Justia New Mexico Supreme Court Opinion Summaries

James Palenick was hired by the City of Rio Rancho to serve as City Manager. This appeal stemmed from his termination and whether Palenick was estopped from suing the City for breach of contract based on an alleged violation of the Open Meetings Act (OMA). The Supreme Court found that there was substantial evidence to support the district court's finding that Palenick waived his right to sue on the contract claim. View "Palenick v. City of Rio Rancho" on Justia Law

Respondent Magistrate Judge James Naranjo placed a phone call on behalf of his stepson Albert Hernandez who was a party in a child-support enforcement proceeding assigned to another judge. After Mr. Hernandez was jailed for nonpayment of support, respondent called the judge presiding over Hernandez's case stating Hernandez was not a flight risk, and requested that Hernandez's bond be reduced, or that he be released from custody. As a result, the judge in Hernandez's case recused himself. The Judicial Standards Commission filed charges against respondent for willful misconduct, and recommended the imposition of discipline. The Supreme Court granted the Commission's petition and imposed a ninety-day suspension (60 days deferred), and a public censure. View "In the Matter of Naranjo" on Justia Law

The issue on appeal before the Supreme Court in this case centered on whether an out-of-state internet retailer, Barnesandnoble.com LLC (bn.com), which has no physical presence in New Mexico other than through stores owned by a sister corporation, Barnes & Noble Booksellers, Inc., is subject to New Mexico gross receipts tax on its sales to New Mexico residents without offending the federal Commerce Clause. The answer to this question depended on whether Booksellers engaged in activities in New Mexico on behalf of bn.com that were significantly associated with bn.com's ability to establish and maintain a market for its sales in New Mexico, thus creating a substantial nexus between bn.com and New Mexico. Upon review, the Supreme Court concluded that Booksellers did engage in such activities, which included: (1) Booksellers' promotion of bn.com through sales of gift cards redeemable at bn.com and bearing bn.com's name; (2) Booksellers' policy of sharing customers' email addresses with bn.com; (3) Booksellers' implicit endorsement of bn.com through the companies' shared loyalty program and Booksellers' return policy; and (4) Booksellers' in-state use of Barnes & Noble logos and trademarks, which bn.com also used. Therefore, the Court held that Booksellers' in-state activities were sufficient to create a substantial nexus between bn.com and New Mexico, so that the state could tax bn.com's sales to customers in New Mexico without offending the federal Commerce Clause. View "N.M. Taxation & Revenue Dep't. v. Barnesandnoble.com, LLC" on Justia Law

The Public Regulation Commission (PRC) issued Moongate Water Company (Moongate) a certificate of public convenience and necessity (CCN) authorizing Moongate, as a public utility, to provide water to an area located outside the city limits of Las Cruces (the "certificated area.") Las Cruces later annexed three undeveloped tracts of land within Moongate's certificated area, and Las Cruces committed itself to provide water to this area despite Moongate's CCN. The Supreme Court addressed two questions in this appeal: (1) did Moongate have a right to provide water within the certificated area to the exclusion of Las Cruces?; and (2) did Las Cruces engage in an unlawful taking of Moongate's property entitling Moongate to just compensation when Las Cruces chose to provide water within the certificated area? The Court answered both questions in the negative: (1) because Las Cruces was not subject to the Public Utilities Act (the PUA); and (2) because on the record before the Court, Moongate did not prove that it had established infrastructure and was already serving customers in the annexed area. "Absent such proof of a tangible loss, a public utility is not entitled to just compensation when a municipality lawfully exercises its right to serve in the public utility's certificated area." The Court therefore affirmed the Court of Appeals and reversed the district court. View "Moongate Water Co., Inc. v. City of Las Cruces" on Justia Law

