Filing Date: June 4, 2002
Docket No. 26,609
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.
consolidated with:
Docket No. 26,610
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.
APPEAL ON WRIT OF CERTIORARI TO THE
NEW MEXICO COURT OF APPEALS
Stephen D. Pfeffer, District Judge
Hinkle, Hensley, Shanor & Martin, L.L.P.
Thomas D. Haines, Jr.
Roswell, NM
Holland & Hart, L.L.P.
and
Campbell & Carr
Bradford C. Berge
Santa Fe, NM
Atwood, Malone, Turner & Sabin, P.A.
Rod M. Schumacher
Barbara A. Patterson
Roswell, NM
for Petitioners
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
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, ¶ 36, 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. Accordingly, NMSA
1978, § 38-3-1(D) (1988), which controls venue for causes of
action that have land or an interest in land as their
object, did not apply. Id. ¶ 26. With regard to the
Defendants with statutory agents in Santa Fe County, the
Court held that venue was proper in any New Mexico county,
including Santa Fe County, pursuant to NMSA 1978, § 38-3-1(F) (1988). Id. ¶ 31. The Court of Appeals concluded that
the trial court had erred in dismissing the action against
these Defendants. Id. With regard to the other Defendants,
however, the Court held that venue was not proper in Santa
Fe County, and therefore affirmed the trial court's
dismissal as to these Defendants. We granted certiorari in
order to review the Court of Appeals' opinion.
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 NMSA 1978, § 38-3-1 (1988).
Among other provisions, Section 38-3-1(D) mandates that if
the object of an action is land or an interest in land, then the action must be commenced in the county where the land is
situated. In contrast, proper venue for a transitory action
depends on the residence of the defendant. If the defendant
is a New Mexico resident, then Section 38-3-1(A) requires
that the lawsuit be filed in any county in which a party
resides, where the contract or cause of action originated,
or in any county where the defendant may be found within the
judicial district where the defendant resides.
{6}
If the defendant to a transitory action is a foreign
corporation, then under Section 38-3-1(F) one final
distinction applies. If the foreign corporation defendant
does not have a registered statutory agent in New Mexico,
then venue is proper in any New Mexico county. However, if
the foreign corporation defendant "maintain[s] a statutory
agent in this state upon whom service of process may be had"
then venue is proper only in the county where a plaintiff
resides, in the county where a contract at issue was made or
is to be performed, in the county where the cause of action
originated or indebtedness was incurred, or lastly, in the
county where the statutory agent designated by the foreign
corporation resides. See § 38-3-1(F).
B. Whether the object of this action is "lands or an
interest in lands" under Section 38-3-1(D).
{7}
Under Section 38-3-1(D)(1), "[w]hen lands or any
interest in lands are the object of any suit in whole or in
part, the suit shall be brought in the county where the land
or any portion of the land is situate." Thus, if the object
of Plaintiffs' lawsuit is lands or an interest in lands,
then venue will only be proper in Lea County. If, on the
other hand, the action is transitory, then Plaintiffs are
free to choose venue in accordance with the remaining
provisions of Section 38-3-1.
{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.2d 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 ("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 Section 38-3-1(D)(1). Id.
{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, Section 38-3-1(D)(1) does not apply
to this action. Jemez Land Co. 15 N.M. at 321, 107 P.2d at
685. We therefore affirm the Court of Appeals' holding that
"Plaintiffs were not required by Section 38-3-1(D)(1) to
file their action in Lea County." Cooper, 2000-NMCA-100, ¶
26.
{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 Section 38-3-1(D)(1).
