Jimmie T. COOPER, Individually and as Trustee for the Jimmie T. Cooper and Betty P. Cooper Revocable Trust and Betty P. Cooper, Individually and as Trustee for the Jimmie T. Cooper and Betty P. Cooper Revocable Trust, Plaintiffs-Respondents, v. CHEVRON U.S.A., INC., Amerada Hess Corporation, and Rice Engineering Corporation, Defendants-Petitioners. Jimmie T. Cooper, Individually and as Trustee for the Jimmie T. Cooper and Betty P. Cooper Revocable Trust and Betty P. Cooper, Individually and as Trustee for the Jimmie T. Cooper and Betty P. Cooper Revocable Trust, Plaintiffs-Respondents, v. Arch Petroleum, Inc., and Rice Engineering Corporation, Defendants-Petitioners.
No. 26,609.
Supreme Court of New Mexico.
June 4, 2002.
2002-NMSC-020 | 49 P.3d 61 | 132 N.M. 382
Gallegos Law Firm, P.C. J.E. Gallegos Michael J. Condon Santa Fe, NM Gallagher, Young, Lewis, Hampton & Downey Craig Lewis Andrew Sher Houston, TX for Respondents.
OPINION
FRANCHINI, Justice.
{1} Plaintiffs-Respondents (“Plaintiffs“) brought an environmental action in Santa Fe County against a number of oil and gas companies. The complaint stated various claims stemming from Defendants-Petitioners’ (“Defendants“) alleged contamination of Plaintiffs’ property. The trial court granted Defendants’ motion to dismiss for improper venue. The Court of Appeals affirmed in part and reversed in part, holding that venue was proper in Santa Fe County against some, but not all Defendants. Cooper v. Amerada Hess Corp., 2000-NMCA-100, 136, 129 N.M. 710, 13 P.3d 68. We granted certiorari to review the Court of Appeals’ opinion. Defendants argue that the Court of Appeals erred in: (1) determining that this lawsuit did not involve an interest in land; (2) allowing venue against some of the foreign corporation Defendants in Santa Fe County; and (3) concluding that improper venue as to some of the Defendants did not require dismissal of all Defendants. We affirm in part and reverse in part. We hold: (1) this lawsuit did not involve an interest in land; (2) venue was proper in Santa Fe County against the Defendants who maintained statutory agents in Santa Fe County; and (3) because venue was proper in Santa Fe County as to some of the Defendants, it was proper as to all Defendants who are parties to this appeal.
I. FACTS AND PROCEDURE
{2} Plaintiffs own and reside on the Monument Springs Ranch in Lea County, New Mexico. Defendants, along with a number of other companies, lease the rights to conduct oil and gas operations on the property. Plaintiffs allege that Defendants have released hazardous substances into surface and subsurface soils, strata and groundwater. Plaintiffs further allege that this contamination has caused property damage to the ranch and personal injuries to themselves.
{3} Plaintiffs filed suit in Santa Fe County, asserting claims for negligence, trespass, nuisance, unjust enrichment, and infliction of emotional distress against: (a) foreign corporations with statutory agents in Santa Fe County (Amerada Hess Corp.; Chevron, U.S.A., Inc.; Dynegy Corp.; Concho Resources, Inc.; Arch Petroleum, Inc.; and Rice Engineering, Inc.); (b) a foreign corporation (Rhombus Energy Co.) and a foreign partnership (Rhombus Operating Co., Ltd.) who share a statutory agent in Chaves County; and (c) a domestic corporation (Primero Operating Co., Ltd.). The District Court ruled that the complaint “affect[ed] an interest in lands” and therefore dismissed the claims against all Defendants on the grounds that Santa Fe County was an improper venue.
