A-1-CA-38713•May 10, 2021- Edwin Wilson v. Berger Briggs Real Estate & Insurance, No. A-1-CA-38713
May 10, 2021- Edwin Wilson v. Berger Briggs Real Estate & Insurance, No. A-1-CA-38713
A-1-CA-38713Nmctapp
Gesamter Gesetzestext
Corrections to this opinion/decision not affecting the outcome, at the Court's discretion, can occur up to the time of publication with NM Compilation Commission. The Court will ensure that the electronic version of this opinion/decision is updated accordingly in Odyssey. IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO 1 Opinion Number: ________________ 2 Filing Date: MAY 10, 2021 3 No. A-1-CA-38713 4 EDWIN WILSON, 5 Plaintiff-Appellee, 6 v. 7 BERGER BRIGGS REAL ESTATE 8 & INSURANCE, INC.; PAM MUZZI; 9 TRUDY BEST; and MARY JO 10 DAWSON, 11 Defendants-Appellants, 12 and 13 CSU PRODUCER RESOURCES, INC. 14 and CINCINNATI SPECIALITY 15 UNDERWRITERS INSURANCE 16 COMPANY, 17 Defendants. 18 APPEAL FROM THE DISTRICT COURT OF SANDOVAL COUNTY 19 John F. Davis, District Judge 20 Law Office of Geoffrey R. Romero 21 Geoffrey R. Romero 22 Albuquerque, NM 23 Court of Appeals of New Mexico Filed 5/10/2021 11:41 AM
Bencoe & Lacour Law P.C. 1 Lori Bencoe 2 Cherie LaCour 3 Albuquerque, NM 4 Martinez, Hart, Thompson & Sanchez, P.C. 5 Julio C. Romero 6 Bruce E. Thompson 7 Albuquerque, NM 8 for Appellee 9 Butt Thornton & Baehr PC 10 James H. Johansen 11 Jane A. Laflin 12 Felicia C. Boyd 13 Albuquerque, NM 14 Madison, Mroz, Steinman, Kenny & Olexy, P.A. 15 Gregory D. Steinman 16 Albuquerque, NM 17 for Appellants 18
OPINION 1
HANISEE, Chief Judge. 2
{1} In this interlocutory appeal, we are asked by Berger Briggs Real Estate & 3
Insurance, Inc. (Berger Briggs) to resolve the validity of an assignment of claims 4
arising from an agreement to procure general liability insurance on behalf of The 5
Improved Benevolent Protective Order of the Elks of the World Albuquerque 6
Navajo Lodge #863 (the Lodge). Berger Briggs appeals from the denial of its motion 7
for summary judgment on all claims due to unassignability. Berger Briggs contends 8
that Plaintiff Edwin Wilson (Wilson), to whom the Lodge assigned its claims against 9
Berger Briggs, is precluded as a matter of New Mexico law and policy from asserting 10
claims against Berger Briggs. We affirm. 11
BACKGROUND 12
{2} On February 14, 2015, Wilson attended a comedy show at the Lodge. During 13
the performance, an altercation broke out between two patrons. A person with the 14
performing group discharged a firearm at the crowd, striking Wilson and causing 15
traumatic injury to his spine, which rendered him paralyzed below the waist. 16
{3} In August 2012, two-and-a-half years prior to the shooting, the Lodge’s 17
representative, L.C. Gray, approached Berger Briggs to procure a general liability 18
policy. Gray met with Defendant Pam Muzzi, an employee of Berger Briggs, to 19
discuss the Lodge’s specific needs in its general liability policy. While Gray 202
contends that she told Muzzi that the Lodge “needed coverage for anything that 1
happened in the Lodge,” Muzzi asserts that Gray told her that the Lodge could not 2
afford an expensive policy and did not seek coverage for assaults and batteries that 3
might take place at the Lodge. Muzzi procured a quote from Cincinnati Specialty 4
Underwriters Insurance Company (Cincinnati Specialty) for $2,291.82 for general 5
liability coverage, which contained exclusions for assault, battery, and firearm 6
coverage. The Lodge entered into a general liability policy with Cincinnati Specialty 7
with these exclusions, effective August 23, 2014. 8
{4} On May 26, 2015, Wilson filed a complaint for personal injuries and damages 9
against the Lodge and others in the Second Judicial District Court for claims related 10
to the shooting. On July 22, 2015, Cincinnati Specialty filed a declaratory action 11
against the Lodge in federal district court. On November 23, 2015, that court issued 12
a memorandum opinion and order finding that the policy procured by Berger Briggs 13
did not provide coverage to the Lodge for Wilson’s injuries and ordered default 14
judgment against the Lodge. Back in state district court on February 22, 2016, the 15
Lodge stipulated to liability and assigned to Wilson all claims it had against Berger 16
Briggs and all related insuring entities, including commercial tort claims, statutory 17
violations, and breaches of contract. On August 1, 2016, the state district court held 18
an evidentiary hearing and entered a judgment, awarding damages in the amount of 19
$14,502,807.69 to Wilson. Thereafter and pursuant to the assignment, Wilson filed 203
suit against Berger Briggs, Cincinnati Specialty, and others, also in the Second 1
Judicial District, alleging as to Berger Briggs negligent failures to procure insurance 2
coverage and inform, negligent misrepresentation, along with breaches of contract, 3
fiduciary duties, and the Unfair Trade Practices Act. 4
{5} On December 4, 2018, Berger Briggs filed its “Motion and Memorandum for 5
Summary Judgment on All Claims Due to Unassignability,” in which Berger Briggs 6
asserted that the claims are unassignable because they are personal injury claims. On 7
April 24, 2019, the district court held a hearing on the motion for summary judgment, 8
and on July 16, 2019, entered an order denying Berger Briggs’ motion for summary 9
judgment. Berger Briggs filed a motion to reconsider, which the district court denied, 10
or alternatively a motion to certify the entire order denying Berger Briggs’ motion 11
for summary judgment for interlocutory appeal. The district court attached the 12
entirety of its July 16, 2019, order as Exhibit A to its order certifying questions of 13
assignability for interlocutory appeal. On March 31, 2020, we granted Berger 14
Briggs’ application for interlocutory appeal. 15
DISCUSSION 16
I. The Lodge’s Commercial Tort, Breach of Contract, and Statutory 17
Violation Claims Were Validly Assigned to Wilson 18
{6} On appeal, Berger Briggs requests that we reverse the denial of its motion for 19
summary judgment and raises four issues. First, it asserts that the claims are personal 20
and, therefore, the assignment is invalid as a matter of New Mexico law and policy. 214
Second, it argues that there is no assignable contract between itself and the Lodge. 1
Third, it asserts that the Unfair Practices Act (UPA) prohibits the claims from being 2
assigned. Finally, Berger Briggs argues that, contrary to the district court’s findings, 3
the Uniform Commercial Code (UCC) does not demonstrate a policy in favor of the 4
purported assignment. Wilson answers that the Lodge’s claims against Berger 5
Briggs, which included claims of negligent failure to procure the requested coverage, 6
negligent misrepresentation, and breach of contract, are contract and commercial tort 7
claims and thus assignable. For the reasons that follow, we hold that under New 8
Mexico law, the claims at issue are commercial in nature, were validly assigned to 9
Wilson, and therefore Wilson is not barred from asserting such claims against Berger 10
Briggs. 11
Standard of Review 12
{7} Berger Briggs’ appeal from the “denial of a motion for summary judgment 13
presents a question of law. We therefore review de novo the [district] court’s denial 14
of summary judgment.” Bartlett v. Mirabal, 2000-NMCA-036, ¶ 4, 128 N.M. 830, 15
999 P.2d 1062. “Summary judgment is proper if there are no genuine issues of 16
material fact and the movant is entitled to judgment as a matter of law.” Noice v. 17
BNSF Ry. Co., 2015-NMCA-054, ¶ 5, 348 P.3d 1043 (internal quotation marks and 18
citation omitted). “The movant must make a prima facie showing of entitlement to 19
summary judgment. Then, the burden shifts to the party opposing the motion to 205
demonstrate the existence of specific evidentiary facts which would require trial on 1
the merits.” Id. (internal quotation marks and citations omitted). “If the facts are not 2
in dispute, and only their legal effects remain to be determined, summary judgment 3
is proper.” Roth v. Thompson, 1992-NMSC-011, ¶ 17, 113 N.M. 331, 825 P.2d 1241. 4
A. The Lodge’s Claims Against Berger Briggs Are Not Personal Tort Claims 5
{8} In New Mexico, personal injury claims are not assignable, yet our 6
jurisprudence suggests commercial disputes are. See Quality Chiropractic, PC v. 7
Farmers Ins. Co. of Ariz., 2002-NMCA-080, ¶ 8, 132 N.M. 518, 51 P.3d 1172. In 8
Quality Chiropractic, this Court explained the common law rationale behind this 9
distinction to reflect concern that the “assignment of personal injury claims would 10
lead to unscrupulous trafficking in litigation as a commodity.” Id. ¶ 10. In 11
disallowing assignment of a claim for personal injury, Quality Chiropractic agreed 12
with the Indiana Supreme Court, which prohibited the assignment of tort suits 13
growing more generally out of “wrongs done to the person, reputation, or feelings 14
of the injured party” while recognizing that “[c]ontract-based choses in action have 15
been deemed assignable, except for [those] which are purely personal in nature (like 16
marriage contracts).” Picadilly, Inc. v. Raikos, 582 N.E.2d 338, 340 (Ind. 1991), 17
abrogated on other grounds by Liggett v. Young, 877 N.E.2d 178, 183 (Ind. 2007). 18
As yet, neither law nor jurisprudence in New Mexico has evolved to permit the 19
assignment of personal causes of action or directly held that claims of a commercial 206
nature are indeed assignable. 1 Berger Briggs asserts that “all of [the Lodge]’s claims 1
are personal in nature and cannot be assigned to Wilson as a matter of law” because 2
“[c]ontrary to the [d]istrict [c]ourt’s finding, New Mexico law and public policy 3
prevent the assignment of claims asserted in this case.” Wilson answers that the 4
district court correctly recognized Wilson’s claims as “well settled claims arising in 5
commercial tort and breach of contract” against insurance agents or brokers. 6
{9} We begin with Wilson’s arguments, which are consistent with the district 7
court’s ruling. Wilson is first correct that New Mexico allows claims in tort against 8
insurance agents or brokers, such as those at issue here. For instance, New Mexico 9
law permits an insured to sue an agent for failing to obtain a requested policy. See 10
Topmiller v. Cain, 1983-NMCA-005, ¶ 12, 99 N.M. 311, 657 P.2d 638 (stating that 11
“[i]t seems to be well settled that an insurance agent or broker who undertakes to 12
1A number of jurisdictions have altogether abandoned the common law rule
and allow the assignment of any cause of action. See, e.g., Red Giant Oil Co. v.