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 Section 38-3-1, when subsection (D) does not
apply, proper venue depends on whether the defendant is a
resident of New Mexico. Section 38-3-1(F) allows a
plaintiff to sue a foreign corporation defendant who is
admitted to do business and who maintains a statutory agent
in the county where the statutory agent resides. In this
case, Plaintiffs are suing both resident and foreign
Defendants. Because Plaintiffs filed suit in Santa Fe
County pursuant to their interpretation of the venue rules
pertaining to foreign corporations, we begin by addressing
venue as it relates to these foreign corporations. The
statutory agents serving the foreign corporation Defendants,
namely CT Corporation System ("CT") and Prentice Hall
Corporation System ("Prentice Hall"), are located in Santa
Fe and are themselves foreign corporations. We now address
whether the presence of these statutory agents in Santa Fe
is sufficient to make Santa Fe the proper venue.
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. 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
Section 38-3-1(F)" as intending to preclude non-residents
from serving as statutory agents for venue purposes. Id.
Accordingly, the Court held that "a foreign corporation must
appoint a domestic corporation or an individual actually
residing in New Mexico in order to receive the benefit of
the special venue provisions of Section 38-3-1(F)." Id. ¶
31. We disagree.
{13}
The Court of Appeals failed to properly weigh NMSA
1978, § 53-17-9 (1967), which was enacted after Section 38-3-1, and which explicitly authorizes the appointment of a
non-resident statutory agent. We presume that when the
Legislature decided to unconditionally allow non-residents
to serve as statutory agents, it was aware of existing law.
See State ex rel. Human Servs. Dep't (In re Kira M.), 118
N.M. 563, 569, 883 P.2d 149, 155 (1994). Consequently, in
light of the enactment of Section 53-17-9, foreign
corporations that have appointed a foreign corporation as
their statutory agent, may "receive the benefit of the special venue provisions of Section 38-3-1(F)." Cooper,
2000-NMCA-100, ¶ 31.
2. Whether CT and Prentice Hall "reside" in Santa
Fe County for purposes of venue
{14}
Section 38-3-1(F) provides that:
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 Section 38-3-1(F). Using our definition
of "non-resident" from Aetna Finance Co., Defendants claim
that the statutory agents in the present case do not reside
in New Mexico and that venue cannot, therefore, be placed
where the statutory agent resides. Defendants argue that
venue is proper only in Lea County where Plaintiffs reside
and where the cause of action originated. Even though Aetna
Finance Co. contains language in support of Defendants'
position, it is distinguishable from the present case. In
that case, the foreign corporation was suing a domestic
defendant. The plaintiff corporation had offices in
Albuquerque and sought venue in Bernalillo County under
Section 38-3-1(A). This Court looked to subsection (F) to
determine whether Aetna "reside[d]" in Bernalillo County for
venue purposes. We ultimately held that it did not. In so
holding, this Court employed broad language that we today
limit. In the present dispute, the foreign corporations are defendants and we therefore look not to subsection (A), but
rather to subsection (F), to determine what venue is proper.
To the extent that Aetna Finance Co. can be read to hold
that foreign corporations can never "reside" in New Mexico
for venue purposes under subsection (F), it is overruled.
{16}
We next look to the language of Section 38-3-1(F) to
determine if CT and Prentice Hall "reside" in Santa Fe for
purposes of venue. The meaning of language used in a
statute is a question of law that we review de novo. State
v. Rowell, 121 N.M. 111, 114, 908 P.2d 1379, 1382 (1995).
We give such language its ordinary and plain meaning unless
the legislature indicates a different interpretation is
necessary. Draper v. Mountain States Mut. Gas. Co., 116
N.M. 775, 777, 867 P.2d 1157, 1159 (1994). According to
Black's Law Dictionary, "[r]esidence usu[ally] just means
bodily presence as an inhabitant in a given place [and a]
person thus may have more than one residence at a time . . .
." Black's Law Dictionary 1310 (7th ed. 1999). Under this
plain meaning of residence, CT and Prentice Hall "reside" in
New Mexico by virtue of the offices they maintain in Santa
Fe.
{17}
We believe that the plain meaning of the term "resides"
best effectuates the Legislature's intent in enacting
Section 38-3-1. When the Legislature determined in 1955
that "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 . . . in the county where the statutory
agent designated by the foreign corporation resides," only
resident New Mexicans could serve as statutory agents.
