Stull v. City of Tucumcari

1975 NMCA 105, 540 P.2d 250, 88 N.M. 320
CourtNew Mexico Court of Appeals
DecidedAugust 13, 1975
DocketNo. 1809
StatusPublished
Cited by2 cases

This text of 1975 NMCA 105 (Stull v. City of Tucumcari) 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
Stull v. City of Tucumcari, 1975 NMCA 105, 540 P.2d 250, 88 N.M. 320 (N.M. Ct. App. 1975).

Opinion

OPINION

WOOD, Chief Judge.

The trial court held Tucumcari liable for the fraud of its city manager. The dispos-itive issues concern the basis for holding Tucumcari liable. We discuss: (1) Section 14-9-7, N.M.S.A.1953 (Repl.Vol. 3); (2) Sections 5-6-18 through 5-6-20, N.M. S.A.1953 (Repl.Vol. 2, pt. 1) ; and (3) liability of a municipality for torts of an employee.

The trial court’s findings are not challenged. It found that Tucumcari's City Commissioners authorized the city manager to discuss with plaintiff the acquisition of certain property “and to report back to the said City Commission the results of said discussion * * *.” Discussions were held. They culminated in an agreement for a trade, subject to the approval of the City Commission. Tucumcari would accept certain real estate from plaintiff and pay for it by releasing paving liens on certain other property of plaintiff.

Subsequently, the city manager informed plaintiff that the City Commission had accepted the trade. This statement was false, the city manager knew the statement was false at the time he made the statement. The city manager made the statement with the intent that plaintiff rely thereon and plaintiff did rely on the statement, to his damage. Thus, the unchallenged finding is that the city manager committed fraud. Prudential Insurance Company of America v. Anaya, 78 N.M. 101, 428 P.2d 640 (1967).

Section 14-9-7, supra.

Section 14-9-7, supra, provides:

“No personal action shall be maintained in any court of this state against any member or officer of a municipality for any tort or act done . . . when done by the authority of the municipality or in execution of its orders. In all such cases, the municipality shall be responsible.”

Defendant asserts plaintiff’s complaint should have been dismissed because plaintiff did not plead that the fraud was done by the authority of the municipality or in execution of its orders. Valdez v. City of Las Vegas, 68 N.M. 304, 361 P.2d 613 (1961). Plaintiff, in effect, contends that he had a claim for relief independent of this statute. We do not concern ourselves with the pleading. The trial court did not find that the city manager’s fraud was done by the authority of Tucumcari or in execution of its orders. Having reviewed the record, there is no evidence to support such a finding even if it had been made. Plaintiff cannot hold Tucumcari liable for the fraud of its city manager under § 14—9-7, supra. Montoya v. City of Albuquerque, 82 N.M. 90, 476 P.2d 60 (1970).

Sections 5-6-18 through 5-6-20, supra

Plaintiff claims he is entitled to recover under these sections. He is not.

Section 5-6-18, supra, states the purpose of the act is to provide a means for recovery of damages “resulting from the employer’s or employee’s negligence, which occur during the course of employment * * * (Our emphasis.) Plaintiff’s complaint alleged both an intentional misrepresentation and a negligent misrepresentation. The trial court did not find negligence, it found the intentional tort of fraud. Section 5-6-18, supra, does not apply to the city manager’s fraud. Orrs v. Rodriguez, 84 N.M. 355, 503 P.2d 335 (Ct.App.1972).

Section 5-6-20, supra, provides that no judgment shall run against a city “unless there be liability insurance to cover the amount and cost of such judgment.” Although the trial court made no finding on the question of insurance, the uncontradict-ed evidence is that Tucumcari’s liability insurance did not cover the city manager’s fraud.

Under either of the above reasons, plaintiff cannot hold Tucumcari liable under §§ 5-6-18 through 5-6-20, supra.

Liability for Torts

Plaintiff asserts he has a right to recover which is independent of any statutory provision. That right, he contends, is that municipalities are liable for torts committed in the exercise of corporate or proprietary functions. Barker v. City of Santa Fe, 47 N.M. 85, 136 P.2d 480 (1943). Such a basis for relief existed at common law. The several statutes discussed in the decisions appear to be directed to liability for torts committed in the exercise of governmental functions because liability for torts committed in the exercise of corporate or proprietary functions existed apart from those statutes. See Galvan v. City of Albuquerque, 87 N.M. 235, 531 P.2d 1208 (1975); City of Albuquerque v. Garcia, 84 N.M. 776, 508 P.2d 585 (1973); Montoya v. City of Albuquerque, supra; Baca v. City of Albuquerque, 19 N.M. 472, 145 P. 110 (1914).

Tucumcari’s position is that since the enactment of §§ 5-6-18 through 5-6-20, supra, plaintiff’s right of recovery must be based on these statutory provisions. It relies on the following:

(a) The provision in § 5-6-20, supra, stating no judgment shall run against a city unless there is liability insurance to cover the judgment.

(b) The statement in City of Albuquerque v. Garcia, supra, that:

“Even as to torts committed in pursuance of proprietary functions, immunity was not simply created by the statute, although by compliance with it a procedure which amounts to about the same thing is brought about.”

(c) The statement in Galvan v. City of Albuquerque, supra, that:

“Neither statute permits any situation to arise in which the state or its political subdivisions could suffer any real liability since any judgment has to be limited to the policy limits.”

Tucumcari’s argument indirectly raises the question of whether §§ 5-6-18 through 5-6-20, supra, impliedly abolished the common law rule of municipality liability for proprietary torts.

Tucumcari’s reliance on § 5-6-20, supra, and the above quotations are misplaced; there has been no implied abolition of the common law rule of liability. City of Albuquerque v. Garcia, supra, dealt with immunity from suit created by § 64 — 25-9, N. M.S.A.1953 (2d Repl.Vol. 9, pt. 2) and points out that “court-created immunity already existed except as to proprietary activities.” Galvan v. City of Albuquerque, supra, dealt with § 64-25-9, supra, and § 5-6-20, supra. Galvan points out that these statutes “represent legislative attempts to circumvent and avoid the harsh, unconscionable and unjust results stemming from court-created immunity * * *.” Neither § 5-6-20, supra, Garcia nor Galvan deal with liability for proprietary torts. They are not inconsistent with liability for proprietary torts because of the legislative intent to expand rather than contract municipal liability. Compare Galvan v. City of Albuquerque, supra.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Risk Management Division v. McBrayer
14 P.3d 43 (New Mexico Court of Appeals, 2000)
Narney v. Daniels
846 P.2d 347 (New Mexico Court of Appeals, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
1975 NMCA 105, 540 P.2d 250, 88 N.M. 320, Counsel Stack Legal Research, https://law.counselstack.com/opinion/stull-v-city-of-tucumcari-nmctapp-1975.