Taylor v. Allegretto

879 P.2d 86, 118 N.M. 85
CourtNew Mexico Supreme Court
DecidedAugust 3, 1994
Docket21420
StatusPublished
Cited by17 cases

This text of 879 P.2d 86 (Taylor v. Allegretto) 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
Taylor v. Allegretto, 879 P.2d 86, 118 N.M. 85 (N.M. 1994).

Opinion

OPINION

RANSOM, Justice.

Following judgment on remand from an earlier appeal, James D. Allegretto appeals from an award of damages to Cary M. Taylor, a licensed architect and contractor. The trial court awarded Taylor damages based on a benefit he conferred on Allegretto in the form of labor, materials, and expertise used in constructing a building shell and other improvements collateral to the construction of a completed dental office known as “Unit 2”.

In the first appeal, Taylor v. Allegretto, 112 N.M. 410, 816 P.2d 479 (1991), Taylor challenged the trial court’s judgment against him. The trial court had determined that an American Institute of Architects Abbreviated Form Agreement (“AIA Agreement”) represented an effective contract between the parties for all of the work completed. This Court held that the trial court erred in excluding parol evidence that should have been used to determine the scope of the AIA Agreement. Id. at 413, 816 P.2d at 482. Further, this Court instructed the trial court that if, after considering parol evidence, the trial court were to find the AIA Agreement represented an effective contract between the parties, then “[a] plain reading of the document ... reveals that it did not include construction of the building shell, but rather related only to construction of Unit 2.” Id. Consequently, any work done by Taylor in addition to Unit 2 must have been based on collateral agreements, id. at 415, 816 P.2d at 484, or based on “work performed which was not covered by any specific agreement, written or otherwise, and for which [Taylor] has not been paid,” id. at 416, 816 P.2d at 485.

On remand, having found that the AIA Agreement represented an effective contract and that Taylor proved no collateral agreements, the trial court correctly interpreted this Court’s mandate to require an award under quantum meruit for unpaid work done separately from the construction of Unit 2. See id. We reject Allegretto’s contrary interpretation of the mandate. Based on its award of damages in quantum meruit, the trial court concluded that Taylor also was entitled to ten percent prejudgment interest from July 16, 1986, through February 20, 1990; fifteen percent prejudgment interest from February 20, 1990, through June 3, 1993; and fifteen percent postjudgment interest on the principal until paid in full.

In this second appeal we consider Allegretto’s argument that the doctrines of law of the case, res judicata, and laches bar an award of prejudgment interest. We find Allegretto’s contentions without merit and we affirm the award of prejudgment interest. We remand, however, so that the trial court may reconsider its prejudgment-interest calculation. We have considered and now deny Taylor’s request for an award of attorney’s fees as a sanction for a frivolous appeal.

The award of prejudgment interest is not barred by law of the case, res judicata, or laches. In awarding prejudgment interest, the trial court found that Taylor had prayed for interest on the sums found to be due for the reasonable value of' services rendered, asking that such interest be calculated from December 24, 1985, until the judgment was paid. On appeal Allegretto contends that because Taylor’s original complaint did not contain any factual allegations regarding interest, and because Taylor did not raise the issue of prejudgment interest in the first appeal, the award of prejudgment interest is barred by law of the case, res judicata, and laches. In response, Taylor correctly argues that he was not required to plead factual allegations regarding interest; rather, prejudgment interest is an element of damages. See Foster v. Luce, 115 N.M. 331, 335, 850 P.2d 1034, 1038 (Ct.App.1993).

In Foster the Court of Appeals specifically addressed the issue whether prejudgment interest may be awarded to a prevailing party absent a specific request for such relief in the pleadings. The Court followed the majority of jurisdictions interpreting rules identical or comparable to SCRA 1986, 1-054(D) (Repl.Pamp.1992), and Rule 54(c) of the Federal Rules of Civil Procedure, each of which states as follows: “[Ejvery final judgment shall grant the relief to which the party in whose favor it is rendered is entitled, even if the party has not demanded such relief in his pleadings.” We agree with the holding in Foster, and we will not preclude an award of prejudgment interest merely because a party fails to request specifically such an award.

Further, the first appeal was by Taylor from the judgment against him on all counts. A ruling on prejudgment interest was not necessary to the disposition of the case and was not invoked by the parties. Thus, the prejudgment-interest issue does not give rise to law of the case. See DiMatteo v. County of Dona Ana, 109 N.M. 374, 379, 785 P.2d 285, 288 (Ct.App.1989) (stating that if question was not necessarily involved in prior appeal or judgment, summary judgment not mandated by law of the case). Similarly, because we did not determine the merits of the prejudgment interest claim in the first appeal, there is no prior adjudication and no basis for applying res judicata. Cf. Chavez v. Chenoweth, 89 N.M. 423, 428, 553 P.2d 703, 708 (Ct.App.1976) (holding that because claims were not adjudicated in prior appeal res judicata did not apply).

Finally, we fail to see that Taylor’s claims are barred by the doctrine of laches. Allegretto does not show that he would be unfairly prejudiced if we allow Taylor’s claim to proceed nor does he show that Taylor delayed in bringing his claim. See Morris v. Ross, 58 N.M. 379, 381-82, 271 P.2d 823, 824-25 (1954) (establishing elements of doctrine of laches). In his submissions to the court Taylor requested and argued for prejudgment interest. Allegretto did not respond to that claim in his own submissions. The trial court then permitted the parties to submit supplemental requested findings of fact and conclusions of law. In doing so, the trial court gave Allegretto an opportunity to challenge Taylor’s request for interest. Because he was given several chances to address the issue of prejudgment interest, Allegretto cannot now say that he would be unfairly prejudiced or that Taylor delayed in bringing a claim.

Taylor is entitled to an award of prejudgment interest. Under NMSA 1978, Section 56-8-3(B) (Repl.Pamp.1986), prejudgment interest may be awarded “on money received to the use of another and retained without the owner’s consent.” If the amount owed is fixed and ascertainable, prejudgment interest is awarded as a matter of right. Sunwest Bank of Albuquerque, N.A. v. Colucci 117 N.M. 373, 477-78, 872 P.2d 346, 350-51 (1994). If the amount owed is not fixed and ascertainable, prejudgment interest may be awarded in the court’s discretion. Id. at 478, 872 P.2d at 351.

The question whether prejudgment interest may be awarded in connection with a judgment based on quantum meruit is one of first impression.

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879 P.2d 86, 118 N.M. 85, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-allegretto-nm-1994.