Section 38-3-1(F); Cooper, 2000-NMCA-100, ¶ 29. Because all
statutory agents resided in New Mexico, the term "resides"
could have only been intended to locate the statutory agent
and not to distinguish between resident statutory agents and
non-resident statutory agents.
{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 Section 38-3-1(A) to those forums that the Legislature has determined
will not unduly inconvenience the defendant. When the
defendant does not reside in New Mexico and does not
maintain a statutory agent in the state, however, Section
38-3-1(F) allows the plaintiff to place venue in any New
Mexico county, presumably because all New Mexico counties
will be inconvenient to a non-resident. We believe the
Legislature passed Section 38-3-1(F) in order to "give
foreign corporations that are admitted to do business and
that have designated and maintained a statutory agent in
this state the same 'weight' in the venue balance as
resident defendants." Team Bank, 118 N.M. at 150, 879 P.2d
at 782. We believe this intent is unaffected by the
residence of a statutory agent.
{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 foreign corporation or a New Mexico resident.
Accordingly, in the present case, venue was proper in Santa
Fe County for the Defendants who maintained CT and Prentice
Hall as their statutory agents in Santa Fe County.See footnote 1
{20}
Section 38-3-1(F) is silent on the issue of whether a
properly joined defendant is subject to venue in the same
county in which another defendant is subject to venue by
virtue of the residence of a statutory agent. However, with
regard to transitory actions, Section 38-3-1(A) demands that
venue be brought, among other alternatives, "in the county
where either the plaintiff or defendant, or any one of them
in case there is more than one of either, resides." See
Teaver v. Miller, 53 N.M. 345, 349, 208 P.2d 156, 160 (1949)
("[T]he residence of one of the defendants determines the
venue of the action against all."). We can discern no basis
for applying a separate rule to multiple defendants when
venue is based on the residence of a statutory agent. The
Court of Appeals' opinion determined that Teaver was
inapplicable "because under these facts no party resides in Santa Fe County." Cooper, 2000-NMCA-100, ¶ 33. Because we
conclude that when a foreign corporation appoints a foreign
corporation statutory agent the residency requirement in
Section 38-3-1(F) is met, Teaver is applicable. We
therefore hold that venue in Santa Fe County is proper with
regard to all Defendants still involved in the present
case.See footnote 2
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.
______________________________
GENE E. FRANCHINI, Justice
WE CONCUR:
__________________________________
PAMELA B. MINZNER, Justice
__________________________________
PETRA JIMENEZ MAES, Justice
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, Section 38-3-1(D)(1),
because, under the majority's view, Plaintiffs seek only
monetary damages. I am unable to agree with the majority's conclusion that "the sole object of this suit was damages,"
and I believe that the majority's narrow construction of
Plaintiffs' complaint in order to reach this conclusion
represents a significant departure from established rules of
pleading in New Mexico. I believe that this change in
pleading requirements places an unnecessary burden on
plaintiffs in the drafting of complaints, takes an
unwarranted step back to technical rules of pleading, and
also unnecessarily restricts the power of trial courts to
grant appropriate relief. Moreover, regardless of whether
Plaintiffs' complaint invokes equitable relief in the
present case, I believe that the Legislature intended to
treat all private nuisance actions as local claims subject
to the venue requirements in Section 38-3-1(D)(1). As a
result, I believe that the district court correctly
determined that venue was proper only in Lea County, and I
would therefore affirm the district court's dismissal of
Plaintiffs' complaint without prejudice. Based on my
resolution of this issue, I would not reach the issue
presented in Section II(C) of the majority opinion.
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 Section 38-3-1(D)(1) regardless of
whether it involves injunctive relief. I therefore
respectfully disagree with the majority's interpretation of
Section 38-3-1(D)(1).
{25}
Section 38-3-1(D)(1) states: "When lands or any
interest in lands are the object of any suit in whole or in
part, the suit shall be brought in the county where the land
or any portion of the land is situate." Section 38-3-1(D)(1) (emphasis added). It is difficult to imagine a
broader statute relating to the proper venue for actions
involving land. "[T]he plain language of the statute [is]
the primary indicator of legislative intent." Whitely v.
