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