Rancho Del Villacito Condominiums, Inc. v. Weisfeld

908 P.2d 745, 121 N.M. 52
CourtNew Mexico Supreme Court
DecidedNovember 13, 1995
Docket21379
StatusPublished
Cited by15 cases

This text of 908 P.2d 745 (Rancho Del Villacito Condominiums, Inc. v. Weisfeld) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Rancho Del Villacito Condominiums, Inc. v. Weisfeld, 908 P.2d 745, 121 N.M. 52 (N.M. 1995).

Opinion

OPINION

FROST, Justice.

1. Plaintiffs-Appellants Martin Kruskal, Rancho del Villacito Condominiums, Inc., Kerry Kruskal, and RDV Investors, Ltd. (collectively Kruskal), appeal from a dismissal with prejudice of a malpractice case against Defendants-Appellees Eugene Weisfeld, Colin Alcott, and Alcott & Weisfeld (collectively Weisfeld). Kruskal consented to the dismissal in order to appeal two rulings by the trial court relating to collateral estoppel and admission of evidence. However, we need not consider Kruskal’s arguments regarding the correctness of the trial court’s rulings, because we find that Kruskal’s consent to dismissal with prejudice is fatal to his appeal in this case. We affirm.

I. FACTS

2. This case arises out of a failed business venture involving Kruskal and Richard Moss. In 1980 Kruskal purchased property in Taos which he intended to develop into condominium units. Kruskal employed Weisfeld as his attorney for various legal matters, including setting up a corporation and partnership between Kruskal and Moss. Weisfeld also prepared the contract by which Kruskal employed Moss as developer for the condominium project.

3. Over the course of the next year, Kruskal became concerned that Moss was violating his employment agreement and was improperly incurring excessive debt on behalf of the corporation. Kruskal claims he went to Weisfeld on several occasions for advice regarding Moss’s alleged improprieties. Weisfeld allegedly advised Kruskal not to terminate Moss and to borrow additional amounts to cover the corporation’s accounts payable. Kruskal contends that Weisfeld never warned him that his actions might constitute waiver or ratification of Moss’s improprieties.

4. In April 1985, Kruskal and Moss agreed to submit their dispute to binding arbitration and appointed Weisfeld as arbitrator. The arbitration agreement recited that Weisfeld had disclosed his personal and legal relationships with both parties and that the parties waived any objections based on conflict of interest on the part of Weisfeld. In early 1986 Weisfeld rendered his arbitration decision, finding that Moss had violated his employment contract. However, Weisfeld also found that Kruskal had ratified Moss’s acts, and either had waived any objection to Moss’s violations or was estopped from raising objections based on his actions after learning of Moss’s improprieties. This Court, in an unpublished decision, upheld the arbitration decision as a binding resolution of the issues between Kruskal and Moss. Kruskal v. Moss, No. 19,065, slip op. (N.M. Apr. 25,1991).

5. Kruskal next initiated this malpractice claim against Weisfeld as arising out of the advice Weisfeld gave him. Kruskal brought his claim in light of Weisfeld’s arbitration decision finding estoppel and waiver contrary to his earlier advice. In response, Weisfeld claimed that he correctly advised Kruskal that Kruskal’s acts did not constitute waiver, but that he incorrectly found waiver and estoppel in his arbitration decision. He therefore contended that he did not commit malpractice because his advice as Kruskal’s lawyer was correct. He also argued that he cannot be sued in malpractice for the errors he made in rendering his arbitration decision because of arbitrator immunity. See, e.g., Corey v. New York Stock Exch., 691 F.2d 1205, 1210-12 (6th Cir.1982) (discussing arbitrator immunity); 5 Am.Jur.2d Arbitration and Award § 107 (1962) (same).

6. Kruskal, confronted with this gordian knot of legal logic, moved to enter the findings of the arbitration decision into evidence and to make them binding on Weisfeld through collateral estoppel. Kruskal apparently agreed that, objectively, Weisfeld’s original advice was correct, namely that there was no waiver or estoppel. However, Kruskal hoped to make Weisfeld’s arbitration decision — finding that waiver and estoppel had occurred' — binding on Weisfeld for purposes of determining whether his earlier advice to Kruskal constituted malpractice. The trial court refused to give the arbitration agreement binding effect and would not enter the arbitrator’s specific findings into evidence.

7. The trial court’s rulings were not final, appealable orders, and the eourt refused to certify the issues for interlocutory appeal. See NMSA 1978, § 39-3^ (Repl.Pamp.1991) (interlocutory appeals); SCRA 1986, 12-203 (Repl.Pamp.1992) (same). Kruskal decided he could not present a prima facie ease of malpractice without a ruling that the arbitration decision findings of waiver and estoppel were admissible and were binding on Weisfeld. Thus, on the eve of trial, Kruskal declined to present a case and consented to a dismissal with prejudice in order to bring an appeal from a final judgment.

II. DISCUSSION

8. At the outset we are faced with the threshold question whether Kruskal may appeal a dismissal to which he consented. In Gallup Trading Co. v. Michaels, 86 N.M. 304, 305, 523 P.2d 548, 549 (1974), this Court held that,

It is the general rule that: "... A judgment by consent is in effect an admission by the parties that the decree is a just determination of their rights on the real facts of the case had they been found. It is ordinarily absolutely conclusive between the parties, and cannot be appealed from or reviewed on a writ of error.”

(quoting Shaw v. Spelke, 110 Conn. 208, 147 A. 675, 677 (1929)); see also 4 Am.Jur.2d Appeal and Error § 244 (1962) (“A judgment of dismissal or nonsuit rendered at the plaintiffs request or with his consent is not, as a general rule, reviewable at his instance.”). In Gallup Trading, we concluded that because the appellant consented to the entry of summary judgment, he acquiesced in the judgment and lost his right to appeal. Gallup Trading, 86 N.M. at 305, 523 P.2d at 549.

9. Kruskal counters that other jurisdictions have allowed' for an exception to this rule if the plaintiffs consent to dismissal is not completely voluntary. This exception applies when an adverse ruling by the trial court would effectively preclude recovery by the plaintiff or is completely dispositive of the case. See, e.g., Wimberly v. Parrish, 253 N.C. 536, 117 S.E.2d 472, 474 (1960) (holding, when “a judge intimates an opinion on the law which lies at the foundation of the action, adverse to the plaintiff, or excludes evidence offered by the plaintiff which is material and necessary to make out his case, he may submit to a nonsuit and appeal”); 4 Am. Jur.2d, supra, § 244. See generally C.R. McCorkle, Annotation, Appellate Review at Instance of Plaintiff Who Has Requested, Induced, or Consented to Dismissal or Non-suit, 23 A.L.R.2d 664, 673 (1952 & Supp.1982 & Supp.1995).

10. A recent opinion by the Iowa Supreme Court, Hense v. G.D. Searle & Co., 452 N.W.2d 440 (Iowa 1990), is instructive on this issue.

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Bluebook (online)
908 P.2d 745, 121 N.M. 52, Counsel Stack Legal Research, https://law.counselstack.com/opinion/rancho-del-villacito-condominiums-inc-v-weisfeld-nm-1995.