N.M. State Pers. Bd., 115 N.M. 308, 311, 850 P.2d 1011, 1014
(1993). Thus, the first question in interpreting Section
38-3-1(D)(1) should be whether Plaintiffs' claim has as any
part of its object any interest in land. Respectfully, I
believe it is clear that it does.
{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. N.Y. C.P.L.R. § 507 (McKinney 2001) ("The
place of trial of an action in which the judgment demanded
would affect the title to, or the possession, use or
enjoyment of, real property shall be in the county in which
any part of the subject of the action is situated.").
Plaintiffs could not seek recovery for the private nuisance
without having an interest in the land in question. See
Restatement (Second) of Torts § 821E (1979); Stevensen v.
Goodson, 924 P.2d 339, 348 (Utah 1996) ("According to a
majority of authorities, only possessors, owners, or
occupiers of land may be impaired in their use and enjoyment
of land and, therefore, recover for a nuisance.").
Plaintiffs' private nuisance claim, then, has as its object
an interest in land within the meaning of Section 38-3-1(D)(1). See Clardy v. S & M Farms, Inc. (Ex parte Clardy),
460 So. 2d 1273, 1275 (Ala. 1984) (determining that, because
"the nature of petitioners' complaint and of the relief
sought is to protect petitioners' interest in the use and
enjoyment of their land," "the subject matter of the . . .
complaint, although not exclusively, is real estate" and
thus "the proper venue for this action is the situs of the
property in question"); Johnson v. Compost Prods., Inc., 731
N.E.2d 948, 954 (Ill. App. Ct. 2000) ("Generally, with
respect to nuisance actions, an action to enjoin or abate a
nuisance is local in nature and must be brought where the
nuisance exists."); cf. Elephant Butte Irrigation Dist. v.
Regents of N.M. State Univ., 115 N.M. 229, 238, 849 P.2d
372, 381 (Ct. App. 1993) ("Water rights are real property
rights that are generally tied to specific land. We thus
conclude that under Section 38-3-1(D)(1), suits involving
water rights must be brought in a county through which the
stream or any portion of the stream flows." (emphasis added)
(citations omitted)).
{27}
Because Section 38-3-1(D)(1) expressly applies to "any
interest in land" and requires only that the interest be an
object of the claim "in part," I believe that the plain
language of this provision clearly applies to Plaintiffs'
claim. This plain language analysis is supported by both
the context surrounding Section 38-3-1(D)(1) and its purpose. At common law,
[a]ctions for damages to real property,
for nuisance, or for the obstruction of
one's right of way were regarded as
local and had to be brought where the
cause of action arose; if brought
elsewhere, they were subject to
dismissal on demurrer. Actions for
personal injury or injury to personal
property and actions based on
transactions, including for breach of
contract, were regarded as transitory.
Kane v. Schulmeyer, 708 A.2d 1038, 1042 (Md. 1998). Section
38-3-1(A) provides the venue requirements for "all
transitory actions." I believe that, by using the phrase
"transitory actions," the Legislature intended to adopt the
common law's definition of transitory actions and also to
incorporate the common law distinction between transitory
and local claims except as explicitly modified. Because
"transitory actions" did not include nuisance claims under
the common law and because there is no specific exception to
the local action venue rule for nuisance claims under
Section 38-3-1, I believe that the Legislature's
incorporation of the common law into Section 38-3-1(A)
requires the application of the plain language of Section
38-3-1(D)(1) to the present case.
{28}
In analyzing the relationship between Section 38-3-1
and the common law, the Court of Appeals, rather than noting
the significance of the word "transitory" in Section 38-3-1(A), focused on the omission of the word "local" from
Section 38-3-1(D). Cooper, 2000-NMCA-100, ¶ 16. The Court
also noted that the common law rule had been criticized, and
it quoted extensively from Chief Justice Marshall's opinion
in Livingston v. Jefferson, 15 F. Cas. 660, 664 (C.C.D. Va.
