Lead Opinion
OPINION
{1} Dr. Stаnley D. Handmaker, following his removal from an administrative position, filed suit against the University of New Mexico for breach of his employment contract and against numerous university officials for related claims. UNM moved for summary judgment on the ground of sovereign immunity, and the district court denied the motion. UNM then petitioned the Court of Appeals for writ of error to the district court. Upon certification from the Court of Appeals, we conclude that determinations regarding sovereign immunity from actions based on contract are generally reviewable by writ of error; however, the trial court did not err in determining that governmental immunity is inapplicable in this case due to the existence of a written contract. We also conclude that the trial court’s determination that genuine issues of material fact exist regarding the breach of contract claim is not a final order and is not subject to review by writ of error. Accordingly, we affirm in part and dismiss the appeal in part.
I. Facts
{2} Dr. Handmaker has been a faculty member at the UNM School of Medicine since 1977 and is currently a tenured professor in pediatric medicine. Like other faculty members at UNM, Dr. Handmaker’s employment contract with UNM is renewed annually. In 1981, Dr. Handmaker began serving as director of the division of developmental disabilities. Dr. Handmaker’s 1986-1987 employment contract designated him as administrator of the developmental disability program, which, because there was no change in Dr. Handmaker’s duties, included the position of director of the division of developmental disabilities. At that time, Dr. Handmaker’s contract provided $5000 for his administrative duties.
{3} In 1990, UNM, with Dr. Handmaker’s assistance, received an administrative core grant to establish the New Mexico University Affiliated Program (UAP), a nationally recognized academic center for training and research in developmental disabilities. Dr. Handmaker served as director of the UAP from its inception. Although the position of UAP director entailed additional administrative duties, Dr. Handmaker’s employment contract continued to designаte him. as administrator of the developmental disability program and made no mention of the UAP. Dr. Handmaker’s administrative salary increased to $10,000 in his 1991-1992 employment contract. His 1993-1994 employment contract again designated him as administrator of the developmental disability program and continued to provide an administrative salary of $10,000.
{4} During the 1993-1994 academic year, the School of Medicine established an internal review committee to evaluate Dr. Hand-maker’s performance as director of the UAP. After receiving the committee’s report, the dean of the School of Medicine informed Dr. Handmaker by writing on January 21, 1994, that he had “chosen to have [Dr. Handmaker] remain as Director of the University Affiliated Program. However, [Dr. Handmaker’s] directorship is under ... probationary conditions for the remainder of the calendar year 1994.... ” According to Dr. Handmaker, he made good faith efforts during the spring of 1994 to comply with the dean’s probationary conditions. On May 25, 1994, the chair of the department of pediatrics informed Dr. Handmaker in writing that his 1994-1995 contract would include a four percent increase in salary, including the administrative salary component.
{5} Dr. Handmaker received no progress report on his performance as director of UAP and received no indication that he was not in full compliance with the probationary-conditions. However, on June 28, 1994, the chair of the department of pediatrics sent a letter to Dr. Handmaker informing him of the decision to remove him as director of the. UAP. The letter informed Dr. Handmaker that his removal as director of UAP would not affect his position as associate professor of pediatrics or his position as director of the division of developmental disabilities in the department of pediatrics. The letter also stated that the removal as director of UAP would be effective July 1, 1994, even though federal regulations required thirty days notice before he could be officially removed as director of the UAP and principal investigator of thе UAP core grant. Consistent with this letter, Dr. Handmaker’s 1994-1995 employment contract changed his administrative title from administrator of the developmental disability program to the director of the division of developmental disabilities. Once again, the written contract made no mention of the UAP. However, Dr. Handmaker’s administrative salary remained at $10,000 until his 1995-1996 employment contract, which reinstated his original $5000 administrative salary.
{6} Dr. Handmaker filed a breach of contract claim against UNM as a result of his removal as director of the UAP. Specifically, he claims that UNM’s course of action violated the faculty handbook and internal policies and procedures and that remоving him from his administrative position without just cause constituted a breach of his express employment contract. Dr. Handmaker also claims that UNM breached an implied covenant of good faith and fair dealing. In response to Dr. Handmaker’s claims, UNM filed a motion for summary judgment in the district court. In addition to denying the merits of Dr. Handmaker’s breach of contract claims, UNM asserted sovereign immunity pursuant to NMSA 1978, § 37-1-23 (1976). The district court, concluding that Dr. Handmaker raised genuine issues of material fact with respect to the breach of contract claim, denied UNM’s motion. UNM then petitioned the Court of Appeals to issue a writ of error to the district court pursuant to Rule 12-503 NMRA 1999. The Court of Appeals decided that a determination of the proper criteria for issuance of writs of error constituted a matter of substantial public importance and, therefore, certified the case to this Court. See NMSA 1978, § 34-5-14(0(2) (1972).