Lawlor, 528 N.W.2d 524, 533 (Iowa 1995) (holding that “because insurers have
available to them a variety of defenses . . . we fail to see why legally it should make
any difference who sues the insurer—the insured or the insured’s assignee”); see
also Professor Louis F. Del Duca, Commercial Tort Claims Come Into Focus-
Hurdles and Hoops, 45 No. 2 UCC L. J., art. 2 (2013) (the Committee stated that it
“sees little reason to continue the general exclusion of tort claims that are otherwise
assignable under non-UCC law” (internal quotation marks and citation omitted))
citing Uniform Commercial Code Article 9: Report, 1992 ALI and Nat. Conf. of
Commissioners on Uniform State Laws. But as we observed in Quality Chiropractic,
our view is that in New Mexico, “the [L]egislature is in the best position to address
. . . and . . . consider the competing policy interests” regarding the assignability of
personal injury claims. 2002-NMCA-080, ¶ 33.7
provide insurance for another, and through his own fault or neglect, fails to do so, is 1
liable” (internal quotation marks and citation omitted)). “[L]iability may be 2
predicated either upon the theory that [the] defendant is the agent of the insured and 3
has breached a contract to procure a policy of insurance, or that he owes a duty to 4
his principal to exercise reasonable skill, care, and diligence in securing the 5
insurance requested and negligently failed to do so.” Sanchez v. Martinez, 1982- 6
NMCA-168, ¶ 14, 99 N.M. 66, 653 P.2d 897. “An agent who agrees to procure or 7
renew an expired policy of insurance has a duty to either obtain the insurance, renew 8
or replace the policy, or seasonably notify the principal that he is unable to do so in 9
order that the principal may obtain insurance elsewhere.” Id. ¶ 15. A suit for 10
negligence may be predicated upon either an express or implied agreement between 11
the parties. See id. 12
1. Commercial Tort Claims 13
{10} Given that the Lodge can assert claims against Berger Briggs under New 14
Mexico law, Wilson next contends that the assignment of those claims by the Lodge 15
to him is proper, an argument he contends to be “bolstered by several New Mexico 16
appellate court opinions.” Although none of the cases cited by Wilson directly 17
upheld the assignability of a commercial tort claim, they nonetheless demonstrate 18
the assignability of such claims in New Mexico. For instance, in Dove v. State Farm 19
Fire & Casualty Co., this Court recognized an insured property owner’s assignment 208 of “all rights, claims and causes of action, together with the proceeds therefrom” to 1 a tenant who was injured while performing maintenance work on the property, for 2 the failure of the insuring defendant “to defend and/or indemnify” the property 3 owner for the tenant’s injuries. 2017-NMCA-051, ¶¶ 7, 24, 399 P.3d 400 (internal 4 quotation marks omitted). In Truck Insurance Exchange v. Gagnon, we resolved an 5 underlying scope of commercial insurance coverage question following assignment 6 of the defendants’ claims against an insurer to the plaintiff who had been sexually 7 harassed at work and with whom the defendants had reached a settlement agreement. 8 2001-NMCA-092, ¶¶ 1-3, 131 N.M. 151, 33 P.3d 901. Both opinions are consistent 9 with that recognized, but not directly held in Quality Chiropractic. See 2002- 10 NMCA-080, ¶ 8 (observing that as the common law rule prohibiting assignment 11 “became unworkable, courts carved out exceptions, and eventually allowed 12 assignments in commercial disputes”). More directly, in Brown v. Gray, 227 F.3d 13 1278, 1294-95 (10th Cir. 2000), the Tenth Circuit Court of Appeals determined that 14 an assignment of a defendant police officer’s claim for defense costs to a plaintiff 15 shooting a victim was valid under Colorado law, which “generally favors the 16 assignment of rights pursuant to a valid contractual arrangement[,]” noting that 17 “[a]ssignment in this circumstance does not encourage unjustified suits.” 18
9
2. Personal Tort Claims 1
{11} Citing cases that held personal injury claims were unassignable, Berger Briggs 2
argues that the claims assigned to Wilson are personal and therefore unassignable. 3
Importantly, Berger Briggs points to no authority that prohibits the assignment of 4
claims arising from interactions that led to commercial contracts, much less claims 5
based on contracts themselves, nor does it meaningfully explain how the claims at 6
issue are either “personal injury” or “personal” claims. “Where a party cites no 7
authority to support an argument, we may assume no such authority exists.” Curry 8
v. Great Nw. Ins. Co., 2014-NMCA-031, ¶ 28, 320 P.3d 482. Rather, Berger Briggs 9
points only to Quality Chiropractic, which upheld the disallowance of an assignment 10
of a chiropractic clinic patient’s personal injury claims arising from a car accident 11
given our refusal to “abrogate the common law rule prohibiting the assignment of 12
personal injury claims[.]” 2002-NMCA-080, ¶¶ 1, 36. To reiterate, in Quality 13
Chiropractic we agreed with the defendant that “allowing injured tort victims to 14
assign . . . their personal injury claims could add unnecessary complications to the 15
settlement of relatively straightforward cases.” Id. ¶ 25. Although Berger Briggs 16
aptly points out that we did not allow the assignment at issue in Quality Chiropractic, 17
we determine the claims at issue here not to be personal injury or other personal tort 18
claims, but to fall squarely within the category of commercial tort claims. 1910
{12} The agreement between the Lodge and Wilson states: 1
28. In consideration for the assignment of [the Lodge’s] rights and 2
causes of action which [the Lodge] may have against Berger Briggs . . . 3
for liability incurred to [the Lodge] as a result of failure to procure 4
proper coverage, failure to advise of material exclusions to coverage, 5
breach of fiduciary duty, or any other causes of action which [the 6
Lodge] may have against Berger Briggs and/or any of its agents, 7
employees or representatives. 8
Importantly, the claims assigned by the Lodge to Wilson included those 9
. . . related to insurance coverage, breach of contract, breach of the duty 10
to defend, breach of the duty to pay, breach of the duty to settle, other 11
bad faith insurances practices of any kind, statutory violations, unfair 12
claims or trade practices, negligence, misrepresentation, failure to 13
procure proper coverage, failure to advise of material exclusions to 14
coverage, breach of fiduciary duty, compensatory and punitive 15
damages, attorney[] fees and interest. 16
Consistent with the language of the agreement, the claims brought by Wilson 17
herein—including negligent failures to procure insurance coverage and inform, 18
negligent misrepresentation, along with breaches of contract, fiduciary duty, and the 19
UPA—all arise from the business relationship of the Lodge and its agent, Berger 20
Briggs, and in no way relate to claims for personal injuries or violation of purely 21
personal rights caused by that relationship. Rather, each claim wholly arose from an 22
agreement between the Lodge, who requested that Berger Briggs procure a general 23
liability policy on its behalf, and Berger Briggs, who obtained insurance quotes and 24
assisted the Lodge with obtaining the policy it sought. The relationship between the 25
Lodge and Berger Briggs was little more than an arm’s length commercial 2611
transaction between two businesses. Indeed, Wilson suffered personal injury at the 1
hands of the underlying tortfeasor, who is not a party to this litigation, and the Lodge, 2
against whom Wilson procured a personal injury judgment. We reject Berger Briggs’ 3
contention that Wilson’s claims against it allege tortious conduct of a personal 4
nature. 5
{13} Berger Briggs next argues that the claims assigned to Wilson arose under 6
personal service contracts, which it contends are unassignable. Pointing out that 7
“personal wrongs and contracts of a personal nature involving confidence, skill, and 8
others of like nature” are not assignable under Parker v. Beasley, 1936-NMSC-004, 9
¶ 10, 40 N.M. 68, 54 P.2d 687, Berger Briggs likens the nature of the relationship 10
between itself and the Lodge to an employment contract. Indeed, our jurisprudence 11
continues to recognize that personal service contracts may be assignable only with 12
consent. See generally Campbell v. Millennium Ventures, LLC, 2002-NMCA-101, 13
¶ 22, 132 N.M. 733, 55 P.3d 429 (concluding that an employment agreement with a 14
non-solicitation clause was assignable with consent of the parties to the assignment). 15
But unlike personal service contracts, Berger Briggs’ business relationships with its 16
clients do not entail the sort of contracted-for personal qualities or skills that would 17
prohibit assignability of a cause of action arising therefrom. See id. ¶ 2 (involving 18
an employment agreement whereby the plaintiff was hired to sell insurance on behalf 19
of the defendant); see also Baker v. Conoco Pipeline Co., 280 F. Supp. 2d 1285, 2012
1295-96 (N.D. Okla. 2003) (providing examples of duties “too personal in character” 1
to permit assignment, including “a contract to furnish an abstract of title; a contract 2
to render professional services as a physician, lawyer, or architect . . . a contract of 3
entrustment of funds or property of another”). 4
{14} Because we agree with the district court that none of the causes of action 5
brought by Wilson against Berger Briggs state injuries or claims of a personal nature, 6
but are instead commercial in nature, and our jurisprudence suggests and common 7
law establishes that such commercial claims are assignable, we conclude there to be 8
no error in the district court ruling in this regard and hold that commercial claims of 9
the nature at issue in this case are assignable. 10
B. The Lodge’s Claims Against Berger Briggs Were Commercial Claims 11
Arising Under Contract 12
{15} Citing little more than the committee commentary to UJI 13-818 NMRA 13
(governing transfers of rights and duties under a contract), which states that 14
generally the term “ ‘assignment’ refers only to rights or interests under a contract[,]” 15
Berger Briggs asserts that in addition to the claims brought by Wilson being 16
commercial in nature, there must have been a contract between Berger Briggs and 17