1811) (No. 8411), which reluctantly applied the local action
rule to a trespass claim. Cooper, 2000-NMCA-100, ¶ 12.
Finally, the Court of Appeals relied on this Court's opinion
in Jemez Land Co. v. Garcia, 15 N.M. 316, 107 P. 683 (1910),
overruled on other grounds by Kalosha, 84 N.M. at 504, 505
P.2d at 847, to conclude that this case does not involve an
interest in land. I believe that the Court of Appeals
failed to recognize the significance of the distinction
between trespass and nuisance for purposes of interpreting
Section 38-3-1.
{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. 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 Section 38-3-1(E), "[s]uits
for trespass on land shall be brought as provided in
Subsection A of this section [governing transitory actions]
or in the county where the land or any portion of the land
is situate." Because trespass actions were considered local
under the common law, this provision represents a departure
from the historical distinction between transitory and local
actions and explains the Legislature's decision not to rely
on the over-inclusive, from New Mexico's perspective, phrase
of "local actions." The Legislature's decision to modify
the common law rule regarding trespass, however, does not
signal an intent to depart from the common law's treatment
of nuisance actions. To the contrary, the broad wording of
Section 38-3-1(D)(1) demonstrates that the Legislature did
not intend to modify the local action venue rule except as
provided in Section 38-3-1(E).
{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
Section 38-3-1(E) governing trespass actions and is
inapplicable to nuisance claims. In Jemez Land Co., this
Court discussed the relationship between the venue
provisions for trespass actions and the venue provisions for
actions having as part of their object any interest in land.
15 N.M. at 321, 107 P. at 684-85. The majority and the
Court of Appeals highlight the statement in Jemez Land Co.
that venue is not restricted to the county in which the land
is situated "if the claim for damages was the sole object of
the suit," 15 N.M. at 321, 107 P. at 684. However, I
believe that this statement has been taken out of context.
The "suit" at issue in Jemez Land Co. was a suit for
trespass on land. This statement was specifically in
response to an argument that "the object of the suit is to
recover damages for a trespass on lands," and the Court
concluded that "[t]he claim for damages for trespass to
land, however, is not the sole object of the present
action." Jemez Land Co., 15 N.M. at 321, 107 P. at 684
(emphasis added). This discussion is thus confined to the
relationship between the specific venue statutes for
trespass actions and for actions having an interest in land
as their object. The Court did not hold, as characterized by
the majority, that all "[c]laims for damages do not have
lands or interest in lands as their object." Majority
opinion ¶ 8. Instead, this Court held that claims for
damages for trespass are excluded from the venue rule now
contained in Section 38-3-1(D)(1) because these actions are
expressly governed by the venue rule now contained in
Section 38-3-1(E). Thus, this Court concluded that the
statutory exception to the local action rule for trespass
actions is limited to claims for damages, and if a trespass
action goes beyond a claim for damages, then it will be governed by the general venue rule for actions involving an
interest in land. In other words, Jemez Land Co. limits the
reach of Section 38-3-1(E). In doing so, contrary to the
suggestion that it limited Section 38-3-1(D)(1), Jemez Land
Co. actually recognized an expansive application of Section
38-3-1(D)(1) that includes certain trespass claims,
specifically those that seek "protection of the realty" or
that require a determination of "ownership and right of
possession" between the two parties. Jemez Land Co., 15
N.M. at 322, 107 P. at 685. Therefore, I do not believe
that Jemez Land Co. supports the restrictive interpretation
of Section 38-3-1(D)(1) advanced by the majority and the
Court of Appeals. In fact, this Court has previously held
that the "interest" covered by Section 38-3-1(D)(1) is not
restricted to an interest in title. See Heath, 58 N.M. at
673, 274 P.2d at 625 (Compton, J., dissenting) (noting that
the majority opinion rejected the notion that an "interest
in lands" for purposes of venue was limited to an interest
in title); cf. Found. Eng'rs, Inc. v. Superior Court, 23
Cal. Rptr. 2d 469, 473 (Ct. App. 1993) (describing a test
for venue that asks merely whether the claim is for damages
as "an oversimplification of the law" and stating that "the
test for venue is not simply whether money damages are
sought [because] [a]n action may essentially be local
although it seeks damages for an injury to real property").
