314 P.3d 698
N.M. Ct. App.2013Background
- Jared Pielhau died in a 2004 auto accident involving an uninsured vehicle; the Pielhaus owned five vehicles insured by State Farm at the time.
- In 2004 the Pielhaus sought UM coverage under two State Farm policies and sued for denial of stacking and negligent misrepresentation; the case was settled and dismissed with prejudice.
- The three Chevrolet policies involved in 2011 had UM rejection forms and the Pielhaus did not pursue UM coverage on those policies in 2004.
- In 2011 the Pielhaus sought UM coverage for the Chevrolet policies and filed for declaratory judgment, breach of contract, and punitive damages; State Farm did not respond to the UM demand within time.
- The district court granted partial summary judgment in favor of the Pielhaus on declaratory judgment and breach of contract, and the remaining claims were dismissed; State Farm appealed.
- The issue on appeal is whether claim preclusion bars the 2011 claims based on the 2004 settlement; the court concludes claim preclusion applies and precludes the 2011 suit.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether the 2011 claims are barred by claim preclusion | Pielhau argues the 2011 claims are not barred | State Farm argues the 2004 settlement precludes anew claims | Yes, claim preclusion applies and bars the 2011 claims |
Key Cases Cited
- Jordan v. Allstate Ins. Co., 2010-NMSC-051 (New Mexico Supreme Court, 2010) (mandatory UM procedures; retroactive effect)
- Weed Warrior Servs. v. Progressive Northwestern Ins. Co., 2010-NMSC-050 (New Mexico Supreme Court, 2010) (uninsured/underinsured motorist procedures applied)
- Rosette, Inc. v. United States Dep’t of the Interior, 2007-NMCA-136 (New Mexico Court of Appeals, 2007) (transactions approach to res judicata; same nucleus of operative facts)
- Three Rivers Land Co. v. Maddoux, 1982-NMSC-111 (New Mexico Supreme Court, 1982) (transactional approach to determining same cause of action)
- Kirby v. Guardian Life Ins. Co. of Am., 2010-NMSC-014 (New Mexico Supreme Court, 2010) (settlement or consent judgment as res judicata foundations; preclusion after dismissal with prejudice)
- Harrington v. Vandalia-Butler Bd. of Educ., 649 F.2d 434 (6th Cir., 1981) (change in law does not foreclose claim preclusion)
- Wolford v. Lasater, 1999-NMCA-024 (New Mexico Court of Appeals, 1999) (change in law does not defeat preclusion effect)
- Bank of Santa Fe v. Marcy Plaza Assocs., 2002-NMCA-014 (New Mexico Court of Appeals, 2002) (final judgment on the merits supports res judicata)