## Facts

- Lucy Romero was shopping at a Mervyn’s store in Albuquerque, New Mexico, when another customer pushed her on an escalator, causing her to fall and injure her jaw.
- Dennis Wolf, the acting store manager responsible for investigating customer injuries, responded to the incident.
- Romero declined an offered wheelchair or ambulance; her daughters, upset, repeatedly asked who would pay Romero’s medical expenses.
- Romero testified Wolf promised Mervyn’s would pay her medical expenses; Wolf denied making an unconditional promise and testified he said only that the claim would be sent to the insurer for a coverage decision.
- Romero sought medical care shortly afterward and incurred $2,041 in medical expenses, including physical therapy.
- Mervyn’s refused to pay, and Romero sued for negligence and breach of contract (not promissory estoppel).
- In a first trial, the jury found for Mervyn’s on negligence; on remand, a second jury found for Romero on breach of contract and awarded $2,041 compensatory damages and $25,000 punitive damages.
- Mervyn’s appealed the contract and punitive awards and challenged admission of medical bills; Romero cross-appealed denial of certain witness fees as costs.

## Issues

1. Whether substantial evidence supported a finding that Mervyn’s, through its acting manager, made an enforceable promise to pay Romero’s medical expenses.
2. Whether the acting manager had actual or apparent authority to bind Mervyn’s to that promise.
3. Whether punitive damages may be awarded for breach of contract on these facts, and whether submission of punitive damages to the jury was proper.
4. Whether admitting Romero’s medical bills without additional expert testimony on reasonableness and necessity was reversible error.
5. Whether the trial court abused its discretion in denying Romero certain claimed witness fees as taxable costs.

## Decision

- The Supreme Court of New Mexico affirmed the judgment for Romero, including both compensatory and punitive damages.
- The court held substantial evidence supported the jury’s finding that an unconditional promise to pay medical expenses was made and breached.
- The court held the evidence supported a finding that the acting store manager had sufficient actual or apparent authority, based on his position and assigned duties handling customer injury incidents.
- The court affirmed submission and award of punitive damages because the evidence permitted a finding that the breach was accompanied by malicious, fraudulent, oppressive, or reckless conduct.
- The court found no reversible evidentiary error in admitting medical bills in the context of the record.
- The court affirmed the denial of additional witness fees, finding no abuse of discretion in the cost ruling.

## Legal Principles

- A jury may resolve conflicting testimony on whether a defendant made an unconditional promise; an appellate court will uphold the verdict when supported by substantial evidence.
- A business may be bound by an employee’s promise when the employee has actual authority or apparent authority arising from the employee’s position and responsibilities.
- In New Mexico, punitive damages may be recovered for breach of contract when the breach is accompanied by conduct that is malicious, fraudulent, oppressive, or reckless with wanton disregard for the plaintiff’s rights.
- “Malice” in this context includes intentional commission of a wrongful act without just cause or excuse, with knowledge of its wrongfulness.
- Evidentiary rulings, including admission of medical bills, warrant reversal only when error is shown to be prejudicial in light of the full record.
- Awards of costs, including witness fees, are reviewed for abuse of discretion.

## Conclusion

The court upheld a contract and punitive-damages verdict where a store’s acting manager, charged with handling customer injury incidents, was found to have promised payment of medical bills and the store later refused, and it also affirmed the trial court’s evidentiary and cost rulings.


Romero v. Mervyn's, 109 N.M. 249, 784 P.2d 992 (N.M. 1989)