{31}
I believe that the general distinction between
transitory and local actions in the common law is both
logical and practical.See footnote 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 Section 38-3-1(D)(1), the Legislature
recognized that these concerns remain valid in New Mexico,
except as applied to trespass actions seeking damages for
past conduct. In fact, the common law's concern about
convenience is even more meaningful under New Mexico's
current venue scheme. We have previously recognized that
"New Mexico is one of only a handful of states that has such
an expansive venue statute without also having methods by
which cases may be transferred based upon the convenience of
the parties or in the interests of justice." First
Financial Trust Co. v. Scott, 1996-NMSC-065, ¶ 18, 122 N.M.
572, 929 P.2d 263. Because convenience is a core function
of Section 38-3-1(D)(1) and because of "the absence of a
transfer mechanism based upon the convenience of the
parties," Scott, 1996-NMSC-065, ¶ 17, I believe that this
Court should be cautious in restricting its reach and in
expanding the class of transitory actions beyond the intent
of the Legislature. See Casey v. Adams, 102 U.S. 66, 67-68
(1880) ("The distinction between local and transitory
actions is as old as actions themselves, and no one has ever
supposed that laws which prescribed generally where one
should be sued, included such suits as were local in their
character, either by statute or the common law, unless it
was expressly so declared.").
{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 Section 38-3-1(D)(1). From this perspective,
there is a significant difference between trespass and
nuisance claims for purposes of venue and, therefore, a
significant reason for the Legislature to have treated
nuisance separately from trespass in Section 38-3-1. See
Clardy, 460 So. 2d at 1275 (distinguishing between a
trespass claim and a nuisance claim for purposes of venue
and concluding that a claim "for injunctive relief
prohibiting the defendants from farming their property so as
to damage the land or mineral interests of the plaintiffs"
was subject to local action venue requirements); Town of
Hempstead v. City of New York, 388 N.Y.S.2d 78, 80 (Sup. Ct.
1976) (distinguishing between "a one-time trespass or
conversion of timber," for which the application of the
local action rule has been appropriately criticized, and a
continuous nuisance which affects another's use and
enjoyment of land, for which "the venue of the action belongs in the county where the real property is located").
{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 a strong justification for characterizing a
nuisance action as local for purposes of venue. Moreover,
as noted below, a continuing nuisance action, such as
Plaintiffs', seeks "protection of the realty" and goes
beyond a claim for damages for past conduct. Jemez Land
Co., 15 N.M. at 322, 107 P. at 685. See generally Restatement (Second) of Torts § 822 cmt. d ("[I]t is
unimportant for the purpose of injunction whether the
conduct involved is a continuing trespass or a nuisance . .
. ."). Based on these considerations, I believe that
Plaintiffs' continuing nuisance claim is so significantly
founded upon an interest in land, and so locally based, that
it falls within the scope of Section 38-3-1(D)(1) and is
subject to the venue requirements established by the
Legislature in that provision. Venue in the present case is
proper only in Lea County.
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, Rule 1-008(A) NMRA 2002 merely requires "a
demand for judgment for the relief to which [the pleader]
deems himself [or herself] entitled" following "a short and
plain statement of the claim showing that the pleader is
entitled to relief." Rule 1-008(A) does not require the
pleader to set forth the relief in both the body of the
complaint and in the demand for judgment.
