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Apodaca v. AAA Gas Co.3/11/2003
though the several legal theories depend on different shadings of the facts, or would emphasize different elements of the facts, or would call for different measures of liability or different kinds of relief." Ford, 119 N.M. at 413, 891 P.2d at 554 (quoting Restatement § 24 cmt. c). Rather, " he transactional test requires us . . . to examine the operative facts underlying the claims made in the two lawsuits." Anaya, 1996-NMCA-092, 8. To determine whether these facts form a convenient trial unit, we examine the overlap of the witnesses and evidence relevant to the claims in the two lawsuits. Id. 14.
The thrust of both actions against LPGE is that it misrepresented the valve as new when in fact it supplied Cañada with the wrong model valve, that was used and substantially altered, creating a defective condition that ultimately injured Plaintiffs. The facts Plaintiffs would have relied on in the second lawsuit to prove misrepresentation and the UPA violation were the same as the facts relied on in the first lawsuit to prove negligence and products liability. In the first action, the jury was instructed that to find LPGE negligent, Plaintiffs had the burden to prove LPGE did not supply a newly manufactured Fisher Controls valve to Cañada or LPGE did not inspect the valve to verify it was new. To hold LPGE liable under a products liability theory, the jury had to find LPGE provided a defective product. The jury answered "no" to the question of whether LPGE was negligent and "no" to the question of whether LPGE was liable for products liability. Similarly, Plaintiffs' complaint in the second action alleged Cañada ordered a new valve but LPGE supplied the wrong valve, and the valve supplied was used and altered. It further alleged that LPGE supplied a defective valve because of these conditions. In light of these similarities in fact, as well as proof, we find the claims in both suits were related in time, space, origin, and motivation, and the claims formed a convenient trial unit which provided Plaintiffs with a reason to expect that a verdict in favor of Plaintiffs in the second action would have been precluded by the judgment for LPGE in the first action.
Having found that the requisite elements of res judicata are satisfied, we must now determine whether res judicata bars Plaintiffs' second complaint. Both below and on appeal, Plaintiffs' primary argument is that they were denied a full and fair opportunity to litigate the UPA and misrepresentation claims because the trial court denied their motions to amend in the first action. See Restatement § 24 cmt. a (explaining that transactional analysis of a claim "is justified only when the parties have ample procedural means for fully developing the entire transaction in the one action going to the merits to which the plaintiff is ordinarily confined"). As a result, Plaintiffs were unfairly forced to split their cause of action and file the second complaint to avoid the statute of limitations.
This Court has held that full and fair opportunity to litigate is essential to the application of res judicata. See Moffat v. Branch, 2002-NMCA-067, 26, 132 N.M. 412, 49 P.3d 673 (finding full and fair opportunity to litigate is the essence of res judicata); Ford, 119 N.M. at 409, 891 P.2d at 550; Myers v. Olson, 100 N.M. 745, 747, 676 P.2d 822, 824 (1984). We have also held that Rule 1-015(A), which permits one amendment as of right before a responsive pleading is filed, promotes the policy of providing a full opportunity to litigate all claims in one trial. Moffat, 2002-NMCA-067, 27. Rule 1-015(B), permitting amendment to conform to the evidence, gives Plaintiffs another opportunity, so long as there is no prejudice to the Defendant. Beca
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