Opinion ID: 2567729
Heading Depth: 3
Heading Rank: 2

Heading: The Black Trust Has Standing to Bring Its Claims

Text: {36} Petitioner appeals the trial court's denial of its motion for directed verdict with regard to the standing of the Black Trust. Petitioner argues that the Black Trust, alone among Respondents, does not have standing because the cause of action arose when the pit was covered over and abandoned, which was prior to the Black Trust gaining an ownership interest in the McNeill Ranch. Since the previous owner did not expressly convey the cause of action to the Black Trust, Petitioner argues, substantially under Texas law, that the Black Trust has no standing to bring its claims. We review the district court's denial of a motion for directed verdict de novo. Hedicke v. Gunville, 2003-NMCA-032, ¶ 9, 133 N.M. 335, 62 P.3d 1217. {37} In New Mexico, a cause of action arises when the plaintiff discovers or with reasonable diligence should have discovered that a claim exists. Williams v. Stewart, 2005-NMCA-061, ¶ 12, 137 N.M. 420, 112 P.3d 281 (quoted authority omitted); see also NMSA 1978, § 37-1-7 (1880, as amended through 1953) (the discovery rule). The Black Trust received its interest in the McNeill Ranch in 1997. Respondents contend that they discovered the contaminated pit in 1997. As the Court of Appeals held, a motion for directed verdict that the Black Trust had no standing was inappropriate because there was a factual issue with regard to the timing of the discovery of the injury. Applying the discovery rule to the evidence presented, the causes of action accrued, or was [sic] `discovered,' after the conveyance of the property to [Respondents]. McNeill, 2007-NMCA-024, ¶ 15, 141 N.M. 212, 153 P.3d 46. We affirm the Court of Appeals' holding that the discovery rule applies and that the Black Trust has standing.