II. Writs of Error and the Collateral Order Doctrine
{7} As a general matter, this Court’s.- appellate jurisdiction is limited to review of “any final judgment or decision, any interlocutory order or decision which practically disposes of the merits of the action, or any final order after entry of judgment which affects substantial rights.” NMSA 1978, § 39-3-2 (1966). The principle of finality serves a multitude of purposes, including the prevention of piecemeal appeals and the promotion of judicial economy. See Executive Sports Club, Inc. v. First Plaza .Trust,
{8} There is no question that the district court’s denial of UNM’s motion for summary judgment is an interlocutory order which fails to dispose of the merits of the action and is, therefore, not a final decision for purposes of Section 39-3-2. See B.L. Goldberg & Assocs. v. Uptown, Inc.,
{9} We recently examined the collateral order doctrine and its application in New Mexico. See Carrillo v. Rostro,
{10} As we explained in Carrillo, the collateral order doctrine is a limited exception to the principle of finality. The three criteria outlined in Carrillo as preconditions to.invoking the collateral order doctrine are necessary to prevent the “interruption of trial court proceedings by any party claiming hardship because of postponement of reviеw — a result that the final-judgment rule seeks to prevent.” Carrillo,
{11} We believe that determinations with respect to sovereign immunity from actions based on contract generally meet the three criteria discussed in Carrillo. The first two criteria are relatively straightforward in this case. Typically, determinations concerning immunity under Section 37-1-23(A) will finally resolve the issue of governmental immunity and will be separate from and collateral to the merits of the action. Cf. Mitchеll v. Forsyth,
{12} The third criterion, whether an order would be effectively unreviewable on appeal from a final judgment, is somewhat more ambiguous. In Allen v. Board of Education,
{13} In Carrillo, we discussed the reasoning of the Court of Appeals in Allen and reiterated the significance of the distinction between immunity from suit and immunity from liability. Carrillo,
{14} In deciding whether determinations of immunity from actions based on contract affect “rights that will be irretrievably lost, absent immediate review and regardless of the outcome of an appeal from the final judgment, ... the essence of the collateral order doctrine,” Carrillo,
III. The Collateral Order Doctrine in Relation to the Present Matter
{15} Although the collateral order doctrine, and its procedural impеtus, the writ of error, generally apply to determinations of immunity under Section 37-1-23(A), our review by writ of error is necessarily limited by the nature of immunity established by the Legislature. Governmental immunity under Section 37-1-23(A) is limited to unwritten contracts and does not apply to a contract action against the government that is based on a valid written contract. As a result, a governmental defendant’s motion for summary judgment in an action based on contract may involve two separate questions: (1) whether the action is based on a written contract or is, instead, subject to governmental immunity under Section 37-1-23(A); and (2) whether the plaintiff has raised genuine issues of material fact with respect to the claim of breach of contract. The former, as a collateral order affecting interests that would be irretrievably lost if the case proceeded to trial, is subject to review by writ of error; the latter, a matter going to the heart of a breach of contract claim and representing a “step toward final disposition of the merits of the case,” Cohen,
{16} The United States Supreme Court, in a unanimous opinion, recently reached a similar conclusion with respect to claims of qualified immunity. See Johnson v. Jones,
A. The Trial Court’s Determination Regarding Sovereign Immunity
{17} In this case, Dr. Handmaker had written employment contracts with UNM. His breach of contract claim centers around the terms of employment under those contracts, including the proсedure and grounds necessary for termination from an administrative position. UNM concedes that Dr. Handmaker’s 1993-1994 written contract, which designated him as administrator of the developmental disabilities program and ineluded a $10,000 administrative salary, included his position as director of the UAP. Dr. Handmaker does not claim that UNM entered into a separate unwritten contract with respect to his administrative position with the UAP. As a result, from the facts appearing in the record on summary judgment, we determine that this action is based on a written contract. Thus, applying Section 37-1-23(A), we conclude that the trial court did not err in denying UNM’s motion for summary judgment on the ground of sovereign immunity. Cf. Carrillo,
B. The Trial Court’s Determination that Genuine Issues of Material Fact Exist
{18} UNM also claims as a basis for issuing a writ of error that the trial court improperly determined that Dr. Handmaker raised genuine issues of material fact regarding his claim that UNM breached the employment contract. “Summary judgment is proper when there is no genuine issue of material fact and the moving party is entitled to judgment as a matter of law.” Ciup v. Chevron U.S.A., Inc.,