[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). Rule 1-008(A) also does not require that
injunctive relief be pleaded with particularity, and Rule 1-008(E) provides that "[n]o technical forms of pleading . . .
are required." Nevertheless, the logical effect of the majority's interpretation of Plaintiffs' complaint in this
case is to require the technical pleading of injunctive
relief with particularity. I believe this heightened
pleading requirement for injunctive relief is inconsistent
with our liberal pleading rules. See Sanchez v. City of
Belen, 98 N.M. 57, 60, 644 P.2d 1046, 1049 (Ct. App. 1982)
("New Mexico adheres to the broad purpose of the rules of
pleading and construes them liberally. The general policy
on pleadings require that an adjudication on the merits
rather than technicalities of procedures and form shall
determine the rights of the litigants.").
{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 polluted 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 Rule 1-008(F), "[a]ll pleadings shall
be so construed as to do substantial justice." Plaintiffs'
complaint clearly alleged a continuing nuisance and included
a statement of facts supporting this claim. In a nuisance
action, "[m]onetary damages are inadequate where the harm is
continuing in its nature," Scott v. Jordan, 99 N.M. 567,
572, 661 P.2d 59, 64 (Ct. App. 1983), and "where damages
would not provide adequate compensation for the injury,
injunctive relief is proper." Padilla v. Lawrence, 101 N.M.
556, 562, 685 P.2d 964, 970 (Ct. App. 1984). By alleging a
continuing nuisance, referring to abatement, and requesting
injunctive relief, Plaintiffs' complaint gave Defendants
more than adequate notice of the existence and nature of a
claim for equitable relief in the form of abatement or
injunction. In other words, in addition to monetary
damages, Plaintiffs want Defendants to stop polluting and to
clean up the pollution they have allegedly caused. I
therefore respectfully disagree with the majority's
conclusion that the complaint was limited to monetary
damages.
{38}
Third, I do not believe that the complaint controls the
form of relief available in a continuing nuisance claim.
Rule 1-054(C) NMRA 2002 expressly provides that "every final
judgment shall grant the relief to which the party in whose
favor it is rendered is entitled, even if the party has not
demanded such relief in the party's pleadings." Under this
rule, "New Mexico now clearly allows any appropriate relief
to be granted in a case regardless of what is specifically
requested in the pleadings. . . . Thus the filing of a complaint seeking relief of one sort is not an irrevocable
election of remedies precluding the granting of relief of
another kind." State ex rel. Newsome v. Alarid, 90 N.M.
790, 798-99, 568 P.2d 1236, 1244-45 (1977).
{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 Rule 1-054(C) regardless of
whether the complaint includes injunctive relief in the
demand for judgment.
{40}
The majority misunderstands my reliance on Rule 1-054(C). I do not contend that a trial court could award
injunctive relief sua sponte, see Scott, 99 N.M. at 572, 661
P.2d at 64 (noting that injunctive relief is an
extraordinary remedy that requires a "showing of irreparable
injury for which there is no adequate and complete remedy at
law"), or that the "object" of a suit is determined by the
relief deemed appropriate by the trial court after a
determination of liability. Instead, I rely on Rule 1-054(C) to demonstrate that the "object" of Plaintiffs' claim
cannot be determined solely by the demand for judgment in
the complaint. Even accepting the majority's restricted
reading of the complaint in this case, Plaintiffs would
still be able to transform the "object" of their claim by
demonstrating at trial that they have suffered an
irreparable injury for which there is no adequate remedy at
law, thereby invoking the trial court's discretion to award
injunctive relief under Rule 1-054(C). For the three
reasons articulated above, I believe that Plaintiffs'
continuing nuisance claim should be construed as implicating
equitable relief in the form of abatement or injunction for
purposes of assessing the proper venue under Section 38-3-1.
{41}
I conclude that Plaintiffs' nuisance claim has as part
of its object an interest in land within the meaning of
Section 38-3-1(D)(1), making venue proper only in Lea
County. I would therefore affirm the trial court's
dismissal of Plaintiffs' complaint for improper venue. The
majority holding otherwise, I respectfully dissent.
__________________________________
PATRICIO M. SERNA, Chief Justice
I CONCUR:
__________________________________
JOSEPH F. BACA, Justice