Meeker v. Walker

• Decision Date: 30 April 1969
• Docket Number: No. 8587,8587
• Citation: 454 P.2d 762,1969 NMSC 53,80 N.M. 280
• Parties: Charles A. MEEKER, Plaintiff-Appellant, v. Roy T. WALKER and Annette S. Walker, and First National Bank in Albuquerque, New Mexico, Defendants-Appellees.
• Court: New Mexico Supreme Court

Page 762

454 P.2d 762

80 N.M. 280

Charles A. MEEKER, Plaintiff-Appellant, v. Roy T. WALKER and Annette S. Walker, and First National Bank in Albuquerque, New Mexico, Defendants-Appellees.

No. 8587.

Supreme Court of New Mexico.

April 30, 1969.

Rehearing Denied June 5, 1969.

Charles A. Meeker, pro se.

Keleher & McLeod, William B. Keleher, Rodey, Dickason, Sloan, Akin & Robb, Robert M. St. John, Albuquerque, for appellees.

OPINION

SANDERS, District Judge.

This action was brought in the District Court of Bernalillo County to recover compensatory and punitive damages upon allegations of fraud and negligence in connection with the financing and purchasing of oil royalty interests. Motions to dismiss and for summary judgment were filed by the defendants and granted by an order and judgment entered January 27, 1967. Plaintiff has appealed from that order and judgment.

On August 30, 1966, plaintiff Charles A. Meeker filed his complaint in Cause No. A--22034 on the docket of the District Court of Bernalillo County against the defendants Roy T. Walker and Annette S. Walker and First National Bank in Albuquerque. Plaintiff appeared pro se. The first three and one-half pages of this complaint consist of conclusions and recitations of conversations between plaintiff and defendants Walker; it was alleged that a sale was made of four oil royalties to Major Oil Development Company; that Major Oil Development Company is a New Mexico corporation owned and controlled by the wife and children of Charles A. Meeker; that plaintiff advised the Walkers that he would have to mortgage his home to the First National Bank in Albuquerque to raise money to purchase the oil royalties; that defendant Walker helped plaintiff in arranging his loan, and practiced fraud upon plaintiff and the bank. Following this discursive preliminary statement are two counts the first of which is denominated 'COUNT (I): FRAUD & DECEIT'. Under Court I Further discursive allegations and statements are set forth concerning various and sundry representations made by the Walkers as to income from the oil royalties and that the Walkers committed fraud upon plaintiff in their representations of the oil production in Calhoun County, Texas; that plaintiff would not have signed the note and mortgage had he known of the fraud practiced upon him. Under the title 'COUNT (II): NEGLIGENCE,' plaintiff reiterates the statements as to fraud and misconduct by the defendants Walker and states 'that the bank's negligence was not willful but effected against it primarily because of the misconduct of Mr. and Mrs. Walker in concluding the aforsaid (sic) pleaded misconduct.'

Plaintiff prayed for judgment against the defendants and each of them, jointly and severally, in the sum of $2500 actual damages and $7000 exemplary damages on Count I. On Count II, plaintiff prayed 'for the nomonal (sic) damages of one dollar against the First National Bank in Albuquerque for the negligent acts practiced against Charles A. Meeker which resulted in his signing the note and mortgage to his home; and for the sum of $2500 actual damages against Mr. and Mrs. Walker and $7000 as exempliary (sic) damages plus costs.'

Plaintiff's complaint utterly and wholly disregards and fails to comply with Rule 8(e) of the Rules of Civil Procedure of the State of New Mexico (§ 21--1--1(8), N.M.S.A., 1953).

The defendants Walker, by their attorneys, and purportedly by a special appearance, filed a motion to quash the service of process on them on the ground that no summons was served on them although a copy of the complaint was served on them; on the further ground that they were not subject to service of process outside the State of New Mexico; to dismiss the complaint for failure to state a claim upon which relief could be granted; and to dismiss for failure to join an indispensable party, the Major Oil Development Company. By this motion with its serveral parts, the defendants Walker entered a general appearance. Guthrie v. Threlkeld Co., 52 N.M. 93, 192 P.2d 307 (1948).

