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Facts

  • The case revolves around a dispute over the ownership of a parcel of land in San Juan County, which includes productive oil and gas wells. Initially owned by Herman Hasselman and later passed to his widow and daughters, the property was subjected to a "straw man" transaction in 1951, creating a joint tenancy among the Hasselman Women. Over the years, various actions and agreements involving the property were made, including leases for oil and gas exploration and the distribution of royalties, leading to a legal dispute over whether these actions terminated the joint tenancy and converted it into a tenancy in common (paras 2-9).

Procedural History

  • District Court: Granted Respondents’ motion for summary judgment, determining a valid joint tenancy was created in 1951 and remained intact, passing ultimately to June Hill Walmsley's trust (para 10).
  • Court of Appeals: Affirmed the district court’s determination of title to the Property and vacated a separate order regarding suspension of proceeds from oil and gas wells (para 11).

Parties' Submissions

  • Respondents: Argued that a valid joint tenancy was created in 1951, which remained intact through various actions taken by the Hasselman Women, ultimately passing the estate to June Hill Walmsley and her trust (paras 10-11).
  • Petitioners: Contended that a joint tenancy in the Property never existed or, if it did, was later terminated by the Hasselman Women's course of conduct, converting the tenancy into a tenancy in common (para 11).

Legal Issues

  • Whether a joint tenancy in realty may be terminated and converted into a tenancy in common by a mutual course of conduct between the owners that demonstrates their intent to hold the property as tenants in common (para 1).

Disposition

  • The Supreme Court of New Mexico reversed the Court of Appeals and remanded to the district court for further proceedings (para 35).

Reasons

  • The Supreme Court, per Justice Serna, held that a joint tenancy can be terminated by the owners’ course of conduct, not just by conveyance or express agreement that destroys one of the unities of joint tenancy. This decision was based on a review of common law principles and the recognition that joint tenancy is disfavored in New Mexico law. The Court found that the actions of the Hasselman Women, including their dealings with the property and distribution of royalties, could evidence their mutual understanding and desire to hold the property as tenants in common. The Court concluded that unresolved questions of fact regarding the Hasselman Women's intent and actions made summary judgment inappropriate, necessitating further proceedings to determine the nature of the tenancy (paras 22-35).
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