The state Supreme Court issued a ruling that expands when an out-of-state entity can be sued for damages done within New Mexico.
In doing so, the state’s high court still ruled that the widened way to sue a business or individual outside of New Mexico did not apply to three law firms in the case that prompted the decision.
The unanimous opinion, written by Justice Michael E. Vigil, adopted “conspiracy jurisdiction” for civil lawsuits. It came in Shook v. Wilson, where law firms were alleged to conspire with the tobacco industry to defraud the public about the dangers of cigarette smoking.
The concept of conspiracy jurisdiction was the basis of a piece in the Stanford Law Review last year, which said “an active and jagged circuit split” in federal courts meant that it would “inevitably” be heard by the U.S. Supreme Court.
“We hold that conspiracy jurisdiction comports with due process if properly limited to focus on the defendant’s conduct in actively participating in a civil conspiracy that the defendant knows will target a forum state,” Vigil wrote.
Though the court broadened what out of state entities could be sued, it ordered a district court in Santa Fe to dismiss the case against three law firms.
The law firms advised the clients on New Mexico’s laws and regulations and discussed scientific studies done in the state, but this did not reach the level that they could be included in the lawsuit.
“As with other exercises of specific personal jurisdiction, the plaintiff’s claims must arise from or relate to the contacts imputed to the defendant on the basis of its participation in the civil conspiracy,” the opinion said.
To bring a lawsuit against an entity based outside the state based on civic conspiracy, those suing must prove three prongs, per the opinion: “(1) the defendant actively and voluntarily participated in a civil conspiracy, (2) the defendant knew of a co-conspirator’s acts in furtherance of the civil conspiracy that occurred in or were aimed at New Mexico, and (3) these acts created minimum contacts with New Mexico such that the defendant could reasonably foresee being brought into court here.”
The lawsuits also targeted Philip Morris and several retailers and distributors of cigarettes.