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Facts

The City of Las Cruces called a municipal election to decide whether to acquire a private electric utility through purchase or eminent domain. A local taxpayer opposed the acquisition, alleging that the City improperly used over $80,000 in public funds for a partisan campaign to promote a favorable vote, including hiring advertising firms, conducting surveys, and purchasing promotional materials (paras 1-2).

Procedural History

  • District Court, August 15, 1994: The court dismissed the Plaintiff's petition for lack of subject matter jurisdiction, relying on sovereign immunity principles (para 4).
  • District Court, September 13, 1994: The court denied the Plaintiff's motion for reconsideration and request to amend the complaint to include compensatory damages (para 4).
  • Federal Court (date unspecified): The federal court abstained from deciding the case, deferring to the state court to reconsider its dismissal (para 4).

Parties' Submissions

  • Plaintiff-Appellant: Argued that the City violated state and federal laws, including the First and Fourteenth Amendments, by using public funds for partisan purposes. Sought injunctive relief, declaratory relief, and damages under 42 U.S.C. § 1983 (paras 1-3).
  • Defendants-Appellees: Asserted that the district court lacked jurisdiction due to sovereign immunity and argued that the case was moot because the election had already occurred (paras 4, 8).

Legal Issues

  • Did the district court err in dismissing the Plaintiff's federal claims under 42 U.S.C. § 1983 for lack of subject matter jurisdiction?
  • Are the Plaintiff's claims moot due to the completion of the election?
  • Did the district court err in dismissing the Plaintiff's state law claims for lack of jurisdiction?

Disposition

  • The dismissal of the Plaintiff's federal claims was reversed, and the case was remanded for further proceedings (para 14).
  • The dismissal of the Plaintiff's state law claims was affirmed as moot (para 14).

Reasons

Per Bosson J. (Hartz and Bustamante JJ. concurring):

  • Federal Claims: The court held that state courts have concurrent jurisdiction over § 1983 claims and that sovereign immunity does not bar such claims against municipalities. The district court erred in dismissing the Plaintiff's federal claims for lack of jurisdiction (paras 5-6). The court also found that the Plaintiff's claims were not moot because nominal damages under § 1983 could still be awarded, preserving a justiciable controversy (paras 8-10).

  • State Claims: While the district court had jurisdiction over the Plaintiff's state law claims, the claims for injunctive relief were rendered moot by the election. The court noted that New Mexico law does not provide a statutory equivalent to § 1983 for damages against municipalities for past violations of state law, leaving no viable state law claims (paras 12-13).

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