Joinder of a tortfeaser's automobile insurer is proper under New Mexico law

Law Reporter, May 1999

Raskob v. Sanchez, 970 P.2d 580 (N.M. 1998).

The New Mexico Supreme Court held that joinder of a tortfeaser's automobile insurer is proper under the New Mexico Mandatory Financial Responsibility Act (NMMFRA), N.M. STAT. ANN. sec 66-5-201 et seq.

Here, Raskob sued Sanchez for injuries suffered in a car collision and joined his liability insurer as a defendant. The trial court dismissed the insurer as an improper party to the lawsuit.

Reversing, the state high court noted that NMMFRA requires owners and operators of motor vehicles to insure against liability with a minimum policy limit of $25,000 for the injury or death of one person, $50,000 for two people, and $10,000 for property damage. The court said that the intent of the act is to equitably distribute the financial burdens of motor vehicle accidents among all state motor vehicle owners and operators.

The court noted that generally, no privity exists between an injured party and the defendant's insurer absent a contractual provision, statute, or ordinance to the contrary. However, the court said, an insurer is generally a proper party where (1) the coverage is mandated by law, (2) it benefits the public, and (3) the statutory language does not express an intent to deny joinder.

The court found that the language of NMMFRA did not negate joinder, expressly or by implication. Specifically, the court found that the statute was not intended to provide only indemnification-which exists solely for the benefit of the insured-but to provide a benefit to the general public. The court also distinguished an insurance company's liability to pay, arising after a judgment against its insured, from a plaintiffs right to sue the insurer. The court found NMMFRA provided that plaintiff's right to sue the insurer became absolute at the time the accident occurred and plaintiff was injured.

Plaintiff's Counsel:

*Janet Santillanes, Albuquerque, N.M.

[Documents in this case are available through the Court Documents section in the back section of this issue, courtesy of Ms. Santillanes.]