Taylor v. Lovelace Clinic

432 P.2d 816, 78 N.M. 460
CourtNew Mexico Supreme Court
DecidedOctober 23, 1967
Docket8250
StatusPublished
Cited by17 cases

This text of 432 P.2d 816 (Taylor v. Lovelace Clinic) 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. Lovelace Clinic, 432 P.2d 816, 78 N.M. 460 (N.M. 1967).

Opinion

OPINION

CHAVEZ, Chief Justice.

Suit was brought in the trial court seeking a declaratory judgment determining that an employment contract dated December 12, 1961, was void or in lieu thereof unenforceable, and that a prior claimed contract was the only agreement between the parties. Without a hearing on the merits, the trial court held a hearing on the defense raised by defendant-appellee Lovelace Clinic, that the complaint was barred by the statute of limitations, arid dismissed the complaint. Plaintiff-appellant I. Brian Taylor appeals from the order dismissing the complaint.

Appellant, an ophthalmologist, by a second amended complaint alleged that, pursuant to a written offer from appellee, appellant terminated his practice -of' medicine in Johannesburg, South Africa, and began employment on the staff of appellee Clinic on December 7, 1961. On December 12, 1961, the disputed contract was executed by the parties, which included a restrictive covenant limiting appellant from practicing medicine in Bernalillo County for three years after termination of his employment with appellee Clinic. The complaint further alleged that appellant left the Clinic on February 20, 1965, and that he would move, to Albuquerque sometime in 1966 to practice his profession. While the complaint attacked the contract on several grounds, by stipulation in open court, appellant limited these grounds to: (1) The contract was not supported by consideration; and (2) the contract was signed under economic duress or compulsion.

The answer admitted the written offer, appellant’s move to the United States' and joining the Clinic; his signing of the covenant as alleged, but denied substantially all of the other allegations. It set up several affirmative defenses, the last being “That Plaintiff’s action is barred by the Limitation of Actions provisions of 23-1-4, N.M.S.A.” Upon a hearing on this defense, the trial court entered an order finding that the complaint was barred by the limitation provision, supra, and , ordered that the complaint be dismissed with prejudice.

Appellant contends that his complaint is not barred by the statute of limitations because said statute does not apply to declaratory judgments seeking to establish a “no-right,” and that “He wants the Court to declare that the Clinic has no right to keep him from going where he pleases.” Appellant argues that, because he has not breached the covenant not to compete contained in the contract of December 12, 1961, the statute of limitations does not bar his action for a declaration that the covenant is invalid or unenforceable. In support of this argument, appellant relies on Maguire v. Hibernia Savings & Loan Soc., 23 Cal.2d 719, 146 P.2d 673, 151 A.L.R. 1062; Luckenbach Steamship Co. v. United States (2d Cir. 1963), 312 F.2d 545.

Before we consider the question of whether or not the action in the present case is barred by the statute of limitations, we will first determine whether or not the contract of December 12, 1961, was void because of lack of consideration. An examination of the December 12, 1961, contract, and a comparison of this contract with the letter of November 7, 1960, which appellant contends is the agreement governing the terms of employment, reveals sufficient additional provisions, both beneficial and detrimental to each party, to conclude that the contract shows on its face sufficient consideration. Specifically, the following provisions in the contract of December 12, 1961, show sufficient additional considerations to support the contract: (1) That employment may be terminated on thirty days’ notice by ’either party; (2) that the contract was to begin on December 7, 1961, and not in the summer of 1961, as contemplated by the letter of November 7, 1960; (3) that the Clinic was required 'to pay appellant’s travel expenses and appellant was to furnish an automobile in connection with his employment; (4) that a vacation -and leave as a clinical trip was provided in accordance with the written Clinic policy; and (5) that the contract indicated employment after December 12th was conditioned on the signing of the contract. See, Restatement of the Law, Contracts, §§ 75, 76 and 81; Barb-Lee Mobile Frame Co. v. Hoot, 416 Pa. 222, 206 A.2d 59; Securities Acceptance Corporation v. Brown, 171 Neb. 406, 106 N.W.2d 456; John L. Bramlet & Company v. Hunt (Tex.Civ. App.1963), 371 S.W.2d 787, writ ref., n. r. e.; Frierson v. Sheppard Building Supply Co., 247 Miss. 157, 154 So.2d 151.

We cannot agree with appellant’s main contention, that the statute of limitations does not apply to a declaratory judgment. Declaratory actions are governed by the same limitations applicable to other forms of relief, since the nature of the right sued upon, and not the form of action or relief, demanded, determines the applicability of the statute of limitations. Maguire v. Hibernia Savings & Loan Soc., supra; Leahey v. Department of Water and Power, 76 Cal.App.2d 281, 173 P.2d 69; Dunn v. County of Los Angeles, 155 Cal.App.2d 789, 318 P.2d 795. From an examination of the record, the relief asked for by appellant is that the contract of December 12, 1961, be declared rescinded, cancelled and unenforceable; that the rights of the parties be declared as if the. contract never existed; and that appellant then be granted such relief as may be proper under the circumstances. Appellant, clearly wants the alleged contract of November 7, 1960, to govern and, therefore,, intends to void the contract of December 12, 1961. It thus appears that the nature of the right sued upon is for rescission because of duress. The trial court correctly ruled that the contract, as limited by appellant’s stipulation, was barred by § 23-1-4, supra, which provides:

“Those founded upon accounts and unwritten contracts; those brought for injuries to property or for the conversion of personal property or ' for relief upon-, the ground of fraud, and all other actions not herein otherwise provided for and specified within four [4] years.”

It has been held that, in an action to cancel because of alleged duress, the same statute of limitations applies as controls in actions based on alleged fraud. 77 A.L.R.. 2d 821.

Appellant, in support of his position, relies on the following quotation from Maguire v. Hibernia Savings & Loan Soc., supra 23 Cal.2d 719, 146 P.2d 673:

“ * * * Thus, if declaratory relief' is sought with reference to an obligation. which has been .breached and the right to commence an action for ‘coercive’ relief upon the cause of' action arising' therefrom is barred by the statute, the right' to declaratory relief is likewise barred.

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Bluebook (online)
432 P.2d 816, 78 N.M. 460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-lovelace-clinic-nm-1967.