NM AG Torrez opposes motion to dismiss case against former WNMU president Joseph Shepard
New Mexico Attorney General Raúl Torrez on Jan. 28 held a news conference to announce the state's legal efforts to challenge President Trump's federal funding freeze.
New Mexico Attorney General Raúl Torrez filed a response in court Thursday opposing a motion to dismiss the case against former Western New Mexico University President Joseph Shepard for alleged civil violations.
Torrez filed a civil suit against Shepard and the WNMU Board of Regents in January in response to the board's decision to award Shepard a $1.9 million severance package. That complaint alleges Shepard and the board violated fiduciary duties, the states anti-donation clause and the Open Meetings Act, as well as laws relating to unjust enrichment, parties not fulfilling their contractual obligations and acting on an unenforceable contract.
The university has been under scrutiny over the past year and a half for lavish spending by leadership and misuse of funds, as detailed in a report published in November by the New Mexico Office of the State Auditor.
The board unanimously voted to terminate Shepard's contract in December, then approved what Torrez has frequently referred to as a 'golden parachute' severance payment. The school released the payment to Shepard in early January.
Shepard filed a motion to dismiss the case against him on Feb. 19, arguing Torrez does not have the authority to bring claims of breach of fiduciary duty, lack of consideration, unconscionable contract and unjust enrichment against him.
According to court documents, Shepard claims he did not owe a fiduciary duty to WNMU when negotiating his termination from the university and the severance payment was made 'in exchange for valid consideration,' to which the anti-donation clause does not apply.
A New Mexico Department of Justice news release Friday characterized Shepard's motion as an 'attempt to avoid legal scrutiny.'
'The Board of Regents does not have unlimited power to approve unlawful expenditures of public funds, and Dr. Shepard should not be allowed to profit from an invalid and unjust agreement,' Torrez said in a statement. 'Our lawsuit seeks to protect taxpayers and hold public officials accountable.'
Torrez's response to the motion maintains that the board acted unlawfully, without public transparency, in violation of state law and encourages the court to deny Shepard's motion and continue the lawsuit.
The court has not scheduled a motion hearing as of press time.
Torrez and several lawmakers back a constitutional amendment introduced this legislative session, which, if approved by voters, would add regent fiduciary duties to the law; reasons for removal from their position; and clarify who has authority to seek the removal of regents from the board. House Joint Resolution 12 passed by a vote of 64-1 on the House Floor on March 1 and was referred to Senate committees.
Senate Bill 19 proposes establishing training requirements for new regents and Senate Joint Resolution 7 proposes creating a regent nominating committee that would screen potential regent candidates and make a list for the governor to choose from.
The attorney general's response is filed below.
2025-03-06 Resp to Shepard MTD
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