H-B-S Partnership v. Ahs

• Decision Date: 26 November 2007
• Docket Number: No. 26,601.,26,601.
• Citation: 2008 NMCA 013,176 P.3d 1136
• Parties: H-B-S PARTNERSHIP, a New Mexico general partnership; Arnold Horwitch; Burton Horwitch; Elliott Horwitch; and Stuart C. Sherman, Plaintiffs-Appellees, v. AIRCOA HOSPITALITY SERVICES, INC., a Delaware corporation, Defendant-Appellant.
• Court: Court of Appeals of New Mexico

176 P.3d 1136

2008 NMCA 013

H-B-S PARTNERSHIP, a New Mexico general partnership; Arnold Horwitch; Burton Horwitch; Elliott Horwitch; and Stuart C. Sherman, Plaintiffs-Appellees, v. AIRCOA HOSPITALITY SERVICES, INC., a Delaware corporation, Defendant-Appellant.

No. 26,601.

Court of Appeals of New Mexico.

November 26, 2007.

Eaves & Mendenhall, P.A., John M. Eaves, Karen S. Mendenhall, Albuquerque, NM, for Appellees.

Keleher & McLeod, PA., Spencer Reid, Thomas C. Bird, Albuquerque, NM, for Appellant.

OPINION

WECHSLER, Judge.

{1} In this appeal, we resolve a conflict between the Rules of Civil Procedure and local district court rules pertaining to the time for filing a cost bill in favor of the Rules of Civil Procedure. We also address the district court's discretion under Rule 1-001 NMRA. We conclude that the district court had the discretion to award costs that were requested one day after the time limit of the Rules of Civil Procedure but within the time permitted by the local district court rules under its discretion granted by Rule 1-006(B)(2) NMRA to extend the time for filing for excusable neglect. We affirm.

INCONSISTENCY IN THE RULES

{2} The parties, H-B-S Partnership, Arnold Horwitch, Burton Horwitch, Elliott Horwitch, and Stuart C. Sherman (HBS) and AIRCOA Hospitality Services, Inc. (AHS), engaged in lengthy litigation resulting in trial before the district court over the right of first refusal provision of the parties' partnership agreement. The district court concluded that the provision had been activated and entered judgment in favor of HBS for the price of exercising the right of first refusal with adjustments for distributions and interest. Both sides filed notices of appeal, and this Court affirmed the district court on appeal. H-B-S P'ship v. AIRCOA Hospitality Servs., Inc., 2005-NMCA-068, 137 N.M. 626, 114 P.3d 306.

{3} Sixteen days after the district court entered its judgment, HBS filed a cost bill. The filing was within the twenty days allowed by Local Rule 1-307 NMRA, but it was outside the fifteen days permitted by Rule 1-054(D)(4) NMRA of the Rules of Civil Procedure. AHS objected to its timeliness. The district court undertook the issue on remand and awarded HBS costs. It rejected AHS's timeliness objection based on its exercise of discretion to "interpret the rules in a way that secures] the just, speedy and inexpensive determination" of the case.

{4} We initially address the inconsistency of the provisions, which are essentially identical except for their time frames for filing. We then turn to the district court's discretion in interpreting the timeliness of the cost bill under Rules 1-001 and 1-006.

{5} LR1-307 reads:

Within twenty (20) days after filing of final judgment, the party recovering costs shall file with the clerk of the court an itemized and verified cost bill, with proof of service of a copy on opposing counsel. Any party failing to file a cost bill within the said twenty (20) days shall be deemed to have waived costs. If no objections are filed within ten (10) days after service of the cost bill, the clerk of the court shall tax the claimed costs which are allowable by law. The judge shall settle any objections filed.

Rule 1-054(D)(4) reads:

Within fifteen (15) days after filing of the final judgment, the party recovering costs shall file with the clerk of the district court an itemized cost bill, with proof of service of a copy on opposing counsel. Any party failing to file a cost bill within fifteen (15) days after the filing of the final judgment shall be deemed to have waived costs. If no objections are filed within ten (10) days after service of the cost bill, the clerk of the district court shall tax the claimed costs which are allowable by law. The judge shall settle any objections filed.

Our analysis requires us to interpret these rules along with Rule 1-083 NMRA. We do so in the same manner that we approach the interpretation of legislative enactments, by seeking to determine the underlying intent. See Roark v. Farmers Group, Inc., 2007-NMCA-074, ¶ 50, 142 N.M. 59, 162 P.3d 896 ("We apply the same rules to the construction of Supreme Court rules of procedure as we apply to statutes.") (internal quotation marks and citation omitted), cert. denied, 2007-NMCERT-006, 142 N.M. 16, 162 P.3d 171 Our review is de novo because the interpretation of rules is a question of law. State v. Gutierrez, 2006-NMCA-090, ¶ 7, 140 N.M. 157, 140 P.3d 1106, cert. denied, 2006-NMCERT-008, 140 N.M. 422, 143 P.3d 184.

