Justia Real Estate & Property Law Opinion Summaries

Kenneth and Kathy Zangara defaulted on a $2.3 million loan secured by a mortgage on their home. Bank of America (BOA), the original lender, filed a foreclosure action in 2011, which was dismissed in 2013 for lack of prosecution. BOA later sold the note to LSF9 Master Participation Trust (the Trust). The Trust filed a foreclosure action in 2018, which was dismissed for lack of standing. The Trust then filed a second foreclosure action, invoking New Mexico’s six-month savings statute.The district court dismissed the Trust’s second foreclosure action, interpreting the savings statute as inapplicable because the initial foreclosure was deemed a "nullity." The Trust appealed, and the New Mexico Court of Appeals ruled in favor of the Trust, concluding that a dismissal for lack of standing does not fall within the negligence in prosecution exception to the savings statute.The New Mexico Supreme Court reviewed the case and clarified the meaning of "negligence in its prosecution" under the savings statute. The Court held that this phrase is equivalent to a dismissal for failure to prosecute. The Court rejected previous interpretations that extended the negligence in prosecution exception to other circumstances. The Court affirmed the Court of Appeals' decision that the Trust’s first foreclosure action’s dismissal for lack of standing did not constitute negligence in prosecution, allowing the Trust to benefit from the savings statute. The Court overruled prior cases that were inconsistent with this interpretation. View "Zangara v. LSF9 Master Participation Trust" on Justia Law

The case revolves around a dispute between Roy Padilla and Ray Torres, where Padilla, the landlord, filed a petition in the metropolitan court under the Uniform Owner-Resident Relations Act (UORRA), alleging that Torres, his tenant, had not paid rent. The metropolitan court ruled in favor of Padilla, ordering Torres to pay past-due rent and costs amounting to $927. Torres appealed this judgment to the Second Judicial District Court, but the appeal was dismissed because Torres had failed to request a recording of the metropolitan court’s trial.The district court held that without a record of the trial, it could not effectively review Torres’s appeal. The court also rejected Torres’s assertion that he had a right to a recording, explaining that Torres, as appellant, was required to provide an adequate record on appeal. Torres then appealed the dismissal to the Court of Appeals, arguing that the metropolitan court’s practice of not recording civil proceedings except on a party’s request was inconsistent with Section 34-8A-6(B) (1993) and violated his state and federal constitutional rights.The Supreme Court of the State of New Mexico held that the failure to record the trial in this matter is contrary to Section 34-8A-6(B) (1993). The court concluded that the statute imposes a duty on the metropolitan court to create a record of its proceedings that will be sufficient to permit appellate review in this case. The court further held that Rule 3708(A) and other similar rules impermissibly conflict with Section 34-8A-6(B) to the extent that the rules condition the creation of this record on a party’s request. The court directed its committee for the Rules of Civil Procedure for the State Courts to correct the rules in conformance with its opinion. Finally, the court reversed and remanded this matter to the metropolitan court for a new trial. View "Padilla v. Torres" on Justia Law

After Plaintiff’s home sustained water damage in a hailstorm, he asked his insurer Allstate to cover the loss; consequently, Steamatic was hired to perform water abatement and mold remediation services. Plaintiff claimed that the mold was not remediated properly and that he developed a severe and permanent lung condition as a result. New Mexico does not permit a civil plaintiff to recover duplicate compensatory damages for the same injuries. The collateral source rule presents an exception to the prohibition of double recovery, permitting a plaintiff to recover the same damages from both a defendant and a collateral source. The New Mexico Supreme Court has held that the payor of the prejudgment settlement of a claim qualifies as a collateral source and that the payment does not reduce the same damages the plaintiff may recover from an adjudicated wrongdoer. The issue this case presented for review centered on whether a payment in postjudgment settlement of a claim by an adjudicated wrongdoer qualified as a collateral source. The Court clarified that the collateral source rule had no application to a postjudgment payment made by an adjudicated wrongdoer. Here, the Court held that the payment, which Plaintiff received in a postjudgment settlement with Allstate satisfied a portion of Plaintiff’s damages and extinguished Plaintiff’s right to recover the same damages from Steamatic. The Court explained that the share of damages fully satisfied by Allstate must offset the damages Plaintiff may recover from Steamatic. View "Gonzagowski v. Steamatic of Albuquerque" on Justia Law

