Castro v. Bass

392 P.2d 668, 74 N.M. 254
CourtNew Mexico Supreme Court
DecidedMay 4, 1964
Docket7328
StatusPublished
Cited by33 cases

This text of 392 P.2d 668 (Castro v. Bass) is published on Counsel Stack Legal Research, covering New Mexico Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Castro v. Bass, 392 P.2d 668, 74 N.M. 254 (N.M. 1964).

Opinions

MOISE, Justice.

Defendant-appellants appeal from a judgment granting plaintiff-appellee recovery under the New Mexico Workmen’s Compensation Act. (§§ 59-10-1 to 59-10-37, incl., N.M.S.A.1953).

The facts disclose that on August 25, 1960, while employed by defendant Bass, plaintiff was injured in an automobile accident with people by the name of Newell. Defendant Western Casualty Company was the workmen’s compensation insurer of Bass. Plaintiff’s average weekly earnings were $42.00 per week and the accidental injury suffered by him arose out of and in the course of his employment. Defendant-insurer paid plaintiff total disability benefits of $25.20 per week to December 22, 1961, or a total of 69 weeks and, in addition, paid hospital and medical expenses.

On February 28, 1961, plaintiff filed suit against Hulett S. Newell and wife, alleging that the injuries suffered by him resulted from their negligence. Defendant-insurer intervened in that cause claiming to be subrogated to the rights of the workman to the extent of its liability to the workman under § 59-10-25, N.M.S.A.1953. After trial of the negligence action, a verdict in favor of plaintiff was returned awarding him $7,200.00 damages, and a judgment in this amount was entered in his favor on- January 25, 1962. A few days later a judgment was entered on defendant-insurer’s complaint in intervention adjudging $2,021.29 to be due defendant-insurer on account of workmen’s compensation benefits paid to and on behalf of plaintiff. On February 7, 1962, plaintiff’s attorney received from Newell’s insurer a draft in payment of the judgment. The draft was made payable to plaintiff and his attorney, and to defendant-insurer and its attorney. On February 8, 1962, a satisfaction to the judgment against the Newells, acknowledging receipt of $7,438.08 “in full and complete satisfaction of the judgment,” signed by the attorneys for plaintiff and for defendant-insurer was duly filed in the negligence action.

Plaintiff’s attorney delivered the draft to defendant-insurer’s attorney who immediately mailed it to Denver for endorsement. On February 14, 1962, the endorsed draft was returned to counsel for plaintiff and deposited by him the following day.

In the meantime, on February 12, 1962, after the draft had been received and the judgment satisfied, but before it had been endorsed and returned to plaintiff's counsel, this suit for workmen’s compensation was filed.

Inasmuch as in our view of the case, defendants’ second point is determinative, we proceed directly to a discussion of it. As stated, the point asserts that by suing and recovering judgment which was duly paid and satisfied, plaintiff is barred “under the principle of election of remedies.” The issue is otherwise asserted by defendants in the following language: “Does a compensation action lie in favor of a workman who has previously collected upon a judgment against a third party tortfeasor for the same injury?”

Plaintiff argues that this is not the issue because although a draft had been received and the judgment against the third party tortfeasor satisfied before this suit was filed, actual “payment” of the proceeds of the draft was not received until three days after this suit was filed. This is the question presented under Point I, and which we have not considered necessary for a decision in view of our conclusions on Point II. Also, plaintiff finds solace in this court’s decision in Brown v. Arapahoe Drilling Company, 70 N.M. 99, 370 P.2d 816, wherein a claimant who had sued a third party tortfeasor and had failed to recover was held not to have “received payment or recovered damages” and accordingly was not foreclosed in his action to recover workmen’s compensation. In this case we also noted that there is a trend against requiring an election of remedies in situations involving workmen’s compensation, citing 2 Larson’s Workmen’s Compensation Law, §§ 73.10 and 73.30.

Involved is an interpretation of § 59-10-25, N.M.S.A.1953, the material portion of which reads:

“The right of any workman, or, in case of his death, of those entitled to receive payment or damages for injuries occasioned to him by the negligence or wrong of any person other than the employer as herein defined shall not be affected by this act (§§ 57-901 — 57-931 [59-10-1 to 59-10-37]), but he or they, as the case may be, shall not be allowed to receive payment or recover damages therefor and also claim compensation from such employer hereunder, and in such case the receipt of compensation from such employer hereunder shall operate as an assignment to the employer, his or its insurer, guarantor or surety, as the case may be, or [of] any cause of action, to the extent of the liability of such employer to such workman occasioned by such injury which the workman or his legal representative or others may have against any other party for such injuries or death.”

The problem for determination has not been previously considered by this court. It arises by virtue of the fact that whereas a recovery was made in the third party tortfeasor suit, the amount there recovered was less than the maximum that plaintiff would have been entitled to receive for total and permanent disability, and was less than he would have been entitled to receive under the judgment of 65% disability here appealed from, provided the entitlement continued for the maximum time allowed by the compensation law. In this circumstance, does the act contemplate or permit the proceeding here undertaken ?

Defendants argue that it does not. They point out that the suit would be premature until there has been a determination of the amount of compensation benefits they will be called upon to pay in the future and which they are entitled to have credited against the judgment. Reliance is placed on the language of this court in George v. Miller & Smith, Inc., 54 N.M. 210, 219 P.2d 285, to the effect that while a claimant is receiving maximum payments, under the workmen’s compensation law, from his employer “he cannot properly institute a suit to fix the period of time or the amount to be paid therefor.” It is argued that this being true, the same result must follow so long as the amount received in payment from the third party tortfeasor in satisfaction of the judgment has not been exhausted in weekly payments at the maximum rate. Plaintiff answers this by saying that although this argument might have some merit if payment had been received on or before the date of filing this suit, it cannot have any weight where payment was not received until three days later. Once again, we do not find it necessary to answer this question.

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Bluebook (online)
392 P.2d 668, 74 N.M. 254, Counsel Stack Legal Research, https://law.counselstack.com/opinion/castro-v-bass-nm-1964.