Wells Fargo Bank, N.A. v. Pyle

2016 NMCA 046, 9 N.M. 665
CourtNew Mexico Court of Appeals
DecidedFebruary 9, 2016
DocketDocket 33,983
StatusPublished

This text of 2016 NMCA 046 (Wells Fargo Bank, N.A. v. Pyle) 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
Wells Fargo Bank, N.A. v. Pyle, 2016 NMCA 046, 9 N.M. 665 (N.M. Ct. App. 2016).

Opinion

OPINION

BUSTAMANTE, Judge.

{1} James and Laree Pyle were unable to redeem their property after a foreclosure sale because the district court denied their motion to extend the thirty-day redemption period set by their mortgage on the ground that the motion was not filed before the foreclosure judgment was entered. James Pyle appeals arguing that the plain language of NMSA 1978, Section 39-5-19 (1965), which requires that motions for extensions of redemption periods be made “before judgment,” is contrary to the purpose of the redemption statutes. We disagree and affirm.

BACKGROUND

{2} In 2003 James (Appellant) and Laree Pyle, who is not a party in this appeal, executed a note and mortgage for the purchase of property in Albuquerque, New Mexico. Approximately six years later, Wells Fargo Bank, N.A. (Wells Fargo) filed a complaint for foreclosure. An amended complaint was filed approximately three months later. Appellant did not answer either complaint. Consequently, a default judgment was entered against him in June 2010. Appellant did not move to set aside the default judgment and does not argue on appeal that the default judgment was improperly entered against him. See Rule 1-060(B) NMRA (providing for relief from a judgment for, among other things, “mistake, inadvertence, surprise, or excusable neglect”). The judgment provided that Appellant was “barred and foreclosed of any right, title, interest, or claim in or to the property, subject only to a one month period of redemption set forth in the [m]ortgage[.]” See § 39-5-19 (stating that “[t]he parties to any such instrument may, by its terms, shorten the redemption period to not less than one month”).

{3} After a series of delays, some of which were caused by bankruptcy filings by Appellant, the property was sold at a public auction on December 17, 2013, to Wells Fargo for approximately $46,000 less than the amount owed by Appellant. The sale was approved by the district court. Twenty-five days later, Appellant moved for a thirty-day extension of the one month redemption period so that he could assign his right to redeem to a third party. Because the district court hearing on the motion to extend was scheduled for more than thirty days after the original redemption period ended, Appellant filed an amended motion requesting a ninety-day extension. A hearing was held on June 26, 2014. The district court denied the motion to extend and Appellant filed a timely notice of appeal.

DISCUSSION

{4} Appellant argues that a “strict interpretation” of Section 39-5-19 leads to absurd results that are “contrary to the purpose of the redemption statute and overly restrictive of the district court’s exercise of equitable [powers].” We begin with Wells Fargo’s contention that this argument was not preserved for appeal. See Woolwine v. Furr's, Inc., 1987-NMCA-133, ¶ 20, 106 N.M. 492, 745 P.2d 717 (“To preserve an issue for review on appeal, it must appear that appellant fairly invoked a ruling of the trial court on the same grounds argued in the appellate court.”). At the hearing on Appellant’s motion to extend the redemption period, Appellant argued that requiring a showing that he intended to redeem the property before the judgment “does lead to an absurdity,” and that “[t]he plain language [reading of the statute] would limit the statute so greatly I don’t know if the [Legislature intended that.” During Appellant’s argument, the district court stated that it was “trying to think what the purpose of [the ‘before judgment’] language is” and that under that language, it “seems as though it would be extremely difficult to redeem.” Finally, the district court observed that “[it couldn’t] even imagine very many scenarios where a homeowner ... on the verge of judgment at that point thinks, okay, I’m going to have enough [money], and I’m asking right now for there to be an extension of the redemption.” It is clear from the district court’s comments that it understood Appellant’s arguments. This issue was adequately preserved for appeal.

{5} The operative statutes here are NMSA 1978, Section 39-5-18 (2007) and Section 39-5-19. Section 39-5-18(A) permits a former defendant owner of property to redeem the property after a foreclosure sale within nine months of the sale. Section 39-5-19 permits the parties to a mortgage to reduce the redemption period to not less than one month and provides that the district court may, “upon a sufficient showing before judgment that redemption will be effected, increase the period of redemption to not to exceed nine months notwithstanding the terms of such instrument.” See Sun Country Sav. Bank of N.M., F.S.B. v. McDowell, 1989-NMSC-043, ¶ 21, 108 N.M. 528, 775 P.2d 730 (noting that it had “implicitly interpreted the phrase ‘parties to an instrument’ to mean that parties to a mortgage may reduce the redemption period to one month”). The grant or denial of an extension of the redemption period, an equitable remedy, is generally reviewed for an abuse of discretion. Chapel v. Nevitt, 2009-NMCA-017, ¶ 39, 145 N.M. 674, 203 P.3d 889 (stating that “in equity, the district court has some discretion to extend the time to redeem”).

{6} The grounds for the district court’s denial of Appellant’s motion are unclear. But since the mortgage here specified a redemption period of one month and the parties’ arguments below focused on the interpretation of Section 39-5-19, we infer that the district court’s decision rested on its construction of the statute. Our review is therefore de novo. Pub. Serv. Co. of N.M. v. Diamond D Constr. Co., 2001-NMCA-082, ¶ 48, 131 N.M. 100, 33 P.3d 651.

{7} Appellant argues that “[o]ne of the purposes of the redemption statute is to give the property owner ... a reasonable opportunity to redeem the property.” Chase Manhattan Bank v. Candelaria, 2004-NMSC-017, ¶ 9, 135 N.M. 527, 90 P.3d 985. He maintains that requiring property owners to demonstrate that they intend to redeem the property before judgment restricts the opportunity to redeem such that it is no longer a reasonable one and hence is contrary to the Legislature’s intent. Appellant also argues that such a requirement “seriously erode[s] the rights of all non-responsive defendants to redeem as they will be precluded from ever getting an extension, no matter the circumstances surrounding the request.” Finally, appellant argues that the requirement “runs contrary to the notion that enlargement of the redemption period is an equitable remedy” because it restricts the district court’s ability to grant such relief.

{8} “In construing a statute, [the appellate courts’] charge is to determine and give effect to the Legislature’s intent.” Marbob Energy Corp. v. N.M. Oil Conservation Comm’n, 2009-NMSC-013, ¶ 9, 146 N.M. 24, 206 P.3d 135. In doing so, we are “aided by classic canons of statutory construction, and ... look first to the plain language of the statute, giving the words their ordinary meaning, unless the Legislature indicates a different one was intended.” Id. (internal quotation marks and citation omitted); see NMSA 1978, § 12-2A-19 (1997) (“The text of a statute or rule is the primary, essential source of its meaning.”). If the plain language is “clear and unambiguous, [the appellate courts] must give effect to that language and refrain from further statutory interpretation.” Marbob, 2009-NMSC-013, ¶ 9 (internal quotation marks and citation omitted).

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Related

Marbob Energy Corp. v. New Mexico Oil Conservation Commission
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Woolwine v. Furr's, Inc.
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Magnolia Mountain Ltd. Partnership v. Ski Rio Partners, Ltd.
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Coppler & Mannick, P.C. v. Wakeland
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Bluebook (online)
2016 NMCA 046, 9 N.M. 665, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wells-fargo-bank-na-v-pyle-nmctapp-2016.