the Lodge, absent which “there can be no assignment arising under a contract.” But 18
the sole direct authority Berger Briggs cites for this proposition—UJI 13-818— 19
states no such thing; rather, it instructs in circumstances where an assignment is 20
made under an existing contract. The UJI does not purport to address all assignments 2113
in law or require that an underpinning contract is a prerequisite for a commercial 1
claim to be validly assigned. We assume that after diligent search Berger Briggs was 2
unable to find supportive authority for the expansive application of UJI 13-818 it 3
seeks. “We assume where arguments in briefs are unsupported by cited authority, 4
counsel after diligent search, was unable to find any supporting authority.” In re 5
Adoption of Doe, 1984-NMSC-024, ¶ 2, 100 N.M. 764, 676 P.2d 1329. Nonetheless, 6
and given both that the common law first carved its exception for claim assignability 7
in circumstances of contract, see Picadilly, Inc., 582 N.E.2d at 340 (stating that 8
“[t]he chose in action based on contract was the first to become assignable, primarily 9
out of economic necessity”), and that most commercial interactions indeed involve 10
contracts between parties, we address whether a contract existed between Berger 11
Briggs and the Lodge. 12
{16} “A contract is a legally enforceable promise.” Nance v. L.J. Dolloff Assocs., 13
2006-NMCA-012, ¶ 19, 138 N.M. 851, 126 P.3d 1215. “Ordinarily, to be legally 14
enforceable, a contract must be factually supported by an offer, an acceptance, 15
consideration, and mutual assent.” Garcia v. Middle Rio Grande Conservancy Dist., 16
1996-NMSC-029, ¶ 9, 121 N.M. 728, 918 P.2d 7 (internal quotation marks and 17
citation omitted). “Consideration consists of a promise to do something that a party 18
is under no legal obligation to do or to forbear from doing something he has a legal 19
right to do.” Luginbuhl v. City of Gallup, 2013-NMCA-053, ¶ 15, 302 P.3d 751 2014
(internal quotation marks and citation omitted). We have previously stated that 1
“evidence of custom or course of conduct between the parties may give rise to a 2
contract implied in fact.” Orion Tech. Res., LLC v. Los Alamos Nat’l Sec., LLC, 3
2012-NMCA-097, ¶ 10, 287 P.3d 967 (alteration, internal quotation marks, and 4
citation omitted). Our courts may consider written representations, oral 5
representations, the conduct of the parties, or a combination of the representations 6
and conduct to determine the existence of an implied-in-fact contract. See Garcia, 7
1996-NMSC-029, ¶ 10. “Whether an implied-in-fact contract arises from the 8
representations of the parties is dependent on whether the representations create a 9
reasonable expectation of contractual rights.” Orion, 2012-NMCA-097, ¶ 10. 10
{17} In arguing that there was no contract between itself and the Lodge and that 11
there must be, Berger Briggs relies on Porter v. Butte Farmers Mutual Insurance 12
Co., in which our Supreme Court determined that an application by a person seeking 13
insurance is a “mere offer or proposal” and “before the contract of insurance is 14
effected and any contractual relationship exists between the parties, it is necessary 15
that the application be accepted by the insurer[.]” 1961-NMSC-028, ¶ 14, 68 N.M. 16
175, 360 P.2d 372 (per curiam). But Porter addresses the question of whether a 17
contact existed between a claimed insured and an insurer, which in this case would 18
be an analysis more applicable to an inquiry as to whether there was a contract 1915 between the Lodge and its insurance provider—Cincinnati Specialty.2 But that is not 1 the question presented in this case; rather, as Berger Briggs itself argues the question 2 is whether there was a contract between Berger Briggs and the Lodge. To answer 3 this, we must resolve whether the arrangement between Berger Briggs and the 4 Lodge, under which Berger Briggs agreed to procure quotes from insurance 5 companies and assist the Lodge in entering into a contract with an insurer that would 6 then provide a new insurance policy, was an implied-in-fact contract. While neither 7 party provides evidence of a written contract, nor cites to where in the record a 8 written contract exists, the very nature of Berger Briggs’ business requires it to enter 9 into agreements with insurance policy seekers, under which Berger Briggs procures 10 insurance policies that meet its clients’ needs and assists them in acquiring such 11 policies. As argued by Wilson and determined by the district court, we conclude 12 2After determining that this case involves an assignment arising under a contract, the district court explained “[t]here is a strong public policy in New Mexico to promote ethical claims handling by insurance carriers and their employees and agents.” Berger Briggs asserts that “[i]t is apparent that the [district c]ourt confused [Berger Briggs] and [Cincinnati Specialty]” and contends that the Lodge’s assignment of its claims to Wilson “is distinguishable from any assignment of bad faith claims made under a valid written policy of insurance for which there is coverage.” See Dydek v. Dydek, 2012-NMCA-088, ¶ 69, 288 P.3d 872 (holding that NMSA 1978, Section 59A-16-30 (1990), which permits the recovery of actual damages in bad faith causes of action against insurance companies, applied to a third-party claimant). While Berger Briggs is correct that the assignment at issue is unlike the assignment of a bad faith cause of action in exchange for release of liability, neither the Lodge nor Wilson asserts a claim of bad faith against Berger Briggs.
16
there to be an implied-in-fact contract between the Lodge and Berger Briggs for the 1
procurement of insurance quotes. 2
{18} The distinction between an express and an implied contract involves “no 3
difference in legal effect, but lies merely in the mode of manifesting assent.” 4
Restatement (Second) of Contracts: How a Promise May Be Made § 4 cmt. a (1981). 5
Implied-in-fact contracts are “founded upon a meeting of minds, which, although 6
not embodied in an express contract, is inferred, as a fact, from conduct of the parties 7
showing, in the light of the surrounding circumstances, their tacit understanding.” 8
Hercules, Inc. v. United States, 516 U.S. 417, 424 (1996) (internal quotation marks 9
and citation omitted); 1 Williston on Contracts: Express Contracts Including 10
Contracts Inferred or Implied in Fact § 1:5 (4th ed. 2012) (stating “intention to make 11
a promise may be manifested in language or by implication from other 12
circumstances, including the parties’ course of dealing or course of performance, or 13
a usage of trade”). We have previously stated that “[e]vidence of custom or course 14
of conduct between the parties may give rise to a contract implied in fact.” Sanchez, 15
1982-NMCA-168, ¶ 15. “Our courts will also look to written representations, oral 16
representations, the conduct of the parties, or a combination of representations and 17
conduct to determine whether an implied-in-fact contract exists.” Orion, 2012- 18
NMCA-097, ¶ 10 (alteration, omissions, internal quotation marks, and citation 19
omitted). Whether an implied-in-fact contract arises from the representations of the 2017
parties is dependent on whether the representations create a reasonable expectation 1
of contractual rights. See Garcia, 1996-NMSC-029, ¶ 11. “The reasonableness of 2
expectations is measured by just how definite, specific, or explicit . . . the 3
representation or conduct relied upon” has been. Hartbarger v. Frank Paxton Co., 4
1993-NMSC-029, ¶ 14, 115 N.M. 665, 857 P.2d 776. 5
{19} Here, an agreement implied in fact between the Lodge and Berger Briggs is 6
inferred by the parties’ meeting of the minds in August 2012, where the Lodge 7
sought assistance from Berger Briggs in its effort to procure a general liability 8
insurance policy. More specifically, the Lodge’s representative, Gray, approached 9
Berger Briggs and requested help obtaining a new insurance policy, after which 10
Berger Briggs’ representative, Muzzi, presented two quotes to Gray. After their 11
initial meeting, Gray and Muzzi continued to correspond regularly via email 12
regarding the Lodge’s need for an insurance policy. Berger Briggs was also paid a 13
fee in exchange for the services it provided the Lodge. Moreover, by the nature of 14
its business as an insurance agency, Berger Briggs impliedly contracts with its 15
clients to negotiate with insurance companies and acquire insurance policies on their 16
behalf. See Gordon v. N.M. Title Co., 1966-NMSC-263, ¶ 6, 77 N.M. 217, 421 P.2d 17
433 (stating “by the very nature of the title insurance business, the New Mexico Title 18
Company agreed that they would make a thorough investigation . . . into the 19
existence or non-existence of liens under the laws of New Mexico” (internal 2018
quotation marks omitted)); see also Sanchez, 1982-NMCA-168, ¶ 15 (determining 1
that an insurance agent’s liability may be premised upon an express or implied 2
agreement). 3
{20} While Berger Briggs cites Porter, 1961-NMSC-028, ¶ 14, for the proposition 4
that in New Mexico, “the process for obtaining insurance, ‘is not the contract but is 5
a mere offer or proposal for a contract of insurance,’ ” asserting that “there is no 6
contract between [the Lodge] and Berger[]Briggs based solely on the procuring 7
insurance,” Porter considered a relationship between an insurer and an insured and 8
affirmed a district court’s conclusion that insurance policies that had been in place 9
between the parties had expired. Id. ¶¶ 6, 27. Such is, in our view, altogether different 10
than that of the relationship between an agency, such as Berger Briggs, engaged in 11
the altogether different practice of procuring insurance for its clients, such as the 12
Lodge, in exchange for a fee separate and apart from that later paid by the same 13
client to an insurer in exchange for insurance. 14
{21} Under this circumstance—a business relationship in which one entity sought 15
from another that which was the other’s specialty and paid for the service provided 16
in exchange for that specialization, we conclude that an implied-in-fact contract 17
existed between the Lodge and Berger Briggs. See Orion, 2012-NMCA-097, ¶¶ 19, 18
26 (holding that an implied-in-fact contract arose when the solicitor made 19