The Court of Appeals held that an heirship judgment that conveyed mineral rights to a good faith buyer’s predecessor in interest was void for lack of jurisdiction. The issue presented for the New Mexico Supreme Court was whether the buyer was entitled to rely on the void judgment in its claim of bona fide purchaser status. In accordance with its Court’s decision in Archuleta v. Landers, 356 P.2d 443, the Court concluded that a party who purchases property sold under a judgment that is not void on its face is entitled to bona fide purchaser status. The Court further clarified that extrinsic evidence of lack of jurisdiction was not permitted to overcome the rights of a purchaser who properly relied upon the order of the court as “an authority emanating from a competent source.” Here, the Court held that Respondent Premier Oil & Gas, Inc. (Premier) was a bona fide purchaser, and affirmed the Court of Appeals. View "Premier Oil & Gas v. Welch" on Justia Law

Defendants Caprock Solar (Caprock) and Swinerton Builders (collectively, Defendants) and Intervenor Quay County (the County) contended that the New Mexico Court of Appeals erred by reversing the district court and creating an additional requirement to establish a public prescriptive easement claim—namely, that a claimant had to prove frequency of use by the public and a minimum number of public users. The New Mexico Supreme Court agreed the Court of Appeals’ stricter proof requirement was improper and took this opportunity to clarify what was required to prove a public prescriptive easement claim. In doing so, the Court adopted the holding in Trigg v. Allemand, 619 P.2d 573, that “[f]requency of use or number of users is unimportant, it being enough if use of the road in question was free and common to all who had occasion to use it as a public highway” The Court also adopted the principle articulated in Luevano v. Maestas, 874 P.2d 788, that the public character of the road was key to establishing a public prescriptive easement claim. In this case, there was substantial evidence to support the district court’s finding of a public prescriptive easement over the disputed road. Therefore, the Court reversed the Court of Appeals and affirmed the district court. View "McFarland Land & Cattle v. Caprock Solar" on Justia Law

As part of a project to construct a new road along the North Diversion Channel, the City of Albuquerque initiated a condemnation proceeding to acquire a thirty-foot-wide strip of land across a 9.859-acre property (Property) owned by SMP Properties, LLC, whose managing member was R. Michael Pack (collectively, SMP). The district court granted Albuquerque entry and ordered the distribution of $143,850 to SMP as “just compensation” for the condemned property. SMP asserted it did not receive full compensation because, prior to initiating the condemnation action, Albuquerque directly communicated its intent to condemn a portion of the Property to one of SMP’s tenants, SAIA Motor Freight Line, LLC (SAIA). Hearing of Albuquerque’s intent to condemn, SAIA apparently decided not to renew its lease before Albuquerque filed the contemplated condemnation action, determining that the condemnation would disrupt its operation and use of the portion of the Property it leased. Based on Albuquerque’s pre-condemnation communications with SAIA and SAIA’s subsequent failure to renew its lease, SMP asserted an inverse condemnation claim against Albuquerque seeking consequential damages, including lost rental income and devaluation of the Property adjacent to the thirty-foot wide strip that Albuquerque condemned. Albuquerque moved for partial summary judgment on SMP’s “claims for consequential damages relating to the loss of potential tenant leases.” The district court granted Albuquerque summary judgment and concluded that Albuquerque’s pre-condemnation activity did not constitute “substantial[] interfere[nce] with the landowner’s use and enjoyment of the [P]roperty,” and therefore, no taking (in the form of an inverse condemnation) occurred. The Court of Appeals reversed the district court, finding there were disputed issues of material fact to preclude summary judgment. Though it did not adopt the appellate court’s reasoning, the New Mexico Supreme Court affirmed reversal of summary judgment. View "City of Albuquerque v. SMP Props., LLC" on Justia Law

