AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

• Horizon Well Services, LLC (Horizon), an oil and gas well servicing company, hired PEMCO of New Mexico, LLC (PEMCO) to fabricate a swabbing unit for $144,935.00, later increased to $161,060.46 due to additional modifications requested by Horizon. Upon delivery, Horizon experienced issues with the unit, including vibrations and transmission failure, leading to multiple repairs and modifications by PEMCO and other companies. Despite these efforts, problems persisted, leading Horizon to file a lawsuit against PEMCO for breach of contract, breach of warranty, and violations of the New Mexico Unfair Trade Practices Act (UPA). PEMCO counterclaimed for the remaining balance due for the fabrication of the unit and the cost of replacing the second transmission (paras 2-6).

Procedural History

• Horizon Well Serv., LLC v. PEMCO of N.M., LLC, No. 33754, mem. op. (N.M. Ct. App. Dec. 30, 2015) (non-precedential): The district court's dismissal of the complaint and counterclaim was reversed, and the case was remanded for further proceedings (para 6).

Parties' Submissions

• Plaintiff-Appellant (Horizon): Argued that the district court erred in concluding Horizon failed to prove damages for lost profits, PEMCO did not engage in unfair practices, Horizon is not entitled to punitive damages, and Horizon owes PEMCO the remaining balance for its fabrication services (para 1).
• Defendant-Appellee (PEMCO): Contended that it did not violate the UPA, accurately represented its ability to construct swabbing units, and the issues do not rise above a breach of warranty. PEMCO also argued that it never waived the outstanding balance for fabrication (paras 15, 23).

Legal Issues

• Whether Horizon established damages for lost profits resulting from a breach of express warranty (para 8).
• Whether PEMCO violated the New Mexico Unfair Trade Practices Act (UPA) (para 15).
• Whether Horizon was entitled to punitive damages (para 20).
• Whether PEMCO waived the remaining balance for fabrication (para 23).

Disposition

• The district court's final judgment on remand in favor of PEMCO was affirmed. Horizon was awarded $10,039.02 in consequential damages, and PEMCO was awarded $13,214.46 for the remaining balance due for fabricating the Unit (para 6).

Reasons

• MEDINA, Judge (with BRIANA H. ZAMORA, Judge and MEGAN P. DUFFY, Judge concurring): The court held that Horizon failed to establish lost profits with reasonable certainty due to speculative and vague testimony and exhibits regarding lost profits or downtime of the swabbing unit. The court also found that Horizon did not provide evidence of lost job opportunities, which is necessary to prove lost profits. Regarding the UPA violation, the court concluded that Horizon failed to establish that PEMCO knowingly made any false or misleading representation with regard to the fabrication of the unit or its ability to fabricate a swabbing unit. The court further held that Horizon failed to provide evidence that PEMCO's actions were malicious, willful, reckless, wanton, fraudulent, or in bad faith, thus denying Horizon's claim for punitive damages. Lastly, the court found that PEMCO did not waive the remaining balance for fabrication, as Horizon did not present sufficient evidence to show that PEMCO's president's statement constituted an express waiver or that PEMCO's conduct implied a waiver (paras 7-29).