representations regarding bid selection and the bidder reasonably relied on such 2019
representations); Whittington v. State Dep’t of Pub. Safety, 2004-NMCA-124, ¶ 10, 1
136 N.M. 503, 100 P.3d 209 (holding that the employee manual created an implied 2
contract governing the terms of employment); see also Plan. & Design Sols. v. City 3
of Santa Fe, 1994-NMSC-112, ¶ 27, 118 N.M. 707, 885 P.2d 628 (holding that in 4
requesting bids for a proposed development, the city entered enter into an implied 5
contract that it would fairly consider each bid). We hold that the Lodge’s commercial 6
claims assigned to Wilson arose from an implied-in-fact contract between the Lodge 7
and Berger Briggs. 8
C. Wilson Has Standing to Allege UPA Claims 9
{22} Berger Briggs argues that “[c]ontrary to the [d]istrict [c]ourt’s [o]rder, the 10
UPA claims are not assignable.” It argues that “[t]he UPA is a consumer protection 11
law and, therefore, ‘gives standing only to buyers and sellers of goods and 12
services.’ ” (Quoting Hicks v. Eller, 2012-NMCA-061, ¶ 20, 280 P.3d 304.) Wilson 13
answers that such a limitation is not found within the UPA, and if the Legislature 14
intended to include such a limitation it would have done so within the text of the 15
UPA. 16
{23} The UPA makes it unlawful to employ “[u]nfair or deceptive trade practices 17
. . . in the conduct of any trade or commerce.” NMSA 1978, § 57-12-3 (1971); see 18
also NMSA 1978, § 57-12-2(C) (2019) (defining “trade” or “commerce” to include 19
“the advertising, offering for sale or distribution of any services and any property 2020
and any other article, commodity or thing of value, including any trade or commerce 1
directly or indirectly affecting the people of this state”). “Any person who suffers 2
any loss of money or property . . . as a result of any employment by another person 3
of a method, act or practice declared unlawful by the [UPA] may bring an action to 4
recover actual damages[.]” NMSA 1978, § 57-12-10(B) (2005). Its fundamental 5
purpose is to protect consumers from unscrupulous business practices regardless of 6
whether those consumers are directly or indirectly affected. See § 57-12-2(C). 7
Because “the UPA constitutes remedial legislation, we interpret the provisions of 8
[the] Act liberally to facilitate and accomplish its purposes and intent.” Truong v. 9
Allstate Ins. Co., 2010-NMSC-009, ¶ 30, 147 N.M. 583, 227 P.3d 73 (internal 10
quotation marks and citation omitted). “It is the task of the courts to ensure that the 11
[UPA] lends the protection of its broad application to innocent consumers.” State ex 12
rel. King v. B & B Inv. Grp., Inc., 2014-NMSC-024, ¶ 48, 329 P.3d 658 (internal 13
quotation marks and citation omitted). 14
{24} Relying on Williams v. Foremost Insurance Co., 102 F. Supp. 3d 1230 15
(D.N.M. 2015), Berger Briggs argues that UPA claims are limited to actual 16
consumers of goods and services. In Williams, the federal district court of New 17
Mexico held that an insured homeowner’s houseguest, who brought a putative class 18
action against homeowner’s insurer, alleging that the insurer violated New Mexico 19
law by interviewing her too soon after her injury, could not pursue a UPA claim 2021
against the insurer. Id. at 1233, 1247. The court explained that the plaintiff’s UPA 1
claims were invalid “because New Mexico law currently restricts UPA claims to 2
actual consumers of goods and services, and relevant law provides no basis to 3
expand the UPA to give standing to a non-consumer third-party claimant like [the 4
plaintiff].” Id. at 1247. Moreover, in Williams, the federal district court noted that 5
“[a]lthough the UPA may allow claims against insurers in some circumstances, the 6
plaintiff must show that the statement was made or the offending act or practice was 7
committed in connection with the sale of the insurance.” Id. at 1240 (alteration, 8
emphasis, internal quotation marks, and citation omitted). 9
{25} Berger Briggs asserts that, like the plaintiff in Williams, Wilson did not 10
purchase any goods or services and “therefore, has no direct or assignable right 11
against Berger[]Briggs” for a UPA claim. Wilson answers that while the plaintiff in 12
Williams had only third-party claims against the insurer, because the claims were 13
assigned to him, Wilson has direct claims against Berger Briggs. As the assignee of 14
the Lodge’s claims, Wilson argues, he stands in its shoes and can allege the same 15
UPA claims that the Lodge could have asserted against Berger Briggs. We agree. 16
{26} To begin with the plain language of the statue, we note that the definition of 17
“unfair or deceptive trade practice” makes no mention of transactions between a 18
claimant and a defendant. See § 57-12-2(D). Nor does it require a misrepresentation 19
in the course of a sale between plaintiff and defendant; it merely requires that a 2022 misrepresentation be “made in connection with the sale . . . of goods.” Id. (emphasis 1 added). A UPA claimant may also be affected indirectly. See § 57-12-2(C). These 2 provisions appear to be crafted so as to ensure that the UPA is applied broadly. See 3 Lohman v. Daimler-Chrysler Corp., 2007-NMCA-100, ¶ 30, 142 N.M. 437, 166 4 P.3d 1091. Our holding is also not inconsistent with that in Williams. Unlike in 5 Williams, Wilson is not a non-consumer third party. Rather, Wilson was assigned 6 the Lodge’s UPA claims. As the assignee to the Lodge’s claims, Wilson raises 7 claims relating to statements made “in connection with the sale of the insurance.” 8 Williams, 102 F. Supp. 3d at 1240 (emphasis, internal quotation marks, and citation 9 omitted). For these reasons, and given our prior determination that the assigned 10 claims are commercial in nature, we conclude that Wilson has standing to allege 11 claims under the UPA.3 12 3Given our rulings as to assignability and the existence of a contract between the Lodge and Berger Briggs, we decline to resolve the parties’ disagreement as to whether the UCC does or does not demonstrate a public policy in favor of the assignment. Although the district court stated its belief that the UCC favors such assignment, and in doing so cited to NMSA 1978, Section 55-9-109(d)(2) (2001), such is not necessary to our ruling today. We note that the UCC appears to permit the assignment of commercial tort claims. Section 55-9-109(d)(12) expressly prohibits the assignment of “claim[s] arising in tort, other than a commercial tort claim.” (Emphasis added.) We have held that Wilson’s claims fit within the definition of a “commercial tort claim.” While the claims assigned to Wilson did not arise in conjunction with his own business or profession, they arose in the course of the Lodge’s business, which sought to enter into a new general liability insurance policy and relied on the procurement services provided by Berger Briggs in doing so. We reiterate that, as the assignee to the claims, Wilson stands in the shoes of the Lodge and is permitted to bring validly assigned commercial tort claims.
23
II. Berger Briggs’ Arguments on Fiduciary Duty and Reasonable 1
Expectation of Coverage or Damages Claims Were Not Decided Upon or 2
Certified by the District Court 3
{27} Wilson contends that because the district court never decided or certified 4
Berger Briggs’ arguments on fiduciary duty or reasonable expectation of damages, 5
those issues are not within the scope of this appeal. Specifically, Wilson argues that 6
the “[d]istrict [c]ourt expressly rejected [Berger Briggs]’ request that it certify all 7
issues raised in the [m]otion for [s]ummary [j]udgment when the [district c]ourt 8
rejected their form of [o]rder for [i]nterlocutory [a]ppeal.” Rather, “[t]he [d]istrict 9
[c]ourt purposefully elected instead to only certify the issues contained in its July 10
16, 2019 [o]rder.” Berger Briggs argues that its motion for summary judgment and 11
motion for reconsideration “include a request for summary judgment on all of 12
[Wilson]’s claims, including [f]iduciary [d]uty, as they are personal torts, and as 13
such [are] not assignable, no reasonable expectation of coverage and no damages.” 14
{28} We are limited to the questions certified by the district court in its July 16, 15
2019 order, which relate to whether the Lodge’s assignment to Wilson of its claims 16
against Berger Briggs was valid. “Although we are not confined to the particular 17
questions the district court certified for this interlocutory appeal, the scope of our 18
review must be limited to the issues fairly contained in the order.” Curry, 2014- 19
NMCA-031, ¶ 8; see Bell v. Estate of Bell, 2008-NMCA-045, ¶ 9, 143 N.M. 716, 20
181 P.3d 708 (declining to address an issue that was neither the basis of the district 2124
court’s order nor specifically certified for interlocutory appeal); Ellis v. Cigna Prop. 1
& Cas. Cos., 2007-NMCA-123, ¶ 14, 142 N.M. 497, 167 P.3d 945 (concluding that 2
the issues raised by the appellant were not certified for interlocutory appeal by the 3
district court); cf. Armijo v. Wal-Mart Stores, Inc., 2007-NMCA-120, ¶ 19, 142 N.M. 4
557, 168 P.3d 129 (explaining that an appellate court can decide issues other than 5
those certified, where a party raises issues that were not stated in the questions 6
certified, but were not wholly unrelated to the issues identified by the lower court in 7
its order). Because we determine that the issues of reasonable expectation of 8
coverages and damage claims were not certified by the district court and are “wholly 9
unrelated” to the issue of unassignability, see Armijo, 2007-NMCA-120, ¶ 19, we 10
decline to decide such issues. 11
CONCLUSION 12
{29} For the foregoing reasons, we affirm the district court’s denial of Berger 13
Briggs’ motion for summary judgment and remand for proceedings consistent with 14
this opinion. 15
{30} IT IS SO ORDERED. 16
______________________________ 17
J. MILES HANISEE, Chief Judge 1825 WE CONCUR: 1 ________________________________ 2 JACQUELINE R. MEDINA, Judge 3 ________________________________ 4 JANE B. YOHALEM, Judge 5
OCR transcription for search; preserved printed pages are authoritative
‘
11
12
13
14
15
1
17
18
19
2
21
22
23
Corrections to this opinion/decision not affecting the outcome, at the Court's discretion, can occur up to the time of publication
with NM Compilation Commission. The Court will ensure that the electronic version of this opinion/decision is updated accordingly
in Odyssey.
IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO
te Court of Appeals of New Mexico
Opinion Number: Filed 5/10/2021 11:41 AM
Filing Date: MAY 10, 2021 A. [>
ed
No. A-1-CA-38713 Mark Reynolds
EDWIN WILSON,
Plaintiff-A ppellee,
Vv.
BERGER BRIGGS REAL ESTATE
& INSURANCE, INC.; PAM MUZZI;
TRUDY BEST; and MARY JO
DAWSON,
Defendants-A ppellants,
and
CSU PRODUCER RESOURCES, INC.
and CINCINNATI SPECIALITY
UNDERWRITERS INSURANCE
COMPANY,
Defendants.
APPEAL FROM THE DISTRICT COURT OF SANDOVAL COUNTY
John F. Davis, District J udge
Law Office of Geoffrey R. Romero
Geoffrey R. Romero
Albuquerque, NM
Bencoe & Lacour Law P.C. 1
Lori Bencoe 2
Cherie LaCour 3
Albuquerque, NM 4
Martinez, Hart, Thompson & Sanchez, P.C. 5
Julio C. Romero 6
Bruce E. Thompson 7
Albuquerque, NM 8
for Appellee 9
Butt Thornton & Baehr PC 10
James H. Johansen 11
Jane A. Laflin 12
Felicia C. Boyd 13
Albuquerque, NM 14
Madison, Mroz, Steinman, Kenny & Olexy, P.A. 15
Gregory D. Steinman 16
Albuquerque, NM 17
for Appellants 18
OPINION 1
HANISEE, Chief Judge. 2
{1} In this interlocutory appeal, we are asked by Berger Briggs Real Estate & 3
Insurance, Inc. (Berger Briggs) to resolve the validity of an assignment of claims 4
arising from an agreement to procure general liability insurance on behalf of The 5
Improved Benevolent Protective Order of the Elks of the World Albuquerque 6
Navajo Lodge #863 (the Lodge). Berger Briggs appeals from the denial of its motion 7
for summary judgment on all claims due to unassignability. Berger Briggs contends 8
that Plaintiff Edwin Wilson (Wilson), to whom the Lodge assigned its claims against 9
Berger Briggs, is precluded as a matter of New Mexico law and policy from asserting 10
claims against Berger Briggs. We affirm. 11
BACKGROUND 12
{2} On February 14, 2015, Wilson attended a comedy show at the Lodge. During 13
the performance, an altercation broke out between two patrons. A person with the 14
performing group discharged a firearm at the crowd, striking Wilson and causing 15
traumatic injury to his spine, which rendered him paralyzed below the waist. 16
{3} In August 2012, two-and-a-half years prior to the shooting, the Lodge’s 17
representative, L.C. Gray, approached Berger Briggs to procure a general liability 18
policy. Gray met with Defendant Pam Muzzi, an employee of Berger Briggs, to 19
discuss the Lodge’s specific needs in its general liability policy. While Gray 20
2
contends that she told Muzzi that the Lodge “needed coverage for anything that 1
happened in the Lodge,” Muzzi asserts that Gray told her that the Lodge could not 2
afford an expensive policy and did not seek coverage for assaults and batteries that 3
might take place at the Lodge. Muzzi procured a quote from Cincinnati Specialty 4
Underwriters Insurance Company (Cincinnati Specialty) for $2,291.82 for general 5
liability coverage, which contained exclusions for assault, battery, and firearm 6
coverage. The Lodge entered into a general liability policy with Cincinnati Specialty 7
with these exclusions, effective August 23, 2014. 8
{4} On May 26, 2015, Wilson filed a complaint for personal injuries and damages 9
against the Lodge and others in the Second Judicial District Court for claims related 10
to the shooting. On July 22, 2015, Cincinnati Specialty filed a declaratory action 11
against the Lodge in federal district court. On November 23, 2015, that court issued 12
a memorandum opinion and order finding that the policy procured by Berger Briggs 13
did not provide coverage to the Lodge for Wilson’s injuries and ordered default 14
judgment against the Lodge. Back in state district court on February 22, 2016, the 15
Lodge stipulated to liability and assigned to Wilson all claims it had against Berger 16
Briggs and all related insuring entities, including commercial tort claims, statutory 17
violations, and breaches of contract. On August 1, 2016, the state district court held 18
an evidentiary hearing and entered a judgment, awarding damages in the amount of 19
$14,502,807.69 to Wilson. Thereafter and pursuant to the assignment, Wilson filed 20
3
suit against Berger Briggs, Cincinnati Specialty, and others, also in the Second 1
Judicial District, alleging as to Berger Briggs negligent failures to procure insurance 2
coverage and inform, negligent misrepresentation, along with breaches of contract, 3
fiduciary duties, and the Unfair Trade Practices Act. 4
{5} On December 4, 2018, Berger Briggs filed its “Motion and Memorandum for 5
Summary Judgment on All Claims Due to Unassignability,” in which Berger Briggs 6
asserted that the claims are unassignable because they are personal injury claims. On 7
April 24, 2019, the district court held a hearing on the motion for summary judgment, 8
and on July 16, 2019, entered an order denying Berger Briggs’ motion for summary 9
judgment. Berger Briggs filed a motion to reconsider, which the district court denied, 10
or alternatively a motion to certify the entire order denying Berger Briggs’ motion 11
for summary judgment for interlocutory appeal. The district court attached the 12
entirety of its July 16, 2019, order as Exhibit A to its order certifying questions of 13
assignability for interlocutory appeal. On March 31, 2020, we granted Berger 14
Briggs’ application for interlocutory appeal. 15
DISCUSSION 16
I. The Lodge’s Commercial Tort, Breach of Contract, and Statutory 17
Violation Claims Were Validly Assigned to Wilson 18
{6} On appeal, Berger Briggs requests that we reverse the denial of its motion for 19
summary judgment and raises four issues. First, it asserts that the claims are personal 20
and, therefore, the assignment is invalid as a matter of New Mexico law and policy. 21
4
Second, it argues that there is no assignable contract between itself and the Lodge. 1
Third, it asserts that the Unfair Practices Act (UPA) prohibits the claims from being 2
assigned. Finally, Berger Briggs argues that, contrary to the district court’s findings, 3
the Uniform Commercial Code (UCC) does not demonstrate a policy in favor of the 4
purported assignment. Wilson answers that the Lodge’s claims against Berger 5
Briggs, which included claims of negligent failure to procure the requested coverage, 6
negligent misrepresentation, and breach of contract, are contract and commercial tort 7
claims and thus assignable. For the reasons that follow, we hold that under New 8
Mexico law, the claims at issue are commercial in nature, were validly assigned to 9
Wilson, and therefore Wilson is not barred from asserting such claims against Berger 10
Briggs. 11
Standard of Review 12
{7} Berger Briggs’ appeal from the “denial of a motion for summary judgment 13
presents a question of law. We therefore review de novo the [district] court’s denial 14
of summary judgment.” Bartlett v. Mirabal, 2000-NMCA-036, ¶ 4, 128 N.M. 830, 15
999 P.2d 1062. “Summary judgment is proper if there are no genuine issues of 16
material fact and the movant is entitled to judgment as a matter of law.” Noice v. 17
BNSF Ry. Co., 2015-NMCA-054, ¶ 5, 348 P.3d 1043 (internal quotation marks and 18
citation omitted). “The movant must make a prima facie showing of entitlement to 19
summary judgment. Then, the burden shifts to the party opposing the motion to 20
5
demonstrate the existence of specific evidentiary facts which would require trial on 1
the merits.” Id. (internal quotation marks and citations omitted). “If the facts are not 2
in dispute, and only their legal effects remain to be determined, summary judgment 3
is proper.” Roth v. Thompson, 1992-NMSC-011, ¶ 17, 113 N.M. 331, 825 P.2d 1241. 4
A. The Lodge’s Claims Against Berger Briggs Are Not Personal Tort Claims 5
{8} In New Mexico, personal injury claims are not assignable, yet our 6
jurisprudence suggests commercial disputes are. See Quality Chiropractic, PC v. 7
Farmers Ins. Co. of Ariz., 2002-NMCA-080, ¶ 8, 132 N.M. 518, 51 P.3d 1172. In 8
Quality Chiropractic, this Court explained the common law rationale behind this 9
distinction to reflect concern that the “assignment of personal injury claims would 10
lead to unscrupulous trafficking in litigation as a commodity.” Id. ¶ 10. In 11
disallowing assignment of a claim for personal injury, Quality Chiropractic agreed 12
with the Indiana Supreme Court, which prohibited the assignment of tort suits 13
growing more generally out of “wrongs done to the person, reputation, or feelings 14
of the injured party” while recognizing that “[c]ontract-based choses in action have 15
been deemed assignable, except for [those] which are purely personal in nature (like 16
marriage contracts).” Picadilly, Inc. v. Raikos, 582 N.E.2d 338, 340 (Ind. 1991), 17
abrogated on other grounds by Liggett v. Young, 877 N.E.2d 178, 183 (Ind. 2007). 18
As yet, neither law nor jurisprudence in New Mexico has evolved to permit the 19
assignment of personal causes of action or directly held that claims of a commercial 20
6
nature are indeed assignable. 1 Berger Briggs asserts that “all of [the Lodge]’s claims 1
are personal in nature and cannot be assigned to Wilson as a matter of law” because 2
“[c]ontrary to the [d]istrict [c]ourt’s finding, New Mexico law and public policy 3
prevent the assignment of claims asserted in this case.” Wilson answers that the 4
district court correctly recognized Wilson’s claims as “well settled claims arising in 5
commercial tort and breach of contract” against insurance agents or brokers. 6
{9} We begin with Wilson’s arguments, which are consistent with the district 7
court’s ruling. Wilson is first correct that New Mexico allows claims in tort against 8
insurance agents or brokers, such as those at issue here. For instance, New Mexico 9
law permits an insured to sue an agent for failing to obtain a requested policy. See 10
Topmiller v. Cain, 1983-NMCA-005, ¶ 12, 99 N.M. 311, 657 P.2d 638 (stating that 11
“[i]t seems to be well settled that an insurance agent or broker who undertakes to 12
1A number of jurisdictions have altogether abandoned the common law rule
and allow the assignment of any cause of action. See, e.g., Red Giant Oil Co. v.
