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Facts

  • The case involves two separate foreclosure actions initiated by PNC Bank, National Association (Plaintiff) against Christopher N. Rote (Defendant) concerning the same real property. The first action was filed in September 2010, and the second, which is the subject of this appeal, was filed in December 2015. The 2010 action included a complaint for foreclosure against the Defendant and a cross-claim by Los Alamos National Bank (LANB), which was resolved in favor of LANB in August 2015. The Plaintiff was dismissed from the 2010 action for lack of standing in June 2016. The current action seeks to enforce the promissory note and foreclose the mortgage on the property (paras 2-4).

Procedural History

  • September 17, 2010: Plaintiff filed a complaint for foreclosure against Defendant, initiating the 2010 action. LANB also filed a cross-claim against Defendant. The district court granted summary judgment in favor of LANB on August 4, 2015. Plaintiff was later dismissed from the 2010 action for lack of standing on June 1, 2016 (paras 3-4).
  • December 30, 2015: Plaintiff filed another complaint against Defendant and LANB, initiating the current action (para 4).

Parties' Submissions

  • Defendant: Argued that the district court lacked subject matter jurisdiction based on the doctrine of prior exclusive jurisdiction and contended that Plaintiff’s claims were barred by the applicable statute of limitations (para 1).
  • Plaintiff: Sought to enforce the promissory note and foreclose its mortgage on the property. Moved for summary judgment in the current action (para 5).

Legal Issues

  • Whether the district court had subject matter jurisdiction over Plaintiff’s claims in the current action, considering the doctrine of prior exclusive jurisdiction (para 8).
  • Whether Plaintiff’s claims were barred by the statute of limitations (para 22).

Disposition

  • The New Mexico Court of Appeals affirmed the district court's order granting summary judgment in favor of Plaintiff, thereby enforcing the promissory note and allowing foreclosure of the mortgage (para 1).

Reasons

  • The Court of Appeals, per Judge Bogardus, with Judge Duffy concurring in result only and Judge Baca concurring, held that:
    The district court had subject matter jurisdiction over Plaintiff’s claims. The doctrine of prior exclusive jurisdiction did not apply because the district court in the 2010 action did not adjudicate Plaintiff’s claims due to Plaintiff’s lack of standing, and therefore could not have exercised control over the property in relation to Plaintiff’s claims (paras 8-18).
    Plaintiff’s claims were not barred by the statute of limitations. The Court found that service of process may be effected after the statute of limitations has expired if the plaintiff attempts to serve such process with due diligence. The Court concluded that Plaintiff did not abuse its discretion in serving the process, considering Defendant was living overseas and Plaintiff awaited dismissal from the 2010 action before serving the 2015 complaint (paras 22-31).
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