{4} The Court of Appeals reversed the trial court‘s determination that this lawsuit involved an interest in land. Cooper, 2000-NMCA-100, ¶¶ 23-25, 129 N.M. 710, 13 P.3d 68. Accordingly,
II. DISCUSSION
A. Whether venue is proper in Santa Fe County.
{5} The motion to dismiss for improper venue raises a question of law which we review de novo. Williams v. Bd. of County Comm‘rs, 1998-NMCA-090, ¶ 28, 125 N.M. 445, 963 P.2d 522. In the present case, we review de novo whether venue is proper in Santa Fe County. Whether a civil action may be filed in a particular county depends on a series of considerations enumerated by
{6} If the defendant to a transitory action is a foreign corporation, then under
B. Whether the object of this action is “lands or an interest in lands” under Section 38-3-1(D).
{7} Under
{8} Claims for damages do not have lands or interest in lands as their object. Accordingly, a lawsuit comprised exclusively of claims for damages need not be brought in the county where the land is situated. Team Bank v. Meridian Oil Inc., 118 N.M. 147, 149, 879 P.2d 779, 781 (1994); Jemez Land Co. v. Garcia, 15 N.M. 316, 321, 107 P. 683, 685 (1910), overruled on other grounds by Kalosha v. Novick, 84 N.M. 502, 504, 505 P.2d 845, 847 (1973). In the present case, the Court of Appeals determined that Plaintiffs were requesting injunctive relief as well as damages. Cooper, 2000-NMCA-100, ¶ 2, 129 N.M. 710, 13 P.3d 68 (“Plaintiffs also requested injunctive relief, apparently to restrain Defendants from further tortious acts.“). Accordingly, the Court questioned whether Plaintiffs’ “request for injunctive relief converts this case into an action involving an interest in land.” Id. ¶ 23. The Court reasoned that Jemez Land Co. created a dichotomy between actions to redress tortious injury to real property and actions to adjudicate title to real property. Id. Because the present action fell into the former category, the Court of Appeals concluded the object of the lawsuit was not lands or interest in lands within the meaning of
{9} We do not agree with the Court of Appeals that Plaintiffs made a request for injunctive relief. The conclusion of Plaintiffs’ complaint requests that the trial court grant judgment against Defendants “for the injunctive relief set forth above.” However, careful review of the complaint reveals that Plaintiffs never set forth a request for any injunctive relief. Indeed, even if the trial court had granted all forms of relief requested by Plaintiffs in the complaint, no injunction would have ensued. Because this case did not involve an actual claim for injunctive relief, the Court of Appeals’ analysis of whether injunctions constitute an interest in land was advisory, and it is hereby overruled. Although we disagree with the reasoning employed in the Court of Appeals’ decision, the result that it reached was correct. Because the sole object of this suit is damages,
{10} The dissent suggests that Plaintiffs’ complaint made reference to a continuing nuisance and therefore adequately invoked injunctive relief. Dissent ¶ 37. With regard to the continuing nuisance claim, Plaintiffs’ complaint only “seek[s] a recovery of the reasonable and necessary costs associated with restoring those portions of the Ranch that remain contaminated by the Defendants’ operation, to their condition prior to that contamination occurring.” Even though the complaint makes reference to a continuing nuisance, Plaintiffs’ request for relief is clearly for monetary, not injunctive, relief. The dissent also argues that the trial court may impose injunctive relief for a continuing nuisance and therefore, for purposes of venue, Plaintiffs’ continuing nuisance claim should not be restricted to a claim for monetary relief and should be “construed as implicating equitable relief in the form of abatement or injunction.” Dissent ¶ 40. However, even if the trial court, in its discretion, decided to award injunctive relief sua sponte, this does not change “the object of [the] suit.” Consequently, “the object of [the] suit” continues to be one for damages and therefore venue in the present case is not determined by
C. Whether the county in which a foreign corporation‘s non-resident statutory agent maintains an office for receiving service of process provides proper venue under Section 38-3-1(F).
