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Barbeau v. Hoppenrath8/29/2001
Plaintiffs Ronald and Leora Barbeau (Barbeaus) originally filed their personal injury claim (first complaint) against Defendant Kim Hoppenrath (Hoppenrath) and Farmers Insurance Company of Oregon in the United States District Court for the District of Oregon (Oregon federal court) two days before the New Mexico statute of limitations on the claim expired. After the federal magistrate dismissed the suit and denied the motion to transfer venue to New Mexico, Barbeaus filed a second complaint in New Mexico district court attempting to avail themselves of the New Mexico Savings Statute, NMSA 1978, § 37-1-14 (1880). The district court granted summary judgment to Hoppenrath and dismissed the case with prejudice. Barbeaus appeal. We affirm.
I. STANDARD OF REVIEW
The standard of review for a motion for summary judgment is whether there are any genuine issues of material fact and whether the moving party is entitled to summary judgment as a matter of law. Williams v. Cent. Consol. Sch. Dist., 1998-NMCA-006, 7, 124 N.M. 488, 952 P.2d 978; see Rule 1-056(C) NMRA 2001. We consider the facts in the light most favorable to the party opposing summary judgment. See Gillin v. Carrows Rest., Inc., 118 N.M. 120, 122, 879 P.2d 121,123 (Ct. App. 1994). If, however, the facts are not in dispute, and only a legal interpretation of the facts remains, summary judgment is appropriate. See Garrity v. Overland Sheepskin Co., 121 N.M. 710, 718, 917 P.2d 1382, 1390 (1996). In this case, there are no facts in dispute.
II. BACKGROUND
In response to Barbeaus' second complaint, Hoppenrath filed a motion for summary judgment, to which she attached Barbeaus' first complaint and the entire order entered by the federal magistrate; neither was contested by Barbeaus. The first complaint alleges that Barbeaus were citizens of Oregon and that one of the defendants, Farmers Insurance Company of Oregon, was a citizen of Oregon. Given the nature of the cause of action, the only arguable basis for federal court jurisdiction would be diversity of citizenship. 28 U.S.C. § 1332 (1996). By alleging that the plaintiffs and one of the defendants were all citizens of Oregon, Barbeaus defeated diversity and eliminated subject matter jurisdiction. Therefore, the claim was clearly improperly filed in Oregon federal court.
The federal magistrate's order provides additional information about the prosecution of the case in Oregon. After Hoppenrath filed her motion to dismiss the first complaint on jurisdictional grounds, Barbeaus conceded that there was no personal jurisdiction in Oregon and then filed a motion to transfer venue to New Mexico pursuant to 28 U.S.C. § 1406(a) (1996). Section 1406(a) permits federal courts, "in the interest of justice," to transfer cases to the district in which the case should have been brought. The federal magistrate observed that the attorney for Barbeaus "knew or should have known that there was not subject matter jurisdiction at the time he filed the case." The federal magistrate, recognizing that failing to transfer could result in the inability of Barbeaus to recover due to the statute of limitations, nonetheless refused to transfer because he found that Barbeaus' counsel "was not diligent in this case." The federal magistrate dismissed the case for lack of personal and subject matter jurisdiction, and denied the motion to transfer venue.
Barbeaus then re-filed their action in New Mexico district court within the six-month time limit pursuant to Section 37-1-14. They also filed a motion for summary judgment. Before the district court heard the motions, the parties stipulated to the following facts:
(1) Barbeaus w
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