The defendant First National Bank in Albuquerque, by its attorneys, filed its separate answer to plaintiff's complaint. By its first defense the defendant bank admitted the residence of the plaintiff, the corporate status of the defendant bank, the sale of certain oil royalty interests by the defendants Walker to Major Oil Development Company, that Major Oil Development Company was a New Mexico corporation owned and controlled by the wife and children of plaintiff, and generally denied all the remaining allegations of the complaint; by its second defense, the defendant bank alleged that the complaint failed to state a claim upon which relief could be granted; by its third defense the bank stated that the plaintiff failed to join an indispensable party, Sybil F. Meeker, who shared an interest in the property described in the complaint; by its fourth defense the defendant bank stated plaintiff was a managing agent of Major Oil Development Company and in connection with all matters alleged in the complaint acted either through or on behalf of said oil company and that the judgment entered in Cause No. A--10707 on the docket of the District Court of Bernalillo County (hereinafter referred to) on August 30, 1966, was res judicata as to all matters set forth in the complaint pertaining to the defendant bank; for its fifth defense the defendant bank pleaded that plaintiff by his actions had ratified and confirmed all the actions taken by the defendant bank relating to the subject matter of the complaint and was barred and estopped from asserting any claim against the bank; by its sixth defense the bank further pleaded that plaintiff by his actions and failure to act waived any claim he had against the bank.

On November 2, 1966, the defendant bank filed its motion for a summary judgment, and on November 7, 1966, said bank filed its motion to strike a purported amended complaint filed by plaintiff without leave of court in violation of Rule 15 of the Rules of Civil Procedure, or in the alternative for summary judgment, and by which motion the defendant bank renewed its motion for summary judgment previously made. To this latter motion was attached a copy of the original complaint in Cause No. A--10707 on the docket of the District Court of Bernalillo County in which Charles A. Meeker and Sybil F. Meeker and the Major Oil Development Co., a New Mexico corporation, were named as plaintiffs, and Mr. and Mrs. Roy T. Walker of Austin, Texas, Capital National Bank of Austin, Texas, and the First National Bank in Albuquerque, N.M. were named as defendants. This original complaint consisted of ten pages of evidentiary allegations, generalities of fraud and deceit, conversations between the parties, discursive narrations, and practically everything except simple, concise and direct allegations as required by Rule 8(e) of the Rules of Civil Procedure; to these ten pages are attached ten pages of purported exhibits. This original complaint in Cause No. A--10707 was amended by a first amended complaint wherein Major Oil Development Co. was named as the plaintiff and First National Bank in Albuquerque was named as the defendant.

By a first amended complaint in the action on appeal, the plaintiff reiterated generally the same statements concerning the oil royalties in Texas as contained in the original complaint; alleged that he believed them; that he was induced to obtain a loan from the defendant bank and place a mortgage on his home; and that certain witnesses would 'come forth' and prove the facts outlined; praying judgment against the defendants Walker for a total of $28,000 actual damages and $25,000 exemplary damages; praying further for the sum of $3,000 actual damages, 'and that the First National Bank in Albuquerque be held contingently liable for the additional sum of $25,000 which will be suffered by Charles A. Meeker should the Walkers fail to pay off on any judgment granted against them.' Plaintiff further prayed that the defendant bank be granted judgment against the defendants Walker in the sum of $28,000 to offset the judgment granted and prayed for against said bank resulting from the facts pleaded therein, stating 'this being essential in order to prevent additional law suits to settle the entire problem outlined to this point.'

On January 6, 1967, all motions in this case came on to be heard before the Honorable Samuel Z. Montoya sitting by designation of the Supreme Court. On January 27, 1967, an order and judgment was entered by Judge Montoya wherein it was ordered that the first amended complaint should be considered as filed for purposes of determining the motions of the defendants, and wherein the court found that any claim alleged in the complaint or first amended complaint belonged to the Major Oil Development Company; that the complaints failed to state a claim against the defendants Walker upon which relief could be granted; that Major Oil Development Company was an indispensable party to any claim alleged in the complaints; and that all matters in controversy between plaintiff and the defendant bank had been fully and finally adjudicated in said Cause No. A--10707. The complaint and amended complaint were dismissed as against the defendants Walker for failure to state a claim upon which relief could be granted and for failure to join Major Oil Development Company as an indispensable party, all without prejudice to plaintiff to file an amended complaint within thirty days. Summary judgment was granted in favor of the defendant bank and against the plaintiff Charles A. Meeker, dismissing the complaints with prejudice as to said bank.

The Major Oil Development Company was an indispensable party to the action and the case could not proceed without such party. This court has repeatedly ruled that all persons whose interests will necessarily be affected by a decree are necessary and indispensable parties, and the court...