{11} Under
1. The Court of Appeals’ Opinion
{12} In addressing this issue, the Court of Appeals relied on Aetna Finance Co. v. Gutierrez, 96 N.M. 538, 540-41, 632 P.2d 1176, 1178-79 (1981), which held that “foreign corporations are considered nonresidents of this state for the purpose of venue.” Cooper, 2000-NMCA-100, ¶ 29, 129 N.M. 710, 13 P.3d 68. Based on this understanding of residence, the Court interpreted the Legislature‘s failure to “contemplate the appointment of a foreign corporation as a statutory agent when it enacted
{13} The Court of Appeals failed to properly weigh
2. Whether CT and Prentice Hall “reside” in Santa Fe County for purposes of venue
{14}
suits against foreign corporations admitted to do business and which designate and maintain a statutory agent in this state upon whom service of process may be had shall only be brought [(1)] in the county where the plaintiff, or any one of them in case there is more than one, resides or [(2)] in the county where the contract sued on was made or is to be performed or [(3)] where the cause of action originated or indebtedness sued on was incurred or [(4)] in the county where the statutory agent designated by the foreign corporation resides.
(Emphasis added.) In the present case, the parties do not dispute that the Defendants in question are foreign corporations admitted to do business in New Mexico. The issue at bar is whether Plaintiffs may place venue in Santa Fe County where the statutory agents designated by the foreign corporations reside, when the statutory agents themselves are non-residents.
{15} Resolution of this issue requires us to define “resides” as it applies to statutory agents who are foreign corporations under
{16} We next look to the language of
{17} We believe that the plain meaning of the term “resides” best effectuates the Legislature‘s intent in enacting
{18} Our rules of venue represent the Legislature‘s intent to ensure that the location of a trial is convenient for both parties to a lawsuit:
Venue relates to the convenience of litigants, and reflect[s] equity or expediency in resolving disparate interests of parties to a lawsuit in the place of trial[.] In transitory actions the venue rules reflect an attempt to balance the common-law right of a defendant to be sued in his [or her] most convenient forum (usually the county of his [or her] residence) with the right of the plaintiff to choose the forum in which to sue.
Team Bank, 118 N.M. at 150, 879 P.2d at 782 (internal quotation marks and citations omitted). Thus, when a defendant resides in New Mexico, the plaintiff‘s right to choose the forum in which to sue is limited by
{19} In the context of a statutory agent, we hold that the term “resides” has a plain meaning which we believe the Legislature intended. A statutory agent who maintains an office in New Mexico for the purpose of receiving service of process “resides” in New Mexico regardless of whether it is a
{20}
III. CONCLUSION
{21} The Court of Appeals’ determination that the object of this lawsuit is not land or an interest in lands is affirmed. We also affirm, but for different reasons, the Court of Appeals’ holding that venue in Santa Fe County was proper against Amerada Hess Corp.; Chevron, U.S.A., Inc.; Dynegy Corp.; Concho Resources, Inc.; Arch Petroleum, Inc.; and Rice Engineering, Inc. We hold that venue is proper in Santa Fe County for all Defendants still involved in this lawsuit.
{22} IT IS SO ORDERED.
WE CONCUR: PAMELA B. MINZNER and PETRA JIMENEZ MAES, Justices.
PATRICIO M. SERNA, Chief Justice (dissenting)
JOSEPH F. BACA, Justice (dissenting)
SERNA, Chief Justice (dissenting).
{23} I respectfully dissent from Section II(B) of the majority opinion. The majority concludes that this case is not controlled by the venue provision relating to claims involving an interest in lands,
I. Section 38–3–1(D)(1) Applies to Nuisance Claims
{24} As explained below, I believe that Plaintiffs’ complaint invokes injunctive relief. However, because this case involves a private nuisance claim, I believe the proper venue is controlled by
{25}
{26} The primary basis of Plaintiffs’ complaint is Defendants’ pollution of their land, the resulting interference with their use and enjoyment of the land, and the diminution in the value of the property. Plaintiffs also seek to restrain Defendants’ use of Defendants’ real property in the form of oil and gas leases. See Duvall v. Stone, 54 N.M. 27, 32, 213 P.2d 212, 215 (1949) (“In this state a grant or reservation of the underlying oil and gas, or royalty rights provided for in a mineral lease as commonly used in this state, is a grant or reservation of real property.“); see also Heath v. Gray, 58 N.M. 665, 669, 274 P.2d 620, 622 (1954) (“In New Mexico, the interest covered by an oil and gas lease is real property.“), overruled on other grounds by Kalosha v. Novick, 84 N.M. 502, 504, 505 P.2d 845, 847 (1973). Plaintiffs’ objective in this case is to vindicate and protect an interest in their land, the interest being their use and enjoyment of the land. Scott, 99 N.M. at 570, 661 P.2d at 62 (“A private nuisance is a civil wrong based upon a disturbance of rights in land.“); cf.