Lawlor, 528 N.W.2d 524, 533 (Iowa 1995) (holding that “because insurers have
available to them a variety of defenses . . . we fail to see why legally it should make
any difference who sues the insurer—the insured or the insured’s assignee”); see
also Professor Louis F. Del Duca, Commercial Tort Claims Come Into Focus-
Hurdles and Hoops, 45 No. 2 UCC L. J., art. 2 (2013) (the Committee stated that it
“sees little reason to continue the general exclusion of tort claims that are otherwise
assignable under non-UCC law” (internal quotation marks and citation omitted))
citing Uniform Commercial Code Article 9: Report, 1992 ALI and Nat. Conf. of
Commissioners on Uniform State Laws. But as we observed in Quality Chiropractic,
our view is that in New Mexico, “the [L]egislature is in the best position to address
. . . and . . . consider the competing policy interests” regarding the assignability of
personal injury claims. 2002-NMCA-080, ¶ 33.
7
provide insurance for another, and through his own fault or neglect, fails to do so, is 1
liable” (internal quotation marks and citation omitted)). “[L]iability may be 2
predicated either upon the theory that [the] defendant is the agent of the insured and 3
has breached a contract to procure a policy of insurance, or that he owes a duty to 4
his principal to exercise reasonable skill, care, and diligence in securing the 5
insurance requested and negligently failed to do so.” Sanchez v. Martinez, 1982- 6
NMCA-168, ¶ 14, 99 N.M. 66, 653 P.2d 897. “An agent who agrees to procure or 7
renew an expired policy of insurance has a duty to either obtain the insurance, renew 8
or replace the policy, or seasonably notify the principal that he is unable to do so in 9
order that the principal may obtain insurance elsewhere.” Id. ¶ 15. A suit for 10
negligence may be predicated upon either an express or implied agreement between 11
the parties. See id. 12
1. Commercial Tort Claims 13
{10} Given that the Lodge can assert claims against Berger Briggs under New 14
Mexico law, Wilson next contends that the assignment of those claims by the Lodge 15
to him is proper, an argument he contends to be “bolstered by several New Mexico 16
appellate court opinions.” Although none of the cases cited by Wilson directly 17
upheld the assignability of a commercial tort claim, they nonetheless demonstrate 18
the assignability of such claims in New Mexico. For instance, in Dove v. State Farm 19
Fire & Casualty Co., this Court recognized an insured property owner’s assignment 20
8
of “all rights, claims and causes of action, together with the proceeds therefrom” to 1
a tenant who was injured while performing maintenance work on the property, for 2
the failure of the insuring defendant “to defend and/or indemnify” the property 3
owner for the tenant’s injuries. 2017-NMCA-051, ¶¶ 7, 24, 399 P.3d 400 (internal 4
quotation marks omitted). In Truck Insurance Exchange v. Gagnon, we resolved an 5
underlying scope of commercial insurance coverage question following assignment 6
of the defendants’ claims against an insurer to the plaintiff who had been sexually 7
harassed at work and with whom the defendants had reached a settlement agreement. 8
2001-NMCA-092, ¶¶ 1-3, 131 N.M. 151, 33 P.3d 901. Both opinions are consistent 9
with that recognized, but not directly held in Quality Chiropractic. See 2002- 10
NMCA-080, ¶ 8 (observing that as the common law rule prohibiting assignment 11
“became unworkable, courts carved out exceptions, and eventually allowed 12
assignments in commercial disputes”). More directly, in Brown v. Gray, 227 F.3d 13
1278, 1294-95 (10th Cir. 2000), the Tenth Circuit Court of Appeals determined that 14
an assignment of a defendant police officer’s claim for defense costs to a plaintiff 15
shooting a victim was valid under Colorado law, which “generally favors the 16
assignment of rights pursuant to a valid contractual arrangement[,]” noting that 17
“[a]ssignment in this circumstance does not encourage unjustified suits.” 18
9
2. Personal Tort Claims 1
{11} Citing cases that held personal injury claims were unassignable, Berger Briggs 2
argues that the claims assigned to Wilson are personal and therefore unassignable. 3
Importantly, Berger Briggs points to no authority that prohibits the assignment of 4
claims arising from interactions that led to commercial contracts, much less claims 5
based on contracts themselves, nor does it meaningfully explain how the claims at 6
issue are either “personal injury” or “personal” claims. “Where a party cites no 7
authority to support an argument, we may assume no such authority exists.” Curry 8
v. Great Nw. Ins. Co., 2014-NMCA-031, ¶ 28, 320 P.3d 482. Rather, Berger Briggs 9
points only to Quality Chiropractic, which upheld the disallowance of an assignment 10
of a chiropractic clinic patient’s personal injury claims arising from a car accident 11
given our refusal to “abrogate the common law rule prohibiting the assignment of 12
personal injury claims[.]” 2002-NMCA-080, ¶¶ 1, 36. To reiterate, in Quality 13
Chiropractic we agreed with the defendant that “allowing injured tort victims to 14
assign . . . their personal injury claims could add unnecessary complications to the 15
settlement of relatively straightforward cases.” Id. ¶ 25. Although Berger Briggs 16
aptly points out that we did not allow the assignment at issue in Quality Chiropractic, 17
we determine the claims at issue here not to be personal injury or other personal tort 18
claims, but to fall squarely within the category of commercial tort claims. 19
10
{12} The agreement between the Lodge and Wilson states: 1
28. In consideration for the assignment of [the Lodge’s] rights and 2
causes of action which [the Lodge] may have against Berger Briggs . . . 3
for liability incurred to [the Lodge] as a result of failure to procure 4
proper coverage, failure to advise of material exclusions to coverage, 5
breach of fiduciary duty, or any other causes of action which [the 6
Lodge] may have against Berger Briggs and/or any of its agents, 7
employees or representatives. 8
Importantly, the claims assigned by the Lodge to Wilson included those 9
. . . related to insurance coverage, breach of contract, breach of the duty 10
to defend, breach of the duty to pay, breach of the duty to settle, other 11
bad faith insurances practices of any kind, statutory violations, unfair 12
claims or trade practices, negligence, misrepresentation, failure to 13
procure proper coverage, failure to advise of material exclusions to 14
coverage, breach of fiduciary duty, compensatory and punitive 15
damages, attorney[] fees and interest. 16
Consistent with the language of the agreement, the claims brought by Wilson 17
herein—including negligent failures to procure insurance coverage and inform, 18
negligent misrepresentation, along with breaches of contract, fiduciary duty, and the 19
UPA—all arise from the business relationship of the Lodge and its agent, Berger 20
Briggs, and in no way relate to claims for personal injuries or violation of purely 21
personal rights caused by that relationship. Rather, each claim wholly arose from an 22
agreement between the Lodge, who requested that Berger Briggs procure a general 23
liability policy on its behalf, and Berger Briggs, who obtained insurance quotes and 24
assisted the Lodge with obtaining the policy it sought. The relationship between the 25
Lodge and Berger Briggs was little more than an arm’s length commercial 26
11
transaction between two businesses. Indeed, Wilson suffered personal injury at the 1
hands of the underlying tortfeasor, who is not a party to this litigation, and the Lodge, 2
against whom Wilson procured a personal injury judgment. We reject Berger Briggs’ 3
contention that Wilson’s claims against it allege tortious conduct of a personal 4
nature. 5
{13} Berger Briggs next argues that the claims assigned to Wilson arose under 6
personal service contracts, which it contends are unassignable. Pointing out that 7
“personal wrongs and contracts of a personal nature involving confidence, skill, and 8
others of like nature” are not assignable under Parker v. Beasley, 1936-NMSC-004, 9
¶ 10, 40 N.M. 68, 54 P.2d 687, Berger Briggs likens the nature of the relationship 10
between itself and the Lodge to an employment contract. Indeed, our jurisprudence 11
continues to recognize that personal service contracts may be assignable only with 12
consent. See generally Campbell v. Millennium Ventures, LLC, 2002-NMCA-101, 13
¶ 22, 132 N.M. 733, 55 P.3d 429 (concluding that an employment agreement with a 14
non-solicitation clause was assignable with consent of the parties to the assignment). 15
But unlike personal service contracts, Berger Briggs’ business relationships with its 16
clients do not entail the sort of contracted-for personal qualities or skills that would 17
prohibit assignability of a cause of action arising therefrom. See id. ¶ 2 (involving 18
an employment agreement whereby the plaintiff was hired to sell insurance on behalf 19
of the defendant); see also Baker v. Conoco Pipeline Co., 280 F. Supp. 2d 1285, 20
12
1295-96 (N.D. Okla. 2003) (providing examples of duties “too personal in character” 1
to permit assignment, including “a contract to furnish an abstract of title; a contract 2
to render professional services as a physician, lawyer, or architect . . . a contract of 3
entrustment of funds or property of another”). 4
{14} Because we agree with the district court that none of the causes of action 5
brought by Wilson against Berger Briggs state injuries or claims of a personal nature, 6
but are instead commercial in nature, and our jurisprudence suggests and common 7
law establishes that such commercial claims are assignable, we conclude there to be 8
no error in the district court ruling in this regard and hold that commercial claims of 9
the nature at issue in this case are assignable. 10
B. The Lodge’s Claims Against Berger Briggs Were Commercial Claims 11
Arising Under Contract 12
{15} Citing little more than the committee commentary to UJI 13-818 NMRA 13
(governing transfers of rights and duties under a contract), which states that 14
generally the term “ ‘assignment’ refers only to rights or interests under a contract[,]” 15
Berger Briggs asserts that in addition to the claims brought by Wilson being 16
commercial in nature, there must have been a contract between Berger Briggs and 17