A fire destroyed a hydroponic tomato facility belonging to a new business, Sunnyland Farms, Inc. The day before the fire, Sunnyland's electricity had been shut off by its local utility, the Central New Mexico Electrical Cooperative (CNMEC), for nonpayment. Sunnyland's water pumps were powered by electricity, and without power, Sunnyland's facility had no water. Sunnyland sued CNMEC, alleging both that CNMEC had wrongfully suspended service, and if its electrical service had been in place, firefighters and Sunnyland employees would have been able to stop the fire from consuming the facility. After a bench trial, the court found CNMEC liable for negligence and breach of contract. The trial court awarded damages, including lost profits, of over $21 million in contract and tort, but reduced the tort damages by 80% for Sunnyland's comparative fault. It also awarded $100,000 in punitive damages. The parties cross-appealed to the Court of Appeals, which reversed the contract judgment, vacated the punitive damages, held that the lost profit damages were not supported by sufficient evidence, affirmed the trial court's offset of damages based on CNMEC's purchase of a subrogation lien, and affirmed the trial court's rulings on pre- and post-judgment interest. Sunnyland appealed. Upon review, the Supreme Court affirmed the Court of Appeals regarding the contract judgment, punitive damages, and interest, and reversed on the lost profit damages and the offset. The Court also took the opportunity of this case to re-examine the standard for consequential contract damages in New Mexico. View "Sunnyland Farms, Inc. v. Central N.M. Electric Cooperative, Inc." on Justia Law

In 2002, Pojoaque Tribal Police Officer Kevin Schultz drowned while rescuing a twelve-year-old boy from the Rio Grande near Pilar. On the day of the accident, he had taken the day off from work to chaperone a group of children from his church on a recreational outing. This case arose when Schultz's widow, Cheryl, filed a claim for workers' compensation benefits resulting from her husband's death, but only after the statute of limitations had expired. Notwithstanding the late filing, Mrs. Schultz contended that the conduct of the Pojoaque Tribal Police Department caused her to file after the deadline, and thus, the Supreme Court should consider her complaint timely filed. Both the Workers' Compensation Judge (WCJ) and the Court of Appeals decided that Mrs. Schultz's complaint was not timely filed. However, upon review, the Supreme Court found that based on the fact of this case, the statute was tolled. Therefore the Court reversed and remanded the case back to the Court of Appeals for further proceedings. View "Schultz v. Pojoaque Tribal Police Department" on Justia Law

The Judicial Standards Commission filed a petition for discipline against Espanola municipal court judge Respondent Stephen S. Salazar. David Vigil, the son of a member of Respondent’s church and an acquaintance, manufactured a custom chopper motorcycle which he allowed John Martinez to test ride. Vigil did not produce a title to the vehicle prior to allowing Martinez to test ride it. Ohkay Owingeh police towed the motorcycle during the course of a criminal case for domestic violence against Martinez. The seized motorcycle was towed by George and David Luna d/b/a Aces Towing and Recovery, LLC. Vigil phoned and later visited Respondent for help in recovering the motorcycle. Respondent directed Vigil to have his attorney draft an ex parte order regarding the motorcycle. Vigil delivered the order to Respondent in the lobby of the courthouse and Respondent signed it. In the order, Respondent directed George Luna and Aces Towing to return Vigil’s motorcycle. The order falsely stated that Respondent had held a hearing on the matter. Respondent did not give notice or an opportunity to be heard to the Lunas or their company. In addition, Respondent embossed the official seal of the Espanola Municipal Court upon the order even though there was no case pending or court file existing in that court for the matter. Respondent also failed to inquire if Vigil’s matter was pending in Rio Arriba County Magistrate Court or was part of any other action in any other court; Martinez’s case was, in fact, pending in Rio Arriba County Magistrate Court. When Respondent signed the order, he was on probation with the Commission following a trial before the Commission in November 2009. George Luna and Aces Towing filed a Petition for Writ of Prohibition and Superintending Control in the district court seeking to quash Respondent’s order. The First Judicial District Court granted the writ petition and quashed the order. The Supreme Court issued an order accepting the Commission’s recommendation for discipline suspending Respondent without pay for ninety days, placing Respondent on probation for the remainder of his current term of office, requiring Respondent to pay restitution to the injured parties, requiring Respondent to pay all costs associated with the disciplinary process and ordering a public censure of Respondent. View "In the Matter of Salazar" on Justia Law

