Armenta v. A.S. Horner, Inc.

2015 NMCA 092, 8 N.M. Ct. App. 467
New Mexico Court of Appeals·Decided August 26, 2015·No. No. 35,398; Docket No. 33,813·Published·Cited by 5 cases

Opinion

OPINION

BUSTAMANTE, Judge.

{1} In this appeal from the grant of summary judgmentto A.S. Horner, Inc. (Defendant), we address whether there exist disputed material facts as to (1) whether the Workers’ Compensation Act provides the exclusive remedy for Isabel Armenia’s claim, and (2) whether Defendant negligently entrusted one of its vehicles to Manuel Armenta (Manuel), Plaintiffs husband and decedent. We reverse.

BACKGROUND

{2} Isabel Armenia, (Plaintiff), personal representative of the estate of her husband, Manuel, brought suit against Manuel’s employer, Defendant, for negligent entrustment after Manuel was killed in a single-car accident while driving Defendant’s vehicle. The undisputed facts leading to Manuel’s death are as follows. Manuel and a number of other workers were sent to Springer, New Mexico, to work on road maintenance on 1-25. Defendant arranged for motel rooms for some of its workers, including Manuel, while they were in Springer. During the last week of work in Springer, Defendant provided a Chevy Suburban vehicle to transport some of the workers from Albuquerque to Springer.

{3} Because Manuel had been convicted for driving while intoxicated in 2001, Defendant’s safety director had determined that Manuel would not be permitted to drive Defendant’s vehicles, and he was listed on Defendant’s “do not drive” list. Nevertheless, although the parties dispute whether Manuel was issued the Suburban in Albuquerque, they agree that at some point Manuel drove the vehicle after it waspickedup from Defendant’s facility. They also agree that after work on the day of the accident, Manuel drove the Suburban from the motel to the grocery and liquor stores and returned with supplies for a barbecue with the other employees. The employees at the motel, including Manuel’s supervisor, had pitched in money to purchase these supplies. Both Manuel’s supervisor and a superintendent employed by D efendant knew that Manuel had driven the Suburban to or while in Springer. The superintendent had advised Manuel in the week before the accident that Defendant’s vehicles were supposed to be parked after work hours, except that they could be used to pick up supplies needed for the night. In addition, on the evening of the accident, after eating dinner with the employees and as he was leaving for his room, Manuel’s supervisor told the employees, including Manuel, “to drink moderately and to not leave [the motel].”

{4} In spite of this warning, Manuel and another employee left the motel in the Suburban headed toward Raton. Manuel was killed in an accident about five miles north of Springer on 1-25. Manuel’s blood alcohol concentration (B AC) was .23 at the time of his death.

DISCUSSION

{5} Defendant argued in the motion for summary judgment that Plaintiffs claims “are barred by the exclusivity provisions of the Workers’ Compensation Act” or, alternatively, “Plaintiff cannot meet the requisite evidentiary standard of gross negligence and reckless disregard set forth in Sanchez v. San Juan Concrete Co., 1997-NMCA-068, 123 N.M. 537, 943 P.2d 571.” It is not clear from the district court’s order on which basis summary judgment was granted. Defendantpoints to the district court’s oral rulings as evidence that summary judgment was granted on the ground that the Workers’ Compensation Act was Plaintiffs exclusive remedy. But “[a district] court’s oral statements as to the basis for its ruling, made before judgment is entered, and not embodied therein, cannot be considered part of the judgment.” In re Adoption of John Doe, 1982-NMCA-094, ¶ 49, 98 N.M. 340, 648 P.2d 798. We therefore consider whether summary judgment is appropriate under either theory advanced by Defendant.

A. Workers’ Compensation

{6} Defendant argues that the Workers’ Compensation Act (the Act) provides the exclusive remedy for Plaintiffs claim because Manuel was a traveling employee covered by the Act at the time of the accident. See NMS A 1978, §§ 52-1-1 to -70 (1929, as amended through 2013). Generally, “the Act makes workers’ compensation benefits the worker’s exclusive remedy for all accidental injuries.” Salazar v. Torres, 2007-NMSC-019,¶ 11, 141 N.M. 559, 158 P.3d 449; see § 52-1-9; see also § 52-1-6(E) (“The Workers’ Compensation Act provides exclusive remedies.”). Section 52-1-19 precludes compensation under the Act for injuries suffered while going to work or returning home from work. This provision is known as the “going-and-coming rule.” Ramirez v. Dawson Prod. Partners, Inc., 2000-NMCA-011, ¶ 7, 128 N.M. 601, 995 P.2d 1043. The exception to the going-and-coming rule invoked by Defendant is known as the “traveling-employee exception.” Id. (internal quotation marks omitted).

{7} Under the “traveling-employee exception,” “[t]he general rule is that an employee whose work entails travel away from the employer’s premises is, in most circumstances, under continuous workers’ compensation coverage from the time he leaves home until he returns.” Id. ¶ 11 (internal quotation marks and citation omitted). “The rationale behind the traveling[- ] employee rule is that an employee who is required to travel away from home is furthering the business of his employer as he eats, sleeps, and performs other acts necessary to his health and comfort during his travels.” Id. ¶ 12 (internal quotation marks and citation omitted). A traveling employee is one who travels to various locations as an integral part of his or her work. Id. ¶ 11.

{8} Since the exception applies during the entire time the employee is traveling, it necessarily encompasses injuries incurred while the employee is not actually working, such as when the employee is engaged in leisure or recreational activities. Id. ¶ 13. However, “one seeking compensation for an injury must still demonstrate that the injury arose out of and in the course of employment.” Id. ¶ 14 (internal quotation marks and citation omitted); see § 52-1-9(B). As it pertains to leisure and recreational activities by traveling employees, this requirement is “met if the traveling employee was injured while engaging in an activity that was both reasonable and foreseeable!)]” id. ¶ 15, and if that activity is not “conducted in an unreasonable or unforeseeable manner.” Id. ¶ 16. Finally, the activity “must confer some benefit on the employer; ... it must be reasonably related or incidental to employment.” Id. “The benefit to the employer need not be pecuniary, and may be as intangible as a well-fed and well-rested employee.” Id. ¶ 17.

{9} A number of factors define whether a traveling employee’s activity falls within the reach of the Act. These include “whether the injury takes place within the period of employment, at a place where the employee may reasonably be, and while the employee is reasonably fulfilling the duties of employment or doing something incidental to it.” Chavez v. ABF Freight Sys., Inc., 2001-NMCA-039, ¶ 11, 130 N.M. 524, 27 P.3d 1011 (internal quotation marks and citation omitted). The Chavez Court stated the factors as “whether the activity was reasonable and foreseeable; whether the injury occurred during a distinct departure from employment for a personal errand; whether the activity was conducted in an unreasonable or unforeseeable manner; and whether the activity giving rise to the injury conferred some benefit on the employer.” Id.; see also Rodriguez v.

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Armenta v. A.S. Horner, Inc., 2015 NMCA 092, 8 N.M. Ct. App. 467 (N.M. Ct. App. 2015).

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