the association agreement between the two firms as follows:

As between us, I have agreed that we will undertake full responsibility for the case going forward in terms of filing and pursuing litigation. You have identified the parties and damages, the appropriate jurisdiction, and the involved insurance carriers, which we agree entitles your firm to a minimum of one-[sic]third (1/3) of any fee received. We have requested, and you have agreed to provide, your assistance in acting as the client interface, and marshalling special damage information from the area where the client resides. We have agreed that this effort, up to trial, would constitute a 50/50 division of effort. If the case proceeds into actual trial, this office would receive two-thirds (2/3) of any fee obtained thereafter.

1We note that the Ferguson defendants are not a party to this appeal, but are included in this opinion to the extent they relate to the actions of the Ye defendants. {5} Martinez then signed a representation agreement with both the Ye and Ferguson firms to jointly represent him “as legal counsel for all claims arising in connection with injuries and damages received” from the accident.

{6} With the joint representation agreement in place, the two law firms worked “hand in hand” on Martinez’s case. While the Ferguson defendants intervened in the federal court litigation on Martinez’s behalf, the Ye defendants hired a life care planner and prepared their client in California for a deposition in New Mexico. The Ferguson and Ye defendants communicated frequently with one another regarding Martinez’s case.

{7} The Ye defendants are not licensed to practice law in New Mexico, nor did they appear as counsel of record in the federal court litigation. Notwithstanding this fact, the Ye defendants were in contact with the Ferguson defendants during a mediation conference at which Martinez was offered $450,000 to settle his claims against Tiger Express, Inc. and Chatha. The Ye defendants objected to the proposed settlement offer.

{8} Following the failed mediation conference, the Ferguson defendants believed that the Ye defendants may have committed legal malpractice in Martinez’s case prior to, and during, its joint representation of their client. The Ferguson defendants moved to withdraw as counsel in the federal court litigation, but Martinez accepted a settlement before a ruling on the Ferguson defendants’ motion to withdraw was entered.

{9} Subsequently, Martinez sued both the Ye and Ferguson defendants in the Second Judicial District Court in New Mexico. Martinez alleged that “[a] reasonable investigation into [the accident] would have disclosed that the crash was caused in large part by the negligence of [both Skyway, Inc. and Rojas], for which Skyway, Inc. and its insurer were liable under New Mexico law.” According to Martinez, he was never informed by either law firm that he had potential personal injury claims against Skyway, Inc. and Rojas—claims which he says could have led to a significantly higher monetary recovery.

{10} The Ye defendants moved to dismiss Martinez’s complaint for lack of personal jurisdiction. In support of its argument, the Ye defendants attached an affidavit to its motion to dismiss detailing their lack of contacts to New Mexico, including that the Ye defendants (1) had never traveled to New Mexico in its representation of Martinez or otherwise; (2) were not licensed to practice law in New Mexico, nor ever admitted to practice pro hac vice; (3) did not advertise its legal services in New Mexico; and (4) had never filed any documents in the New Mexico courts.

{11} The district court heard oral argument from the parties on whether jurisdiction could be exercised over the Ye defendants before ruling that they lacked the requisite minimum contacts to New Mexico such that the exercise of jurisdiction would be unconstitutional. The district court did, however, grant Martinez leave to amend his complaint. Martinez then filed an amended complaint which included a theory of agency between the two law firms. The Ye defendants again moved to dismiss for lack of jurisdiction. {12} Finding that Martinez had not made a prima facie showing that jurisdiction over the Ye defendants was proper under his theory of agency, the district court granted the Ye defendants’ motion to dismiss. This appeal followed.

DISCUSSION

{13} Martinez contends on appeal that the district court erred when it concluded that the Ye defendants did not have sufficient minimum contacts with New Mexico such that personal jurisdiction would be appropriate. “We review [the district court’s] conclusion de novo.” Gallegos v. Frezza, 2015-NMCA-101, ¶ 8, 357 P.3d 408.

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Bluebook (online)
Martinez v. Ye, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martinez-v-ye-nmctapp-2021.