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Starko, Inc. v. Cimarron Health Plan, Inc.

Citations: 137 N.M. 310; 2005 NMCA 040; 110 P.3d 526Docket: No. 24,344

Court: New Mexico Court of Appeals; February 16, 2005; New Mexico; State Appellate Court

Narrative Opinion Summary

The case involves an appeal filed by three managed care organizations (MCOs) contesting a district court's class certification order in a lawsuit initiated in 1997 by pharmacists against the Human Services Department over Medicaid prescription reimbursements. The central issue is the applicability of Rule 1-023(F) NMRA, which allows appeals from class certification decisions, enacted after the lawsuit's initiation but before the MCOs were added as defendants. The district court denied the MCOs' motion to decertify the class, leading to their appeal. The New Mexico Constitution, Article IV, Section 34, prohibits applying new rules to pending cases, and the court found the entire case, not just the MCOs' involvement, was pending when Rule 1-023(F) took effect. The court applied a de novo review to determine that Rule 1-023(F) does not apply, resulting in the dismissal of the appeal. The court did not address the MCOs' other constitutional and class certification arguments, focusing solely on the jurisdictional issue under Article IV, Section 34. The decision underscores the constitutional prohibition against altering procedural rules in ongoing litigation, maintaining consistency across the judicial process.

Legal Issues Addressed

Applicability of Procedural Rules in Pending Cases

Application: The court examined whether Rule 1-023(F) could be applied to a case against MCOs added after the rule's enactment and determined it could not be applied due to the case's pending status.

Reasoning: The New Mexico Constitution, Article IV, Section 34, prohibits applying new rules to ongoing cases, leading to the determination that Rule 1-023(F) does not apply to the MCOs, resulting in dismissal of the appeal.

Constitutional Consistency in Procedural Rules

Application: The court rejected arguments for applying Rule 1-023(F) to MCOs based on procedural consistency, maintaining that the constitution prohibits procedural changes in pending cases.

Reasoning: First, the constitutional language of Article IV, Section 34 applies to 'any pending case' without reference to parties, aligning with the intent of its framers and established case law.

Definition of Pending Case

Application: The court defined a pending case as one that remains active from initiation until judgment satisfaction, emphasizing that it applies to the case as a whole and not individual parties.

Reasoning: The term 'pending' is understood to mean unresolved or undecided, aligning with dictionary definitions.

Discretionary Appeals Under Rule 1-023(F)

Application: The court held that Rule 1-023(F) allows discretionary appeals from class certification orders but does not apply to this case due to its pending status when MCOs were added.

Reasoning: Rule 1-023(F) permits discretionary appeals from class certification decisions... Without Rule 1-023(F) applicability, the MCOs cannot appeal the new certification order.