the Lodge, absent which “there can be no assignment arising under a contract.” But 18
the sole direct authority Berger Briggs cites for this proposition—UJI 13-818— 19
states no such thing; rather, it instructs in circumstances where an assignment is 20
made under an existing contract. The UJI does not purport to address all assignments 21
13
in law or require that an underpinning contract is a prerequisite for a commercial 1
claim to be validly assigned. We assume that after diligent search Berger Briggs was 2
unable to find supportive authority for the expansive application of UJI 13-818 it 3
seeks. “We assume where arguments in briefs are unsupported by cited authority, 4
counsel after diligent search, was unable to find any supporting authority.” In re 5
Adoption of Doe, 1984-NMSC-024, ¶ 2, 100 N.M. 764, 676 P.2d 1329. Nonetheless, 6
and given both that the common law first carved its exception for claim assignability 7
in circumstances of contract, see Picadilly, Inc., 582 N.E.2d at 340 (stating that 8
“[t]he chose in action based on contract was the first to become assignable, primarily 9
out of economic necessity”), and that most commercial interactions indeed involve 10
contracts between parties, we address whether a contract existed between Berger 11
Briggs and the Lodge. 12
{16} “A contract is a legally enforceable promise.” Nance v. L.J. Dolloff Assocs., 13
2006-NMCA-012, ¶ 19, 138 N.M. 851, 126 P.3d 1215. “Ordinarily, to be legally 14
enforceable, a contract must be factually supported by an offer, an acceptance, 15
consideration, and mutual assent.” Garcia v. Middle Rio Grande Conservancy Dist., 16
1996-NMSC-029, ¶ 9, 121 N.M. 728, 918 P.2d 7 (internal quotation marks and 17
citation omitted). “Consideration consists of a promise to do something that a party 18
is under no legal obligation to do or to forbear from doing something he has a legal 19
right to do.” Luginbuhl v. City of Gallup, 2013-NMCA-053, ¶ 15, 302 P.3d 751 20
14
(internal quotation marks and citation omitted). We have previously stated that 1
“evidence of custom or course of conduct between the parties may give rise to a 2
contract implied in fact.” Orion Tech. Res., LLC v. Los Alamos Nat’l Sec., LLC, 3
2012-NMCA-097, ¶ 10, 287 P.3d 967 (alteration, internal quotation marks, and 4
citation omitted). Our courts may consider written representations, oral 5
representations, the conduct of the parties, or a combination of the representations 6
and conduct to determine the existence of an implied-in-fact contract. See Garcia, 7
1996-NMSC-029, ¶ 10. “Whether an implied-in-fact contract arises from the 8
representations of the parties is dependent on whether the representations create a 9
reasonable expectation of contractual rights.” Orion, 2012-NMCA-097, ¶ 10. 10
{17} In arguing that there was no contract between itself and the Lodge and that 11
there must be, Berger Briggs relies on Porter v. Butte Farmers Mutual Insurance 12
Co., in which our Supreme Court determined that an application by a person seeking 13
insurance is a “mere offer or proposal” and “before the contract of insurance is 14
effected and any contractual relationship exists between the parties, it is necessary 15
that the application be accepted by the insurer[.]” 1961-NMSC-028, ¶ 14, 68 N.M. 16
175, 360 P.2d 372 (per curiam). But Porter addresses the question of whether a 17
contact existed between a claimed insured and an insurer, which in this case would 18
be an analysis more applicable to an inquiry as to whether there was a contract 19
15
between the Lodge and its insurance provider—Cincinnati Specialty.2 But that is not 1
the question presented in this case; rather, as Berger Briggs itself argues the question 2
is whether there was a contract between Berger Briggs and the Lodge. To answer 3
this, we must resolve whether the arrangement between Berger Briggs and the 4
Lodge, under which Berger Briggs agreed to procure quotes from insurance 5
companies and assist the Lodge in entering into a contract with an insurer that would 6
then provide a new insurance policy, was an implied-in-fact contract. While neither 7
party provides evidence of a written contract, nor cites to where in the record a 8
written contract exists, the very nature of Berger Briggs’ business requires it to enter 9
into agreements with insurance policy seekers, under which Berger Briggs procures 10
insurance policies that meet its clients’ needs and assists them in acquiring such 11
policies. As argued by Wilson and determined by the district court, we conclude 12
2After determining that this case involves an assignment arising under a
contract, the district court explained “[t]here is a strong public policy in New Mexico
to promote ethical claims handling by insurance carriers and their employees and
agents.” Berger Briggs asserts that “[i]t is apparent that the [district c]ourt confused
[Berger Briggs] and [Cincinnati Specialty]” and contends that the Lodge’s
assignment of its claims to Wilson “is distinguishable from any assignment of bad
faith claims made under a valid written policy of insurance for which there is
coverage.” See Dydek v. Dydek, 2012-NMCA-088, ¶ 69, 288 P.3d 872 (holding that
NMSA 1978, Section 59A-16-30 (1990), which permits the recovery of actual
damages in bad faith causes of action against insurance companies, applied to a
third-party claimant). While Berger Briggs is correct that the assignment at issue is
unlike the assignment of a bad faith cause of action in exchange for release of
liability, neither the Lodge nor Wilson asserts a claim of bad faith against Berger
Briggs.
16
there to be an implied-in-fact contract between the Lodge and Berger Briggs for the 1
procurement of insurance quotes. 2
{18} The distinction between an express and an implied contract involves “no 3
difference in legal effect, but lies merely in the mode of manifesting assent.” 4
Restatement (Second) of Contracts: How a Promise May Be Made § 4 cmt. a (1981). 5
Implied-in-fact contracts are “founded upon a meeting of minds, which, although 6
not embodied in an express contract, is inferred, as a fact, from conduct of the parties 7
showing, in the light of the surrounding circumstances, their tacit understanding.” 8
Hercules, Inc. v. United States, 516 U.S. 417, 424 (1996) (internal quotation marks 9
and citation omitted); 1 Williston on Contracts: Express Contracts Including 10
Contracts Inferred or Implied in Fact § 1:5 (4th ed. 2012) (stating “intention to make 11
a promise may be manifested in language or by implication from other 12
circumstances, including the parties’ course of dealing or course of performance, or 13
a usage of trade”). We have previously stated that “[e]vidence of custom or course 14
of conduct between the parties may give rise to a contract implied in fact.” Sanchez, 15
1982-NMCA-168, ¶ 15. “Our courts will also look to written representations, oral 16
representations, the conduct of the parties, or a combination of representations and 17
conduct to determine whether an implied-in-fact contract exists.” Orion, 2012- 18
NMCA-097, ¶ 10 (alteration, omissions, internal quotation marks, and citation 19
omitted). Whether an implied-in-fact contract arises from the representations of the 20
17
parties is dependent on whether the representations create a reasonable expectation 1
of contractual rights. See Garcia, 1996-NMSC-029, ¶ 11. “The reasonableness of 2
expectations is measured by just how definite, specific, or explicit . . . the 3
representation or conduct relied upon” has been. Hartbarger v. Frank Paxton Co., 4
1993-NMSC-029, ¶ 14, 115 N.M. 665, 857 P.2d 776. 5
{19} Here, an agreement implied in fact between the Lodge and Berger Briggs is 6
inferred by the parties’ meeting of the minds in August 2012, where the Lodge 7
sought assistance from Berger Briggs in its effort to procure a general liability 8
insurance policy. More specifically, the Lodge’s representative, Gray, approached 9
Berger Briggs and requested help obtaining a new insurance policy, after which 10
Berger Briggs’ representative, Muzzi, presented two quotes to Gray. After their 11
initial meeting, Gray and Muzzi continued to correspond regularly via email 12
regarding the Lodge’s need for an insurance policy. Berger Briggs was also paid a 13
fee in exchange for the services it provided the Lodge. Moreover, by the nature of 14
its business as an insurance agency, Berger Briggs impliedly contracts with its 15
clients to negotiate with insurance companies and acquire insurance policies on their 16
behalf. See Gordon v. N.M. Title Co., 1966-NMSC-263, ¶ 6, 77 N.M. 217, 421 P.2d 17
433 (stating “by the very nature of the title insurance business, the New Mexico Title 18
Company agreed that they would make a thorough investigation . . . into the 19
existence or non-existence of liens under the laws of New Mexico” (internal 20
18
quotation marks omitted)); see also Sanchez, 1982-NMCA-168, ¶ 15 (determining 1
that an insurance agent’s liability may be premised upon an express or implied 2
agreement). 3
{20} While Berger Briggs cites Porter, 1961-NMSC-028, ¶ 14, for the proposition 4
that in New Mexico, “the process for obtaining insurance, ‘is not the contract but is 5
a mere offer or proposal for a contract of insurance,’ ” asserting that “there is no 6
contract between [the Lodge] and Berger[]Briggs based solely on the procuring 7
insurance,” Porter considered a relationship between an insurer and an insured and 8
affirmed a district court’s conclusion that insurance policies that had been in place 9
between the parties had expired. Id. ¶¶ 6, 27. Such is, in our view, altogether different 10
than that of the relationship between an agency, such as Berger Briggs, engaged in 11
the altogether different practice of procuring insurance for its clients, such as the 12
Lodge, in exchange for a fee separate and apart from that later paid by the same 13
client to an insurer in exchange for insurance. 14
{21} Under this circumstance—a business relationship in which one entity sought 15
from another that which was the other’s specialty and paid for the service provided 16
in exchange for that specialization, we conclude that an implied-in-fact contract 17
existed between the Lodge and Berger Briggs. See Orion, 2012-NMCA-097, ¶¶ 19, 18
26 (holding that an implied-in-fact contract arose when the solicitor made 19
