Richins v. Mayfield

514 P.2d 854, 85 N.M. 578
CourtNew Mexico Supreme Court
DecidedOctober 5, 1973
Docket9653
StatusPublished
Cited by22 cases

This text of 514 P.2d 854 (Richins v. Mayfield) 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
Richins v. Mayfield, 514 P.2d 854, 85 N.M. 578 (N.M. 1973).

Opinion

OPINION

MARTINEZ, Justice.

Plaintiffs filed suit on April 28, 1971 in the District Court of Hidalgo County, New Mexico alleging that the defendants had failed to make the necessary payments due under the terms of a purchase and sales contract for land in Hidalgo County. Plaintiffs prayed for a judgment of the balance due under the terms of the contract. On June 18, 1971, a default judgment was entered against two of the defendants, J. Max Beene and Charlotte J. Beene, his wife, in the amount of $38,391.84.

The pleadings and record reveal the following facts. On July 8, 1971, the defendant, J. Max Beene, through his partner and co-defendant, Bobby M. Mayfield, consented to an oral agreement with the plaintiffs, which provided for a release of judgment in part against Beene and Mayfield, termination of the contract of sale, and immediate possession of the land by the plaintiffs. The defendant, J. Max Beene, subsequently filed a voluntary petition of bankruptcy in the United States District Coúrt for the District of New Mexico on December 6, 1971. Shortly thereafter, on December 17, 1971, J. Max Beene and Bobby M. Mayfield filed a joint stipulation for release of judgment in the District Court of Hidalgo County.

On May 5, 1972, the trial court, by its judgment, approved the stipulation entered into between the plaintiffs and the May-fields and, by the terms of which, J. Max Beene and his wife were released from the June 18, 1971 default judgment. The said 1972 judgment, pursuant to the stipulation between the plaintiffs and the Mayfields, provided for judgment against the May-fields only and, pursuant to the stipulation, granted possession of the lands to the plaintiffs.

In July 1972, the trustee in bankruptcy of the estate of the defendants, J. Max Beene and Charlotte J. Beene, moved to intervene in this action and set aside the May 5, 1972 court action. After a hearing, both motions were denied and trustee in bankruptcy (appellant) appealed.

The appellant has raised two points on appeal. His first point is that the trustee in bankruptcy is a necessary and indispensable party where any interest in real estate of the bankrupt is sought to be terminated.

The right to intervene • is embodied in Rule 24(a) Rules of Civil Procedure [§ 21-1-1 (24) (a), N.M.S.A.1953 Comp. (Repl.Vol. 4, 1970)], which reads as follows:

“Upon timely application anyone shall be permitted to intervene in an action: (1) when a statute confers an unconditional right to intervene; or (2) when the applicant claims an interest relating to the property or transaction which is the subject of the action and he is so situated that the disposition of the action may as a practical matter impair or impede his ability to protect that interest, unless the applicant’s interest is adequately represented by existing parties.”

State v. Reese, 78 N.M. 241, 430 P.2d 399 (1967) stated that intervention is the proceeding whereby a person is permitted to become a party in an action between other persons after which litigation proceeds with both original and intervening parties. The timeliness of such an application depends upon the circumstances of each case, Tom Fields, Ltd. v. Tigner, 61 N.M. 382, 301 P. 2d 322 (1956), and in the absence of a specific statutory provision fixing the time within which the right to intervene must be exercised, the timeliness is governed by equitable principles. State v. Chavez, 45 N.M. 161, 113 P.2d 179 (1941). Generally speaking, an intervention must take place while an action is pending, see Hofheimer v. McIntee, 179 F.2d 789 (7th Cir. 1950), and will not be permitted after commencement of trial. Therefore, it is the general rule that intervention will not be allowed after a final judgment or decree has been entered. Encino State Bank v. Tenorio, 28 N.M. 65, 206 P. 698 (1922).

In certain instances, however, intervention will be allowed, even after a final judgment where it is necessary to preserve a right which cannot otherwise be protected. Pellegrino v. Nesbit, 203 F.2d 463 (9th Cir. 1953); United States Casualty Co. v. Taylor, 64 F.2d 521 (4th Cir. 1933). That is, the trial judge must find that the right or interest cannot otherwise be protected, except by intervention.

Rule 60(b) Rules of Civil Procedure [§ 21-1-1 (60) (b) N.M.S.A., 1953 Comp. (Repl.Vol. 4, 1970)] establishes the grounds upon which a trial court may vacate a final judgment and reads as follows:

“On motion and upon such terms as are just, the court may relieve a party or his legal representative from a final judgment, order, or proceeding for the following reasons: (1) mistake, inadvertence, surprise, or excusable neglect; (2) newly discovered evidence which by due diligence could not have been discovered in time to move for a new trial under Rule 59(b); (3) fraud (whether heretofore denominated intrinsic or extrinsic), misrepresentation, or other misconduct of an adverse party; (4) the judgment is void; (5) the judgment has been satisfied, released, or discharged, or a prior judgment upon which it is based has been reversed or otherwise vacated, or it is no longer equitable that the judgment should have prospective application; or (6) any other reason justifying relief from the operation of the judgment.”

Furthermore, § 21-1-1(60) (b), supra, provides that the motion shall be made within a reasonable time after a judgment is entered by the trial court. This Court, in Conejos County Lbr. Co. v. Citizens Savings & L. Ass’n, 80 N.M. 612, 459 P.2d 138 (1969), has interpreted this provision in relation to a default judgment and has held that the vacating of a default judgment for good cause is a matter within the sound discretion of the trial court. This Court further stated that the trial court’s ruling will not be reversed unless an abuse of discretion is present. Discretion, in this sense, is abused only when the judge has acted arbitrarily or unreasonably under the particular circumstances. See Weisberg v. Garcia, 75 N.M. 367, 404 P.2d 565 (1965); Gilmore v. Griffith, 73 N.M. 15, 385 P.2d 70 (1963).

Mindful of this Court’s approach toward granting motions to vacate and intervene, it is necessary to examine the facts as presented to the trial court in order to determine whether or not it erred in denying appellant’s motions. property, and such title relates bade to the date the bankruptcy petition was filed. Appellant trustee qualified and was appointed on February 1,1972 as trustee of Beene’s estate while Beene filed his petition for bankruptcy on December 6, 1971. This Court in Home Fire & Marine Insurance Company v. Schultz, 80 N.M. 517,

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Bluebook (online)
514 P.2d 854, 85 N.M. 578, Counsel Stack Legal Research, https://law.counselstack.com/opinion/richins-v-mayfield-nm-1973.