{27} Because
{28} In analyzing the relationship between
{29} I agree with the Court of Appeals that “New Mexico has never fully embraced the common-law transitory-local dichotomy.” Cooper, 2000-NMCA-100, ¶ 17, 129 N.M. 710, 13 P.3d 68. Specifically, New Mexico has departed from the common law‘s designation of an action for trespass seeking damages for unlawful entry upon land as a local action. Under
{30} Similarly, although the Court of Appeals believed that Jemez Land Co. “largely disposes” of the present case, this Court‘s analysis in Jemez Land Co. is fully explained by
{31} I believe that the general distinction between transitory and local actions in the common law is both logical and practical.3 The common law local-action rule exists for salutory reasons. It prevents courts unfamiliar with local property rights and laws from interfering with the title to real property. Moreover, since such actions often involve the testimony of local witnesses concerning the cause of action and the historical usages of the property, the restricted venue makes it more likely that the action will be tried in a convenient forum with full disclosure of all relevant facts, and notice to all interested parties. French v. Clinchfield Coal Co., 407 F.Supp. 13, 15 (D.Del.1976). By enacting
{32} “Our primary goal in interpreting a statute is to give effect to the Legislature‘s intent.” State v. Martinez, 1998-NMSC-023, ¶ 8, 126 N.M. 39, 966 P.2d 747. In order to effectuate the intent of the Legislature, I believe that the real question in this case is not whether the sole object of the suit is damages, which, as discussed below, I believe it is not, but instead whether the claim is sufficiently tied to the land in question to warrant local venue based on the purposes of
{33} An action for nuisance is highly dependent on community-based interests. “A private nuisance is a nontrespassory invasion of another‘s interest in the private use and enjoyment of land.” Restatement (Second) of Torts § 821D (1979), quoted in Scott, 99 N.M. at 570, 661 P.2d at 62. In order to establish a private nuisance, and unlike an action for trespass, “unreasonableness of the interference is necessary for liability.” Restatement (Second) of Torts § 821D cmt. e. “In the nuisance context, an intentional invasion is unreasonable if the gravity of the harm outweighs the utility of the actor‘s conduct....” Padilla, 101 N.M. at 560, 685 P.2d at 968. In this balancing of interests, the particular community in which the nuisance occurs is relevant in three respects. First, the nuisance must “cause[] significant harm, of a kind that would be suffered by a normal person in the community or by property in normal condition and used for a normal purpose.” Restatement (Second) of Torts § 821F. “The location, character and habits of the particular community are to be taken into account in determining what is offensive and annoying to a normal individual living in it.” Id. cmt. e; accord McCombs v. Joplin 66 Fairgrounds, Inc., 925 S.W.2d 946, 950 (Mo.Ct.App.1996) (“If normal persons living in the community would regard the invasion as definitely offensive, seriously annoying or intolerable, it is significant. If normal persons in the locality would not be substantially annoyed or disturbed, the invasion is not significant, even though the idiosyncracies [sic] of the particular plaintiff may make it unendurable to him [or her].“) (quoted authority omitted). Second, the gravity of harm analyzes “the suitability of the particular use or enjoyment invaded to the character of the locality.” Restatement (Second) of Torts § 827(d). See generally id. cmt. g (“Sound public policy demands that the land in each locality be used for purposes suited to the character of that locality and that persons desiring to make a particular use of land should make it in a suitable locality.“). Third, the utility of the conduct also takes into account “the suitability of the conduct to the character of the locality.” Restatement (Second) of Torts § 828(b); accord id. § 831. Thus, considering the importance of local interests and the likelihood that a trial in a nuisance action will hinge on the testimony of local witnesses and involve an examination of the subject property and its past use, there is
II. Plaintiffs’ Claim for Continuing Nuisance Adequately Invoked Injunctive Relief
{34} The majority acknowledges that Plaintiffs’ complaint included a request “for the injunctive relief set forth above” in the demand for judgment. However, the majority concludes that Plaintiffs’ failure to “set forth any injunctive relief” in the body of the complaint restricts the relief sought to money damages and precludes the trial court from awarding injunctive relief. I respectfully disagree with this conclusion on three separate bases: (1) it is inconsistent with the rules of pleading in New Mexico; (2) it overlooks language in the complaint; and (3) it conflicts with the trial court‘s discretion to award proper relief.
