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Citations - New Mexico Laws and Court Rules
Chapter 53 - Corporations - cited by 1,009 documents

Decision Content

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

  • Blue Canyon Well Association (Blue Canyon) and Denise Jevne are property owners in Santa Fe County involved in a dispute over unpaid water well expenses under a well sharing and easement agreement. Blue Canyon, formed to manage the well, sued Jevne in magistrate court for past due bills, resulting in a judgment for Blue Canyon. Jevne appealed to the district court, challenging Blue Canyon's legal capacity to sue as an unincorporated association (paras 2-3).

Procedural History

  • Magistrate Court: Judgment awarded to Blue Canyon for $2,600.00 in damages and $6,697.02 in attorney fees (para 2).
  • District Court of Santa Fe County: Denied motion to amend the caption to substitute individual names for Blue Canyon, held Blue Canyon as a legal entity with the capacity to sue and be sued, and entered judgment in favor of Blue Canyon (paras 3, 5).

Parties' Submissions

  • Blue Canyon: Argued it was entitled to bring the suit as an unincorporated association and that compliance with statutory requirements for forming such an association was permissive, not mandatory (para 7).
  • Denise Jevne: Initially recognized Blue Canyon’s status but later argued that Blue Canyon was a non-existent entity due to non-compliance with statutory requirements for forming an unincorporated association, thus lacking the capacity to sue (paras 3-4).

Legal Issues

  • Whether Blue Canyon, as an unincorporated association, had the legal capacity to sue Denise Jevne without complying with the statutory requirements for forming an unincorporated association under NMSA 1978, Section 53-10-1 (1937) (para 1).

Disposition

  • The Court of Appeals reversed the district court's judgment in favor of Blue Canyon and remanded the case for further proceedings, holding that Blue Canyon lacked the legal capacity to sue Jevne due to non-compliance with statutory requirements (para 20).

Reasons

  • Per Vargas, J. (Sutin and Hanisee, JJ., concurring): The Court held that Blue Canyon's capacity to sue as an unincorporated association depended on its compliance with statutory requirements, which it failed to meet. The Court interpreted NMSA 1978, Section 53-10-1 (1937) as mandating the filing of statutory documents to form an unincorporated association, contrary to Blue Canyon's argument that such filing was permissive. The Court further noted that New Mexico law does not recognize the legal capacity of common law unincorporated associations to sue unless they are statutorily created. Since Blue Canyon did not file the required documents, it was not considered an unincorporated association under the statute and, therefore, lacked the legal capacity to sue Jevne (paras 7-19).
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