Tomlinson v. Burkett

CourtNew Mexico Court of Appeals
DecidedJuly 18, 2018
DocketA-1-CA-35610
StatusUnpublished

This text of Tomlinson v. Burkett (Tomlinson v. Burkett) 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
Tomlinson v. Burkett, (N.M. Ct. App. 2018).

Opinion

This memorandum opinion was not selected for publication in the New Mexico Appellate Reports. Please see Rule 12-405 NMRA for restrictions on the citation of unpublished memorandum opinions. Please also note that this electronic memorandum opinion may contain computer-generated errors or other deviations from the official paper version filed by the Court of Appeals and does not include the filing date.

1 IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO

2 BONNIE SUE TOMLINSON and 3 JACK BURKETT,

4 Plaintiffs-Appellees,

5 vs. No. A-1-CA-35610

6 BILL BURKETT, 7 8 Defendant-Appellant.

9 APPEAL FROM THE DISTRICT COURT OF ROOSEVELT COUNTY 10 Donna Mowrer, District Judge

11 Barnett Law Firm, P.A. 12 Colin Hunter 13 Albuquerque, NM

14 for Appellees

15 Eric D. Dixon Attorney and Counselor at Law, P.A. 16 Eric D. Dixon 17 Portales, NM

18 for Appellant

19 MEMORANDUM OPINION

20 KIEHNE, Judge. 1 {1} Defendant Bill Burkett appeals from a jury verdict against him for fraud and

2 conversion arising out of his misuse of a home equity line of credit taken out by him

3 and his siblings, Plaintiffs Bonnie Sue Tomlinson and Jack Burkett. Defendant raises

4 seven issues on appeal. He claims the district court erred by (1) finding that he waived

5 his statute of limitations defense; (2) excluding his accounting report; (3) allowing

6 Plaintiffs to question Defendant’s credibility and (4) allowing Plaintiffs double

7 recovery for damages. He also claims that there was insufficient evidence to support

8 (1) Plaintiffs’ claims for conversion and fraud; and (2) the jury’s punitive damages

9 award. He further argues that the punitive damages award was unconstitutionally

10 excessive. Concluding that the district court did not err, we affirm the judgment.

11 BACKGROUND

12 {2} Defendant acted as personal representative of the estates of the parties’ mother,

13 Jewell Juanita Burkett, and of Jerry Don Burkett, the parties’ brother. Before she died,

14 Ms. Burkett conveyed her real properties to the parties (and to Jerry Don Burkett,

15 before his death) as tenants in common, some of which were in desperate need of

16 repair.

17 {3} To secure funds needed to prepare the properties for sale and to pay expenses

18 of the estates, the parties agreed to take out a line of credit for $120,000, secured by

19 one of the properties held by the parties as tenants in common, and each of the parties

3 1 agreed to be personally responsible for repayment of the line of credit in the event of

2 a default. Plaintiffs entrusted Defendant to use the line of credit to pay property taxes,

3 prepare the properties for sale, pay off the debts of Jerry Don Burkett’s estate, and

4 take care of some automobiles, because Defendant was the personal representative,

5 and Plaintiff Tomlinson thought he was best suited to handle these matters.

6 Importantly, the parties intended to use the funds to demolish a building on one of the

7 properties that had been condemned by the City of Portales so that the property could

8 be sold. The parties agreed that Defendant should be reimbursed for any expenses he

9 incurred in preparing the estates for closing, including travel expenses, because he

10 lived in Baird, Texas and would have to travel to Portales, New Mexico.

11 {4} Plaintiff Tomlinson first learned that Defendant was not using the line of credit

12 for its intended purposes when Dan Price, a man who had been hired to demolish the

13 dilapidated building in Portales, filed a lawsuit against Plaintiffs and Defendant

14 alleging that he had not been paid for his services. Plaintiff Tomlinson chose to settle

15 the lawsuit by personally paying Mr. Price $12,500, without discussing it with

16 Defendant, because she felt it would be less expensive than litigating the case.

17 Plaintiffs then sued Defendant for fraud and conversion, alleging that he had misused

18 the line of credit, and had improperly retained proceeds from the sale of one of Jerry

19 Don Burkett’s properties. Plaintiffs sought removal of Defendant as personal

4 1 representative of the estates. The district court removed Defendant and appointed a

2 local attorney to act as personal representative.

3 {5} The evidence at trial was that the Defendant wrote checks to himself from the

4 line of credit or made transfers from the line of credit to his own bank account; indeed,

5 no payments were made from the line of credit to anyone other than Defendant.

6 Defendant argued that he was reimbursing himself for expenses that he had personally

7 paid on behalf of the estates, and that the parties had agreed to this arrangement, but

8 Plaintiff Tomlinson testified that Defendant never provided her with information to

9 support the reimbursements. Defendant never produced any cancelled checks, receipts,

10 or invoices to support his claim that he had used the funds to pay for expenses of the

11 estates. Plaintiff Tomlinson testified that she had to pay approximately $133,000 in

12 estate expenses from her own pocket because of Defendant’s misuse of the line of

13 credit. These expenses included paying property taxes for the years 2006 through

14 2012, as well as repairs, maintenance, and miscellaneous expenses for the properties,

15 all of which should have been paid for with the line of credit. Additionally, Plaintiff

16 Tomlinson paid a debt of Jerry Don Burkett’s estate using a loan from her 401(k)

17 account, even though the line of credit was supposed to be used for that debt as well.

18 Plaintiff Tomlinson also personally paid interest on the line of credit at Defendant’s

19 direction.

5 1 {6} The jury found Defendant liable for both fraud and conversion. It awarded

2 Plaintiff Tomlinson $84,447 in compensatory damages for fraud, $94,553 in

3 compensatory damages for conversion, $90,000 in punitive damages for fraud, and

4 $90,000 in punitive damages for conversion. It awarded nothing to Plaintiff Burkett.

5 {7} Additional facts will be set forth as necessary to consider each of the issues that

6 Defendant raises on appeal.

7 DISCUSSION

8 A. Defendant’s statute of limitations defense was not timely raised

9 {8} Defendant first argues that this case was barred by the four-year statute of

10 limitations applicable to Plaintiffs’ claims, and that the district court erred by ruling

11 that he had waived this defense. See NMSA 1978, § 37-1-4 (1880) (establishing a

12 four-year statute of limitations for conversion and fraud claims). Defendant argues

13 that his statute of limitations claim presents a question of law that we should review

14 de novo, but we review a district court’s decision to allow or disallow amendment of

15 the pleadings to assert a statute of limitations defense for an abuse of discretion. See

16 Chavez v. Kitsch, 1962-NMSC-122, ¶ 12, 70 N.M. 439, 374 P.2d 497.

17 {9} Though Defendant did not assert the statute of limitations as an affirmative

18 defense in his answer to the complaint, he argues that he implicitly asserted the

19 defense by including in his answer the defense of failure to state a claim upon which

6 1 relief could be granted. Defendant also argues that the district court erred by

2 concluding that he had waived the defense, and by declining to allow him to amend

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Bluebook (online)
Tomlinson v. Burkett, Counsel Stack Legal Research, https://law.counselstack.com/opinion/tomlinson-v-burkett-nmctapp-2018.