{35} First,
[N]otice pleading does not require that every theory be denominated in the pleadings-general allegations of conduct are sufficient, as long as they show that the party is entitled to relief and the averments are set forth with sufficient detail so that the parties and the court will have a fair idea of the action about which the party is complaining and can see the basis for relief.
Schmitz v. Smentowski, 109 N.M. 386, 389-90, 785 P.2d 726, 729-30 (1990).
{36} Second, I believe that Plaintiffs’ complaint gives fair notice to Defendants that injunctive relief is both requested and, assuming the allegations of the complaint to be true, warranted. See Schmitz, 109 N.M. at 389, 785 P.2d at 729 (“The theory of pleadings is to give the parties fair notice of the claims and defenses against them, and the grounds upon which they are based.“). Plaintiffs alleged that
Defendants are mandatorily required not to conduct their operations in such a manner as to potentially pollute the natural resources including portions of the underlying shallow fresh water aquifer.... It is possible for the Defendants to conduct their day-to-day operations without polluting the environment, and if such pollution occurs, to promptly and properly clean up the pollution before it spreads and restore the property to its uncontaminated condition. The pollution is abatable and can be cleaned up in an “economically feasible” manner, taking into consideration the natural resources that have already been pol-luted
and the natural resources that will be polluted if the abatement and clean up are not performed by the Defendants.
(Emphasis added.) Plaintiffs also alleged that “Defendants have caused pollution and contamination, and their subsequent and continuous failures to clean up or adequately clean up such pollution and contamination, has permitted and allowed further pollution and contamination to occur. This wrongful conduct has caused and will cause further additional damage each day Defendants permit or allow such contamination to persist.” (Emphasis added.) Based on these factual allegations, Plaintiffs pursued a count for private nuisance on the basis that
Defendants owe the Plaintiffs the duty to conduct their operations and maintain their equipment and well materials in such a manner that they do not create and/or maintain a nuisance.... The afore described acts and omissions of the Defendants unreasonably interferes with, and will continue to unreasonably interfere with, the use and enjoyment of Plaintiffs’ Ranch and the normal and expected use and enjoyment of not only the surface and subsurface soils or strata of Plaintiffs’ ranch, but, in addition, the use and enjoyment of portions of the underlying groundwater.
(Emphasis added.) As the majority recognizes, Plaintiffs then requested “injunctive relief” in the demand for judgment.
{37} Even if Plaintiffs were required to plead their request for injunctive relief with particularity, these allegations should suffice. Under
{38} Third, I do not believe that the complaint controls the form of relief available in a continuing nuisance claim.
{39} As Scott and Padilla recognize, injunctive relief is an appropriate remedy for a continuing nuisance. “When an equitable ground exists, courts of equity have power to give relief against either public or private nuisances by compelling the abatement or restraining the continuance of an existing nuisance, or enjoining the commission or establishment of a contemplated nuisance.” Hase v. Summers, 35 N.M. 274, 275, 295 P. 293, 293 (1930) (quotation marks and quoted authority omitted). Thus, as long as a plaintiff establishes a continuing nuisance “for which there is no adequate and complete remedy at law,” Padilla, 101 N.M. at 562, 685 P.2d at 970, a trial court has the discretion to award injunctive relief under
{40} The majority misunderstands my reliance on
{41} I conclude that Plaintiffs’ nuisance claim has as part of its object an interest in land within the meaning of
I CONCUR: JOSEPH F. BACA, Justice.
