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Keywords

defendantjurisdictionequityappealtrialmotioncorporationadoptionjury trial

plaintiffdefendantjurisdictionequitytrialappellantjury trial

Related Cases

Evans Financial Corp. v. Strasser, 99 N.M. 788, 664 P.2d 986, 1983 -NMSC- 053

Facts

Evans Financial Corporation sought to foreclose two mortgages and recover on three promissory notes under the equity jurisdiction of the trial court. Defendants Strasser and Paiz filed a counterclaim and demanded a six-person jury, which the trial court struck, leading to an interlocutory appeal. The case involved complex interactions between the parties, including a third-party complaint and subsequent motions regarding the counterclaim.

The parties agree that the complaint sought relief under the equity jurisdiction of the trial court and no jury trial issue arose at that point.

Issue

Whether parties to a suit in equity have a right to a jury trial when their counterclaim involves legal issues.

The issue presented in this case arose in the following manner.

Rule

The right to a jury trial is guaranteed under the New Mexico Constitution, and parties are entitled to a jury trial for legal issues presented in a counterclaim, even if the original action is equitable in nature.

The New Mexico Constitution provides as follows: 'The right of trial by jury as it has heretofore existed shall be secured to all and remain inviolate.' N.M.Const. art. II, § 12 N.M.Const. art. II, § 12.

Analysis

The court analyzed the constitutional guarantee of the right to a jury trial and the distinction between legal and equitable claims. It noted that the New Mexico Constitution secures the right to a jury trial as it existed prior to its adoption, and that legal issues should be tried by juries while equitable issues are reserved for the court. The court found that the defendants' counterclaim raised legal issues that warranted a jury trial.

We find that the right to a jury trial is an important constitutional guarantee in New Mexico. Therefore, counter-claimants may not have their right to a jury trial automatically abrogated upon the actions of others.

Conclusion

The New Mexico Supreme Court concluded that the defendants were entitled to a jury trial on the legal issues presented in their counterclaim and remanded the case for further proceedings consistent with this opinion.

This case is remanded to the trial court for proceedings consistent with this opinion.

Who won?

Defendants Strasser and Paiz prevailed in the case because the court recognized their right to a jury trial on the legal issues raised in their counterclaim.

Defendants-Appellants and Counter-Plaintiffs Strasser and Paiz (Strasser and Paiz) filed an answer and counterclaim.

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