Silva v. Chavez

CourtNew Mexico Court of Appeals
DecidedDecember 23, 2010
Docket30,404
StatusUnpublished

This text of Silva v. Chavez (Silva v. Chavez) 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
Silva v. Chavez, (N.M. Ct. App. 2010).

Opinion

1 This memorandum opinion was not selected for publication in the New Mexico Reports. Please 2 see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. 3 Please also note that this electronic memorandum opinion may contain computer-generated 4 errors or other deviations from the official paper version filed by the Court of Appeals and does 5 not include the filing date.

6 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

7 MELBA SILVA, GREG CHAVEZ, and 8 ELENA ELLISON,

9 Plaintiffs-Appellees,

10 v. NO. 30,404

11 RAYMOND CHAVEZ,

12 Defendant-Appellant.

13 APPEAL FROM THE DISTRICT COURT OF VALENCIA COUNTY 14 John W. Pope, District Judge

15 Pedro G. Rael 16 Los Lunas, NM

17 for Appellees

18 Law Offices of Nicholas R. Gentry, L.L.C. 19 Nicholas R. Gentry 20 Albuquerque, NM

21 for Appellant

22 MEMORANDUM OPINION 1 CASTILLO, Judge.

2 Raymond Chavez (Defendant) appeals from the district court’s final judgment,

3 and the district court’s findings of fact and conclusions of law. [RP 230, 214]

4 Defendant raises four issues on appeal. [DS] This Court filed first and second

5 calendar notices proposing summary affirmance in part and summary reversal in part.

6 [CN1, CN2] Melba Silva (Plaintiff) filed responses in support of both of the calendar

7 notices, indicating that she did not oppose the proposed summary dispositions.

8 [PMIS1, PMIS2] We addressed the arguments Defendant raised in his memorandum

9 in opposition to the first calendar notice in the second calendar notice. [DMIO1,

10 CN2] Defendant has filed a memorandum in opposition to the second calendar notice

11 that we have duly considered. [DMIO2] Unpersuaded, however, we affirm in part

12 and reverse in part.

13 DISCUSSION

14 Issue 1 - Imposition of a Constructive Trust

15 Defendant continues to contend that clear and convincing evidence does not

16 support the imposition of a constructive trust on the bank account funds in the amount

17 of $58,185.88, or the district court’s decision that Defendant misappropriated

18 $42,230.84 of those funds for his own purposes. [DS 4, DMIO1, DMIO2] In his first

19 and second memorandums, Defendant argues that the district court’s imposition of a

2 1 constructive trust was not legally correct, because the trial court did not enter any

2 findings or conclusions that proof of a clear and convincing nature existed. [DMIO1

3 3; MIO2 3-4] Defendant points out that the district court did not find any evidence

4 of undue influence or that Defendant dominated or controlled his mother, Josefita

5 Chavez. [DMIO1 3; MIO 3-4] The district court found that Josefita Chavez was

6 competent at all material times. [Id.] Defendant further continues to contend that the

7 imposition of a constructive trust is inconsistent with the plain language of the power

8 of attorney, which granted him broad powers and allowed him to spend the money in

9 the bank account as an owner of the account until his mother’s death. [DMIO1 1,2,

10 4; DMIO2 4] Defendant also continues to argue that if this Court concludes that

11 Defendant was not entitled to spend the money in the bank account or spent it

12 inappropriately, then the total amount that was inappropriately spent was $27,225.69,

13 rather than $42,230.84. [DMIO1 4] Defendant further continues to argue that the

14 district court disregarded certain evidence that he presented that more expenditures

15 were made on behalf of his mother. [DMIO2 6] We remain unpersuaded and affirm

16 the district court on this issue.

17 “The imposition of a constructive trust is an equitable remedy, and as such is

18 within the broad discretion of the district court.” In re Estate of Duran,

19 2003-NMSC-008, ¶ 35, 133 N.M. 553, 66 P.3d 326. “A court will impose a

3 1 constructive trust ‘to prevent the unjust enrichment that would result if the person

2 having the property were permitted to retain it.’” Gushwa v. Hunt, 2008-NMSC-064,

3 ¶ 34, 145 N.M. 286, 197 P.3d 1 (quoting Duran, 2003-NMSC-008, ¶ 34). Courts have

4 held that certain conduct, “such as fraud, constructive fraud, duress, undue influence,

5 breach of a fiduciary duty, or similar wrongful conduct[,]” may warrant the imposition

6 of a constructive trust. Id. (internal quotation marks and citation omitted). “If a court

7 imposes a constructive trust, the person holding legal title is subjected to an equitable

8 duty to convey the property to a person to whom the court has determined that duty

9 is owed.” Id. (internal quotation marks and citation omitted).

10 In this case, as Defendant points out, the district court found that Josefita

11 Chavez’s will, the warranty deed, and the power of attorney were valid instruments

12 executed during Josefita’s lifetime, and that Defendant did not exert undue influence

13 over his mother and that he did not dominate or control her. [RP 215-16, fofs 14-22]

14 The district court also found that Defendant had validly used the power of attorney to

15 accomplish various tasks on behalf of his mother including recovering his mother’s

16 money from Elena Ellison and opening the bank account with the proceeds of that

17 lawsuit in the amount of $46,103.53, in 2003. [RP 216, fofs 23-27]

18 The district court also found, however, that the bank account was created for

19 the sole benefit of Josefita Chavez and that all deposits made into the bank account

4 1 were made for her sole benefit. [RP 217, fofs 30-31] The district court further found

2 that of the $58,185.88 that had been deposited to his mother’s account for her sole

3 benefit, Defendant spent $15,995.04 of that amount on legitimate expenses relating

4 to the care of his mother and her property. [RP 217, fofs 31-34] In this regard, the

5 docketing statement indicates that “[t]here was much testimony and evidence at trial

6 about what expenditures by [Defendant] from that Bank Account were proper or

7 improper.” [DS 7] Plaintiff claimed that she was entitled to the return of all funds

8 illegally withdrawn by imposition of a resulting or equitable trust. [RP 3, Nos. 10-12;

9 RP 208, proposed findings nos. 10-20] Plaintiff eventually conceded that Defendant

10 appropriately withdrew $15,995.04 from the bank account for the benefit of their

11 mother. [RP 217, fofs 32-34] Plaintiff asserted in the complaint and she showed at

12 trial, to the satisfaction of the district court, that Defendant used for his own purposes,

13 rather than for his mother’s sole use and benefit, the rest of the funds in the bank

14 account in the amount of $42,230.84. We consider this the type of wrongful conduct

15 that would warrant imposition of a constructive trust.

16 After trial, the district court concluded that Defendant had failed to present any

17 credible testimony or evidence that he had spent the $42,230.84 for the benefit of his

18 mother: “The Court finds that no credible evidence was presented entitling

19 [Defendant] to any credit against the disputed amount of $42,230.84.” [RP 218, fof

5 1 38; see also fofs 35, 36, 37, 39] To the extent Defendant continues to argue that the

2 factual findings of the district court are not supported [DMIO2 6], it is well

3 established that this Court does not reweigh the evidence or the credibility of the

4 witnesses. See, e.g., Buckingham v.

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Silva v. Chavez, Counsel Stack Legal Research, https://law.counselstack.com/opinion/silva-v-chavez-nmctapp-2010.