The issue presented for the Supreme Court's review giving rise to this case was a collateral of the underlying judgment. Specifically, the issue was whether it was apparent on the face of a 1948 quiet title judgment that the district court affirmatively lacked jurisdiction over certain parties because they were notified by publication. It was alleged that in the 1948 lawsuit, such notice violated the Due Process Clause, depriving the district court of jurisdiction. Only when a party’s whereabouts are not reasonably ascertainable following diligent search and inquiry can constructive notice substitute for personal notice of suit. The Supreme Court found that constructive service of process by publication satisfied due process and established the 1948 district court’s personal jurisdiction. Therefore, the district court’s 1948 quiet title judgment was not void, and, accordingly, the Supreme Court reversed the judgment of the Court of Appeals which held to the contrary. View "T.H. McElvain Oil & Gas Ltd. P'ship v. Benson-Montin-Greer Drilling Corp." on Justia Law

In this appeal, the issue presented for the New Mexico Supreme Court's review centered on the scope of the New Mexico State Engineer’s regulatory authority over use of surface water in New Mexico when it has been diverted from the Animas River into an acequia in Colorado and accessed from that ditch by Petitioners and others in New Mexico. After review, the Court rejected petitioners’ arguments that the State Engineer lacked statutory authority over waters initially diverted outside of New Mexico and had no jurisdiction to enjoin petitioners from irrigating an area of farmland not subject to an existing adjudicated water right or a permit from the State Engineer. The Court held that the State Engineer was authorized by New Mexico law to require a permit for new, expanded, or modified use of this water and to enjoin any unlawful diversion. View "State Engineer v. Diamond K Bar Ranch, LLC" on Justia Law

The Pueblo of San Felipe (Pueblo) appealed a Court of Appeals decision declining to extend the Pueblo immunity from suit. Hamaatsa, Inc. (Hamaatsa) owned land in Sandoval County. Adjacent to Hamaatsa’s property was land owned in fee by the Pueblo. The Bureau of Land Management (BLM) conveyed to the Pueblo, in fee simple, the land at issue on December 13, 2001. The property, adjacent and contiguous with reservation land, was not then held in trust by the federal government as part of the Pueblo’s reservation. In its 2001 conveyance to the Pueblo, the BLM reserved an easement and right-of-way over, across the parcel at issue here ( “932 Roads” or “R.S. 2477 Roads,”). The BLM purported to quitclaim its interest in one particular R.S. 2477 to the Pueblo. Hamaatsa used Northern R.S. 2477 on the Pueblo’s property to access its land. In August 2009, Hamaatsa received a letter from the then Governor of the Pueblo stating that Hamaatsa had no legal right of access across the Pueblo’s property and that Hamaatsa’s use of Northern R.S. 2477 was a trespass. Hamaatsa continued to use the road and filed suit requesting that the district court declare that the Pueblo cannot restrict use of the road. The Pueblo moved to dismiss the complaint, arguing its immunity deprived the district court of jurisdiction to hear Hamaatsa's case. The Supreme Court agreed the district court lacked jurisdiction and remanded the case for dismissal. View "Hamaatsa, Inc. v. Pueblo of San Felipe" on Justia Law

Petitioner Deutsche Bank National Trust Company, acting as trustee for Morgan Stanley ABS Capital 1 Inc. Trust 2006-NC4 (Deutsche Bank), filed a complaint seeking foreclosure on Respondent Johnny Johnston's home (Homeowner), and attached to its complaint an unindorsed note, mortgage, and land recording, both naming a third party as the mortgagee. Deutsche Bank later provided documentation and testimony showing that :(1) a document assigning the mortgage to Deutsche Bank was dated prior to the filing of the complaint but recorded after the complaint was filed; (2) Deutsche Bank possessed a version of the note indorsed in blank at the time of trial; and (3) a servicing company began servicing the loan to Homeowner on behalf of Deutsche Bank prior to the filing of the complaint. After receiving this evidence, the district court found that Deutsche Bank had standing to foreclose on Homeowner’s property. The Court of Appeals disagreed, finding that “standing is a jurisdictional prerequisite for a cause of action,” and concluded that the evidence provided by Deutsche Bank did not establish its standing as of the time it filed its complaint. The Supreme Court held that standing was not a jurisdictional prerequisite in this case. Nonetheless the Court affirmed the Court of Appeals’ ultimate conclusion that the evidence provided by Deutsche Bank did not establish standing. View "Deutsche Bank Nat'l Trust Co. v. Johnston" on Justia Law