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Sanchez v. Torres
35,300
N.M. Ct. App.
Jul 27, 2016
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Background

  • Plaintiff appealed the district court’s dismissal with prejudice and the denial of her motion to reconsider.
  • Plaintiff had made a Rule 1-068 offer of settlement; Defendant Nicholas Torres tendered $14,500.17 to Plaintiff before entry of judgment.
  • The district court entered a dismissal with prejudice rather than a judgment against Torres after settlement was tendered.
  • Plaintiff contended the form of judgment (judgment vs. dismissal) was crucial to pursuing an unfair settlement-practices claim against Young America Insurance Company under Hovet.
  • The Court of Appeals issued a calendar notice proposing dismissal of the appeal as moot (and in the alternative summary affirmance); Plaintiff filed a memorandum in opposition.
  • The panel concluded Plaintiff was not aggrieved by the form of judgment and dismissed the appeal.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether the appeal is moot because Torres paid the agreed settlement before judgment Form of judgment matters; appeal not moot because judgment could affect Plaintiff's ability to bring a Hovet claim Moot—Plaintiff received the settlement money, so the form of judgment does not afford any additional relief Dismissed as moot; court found no actual relief obtainable on appeal
Whether entry of judgment pursuant to a Rule 1-068 offer equates to a judicial determination of liability for purposes of a Hovet claim Entry of judgment is an admission of liability and thus preserves ability to bring Hovet claim Settlement (or judgment entered after a settlement payment) does not amount to a judicial determination of liability for Hovet purposes Court unconvinced; cited Hovet and King that settling or compromise differs from judicial determination, and Plaintiff offered no authority showing Rule 1-068 judgment satisfies Hovet

Key Cases Cited

  • Gunaji v. Macias, 130 N.M. 734 (N.M. 2001) (defines mootness as when no actual controversy exists and no relief can be granted)
  • State v. Ordunez, 283 P.3d 282 (N.M. 2012) (appellate courts should not decide moot or abstract questions)
  • Hovet v. Allstate Ins. Co., 135 N.M. 397 (N.M. 2004) (settling without judicial liability waives Insurance Code unfair-settlement-practices claims)
  • King v. Allstate Ins. Co., 141 N.M. 612 (N.M. Ct. App. 2007) (distinguishes compromise settlements from judicial determinations of liability)
  • In re Adoption of Doe, 100 N.M. 764 (N.M. 1984) (failure to cite authority permits court to assume none exists)
  • Hennessy v. Duryea, 124 N.M. 754 (N.M. Ct. App. 1998) (in summary calendar cases, burden is on opposing party to point out errors clearly)
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Case Details

Case Name: Sanchez v. Torres
Court Name: New Mexico Court of Appeals
Date Published: Jul 27, 2016
Docket Number: 35,300
Court Abbreviation: N.M. Ct. App.