Court Opinion

ID: 9630730
Source: CourtListenerOpinion
Date Created: 2023-08-22 10:18:36.564223+00
Date Added: 2024-06-11T18:07:42.414086
License: Public Domain

WALTERS, Chief Judge (dissenting). I respectfully dissent for the following reasons: (1) The affidavit of defendant Valley’s employee, based upon his experience, raised factual questions regarding alteration of the condition of the product between the time of sale and the fire, and whether plaintiff’s own modification of the fireplace unit might have caused or contributed to the defect found. These questions of fact should have precluded summary judgment. Peoples State Bank v. Ohio Cas. Ins. Co., 96 N.M. 751, 635 P.2d 306 (1981). (2) Even if summary judgment were correct, American’s damages should have been limited to the insurance proceeds it paid to its insured. As a subrogee, it stepped into Pedigo’s shoes and was entitled only to recovery of those losses it paid to Pedigo under its policy. See Fidelity & Deposit Co. of Maryland v. Atherton, 47 N.M. 443, 144 P.2d 157 (1944); Colonial Penn Ins. Co. v. Ford, 172 N.J.Super. 242, 411 A.2d 736 (1979); Annot., 92 A.L.R.2d at 105, § 2. Expenses American incurred for investigation and adjustment at the time of the fire were not Pedigo’s expenses. American had no separate suit in its own right against defendants under which costs related to settling its insured’s claim against it could be assessed against defendants pursuant to N.M.R.Civ.P. 54(d), N.M.S.A.1978. 44 Am.Jur.2d 748, Insurance, § 1821. Those expenses were not “costs” of the lawsuit in which American prevailed; they were expenses voluntarily incurred by American in determining whether American would pay the loss for which it insured Pedigo and for which Pedigo made his claim against American. “Costs” is defined in Mills v. Southwest Builders, Inc., 70 N.M. 407, 374 P.2d 289 (1962).