N.M. R. Civ. P. Magist. Ct. 2-806

As amended through November 1, 2024

Rule 2-806 - Enforcement of mediated settlement agreement

A.Scope. This rule applies to any case in which the parties have entered into a mediated settlement agreement that, by its terms, requires performance over a period of time, and in which the parties have agreed to comply with the terms of the agreement without first asking the court to enter a stipulated judgment.

B.Stipulation of dismissal.

(1) If the parties have entered into a mediated settlement agreement and agree that the court should not enter a stipulated judgment, the parties shall file a stipulation of dismissal.

(2) The mediated settlement agreement shall be reduced to writing and signed by the parties.

(3) The mediated settlement agreement shall be filed, unless the parties agree in writing to waive the filing of the mediated settlement agreement in the pending case. If the parties waive filing, then each party shall be responsible for retaining a copy of the mediated settlement agreement, and in any action related to the mediated settlement agreement, the responsibility to produce a copy of the mediated settlement agreement belongs to the parties and not to the court.

(4) If the parties have entered into a mediated settlement agreement and have filed a stipulation of dismissal, the court shall close the case, provided that the court shall retain jurisdiction to later reopen the case to enter such orders and judgments as may be appropriate to enforce the mediated settlement agreement and to grant such other relief as the court deems just and proper.

C.Motion for judgment and statement of noncompliance.

(1) In the event of noncompliance with the terms of a mediated settlement agreement, the party alleging noncompliance may, within five (5) years of the filing of the stipulation of dismissal, move the court to reopen the case and to enter a judgment enforcing the terms of the agreement. A party seeking a judgment under this rule shall file with the court and serve on the opposing party a motion for judgment and statement of noncompliance, together with a copy of the mediated settlement agreement.

(2) If a party to a mediated settlement agreement files a motion for judgment and statement of noncompliance within five (5) years of the filing of the stipulation of dismissal, the court clerk shall reopen the case, and no additional filing fee shall be required.

(3) The party alleged to have breached the terms of a mediated settlement agreement may, within fifteen (15) days after service of the motion for judgment and statement of noncompliance, file with the court and serve on the opposing party a written response, and may request a hearing.

(4) If the party alleged to have breached the terms of a mediated settlement agreement timely files a response and requests a hearing under Subparagraph (C)(3) of this rule, the court shall hold a hearing and shall proceed under the Rules of Civil Procedure for the Magistrate Courts.

D.Entry of judgment. If a case has been reopened under Paragraph C of this rule, the court may enter a judgment for any remaining money due, and the court and may order other relief that the court deems just and proper.

E.Retention of case files. The court shall retain a case file for any case in which the parties have reached a mediated settlement agreement for five (5) years after the filing of the stipulation of dismissal.

N.M. R. Civ. P. Magist. Ct. 2-806

Adopted by Supreme Court Order No. 14-8300-012, effective for all cases filed or pending on or after12/31/2014.

Committee commentary. - This rule was adopted in 2014 to create a uniform, statewide procedure for managing mediation case files in the magistrate and metropolitan courts. This rule allows parties who have entered into a mediated settlement agreement to file a stipulation of dismissal of the pending case, while the court retains jurisdiction to later reopen the case and enter a judgment if a party fails to comply with the terms of the agreement. This rule does not preclude the parties to a mediated settlement agreement from asking the court to enter a stipulated judgment, rather than filing a stipulation of dismissal.

The court's authority under this rule to reopen a case that has been dismissed and to enter a judgment enforcing a mediated settlement agreement is limited to a five (5)-year period following the filing of the stipulation of dismissal. The time limitations in this rule do not limit the parties' right to file a breach of contract action or pursue other remedies in accordance with the law.

In addition to clarifying case management procedures, this rule is intended to promote mediation by providing incentives to both parties. For example, a debtor who pays under the terms of a mediated settlement agreement can obtain a dismissal of the lawsuit and avoid an adverse legal judgment. The creditor can secure payment of a debt under the terms of a mediated settlement agreement, while reserving the option to later seek a judgment-without having to file an additional lawsuit for breach of contract- if the debtor fails to pay.

Generally, the parties should file the mediated settlement agreement with the court, along with the stipulation of dismissal. But if the parties choose to keep the agreement confidential under Subparagraph (B)(3) of this rule, each party should retain a copy of the agreement.

[Adopted by Supreme Court Order No. 14-8300-012, effective for all cases filed or pending on or after December 31, 2014.]