{19} In reviewing UNM’s argument, we first note that the face of the 1994-1995 contract is ambiguous concerning Dr. Hand-maker’s administrative responsibilities for two reasons: (1) neither the 1993-1994 nor the 1994-1995 contract made any mention of the UAP, yet UNM conceded that directorship of the UAP was included in the 1993-1994 contract; and (2) the contract contained an apparent contradiction between the change in administrative designation, from administrator of the developmental disability program to director of the division of developmеntal disabilities, and the failure to modify Dr. Handmaker’s administrative salary from his 1993-1994 contract. See Mark V. Inc. v. Mellekas,
{20} Hоwever, we believe that these assertions are not properly before this Court on petition for writ of error. UNM’s claims require the interpretation of a written contract and are unrelated to its assertion of sovereign immunity. Cf. 15A Wright et al., supra, § 3914.10, at 662 (“One possible approach to ... cases [involving qualified immunity in which the defendant denies committing the acts that form the basis of the claim] is to conclude that a factual argument of noninvolvement presents issues that intrinsically do not involve official immunity.”). The true issue raised in UNM’s motion for summary judgment was not whether a written contract with a governmental agency existed but, instead, the meaning of the terms and conditions of an existing written contract between UNM and Dr. Handmaker, specifically the terms of removal from administrative positions. Cf. Johnson,
{21} As with most denials of motions for summary judgment, this portion of the district court’s order is more appropriately left to further examination by the district court and a trial on the merits and can be reviewed more effectively on appeal from final judgment following a more complete development of the facts. We reject UNM’s contention that an immediate appeal on these issues is necessary to minimize the impact of a trial on public funds. Cf. Richardson-Merrell Inc.,
IV. Conclusion
{22} As a general matter, the limited exception to the rule of finality known as the collateral order doctrine applies to district court determinations regarding governmental immunity under Section 37-1-23(A), and such determinations are subject to review by writ of error. In this case, the trial court’s denial of UNM’s motion for summary judgment determined two issues: (1) Section 37-1-23(A) does not provide governmental immunity in this case; and (2) Dr. Handmaker has raised genuine issues of material fact with respect to his breach of contract claim. With respect to the first determination, we conclude that the trial court did not err because Dr. Handmaker’s claim is based on a written contract. With respect to the second determination, we conclude that it is not an appropriate subject of review by writ of error, and we decline to address, as a premature appeal, whether the trial court improperly decided that genuine issues of material fact exist. We conclude that the trial court properly denied UNM’s claim of governmental immunity under Section 37-1-23(A), and we apply the finality of judgments rule to the rеmainder of UNM’s claims on appeal.
{23} IT IS SO ORDERED.
Notes
. We reiterate, however, that we are not bound by the United States Supreme Court’s interpretation of the collateral order doctrine, and we cite to Johnson only for its persuasive, rather than binding, value. See Carrillo,
. Dr. Handmaker alleges that UNM's written policies and procedures and written statements made to him by UNM officials constitute an implied contractual term of termination for good cause only. UNM argues that Hydro Conduit Corp. v. Kemble,
Concurrence Opinion
(Special Concurrence and Dissent).
{24} I CONCUR with the opinion that this matter is reviewable under Carrillo v. Rostro,
{25} However, I DISSENT from the analysis and the result reached in the opinion for the following reasons:
{26} I do not agree with the majority that Doctor Handmaker’s contracts were ambiguous. Dr. Handmaker had a written contract for the years 1993-199b, which ended on June 30, 1994 That written contract had no provision for renewal of the administrative position as head of UAP (University of Administrative Program). Further, the contract specified that the administrative services could be terminated during the contract with a possible salary reduction. The UNM Faculty Handbook contained nothing to thе contrary.
{27} The Doctor’s contract for 1994-1995 does not include the directorship of UAP. He was given notice of this on June 28, 1994. He was effectively terminated as UAP director on July 1, 1994, at which time he was an at will employee regarding the directorship.
{28} Therefore, since there was no written contract on July 1, 1994, the Doctor cannot sue UNM for breach of contract because of Section 37-1-23(A), the Sovereign of Immunity Statute. UNM had the right, and in fact did not choose, to renew the Doctor’s contract for the directorship of UAP after June 30, 1994. The amended complaint does not bring the case under the jurisdiction of the District Court and therefore does not moot it.
{29} The majority’s reliаnce on the case of Garcia v. Middle Rio Grande Conservancy District,
{30} In my opinion, this case is controlled by Hydro Conduit Corp. v. Kemble,
{31} Claims against other people at UNM do not prevent us from issuing a writ of error. I believe this is the case even though there may be issues of fact to be determined as to those individuals. These issues were stated by the trial court as its reason for denying UNM a summary judgment. For the reasons I have stated, I believe this was error.
{32} I would remand this case to the District Court with instructions to enter a Summary Judgment for UNM.
{33} The majority holding otherwise, I respectfully dissent.
