Benavidez v. Benavidez

• Decision Date: 13 September 2006
• Docket Number: No. 25,750.,25,750.
• Citation: 145 P.3d 117,2006 NMCA 138
• Parties: Ivan S. BENAVIDEZ, Plaintiff-Appellant, v. Gina Denise BENAVIDEZ and Richard P. Salgado, Defendants-Appellees.
• Court: Court of Appeals of New Mexico

145 P.3d 117

2006 NMCA 138

Ivan S. BENAVIDEZ, Plaintiff-Appellant, v. Gina Denise BENAVIDEZ and Richard P. Salgado, Defendants-Appellees.

No. 25,750.

Court of Appeals of New Mexico.

September 13, 2006.

Roger Moore, Law Office of Roger Moore, Albuquerque, NM, for Appellant.

Ronald T. Taylor, Ronald T. Taylor Law Office, Albuquerque, NM, for Appellees.

OPINION

FRY, Judge.

{1} Plaintiff Ivan S. Benavidez appeals from the district court's order dismissing with prejudice his action for unlawful detainer of property and damages, and from the court's imposition of sanctions under Rule 1-011 NMRA. In the course of a prior probate proceeding, Plaintiff had agreed to purchase the subject property from the estate of Benjamin Benavidez, and the probate court entered an order allowing Defendant Gina Denise Benavidez to reside on the property until the "closing on the sale of the property." Plaintiff argues that he obtained legal ownership of the property, along with the right to evict Defendants, upon the execution of a warranty deed on December 11, 2003, even though he did not pay for the property in full until May 26, 2004. We conclude that the district court correctly determined that the closing occurred May 26, 2004, and thus, that Plaintiff had no right to evict Defendants until that date. On the issue of sanctions, Plaintiff contends his belief that his ownership interest began on December 11, 2003, enabled him to file a good faith complaint without incurring sanctions for violating the probate court order. We hold that the record in this case is sufficient to support the district court's imposition of sanctions. Therefore, we affirm the judgment of the district court.

I. BACKGROUND

{2} Plaintiff and Defendants resided in opposite sides of a duplex owned by Benjamin Benavidez until his death. Benjamin was Plaintiff's father and Defendant Gina Benavidez's grandfather. Defendant Richard P. Salgado is Gina's husband. Plaintiff is Gina's uncle. During probate proceedings in the matter of the estate of Benjamin Benavidez, Plaintiff obtained the court's approval to purchase the duplex from the estate. Also in the probate proceedings, the court ordered that "[b]y consent of the Estate, Ms. Benavidez can continue to reside at the apartment . . . without charge, until the closing on the sale of the property."

{3} On February 5, 2003, Plaintiff entered into a purchase agreement with his sister, Rebecca Benavidez Carrillo, the personal representative of the estate. This purchase agreement states that the "[b]alance at closing will be paid by purchaser." On December 3, 2003, Plaintiff paid $18,810.20 in closing costs to Stewart Title Company toward the purchase price of $183,500. On December 11, 2003, the personal representative executed a warranty deed, but Plaintiff did not pay in full until May 26, 2004. It is unclear from the record why payment in full was not made in December 2003. There is nothing in the record indicating that the deed was ever delivered to Plaintiff.

{4} In a certified letter dated December 17, 2003, Plaintiff demanded that Defendants surrender and vacate the subject property no later than December 27, 2003. When Defendants did not do so, Plaintiff filed a complaint for unlawful detainer of property and damages. Plaintiff's verified complaint alleged that on "December 3, 2003, the Plaintiff purchased the subject property from the estate of Benjamin Benavidez, as approved by the Probate Court." Plaintiff moved for summary judgment and the district court issued a letter decision in his favor. Meanwhile, Defendants found out that the only deed recorded with the Bernalillo County Clerk was dated May 26, 2004. Defendants subpoenaed Glenn Schwerin, the president of Stewart Title, and requested that he produce documents relating to the sale in question. Plaintiff filed a motion for protective order and a request to quash subpoena.

{5} At the presentment hearing on summary judgment for Plaintiff, the district court denied the motion for protective order and request to quash subpoena and ordered that the documents from the title company be brought before the court. Mr. Schwerin submitted documents clearly indicating that Plaintiff did not pay the entire balance due on the duplex until May 26, 2004, as well as a letter stating that the "December 3, 2003 closing never took place and the documents [prepared in December] have been destroyed." In addition, Plaintiff himself admits in his brief in chief that "[t]he balance owed, and full balance of the $183,500.00 was paid by [Plaintiff] at the May 26, 2004 closing."

