Salitan v. Carrillo

368 P.2d 149, 69 N.M. 476
CourtNew Mexico Supreme Court
DecidedDecember 21, 1961
Docket6817
StatusPublished
Cited by23 cases

This text of 368 P.2d 149 (Salitan v. Carrillo) 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
Salitan v. Carrillo, 368 P.2d 149, 69 N.M. 476 (N.M. 1961).

Opinions

CHAVEZ, Justice.'

This is an appeal from a summary judgment entered in favor of plaintiffs, and defendant appeals.

Appellees, Sam S. Salitan and Irving Jacobs, d/b/a Credit Industrial Co., a New York partnership, filed suit in Dona Ana County against J. Carrillo, d/b/a Carrillo’s Plumbing & Heating Co., defendant-appellant. Appellees’ complaint, in five counts, is predicated on five drafts, all dated February 15, 1955, denominated “trade acceptances,” allegedly drawn by the third party defendant, Carbozite Protective Coatings, Inc., on appellant, Carrillo. All of said drafts were accepted by Carrillo at Las Cruces on February 15, 1955, and are payable when due at the First National Bank of Las Cruces. The first two drafts, each in the amount of $201.20, payable June 1, 1955, and July 1, 1955, respectively, were allegedly negotiated by the drawer to appellees on February 18, 1955, for value and without notice. The other three drafts, amounting to $224.10, $225.00 and $225.00, payable the first of September, October and November of the same year, were allegedly negotiated to appellees by the drawer on March 2, 1955, also without notice and for value. Each draft bears on its face these words: “The transaction which gives rise to this instrument is the purchase of goods by the acceptor from the drawer.” According to appellees’ affidavit, each draft would appear to have been discounted thirty-five per cent. The total face value of the drafts is $1,076.50, which is the amount prayed for, plus six per cent interest from due date.

Appellant, by his first defense, answered each count of the complaint by either denying the entire count or stating that he was without sufficient knowledge or information to form a belief as to the truth thereof. By his second defense, he alleged that the complaint failed to'state a claim upon which relief could be granted. His third defense is that the drafts were non-negotiable because they were conditioned upon the purchase of goods by the acceptor from the drawer; hence, appellees were not the proper parties to maintain the suit. His fourth defense was a failure of consideration and breach of warranty; hence, that appellees were not holders in due course because they were aware of the failure of consideration at the time of the alleged and purported assignment of said drafts. The fifth defense stated that the goods had been returned and alleged that appellees were estopped from asserting any claim against appellant. The sixth defense alleged a conspiracy to defraud on the part of appellees and third party defendant; and the seventh defense is that the entire business transaction took place in New Mexico and that the drawer (third party defendant) had not complied with the corporate laws of New Mexico, having no agent within the state and not having been licensed to do business here; hence, said drafts could not be the basis of a cause of action until such time that the third party defendant had complied with said laws. All pleadings are verified.

Jury demand was filed by appellees and fees paid. On April 22, 1959, appellant filed notice to take depositions in Las Cruces of appellees. Two days later, appellees filed a motion for protective order requiring depositions be taken in New York City or that written interrogatories be taken; otherwise, that if depositions were taken in New Mexico, appellant pay appellees’ reasonable travel expenses. As grounds, appellees urged the cost of travel to New Mexico and stated that by deposition taken April 23, appellant acknowledged that he had no proof of any of the defenses set forth in his answer except the claimed breach of warranty; that the only issue remaining was one of law, to-wit, whether said instruments were negotiated to the present appellees under the Negotiable Instrument Law so that appellees would be holders in due course.

On May 12, 1959, appellees filed motion for summary judgment, with attached affidavit of appellee, Salitan. Three days later, appellant filed a counter-affidavit. Appellee’s affidavit tends to support the assertion that appellees were holders in due course. Appellant’s affidavit repeated the defenses of conspiracy; alleged that appellees, on information and belief, were not holders in due course and, because of the lack of information and knowledge, denied the truth of appellees’ affidavit.

On October 14, 1959, the trial court heard appellees’ motion for a protective order. At the same time appellant filed an affidavit in opposition to appellees’ motion, said affidavit being similar in many respects to that submitted at an earlier hearing on the motion. The later affidavit stated that appellees had shown no unreasonable hardship, oppression, or the presence of any special circumstances to support their motion; that the proposed examination would be inadequate if restricted to written interrogatories; that it was necessary to take the oral deposition of each of said appellees; that the statement that the only remaining issue was whether the written instruments were negotiated to the present appellees under the Negotiable Instrument Law was false and without foundation in law or fact, in view of the pleadings, files, and records in the case, including but not restricted to the deposition of appellant; that appellees had chosen the forum and therefore should be required to come to New Mexico.

On October 15, 1959, the following order was entered:

“1. That the defendant may take the deposition of the plaintiff or plaintiffs on written interrogatories, or
“2. That the deposition may be taken upon oral examination at * * * the City of New York * * * at the expense of the defendant, or
“3. That the deposition may be taken in the City of Las Cruces, Dona Ana County, New Mexico, of one of the plaintiffs or their duly authorized agent, upon the defendant advancing expense money for travel by air and other necessary expenses.”

At the same time, hearing was held on the motion for summary judgment. Thereupon, appellees submitted requested findings of fact and conclusions of law, and the trial court, having made said requested findings of fact and conclusions of law, entered summary judgment for appellees. Insofar as the summary judgment was concerned, appellant did not tender any requested findings of fact or conclusions of law, maintaining that such were improper on a motion for summary judgment. Appellant did submit requested findings of fact and conclusions of law in regard to the protective order, and due objection was made by him to the court’s refusal to make those findings; to the granting of the protective order; to the granting of summary judgment; and to the filing of findings of fact and conclusions of law therein.

In view of our disposition of this case, it becomes unnecessary to set out the trial court’s findings of fact and conclusions of law, except to state that the trial court found that appellees were holders in due course of the five drafts involved, and that appellant admitted that the only defense for which he had any proof was an alleged breach of warranty by Carbozite Protective Coatings,. Inc.

Appellant raises six points upon which he relies for reversal:

“I. There are one or more genuine issues as to material facts and therefore the Motion for Summary Judgment should have been denied,'and it was error for the Trial Judge to grant Summary Judgment.

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Salitan v. Carrillo
368 P.2d 149 (New Mexico Supreme Court, 1961)

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Bluebook (online)
368 P.2d 149, 69 N.M. 476, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salitan-v-carrillo-nm-1961.