Snow v. Warren Power & Mach., Inc.

2015 NMSC 26
Procedural entryThis page is a short order in Snow v. Warren Power & Mach., Inc.. Read the opinion of the Court — 8 N.M. Ct. App. 268
New Mexico Supreme Court·Decided August 10, 2015·No. 34,501·Published

Opinion

I attest to the accuracy and integrity of this document New Mexico Compilation Commission, Santa Fe, NM '00'04- 10:33:23 2015.09.01

IN THE SUPREME COURT OF THE STATE OF NEW MEXICO

Opinion Number: 2015-NMSC-026

Filing Date: August 10, 2015

Docket No. 34,501

KEN SNOW and ALLENE SNOW,

Plaintiffs-Petitioners,

v.

WARREN POWER & MACHINERY, INC., d/b/a WARREN CAT, and BRININSTOOL EQUIPMENT SALES,

Defendants-Respondents.

ORIGINAL PROCEEDING ON CERTIORARI Sheri A. Raphaelson, District Judge

Sanders & Westbrook, P.C. Maureen A. Sanders Albuquerque, NM

Fadduol, Cluff & Hardy, P.C. Richard L. Hardy Eileen M. Shearin Lubbock, TX

for Petitioners

Rodey, Dickason, Sloan, Akin & Robb, P.A. Richard E. Hatch Thomas A. Outler Albuquerque, NM

for Respondent Warren Power & Machinery, Inc., d/b/a Warren Cat

Civerolo, Gralow, Hill & Curtis, P.A.

1 Lawrence H. Hill Justin L. Robbs Albuquerque, NM

for Respondent Brininstool Equipment Sales

David J. Stout Michael B. Browde Albuquerque, NM

for Amicus Curiae New Mexico Trial Lawyers Association

Law Offices of Bruce S. McDonald Sean E. Garrett Albuquerque, NM

for Amicus Curiae New Mexico Defense Lawyers Association

OPINION

BOSSON, Justice.

{1} This matter presents an unusual issue dealing with the procedure for seeking leave to amend a complaint to add parties as additional defendants. When the motion for leave is filed before the statute of limitations has run, but the order granting leave is filed after the statute has run, is the amended complaint time barred? Adopting a new rule for this situation, we hold that the subsequently filed amended complaint, post-statute of limitations, is deemed filed as of the date of the original motion for leave to file and accordingly, the statute of limitations is not a bar. Our Court of Appeals having held to the contrary, we reverse.

BACKGROUND

{2} Ken Snow worked as an operator for the Navajo Refinery. His duties as an operator included performance of a “turn-around,” a “process by which the refinery is shut down and all the parts and connections are cleaned or replaced.” During a turn-around on January 20, 2009, a hose assembly came loose and struck Snow, causing “serious, life-changing injuries.”

{3} On August 15, 2011, Snow and his wife filed a complaint for personal injury, loss of consortium, and punitive damages, resulting from the injuries sustained during the January 2009 incident. In that complaint, the Snows named Midwest Hose & Specialty, Inc.,

2 Gandy Corporation, Repcon, Inc., and Holly Corporation as defendants.1 The Snows then served discovery on the named defendants in an effort to ascertain who had manufactured, provided, or installed the equipment that injured Snow. The documents submitted in response to the discovery requests revealed that Warren Power & Machinery, Inc. d/b/a Warren CAT (Warren) and Brininstool Equipment Sales (Brininstool) provided equipment used during the turn-around. In light of this finding, the Snows sought to amend their complaint to add, for the first time, Warren and Brininstool as defendants in the lawsuit.

{4} Under New Mexico law, an action for injury to a person must be brought within three years from the date of the injury, which in this case would require the complaint to be filed by January 20, 2012. See NMSA 1978, § 37-1-8 (1976); N.M. Elec. Serv. Co. v. Montanez, 1976-NMSC-028, ¶ 13, 89 N.M. 278, 551 P.2d 634. The New Mexico Rules of Civil Procedure for the District Courts allow a party to amend the complaint, but require leave of court or written consent of the adverse party to amend if more than 20 days have passed since the original complaint was served or if an answer has been filed. See Rule 1-015(A). The rules also require that the proposed pleading be attached to the motion to amend. See Rule 1-007.1(C) NMRA (“Motions to amend pleadings shall have attached the proposed pleading.”).

{5} Here, the opposing parties had filed answers to the Snows’ first amended complaint so the Snows needed leave of court in order to file a second amended complaint. At 4:23 p.m. on January 20, 2012, the final day before the period allowed under the statute of limitations would expire, the Snows electronically filed an unopposed motion seeking leave of court to file a second amended complaint that added Warren and Brininstool as additional defendants. The Snows attached the proposed second amended complaint as an exhibit to the motion.

{6} At 4:05 p.m. on Friday, January 27, 2012, one week after the Snows filed the motion and one week after the statute of limitations period had expired, the district court issued its order granting leave of court for the Snows to file the second amended complaint that was attached to the motion. The Snows received notification of the court’s decision the following business day, Monday January 30, at 10:21 a.m.,2 when they received electronic notice of

1 On September 8, 2011, the Snows filed an amended complaint (the first amended complaint) changing the date of injury from June 4, 2009 to January 20, 2009. The Snows filed their amended complaint before any defendant answered and did not require leave of court. See Rule 1-015(A) NMRA. 2 The time and date of notification were not preserved in the record proper. We include this information only to provide an example of how electronic filing and service can cause delay that is outside the control of the filing party. Because the matter was fully settled, our decision to include this alleged fact is not prejudicial to either party.

3 filing.3 Thirty-five minutes later, at 10:56 a.m. on January 30, 2012, the Snows electronically filed the second amended complaint, the exact document originally included as an exhibit to their January 20 motion.

{7} The existing defendants were electronically served through the Electronic Filing System (EFS), but Warren and Brininstool, the new defendants, required service through another authorized method.4 The district court clerk issued summons for Brininstool and Warren on Tuesday, January 31, 2012, and the Snows served the summons and second amended complaint on Warren and Brininstool shortly thereafter.

{8} In their respective answers to the second amended complaint, Warren and Brininstool each asserted as an affirmative defense that the claims against them were barred by the three- year statute of limitations. Warren and Brininstool filed motions for summary judgment. In response, the Snows argued that the delay inherent in the rule requiring leave of court to file an amended complaint unfairly truncated the period of time prescribed by the statute of limitations to file a complaint and in this case precluded them from lawfully filing the second amended complaint until after the limitations period had passed. The Snows further argued, in order to cure this unfairness, that the second amended complaint should be “deemed” filed as a matter of law at the time the motion requesting leave of court was filed because the second amended complaint was attached to the motion. Alternatively, the Snows argued that the second amended complaint should relate back to the original filing date under Rule 1- 015(C) NMRA.

{9} After full briefing and a hearing, the district court granted both summary judgment motions and dismissed Warren and Brininstool as defendants because the second amended complaint was filed after the statute of limitations had run. The Court of Appeals affirmed the district court and held that neither defense raised by the Snows, relation back under Rule 1-015(C) and the doctrine of equitable tolling, applies to save the late filing of the second amended complaint.

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