{6} Upon reviewing this evidence at the next hearing, the district court dismissed the case with prejudice, making an oral ruling that Plaintiff did not close on the property until May 26, 2004, and, therefore, that he had no legal right to evict Defendants before then. The hearing also revealed that Plaintiff never obtained the deed dated December 11, 2003, from the title company. The district court sanctioned Plaintiff for $6,699.28 in attorney fees and costs, pursuant to Rule 1-011. Plaintiff challenges the district court's ruling as to the date of closing, the imposition of sanctions, and claims there was insufficient evidence to support the district court's findings of fact.

II. DISCUSSION

A. Transfer of Warranty Deed Without Payment in Full Was Not a Closing

{7} Plaintiff argues that the closing on the sale of the property occurred when the personal representative executed the warranty deed on December 11, 2003, not when he paid in full and concluded all paperwork on May 26, 2004. At issue is the interpretation of the order in the probate proceeding that permitted Defendants to continue to reside in the duplex until the closing. The interpretation of writings is a question of law, which we review de novo. See Krieger v. Wilson Corp., 2006-NMCA-034, ¶ 12, 139 N.M. 274, 131 P.3d 661 (stating that interpretation of unambiguous language in a contract is subject to de novo review), cert. granted, 2006-NMCERT-003, 139 N.M. 353, 132 P.3d 1039; Bajart v. Univ. of N.M., 1999-NMCA-064, ¶ 7, 127 N.M. 311, 980 P.2d 94 (explaining that interpretation of the meaning of statutory language is a matter of law reviewed de novo).

{8} In order to establish when the closing occurred, we first determine the meaning of "closing" in the context of this case. The order in the probate proceeding states that "[b]y consent of the Estate, Ms. Benavidez can continue to reside at the apartment . . . without charge, until the closing on the sale of the property." The "same rules of interpretation apply in construing the meaning of a court order or judgment as in ascertaining the meaning of other written instruments." Lone Star Cement Corp. v. Fair, 467 S.W.2d 402, 404-05 (Tex.1971) (original petition for writ of mandamus). The plain meaning of the language used is the primary indicator of intent. See Santa Fe Technologies, Inc. v. Argus Networks, Inc., 2002-NMCA-030, ¶ 52, 131 N.M. 772, 42 P.3d 1221 (explaining that in interpreting contract language, court will apply plain meaning); High Ridge Hinkle Joint Venture v. City of Albuquerque, 1998-NMSC-050, ¶ 5, 126 N.M. 413, 970 P.2d 599 (stating the plain meaning rule as applied to statutory interpretation).

{9} The meaning of the word "closing," according to Black's Law Dictionary, is: "The final meeting between the parties to a transaction, at which the transaction is consummated; esp., in real estate, the final transaction between the buyer and seller, whereby the conveyancing documents are concluded and the money and property transferred." Black's Law Dictionary 272 (8th ed.2004). Furthermore, courts have applied this common understanding of "closing" to judicial interpretation of real estate transactions, noting

a distinction between an acceptance of an offer to purchase and the closing of a sale, after the option has been exercised. The acceptance of an offer to sell real estate creates a binding obligation on both parties. The closing of the sale thereafter is the fulfillment of the obligations created by the contract.

McMillan, Ltd. v. Warrior Drilling & Eng'g Co., 512 So.2d 14, 23 (Ala.1986) (emphasis omitted).

{10} In this case, the personal representative executed a warranty deed on December 11, 2003, but Plaintiff did not pay in full until May 26, 2004. As a result, Plaintiff had not fulfilled all his obligations created by the purchase agreement until May. Consequently, the execution of the warranty deed in December did not constitute a closing. The closing on the sale of the property took place on May 26, 2004, at which time all contractual obligations between the parties concluded.

{11} Plaintiff argues that title transferred to him upon execution of the warranty deed. Even if this were the case, Plaintiff cites no authority supporting his contention that the transfer of title superseded the probate order permitting Defendants to reside in the property until closing. "Issues raised in appellate briefs that are unsupported by cited authority will not be reviewed." Wilburn v. Stewart, 110 N.M. 268, 272, 794 P.2d 1197, 1201 (1990). In addition, we observe that it does not appear that the deed executed on December 11, 2003, was delivered to Plaintiff. "In order for a deed to be valid, it must be legally delivered." Vigil v. Sandoval, 106 N.M. 233, 235, 741 P.2d 836, 839 (Ct.App.1987). Therefore, the events of December 11, 2003, were not a closing.

B. Rule 1-011 Sanctions Were Appropriate

{12} Plaintiff contends that the district court erred in imposing sanctions pursuant to Rule 1-011 because he had a good faith basis to believe that he had purchased the property from the estate of Benjamin Benavidez in December 2003. For the reasons below, we disagree.

{13} We review a lower court's imposition of sanctions under an abuse of discretion standard. Rivera v. Brazos Lodge Corp., 111 N.M. 670, 674-75, 808 P.2d 955, 959-60 (1991); see also Enriquez...