HISTORY OF THE RULES

{6} The history of these rules is relevant to our analysis. LR1-307 was adopted prior to September 1993, when it was recompiled. At that time, the Supreme Court rule enabling individual rules of the district courts permitted each district court to adopt rules of practice in civil cases that were "not inconsistent" with the Rules of Civil Procedure. Rule 1-083 NMRA 1993 (amended 1997, 1999); see also Spingola v. Spingola, 91 N.M. 737, 745, 580 P.2d 958, 966 (1978) ("By means of Rule 83 we have delegated to the district courts the power to promulgate rules, not inconsistent with ours, regarding practice in the local courts."). To do so, the district court had to provide copies of the proposed rules to the Supreme Court and the chair of the Supreme Court's Rules of Civil Procedure Committee. Rule 1-083 NMRA 1993. The committee had the obligation to review proposed local rules for conflicts with the Rules of Civil Procedure and to notify the Supreme Court and the chief judge of the district court of any such conflict that it identified. Id. The district court could promulgate a proposed rule if there was no notice of a conflict. Id. As, to the issue in this case, no local rule was allowed if it "provide[d] for a different time period for filing any pleading or paper than a time period set forth in" the Rules of Civil Procedure. Id.

{7} In 1998, the Supreme Court made revisions to Rule 1-083, which became effective on January 1, 1999. Under the revised rule, which is the version that is currently in force, a district court may recommend local rules governing procedure in civil cases to the Supreme Court. Rule 1-083(A). The Rules of Civil Procedure Committee must review any proposed rule "for content, appropriateness, style and consistency with the other local rules, statewide rules and forms and the laws of New Mexico" and must make recommendations to the Supreme Court. Id. Any proposed local rule must be approved by the Supreme Court before it takes effect. Id. The current rule contains a provision that requires local rules "not [to] conflict with, duplicate or paraphrase statewide rules or statutes." Id.

{8} The Supreme Court did not add Paragraph (D)(4) to Rule 1-054 until 1999. Thus, when the First Judicial District Court adopted it, LR1-307 did not conflict with any rule of statewide application, and the revision of Rule 1-083 did not create any conflict. Of course, when it added Paragraph (D)(4) of Rule 1-054 in 1999, the Supreme Court did not have to follow the procedure of Rule 1-083 because it was not adding a local rule at that time.

INTERPRETATION OF THE RULES

{9} HBS argues on appeal that the revision of. Rule 1-083 mandates the continued vitality of LR1-307 notwithstanding the adoption of Paragraph (D)(4) in Rule 1-054. HBS recognizes the language of the revised rule that no local rule may "conflict with, duplicate or paraphrase" a statewide rule, but it contends that the Supreme Court's adoption of LR1-307 establishes that the rule does not "conflict with, duplicate or paraphrase" Rule 1-054(D)(4), enabling both rules to coexist. HBS is correct that, with the revision of Rule 1-083, the Supreme Court took over the authority to promulgate local rules. However, HBS's argument presupposes that the Supreme Court adopted or promulgated LR1-307 after it revised Rule 1-083. The Supreme Court took no such action. LR1-307 is a local rule that was adopted under the procedure of the prior version of Rule 1-083 in which the Supreme Court did not act to approve proposed local rules that did not conflict with statewide rules. Indeed; LR1-101 NMRA states that the local rules of the First Judicial District Court, including LR1-307, were "adopted and promulgated" by the judges of the First Judicial District Court, not by the Supreme Court.

{10} Because there is no indication that the Supreme Court approved LR1-307, we consider only the Rules of Civil Procedure in order to give effect to the Supreme Court's intent. See Roark, 2007-NMCA-074, ¶ 50, 142 N.M. 59, 162 P.3d 896 ("In interpreting [rules], we seek to give effect to the [enacting authority's] intent.") (alterations in original) (internal quotation marks and citation omitted). In this effort, we read the rules as a whole. See State v. Padilla, 2006-NMCA-107, ¶ 11, 140 N.M. 333, 142 P.3d 921 ("To search for legislative intent, we look at the overall structure and function of the statute in the comprehensive legislative scheme, we consider any particular provision in reference to the statute as a whole as well as to other statutes dealing with the same subject, and we strive to read different enactments as harmonious."), cert. granted, 2006-NMCERT-008, 140 N.M. 424, 143 P.3d 186; see also State v. Stephen F., 2006-NMSC-030, ¶ 17, 140 N.M. 24, 139 P.3d 184 (applying the rule of construction that statutes are to be read as a whole to a Supreme Court rule). We give effect to the plain meaning of a rule if its language is clear and unambiguous. Gutierrez, 2006-NMCA-090, ¶ 7, 140 N.M. 157, 140 P.3d 1106. Rule 1-054(D)(4) is clear and unambiguous in its requirement that a cost bill be filed within fifteen days after the entry of a final judgment. Rule 1-083 describes the procedure for approval of local rules. Although the revision to Rule 1-083 removed the language concerning conflicts between local and statewide rules regarding filing time periods, the revised rule did not abandon...