representations regarding bid selection and the bidder reasonably relied on such 20
19
representations); Whittington v. State Dep’t of Pub. Safety, 2004-NMCA-124, ¶ 10, 1
136 N.M. 503, 100 P.3d 209 (holding that the employee manual created an implied 2
contract governing the terms of employment); see also Plan. & Design Sols. v. City 3
of Santa Fe, 1994-NMSC-112, ¶ 27, 118 N.M. 707, 885 P.2d 628 (holding that in 4
requesting bids for a proposed development, the city entered enter into an implied 5
contract that it would fairly consider each bid). We hold that the Lodge’s commercial 6
claims assigned to Wilson arose from an implied-in-fact contract between the Lodge 7
and Berger Briggs. 8
C. Wilson Has Standing to Allege UPA Claims 9
{22} Berger Briggs argues that “[c]ontrary to the [d]istrict [c]ourt’s [o]rder, the 10
UPA claims are not assignable.” It argues that “[t]he UPA is a consumer protection 11
law and, therefore, ‘gives standing only to buyers and sellers of goods and 12
services.’ ” (Quoting Hicks v. Eller, 2012-NMCA-061, ¶ 20, 280 P.3d 304.) Wilson 13
answers that such a limitation is not found within the UPA, and if the Legislature 14
intended to include such a limitation it would have done so within the text of the 15
UPA. 16
{23} The UPA makes it unlawful to employ “[u]nfair or deceptive trade practices 17
. . . in the conduct of any trade or commerce.” NMSA 1978, § 57-12-3 (1971); see 18
also NMSA 1978, § 57-12-2(C) (2019) (defining “trade” or “commerce” to include 19
“the advertising, offering for sale or distribution of any services and any property 20
20
and any other article, commodity or thing of value, including any trade or commerce 1
directly or indirectly affecting the people of this state”). “Any person who suffers 2
any loss of money or property . . . as a result of any employment by another person 3
of a method, act or practice declared unlawful by the [UPA] may bring an action to 4
recover actual damages[.]” NMSA 1978, § 57-12-10(B) (2005). Its fundamental 5
purpose is to protect consumers from unscrupulous business practices regardless of 6
whether those consumers are directly or indirectly affected. See § 57-12-2(C). 7
Because “the UPA constitutes remedial legislation, we interpret the provisions of 8
[the] Act liberally to facilitate and accomplish its purposes and intent.” Truong v. 9
Allstate Ins. Co., 2010-NMSC-009, ¶ 30, 147 N.M. 583, 227 P.3d 73 (internal 10
quotation marks and citation omitted). “It is the task of the courts to ensure that the 11
[UPA] lends the protection of its broad application to innocent consumers.” State ex 12
rel. King v. B & B Inv. Grp., Inc., 2014-NMSC-024, ¶ 48, 329 P.3d 658 (internal 13
quotation marks and citation omitted). 14
{24} Relying on Williams v. Foremost Insurance Co., 102 F. Supp. 3d 1230 15
(D.N.M. 2015), Berger Briggs argues that UPA claims are limited to actual 16
consumers of goods and services. In Williams, the federal district court of New 17
Mexico held that an insured homeowner’s houseguest, who brought a putative class 18
action against homeowner’s insurer, alleging that the insurer violated New Mexico 19
law by interviewing her too soon after her injury, could not pursue a UPA claim 20
21
against the insurer. Id. at 1233, 1247. The court explained that the plaintiff’s UPA 1
claims were invalid “because New Mexico law currently restricts UPA claims to 2
actual consumers of goods and services, and relevant law provides no basis to 3
expand the UPA to give standing to a non-consumer third-party claimant like [the 4
plaintiff].” Id. at 1247. Moreover, in Williams, the federal district court noted that 5
“[a]lthough the UPA may allow claims against insurers in some circumstances, the 6
plaintiff must show that the statement was made or the offending act or practice was 7
committed in connection with the sale of the insurance.” Id. at 1240 (alteration, 8
emphasis, internal quotation marks, and citation omitted). 9
{25} Berger Briggs asserts that, like the plaintiff in Williams, Wilson did not 10
purchase any goods or services and “therefore, has no direct or assignable right 11
against Berger[]Briggs” for a UPA claim. Wilson answers that while the plaintiff in 12
Williams had only third-party claims against the insurer, because the claims were 13
assigned to him, Wilson has direct claims against Berger Briggs. As the assignee of 14
the Lodge’s claims, Wilson argues, he stands in its shoes and can allege the same 15
UPA claims that the Lodge could have asserted against Berger Briggs. We agree. 16
{26} To begin with the plain language of the statue, we note that the definition of 17
“unfair or deceptive trade practice” makes no mention of transactions between a 18
claimant and a defendant. See § 57-12-2(D). Nor does it require a misrepresentation 19
in the course of a sale between plaintiff and defendant; it merely requires that a 20
22
misrepresentation be “made in connection with the sale . . . of goods.” Id. (emphasis 1
added). A UPA claimant may also be affected indirectly. See § 57-12-2(C). These 2
provisions appear to be crafted so as to ensure that the UPA is applied broadly. See 3
Lohman v. Daimler-Chrysler Corp., 2007-NMCA-100, ¶ 30, 142 N.M. 437, 166 4
P.3d 1091. Our holding is also not inconsistent with that in Williams. Unlike in 5
Williams, Wilson is not a non-consumer third party. Rather, Wilson was assigned 6
the Lodge’s UPA claims. As the assignee to the Lodge’s claims, Wilson raises 7
claims relating to statements made “in connection with the sale of the insurance.” 8
Williams, 102 F. Supp. 3d at 1240 (emphasis, internal quotation marks, and citation 9
omitted). For these reasons, and given our prior determination that the assigned 10
claims are commercial in nature, we conclude that Wilson has standing to allege 11
claims under the UPA.3
12
3Given our rulings as to assignability and the existence of a contract between
the Lodge and Berger Briggs, we decline to resolve the parties’ disagreement as to
whether the UCC does or does not demonstrate a public policy in favor of the
assignment. Although the district court stated its belief that the UCC favors such
assignment, and in doing so cited to NMSA 1978, Section 55-9-109(d)(2) (2001),
such is not necessary to our ruling today. We note that the UCC appears to permit
the assignment of commercial tort claims. Section 55-9-109(d)(12) expressly
prohibits the assignment of “claim[s] arising in tort, other than a commercial tort
claim.” (Emphasis added.) We have held that Wilson’s claims fit within the
definition of a “commercial tort claim.” While the claims assigned to Wilson did not
arise in conjunction with his own business or profession, they arose in the course of
the Lodge’s business, which sought to enter into a new general liability insurance
policy and relied on the procurement services provided by Berger Briggs in doing
so. We reiterate that, as the assignee to the claims, Wilson stands in the shoes of the
Lodge and is permitted to bring validly assigned commercial tort claims.
23
II. Berger Briggs’ Arguments on Fiduciary Duty and Reasonable 1
Expectation of Coverage or Damages Claims Were Not Decided Upon or 2
Certified by the District Court 3
{27} Wilson contends that because the district court never decided or certified 4
Berger Briggs’ arguments on fiduciary duty or reasonable expectation of damages, 5
those issues are not within the scope of this appeal. Specifically, Wilson argues that 6
the “[d]istrict [c]ourt expressly rejected [Berger Briggs]’ request that it certify all 7
issues raised in the [m]otion for [s]ummary [j]udgment when the [district c]ourt 8
rejected their form of [o]rder for [i]nterlocutory [a]ppeal.” Rather, “[t]he [d]istrict 9
[c]ourt purposefully elected instead to only certify the issues contained in its July 10
16, 2019 [o]rder.” Berger Briggs argues that its motion for summary judgment and 11
motion for reconsideration “include a request for summary judgment on all of 12
[Wilson]’s claims, including [f]iduciary [d]uty, as they are personal torts, and as 13
such [are] not assignable, no reasonable expectation of coverage and no damages.” 14
{28} We are limited to the questions certified by the district court in its July 16, 15
2019 order, which relate to whether the Lodge’s assignment to Wilson of its claims 16
against Berger Briggs was valid. “Although we are not confined to the particular 17
questions the district court certified for this interlocutory appeal, the scope of our 18
review must be limited to the issues fairly contained in the order.” Curry, 2014- 19
NMCA-031, ¶ 8; see Bell v. Estate of Bell, 2008-NMCA-045, ¶ 9, 143 N.M. 716, 20
181 P.3d 708 (declining to address an issue that was neither the basis of the district 21
24
court’s order nor specifically certified for interlocutory appeal); Ellis v. Cigna Prop. 1
& Cas. Cos., 2007-NMCA-123, ¶ 14, 142 N.M. 497, 167 P.3d 945 (concluding that 2
the issues raised by the appellant were not certified for interlocutory appeal by the 3
district court); cf. Armijo v. Wal-Mart Stores, Inc., 2007-NMCA-120, ¶ 19, 142 N.M. 4
557, 168 P.3d 129 (explaining that an appellate court can decide issues other than 5
those certified, where a party raises issues that were not stated in the questions 6
certified, but were not wholly unrelated to the issues identified by the lower court in 7
its order). Because we determine that the issues of reasonable expectation of 8
coverages and damage claims were not certified by the district court and are “wholly 9
unrelated” to the issue of unassignability, see Armijo, 2007-NMCA-120, ¶ 19, we 10
decline to decide such issues. 11
CONCLUSION 12
{29} For the foregoing reasons, we affirm the district court’s denial of Berger 13
Briggs’ motion for summary judgment and remand for proceedings consistent with 14
this opinion. 15
{30} IT IS SO ORDERED. 16
______________________________ 17
J. MILES HANISEE, Chief Judge 18
1
WE CONCUR:
2 Jacqueline R. Medina
3 JACQUELINE R. MEDINA, Judge
4 5
Jane Bythaler
JANE B. YOHALEM, Judge
25Was bedeutet dieser Text für Ihre Situation?
Kostenlose und unverbindliche Beratung
Schildern Sie uns Ihre Situation. Unser Team meldet sich per E-Mail bei Ihnen für Ihre Beratung.
Setzen Sie Ihre Recherche in ChatGPT oder Claude fort
Verbinden Sie Omnilex, um den Rechtskorpus über Ihren KI-Assistenten zu durchsuchen.