Moore v. Graves

654 P.2d 582, 99 N.M. 129
CourtNew Mexico Court of Appeals
DecidedNovember 4, 1982
Docket5839
StatusPublished
Cited by12 cases

This text of 654 P.2d 582 (Moore v. Graves) 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
Moore v. Graves, 654 P.2d 582, 99 N.M. 129 (N.M. Ct. App. 1982).

Opinion

OPINION

SUTIN, Judge.

This is an interlocutory appeal. The issue is whether the trial court lacked in person-am jurisdiction over defendant, a resident of Texas. Defendant moved to dismiss plaintiffs’ complaint. pursuant to Rule 12(b)(1), (2) of the Rules of Civil Procedure. An order was entered that denied defendant’s motion to dismiss and defendant appeals. We affirm.

We assume that at a hearing on defendant’s motion, the parties agreed upon the facts. No record was made. The court adopted the requested findings of both parties and plaintiffs’ conclusions of law.

The trial court found that defendant advertised video equipment for sale in a trade magazine. Plaintiffs read the advertisement in New Mexico and contacted defendant by telephone in Texas. During the discussion of the sale of the video equipment, defendant advised plaintiffs that defendant had sold T-shirts at a rodeo in Red River, New Mexico, unrelated to plaintiffs, and that defendant was retiring from business. Plaintiffs and defendant entered into an installment purchase agreement calling for payments over a 36-month period. To secure payments, defendant reserved a security interest in the video equipment, by way of a standard UCC-1 form, a financing statement, reflecting that the debtors’ address was in New Mexico. It was prepared by defendant and signed by plaintiff James Moore in Texas. Thus far, defendant has not perfected his security interest against third parties by filing the financing statement in New Mexico. Plaintiffs took possession of most of the equipment in Texas. Some of the equipment was mailed by defendant in Texas to plaintiffs in New Mexico.

The trial court concluded that it had personal jurisdiction over defendant because the activities of defendant and the security interest reserved constituted the transaction of business in New Mexico.

A non-resident submits himself to New Mexico jurisdiction “as to any cause of action arising from: (1) the transaction of any business within the state.” Section 38-1-16(A)(1), N.M.S.A.1978.

The issue is whether, as a matter of law, defendant had sufficient contact with New Mexico to become subject to the jurisdiction of our courts under the long-arm statute.

This issue has been discussed in a number of New Mexico cases: United Nuclear Corp. v. General Atomic Co., 90 N.M. 97, 560 P.2d 161 (1976); Telephonic, Inc. v. Rosenblum, 88 N.M. 532, 543 P.2d 825 (1975); Diamond A Cattle Company v. Broadbent, 84 N.M. 469, 505 P.2d 64 (1973); Winward v. Holly Creek Mills, Inc., 83 N.M. 469, 493 P.2d 954 (1972); McIntosh v. Navaro Seed Company, 81 N.M. 302, 466 P.2d 868 (1970); Blount v. TD Publishing Corporation, 77 N.M. 384, 423 P.2d 421 (1966); Hunter-Hayes Elevator Co. v. Petroleum Club Inn Co., 77 N.M. 92, 419 P.2d 465 (1966); Melfi v. Goodman, 69 N.M. 488, 368 P.2d 582 (1962), and Tarango v. Pastrana, 94 N.M. 727, 616 P.2d 440 (Ct. App. 1980).

In 1976, Professor Walden said that “New Mexico’s decisions under its long-arm statute have in the past extended the scope of state court jurisdiction to a remarkable degree.” Walden, Civil Procedure in New Mexico in 1975, 6 N.M.L.Rev. 367, 368 (1976).

The following rules were stated in the above cases with reference to state court jurisdiction over a non-resident:

(1) There is no definite formula. The test must be decided case by case.

(2) A non-resident defendant must have certain minimum contacts with New Mexico such that the maintenance of the suit does not offend traditional notions of fair play and substantial justice.

(3) A non-resident defendant by some act must have availed himself of the privilege of conducting activities in New Mexico to invoke the benefits and protection of its laws. This activity is not required to be directly related to plaintiffs’ cause of action as long as there are sufficient contacts.

(4) A single transaction negotiated or to be performed within New Mexico can be sufficient contact. When one affirmative act has occurred wherein defendant “reached out” to New Mexico, the benefits and protections of local laws are conclusively presumed.

(5) The long-arm statute submits a nonresident to jurisdiction regardless of its intent to use the courts.

(6) Place of execution of the contract is not controlling, essential or even highly significant in making a determination.

(7) Restatement (Second) of Conflicts of Laws § 35, comment (a) at 142 (1971) defined “Doing business”:

Doing business is doing a series of similar acts for the purpose of thereby realizing pecuniary benefit, or otherwise accomplishing an object, or doing a single act for such purpose with the intention of thereby initiating a series of such acts.

(8) A non-resident may agree in advance to submit to the jurisdiction of the courts. It must be sufficiently definite or so unequivocal as to constitute an effective waiver of due process.

Thus far, the following contacts have been held to constitute the transaction of business in New Mexico:

(1) Negotiations in New Mexico that result in a contract.

(2) Placing magazines in national channels of commerce and sold in New Mexico, the contacts of which caused injury.

(3) Soliciting business in New Mexico, advertising its products through customer discounts, making delivery to purchasers.

(4) Having an agent in New Mexico who transacts business.

(5) A contract to produce minerals in New Mexico and deliver from New Mexico.

(6) Engage in business in New Mexico with other producers of minerals.

(7) Seek to obtain a security-interest in a resident’s mine.

(8) Seek a veto power over the right of a resident to make further sales from its New Mexico mine.

(9) A dedication of ore reserves from a resident’s mine that inures to its own benefit.

(10) Attempt to monopolize and restrain trade in New Mexico.

The following contacts have been held not to constitute “the transaction of business in New Mexico”:

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Bluebook (online)
654 P.2d 582, 99 N.M. 129, Counsel Stack Legal Research, https://law.counselstack.com/opinion/moore-v-graves-nmctapp-1982.