In 2004, Amelia Martinez and Donald Espinoza were driving west on NM 502 toward Los Alamos to buy a car. Amelia, eight and a half months pregnant at the time, was driving and Donald was in the passenger seat. Tragically, they did not make it to Los Alamos. The New Mexico Department of Transportation (DOT), which has legal responsibility to maintain NM 502, was sued for negligently failing to remedy a dangerous condition when it chose not to replace the open center lane with crossover barriers on the road, after it was allegedly put on notice of that risk by post-construction accidents and other events. The Court of Appeals held as a matter of law that DOT was immune from suit for such negligence, a decision which the Supreme Court reversed "as being at odds with our jurisprudence." The case was remanded for a new trial. View "Martinez v. N.M. Dep't of Transp." on Justia Law

Petitioner Joseph C. Perry, Petitioner, was a prison inmate at the Penitentiary of New Mexico serving sentence at the Lea County Correctional Facility for battery against a household member as well as for a parole violation for fraud over $2,500. In 2006, Petitioner was transported to the Otero County Detention Center for an arraignment relating to the fraud charge. While at the Otero Center, Petitioner raped inmate Joshua Sommer. Upon discovering Petitioner’s pending criminal charge for rape in Otero County District Court, the New Mexico Corrections Department (NMCD) pursued disciplinary action against him for the same rape incident. A disciplinary hearing was scheduled at the Lea County Facility. A hearing officer conducted the hearing, documenting the proceedings and the evidence in a form entitled "Disciplinary Summary of Evidence and Proceeding," the tape of which was lost. The hearing officer ultimately concluded that Petitioner committed rape and threats to other inmates. NMCD forfeited Petitioner’s earned good time (69 days) and placed him in Level VI Disciplinary Segregation at a maximum security facility for a period of 455 days. In 2007, Petitioner filed a pro se petition for a writ of habeas corpus at the Santa Fe District Court, asserting five grounds for habeas relief. Just over three weeks later, Petitioner was convicted in Otero County on second-degree felony of criminal sexual penetration and the third-degree felony of bribery or intimidation of a witness, based on the same rape incident. Approximately a year later, the State filed an amended response to an amended petition for a writ of habeas corpus and attached the judgment and sentence from Otero County. The central issue at the evidentiary hearing was whether NMCD had violated Petitioner’s due process rights by denying him an opportunity to call witnesses or otherwise elicit written testimony at his prison disciplinary hearing. At the conclusion of the habeas hearing, the district court agreed with Petitioner’s contentions and issued an order granting remedies with respect to its earlier findings of due process violations. Notwithstanding Petitioner’s intervening criminal convictions for rape and witness intimidation, the district court ordered NMCD to (1) restore Petitioner’s good-time credits, (2) remove the disciplinary hearing findings from Petitioner’s record, (3) never use findings of the disciplinary hearing against Petitioner in any way, including in present and future decisions relating to classification and placement within the prison system, and (4) never pursue the same factual allegations that were the subject of the disciplinary hearing in later proceedings against Petitioner. The NMCD appealed; the Supreme Court reversed: "In focusing on Petitioner’s procedural due process rights, the district court appears to have lost sight of the reason for such a hearing. The court failed to appreciate the significance of the intervening criminal convictions - not to whether due process was violated - but, pivotally, to what remedy was appropriate under the circumstances." View "Perry v. Moya" on Justia Law

The issue on appeal before the Supreme Court in this case was whether NMSA 1978, Section 72-2-9.1 (2003), provided a constitutional delegation of authority for the Office of the State Engineer to adopt new regulations to administer water resources according to administrative interim priority determinations based on a number of factors. The district court and Court of Appeals concluded that it did not and that the State Engineer’s lawful authority to supervise water allocations could be exercised only on the basis of licenses issued by the State Engineer and adjudications in court. Upon review, the Supreme Court reversed and held that the Legislature delegated lawful authority to the State Engineer to promulgate the challenged water administration regulations. Furthermore, the Court held that the regulations were not unconstitutional on separation of powers, due process, or vagueness grounds. View "Tri-State Generation & Transmission Assn., Inc. v. D'Antonio" on Justia Law