2025 New Mexico Statutes
Chapter 39 - Judgments, Costs, Appeals
Article 2 - Attorneys' Fees and Costs
Section 39-2-2 - Deficiencies; attorney fees.
In any civil action involving liability for a deficiency pursuant to Section 55-9-504 or 58-19-7 NMSA 1978, the debtor, if prevailing, may in the discretion of the court be allowed a reasonable attorney fee set by the court and taxed and collected as costs.
History: Laws 1981, ch. 10, § 3.
ANNOTATIONSAward of attorney fees allowed in actions arising from defaults on automobile purchase contracts. — In an action to recover a deficiency in a motor vehicle installment contract following the repossession and sale of the vehicle subject to the installment contract, where plaintiff filed the lawsuit more than four years after the defendant breached the installment contract, but where plaintiff argued that its complaint was timely because, pursuant to § 37-1-16 NMSA 1978, defendant's partial payments made after the initial breach tolled the four-year statute of limitations set forth in § 55-2-725 NMSA 1978, and where the district court held that the lawsuit was barred by the applicable four-year statute of limitations and awarded attorney fees to defendant, the district court did not err in awarding attorney fees because the plain language and purpose of this section indicate that the legislature intended to allow an award of attorney fees in deficiency actions arising from defaults on automobile purchase contracts. Autovest v. Agosto, 2021-NMCA-053, 497 P.3d 642, aff'd on other grounds by 2025-NMSC-001.
Replevin counterclaim was not a civil action "involving liability for a deficiency pursuant to Section 55-9-504" for which the court could allow a reasonable attorney fee to the debtor. Green Tree Acceptance, Inc. v. Layton, 1989-NMSC-006, 108 N.M. 171, 769 P.2d 84.
