Stotlar v. Hester

582 P.2d 403, 92 N.M. 26
CourtNew Mexico Court of Appeals
DecidedJuly 5, 1978
Docket3547
StatusPublished
Cited by50 cases

This text of 582 P.2d 403 (Stotlar v. Hester) 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
Stotlar v. Hester, 582 P.2d 403, 92 N.M. 26 (N.M. Ct. App. 1978).

Opinion

OPINION

WOOD, Chief Judge.

Plaintiffs purchased residential real property from the Campbells. Alleging that they relied on an appraisal made by Hester and that this appraisal was erroneous, plaintiffs sought damages from Hester and the Campbells. The trial court denied the Campbells’ motion for summary judgment. It granted Hester’s summary judgment motion. Plaintiffs appeal the ruling in favor of Hester. We discuss: (1) appealability of the judgment; (2) negligent representation; (3) third party beneficiary of a contract; and (4) the propriety of summary judgment as to (a) liability and (b) damages.

Appealability of the Judgment

The summary judgment dismissed plaintiffs’ claims against Hester with prejudice. Hester moved to dismiss plaintiffs’ appeal, asserting the summary judgment was not an appealable final judgment. The motion was denied.

The basis for plaintiffs’ appeal is that the summary judgment was a “final judgment”. See Rule of App.Proc., Civil, 3(a)(1). The dismissal of plaintiffs’ claims against Hester with prejudice was in the form of a final judgment. Campos v. Brown Construction Company, 85 N.M. 684, 515 P.2d 1288 (Ct.App.1973).

In multiple party suits, Rule of Civ.Proc. 54(b)(2) authorizes a judgment adjudicating “all issues” as to one or more, but fewer than all parties. “Such judgment shall be a final one unless the court, in its discretion, expressly provides otherwise and a provision to that effect is contained in the judgment.” The summary judgment adjudicated all of plaintiffs’ claims against Hester; there was no provision in the summary judgment that it was not final. The summary judgment was an appealable final judgment under Rule of Civ.Proc. 54(b)(2). The motion to dismiss the appeal was properly denied. Montano v. Williams, 89 N.M. 86, 547 P.2d 569 (Ct.App.1976), aff’d, 89 N.M. 252, 550 P.2d 264 (1976).

Negligent Representation

One of plaintiffs’ theories of liability was that Hester appraised the property negligently. The issue is whether plaintiffs can recover from Hester on the basis of this negligence. This issue arises because it was the Campbells who arranged for Hester to appraise their property. The showing made is that there was no privity of contract between plaintiffs and Hester.

Hester cites Staley v. New, 56 N.M. 756, 250 P.2d 893 (1952) for the proposition that one not a party to a contract cannot maintain a suit upon it. The suit in Staley was for breach of contract; the theory of liability involved in this issue is the asserted negligence of Hester. Staley is not applicable.

Hester relies on Fidelity & Deposit Co. of Maryland v. Atherton, 47 N.M. 443, 144 P.2d 157 (1943) for the view that Hester is not liable to plaintiffs for his asserted negligence. In Atherton, supra, the claim was that accountants negligently performed their audit contract with the county commissioners. A deputy county treasurer embezzled money, the bonding company paid the loss and sought to recover from the accountants. Atherton disposes of the bonding company’s negligence claim as follows:

They . . [the accountants] owed a duty to third persons, if any, [the bonding company] to whom they knew, or reasonably should have known, their employer intended to exhibit their reports, and upon which they might act to their injury, to make such reports without fraud. But there is no finding that appellees made a fraudulent report, or of a reliance upon appellees’ report by . [the bonding company], nor, of course, that . [the bonding company] was injured by such reliance, so as to bring the case within the doctrine of Ultramares Corp. v. Touche, 255 N.Y. 170, 174 N.E. 441, 74 A.L.R. 1139.

Hester cites Atherton, supra, for the view that he cannot be liable to plaintiffs because there is no claim that his appraisal was fraudulent.

Another case involving the negligence theory of liability is Valdez v. Gonzales, 50 N.M. 281, 176 P.2d 173 (1946). Valdez sued the secretary of state and the county clerk for negligently failing to properly instruct election officials in the manner of conducting an election. The Valdez opinion cites Atherton, supra, and quotes with approval from Ultramares, cited above in the quotation from Atherton, supra. Valdez, supra, approves the view that liability for negligent language arises only when the person furnishing information, spoken or written, owes a duty to give it with care, and the person receiving it has a right to rely on the information'. Valdez, supra, also approves the view that negligent words are not actionable absent a contract relation or something in the nature of privity of contract.

We understand the holdings of Atherton, supra, and Valdez, supra, to be as follows: The tort of negligence by words is recognized. Absent fraud, the tort requires a duty on the part of the person furnishing the information and requires the person receiving the information have a right to rely on it. However, under Valdez, supra, one cannot recover for this tort in the absence of privity of contract. This requirement was removed in Steinberg v. Coda Roberson Construction Co., 79 N.M. 123, 440 P.2d 798 (1968).

Steinberg, supra, held that the second purchaser of a home (the purchaser from the original purchaser), could recover from the builder for negligent installation of a' roof. In so holding, Steinberg, supra, states “the great weight of authority no longer recognizes privity of contract as having a place in tort law” and that privity of contract is “no longer . . recognized as a factor when considering liability on a negligence theory”. Steinberg, supra, did not involve a claim of negligent language. However, that decision unqualifiedly rejected the need for privity of contract in a claim based on negligence.

With privity of contract removed as a requirement for a negligence claim, and thus removed as a requirement for negligence by words, our concern is with the limitations on the tort. Maxey v. Quintana, 84 N.M. 38, 499 P.2d 356 (Ct.App.1972) called the tort “negligent misrepresentation” and held the tort was determined by the general principles of the law of negligence. In support of this statement, Maxey, supra, cited Restatement of Torts (Second) § 552. Neff v. Bud Lewis Company, 89 N.M. 145, 548 P.2d 107 (Ct.App.1976) refers to the same Restatement section in discussing the “reliance” requirement stated in Valdez v. Gonzales, supra.

3 Restatement of Torts (Second) § 552 (1977) reads:

Information Negligently Supplied for the Guidance of Others

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Cite This Page — Counsel Stack

Bluebook (online)
582 P.2d 403, 92 N.M. 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stotlar-v-hester-nmctapp-1978.