Consolidated Freightways, Inc. v. Subsequent Injury Fund

793 P.2d 1354, 110 N.M. 201
CourtNew Mexico Court of Appeals
DecidedMay 15, 1990
Docket11595, 11667
StatusPublished
Cited by9 cases

This text of 793 P.2d 1354 (Consolidated Freightways, Inc. v. Subsequent Injury Fund) is published on Counsel Stack Legal Research, covering New Mexico Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Consolidated Freightways, Inc. v. Subsequent Injury Fund, 793 P.2d 1354, 110 N.M. 201 (N.M. Ct. App. 1990).

Opinion

OPINION

BIVINS, Chief Judge.

Employer appeals from a summary judgment by the Workers’ Compensation Division (the WCD) dismissing its claim against the New Mexico Subsequent Injury Fund (the Fund) on the ground that employer had not filed a certificate of preexisting impairment prior to worker’s subsequent injury. The Fund cross-appeals that portion of the WCD’s order alternatively denying it summary judgment based upon employer’s failure to provide the Fund ninety days’ notice of its intent to file a claim. We reverse the WCD on both issues.

FACTS

Worker suffered an accidental work-related injury on October 27, 1984. No certificate of preexisting physical impairment was filed prior to the injury of October 27, 1984. Whether employer had actual knowledge that worker had any alleged impairment prior to October 27, 1984, although assumed for the purpose of summary judgment, was factually disputed. Worker filed a compensation claim against employer in 1986. Employer petitioned to add the Fund as a party to the action on May 16, 1988. Employer failed to notify the superintendent of insurance in writing of its intent to file a claim against the Fund ninety days prior to the date the Fund claim was filed.

EMPLOYER’S APPEAL

Under the law in effect at the time of worker’s subsequent injury, an employer could recover from the Fund, even though prior to the injury it had not filed a certificate of preexisting impairment, as long as employer had actual knowledge of the worker’s preexisting condition. See Fierro v. Stanley’s Hardware, 104 N.M. 50, 716 P.2d 241 (1986); Vaughn v. United Nuclear Corp., 98 N.M. 481, 650 P.2d 3 (Ct.App.1982). The Subsequent Injury Act was amended in 1988 to bar claims by employers against the Fund for subsequent injuries unless a certificate of preexisting impairment had been filed prior to the subsequent injury. See NMSA 1978, § 52-2-6(D) (Cum.Supp.1989). This amendment became effective March 8, 1988. 1988 N.M.Laws, ch. 109, § 4. In granting summary judgment for the Fund, the hearing officer found that the amendment applied to the present claim.

During the pendency of this appeal, we decided Jojola v. Aetna Life & Casualty, 109 N.M. 142, 782 P.2d 395 (Ct.App.1989), which held that the filing requirement of amended Section 52-2-6(D) could not be applied retroactively. We also held that “in the absence of express statutory language or compelling reasons to the contrary, any new provisions of the Workers’ Compensation Act shall apply only to causes of action accruing after the effective date of the provision.” Id. at 144, 782 P.2d at 397. This rule applies to the Subsequent Injury Act. Id. The parties do not dispute the applicability of Jojola to the facts of this case. Nevertheless, we must still remand to the WCD for a finding concerning when employer’s cause of action accrued against the Fund. We now consider whether, notwithstanding such error, the WCD should have granted the Fund summary judgment on the alternative basis, failure to give ninety days’ notice before filing the Fund claim.

FUND’S CROSS-APPEAL

NMSA 1978, Section 52-2-14(B) (Cum.Supp.1989), provides:

The superintendent of insurance shall be notified in writing by an employer or its insurance carrier of the employer’s or its insurance carrier’s intent to file a claim against the fund at least ninety days before the employer or its insurance carrier files a claim against the fund. The written notice shall be a condition precedent to filing any claim. If an employer or its insurance carrier fails timely to provide the written notice required by this subsection, an employer’s claim and its insurance carrier’s claim against the fund are barred.

This provision, like amended Section 52-2-6(D), took effect on March 8, 1988. 1988 N.M.Laws, ch. 109, § 4. The hearing officer concluded that the new law applied to employer’s claim against the Fund. He also concluded that the claim against the Fund did not become pending until the Fund was made a party on May 16, 1988. Consistent with his ruling as to Section 52-2-6(D), the hearing officer determined the requirements of Section 52-2-14(B) applied to employer’s claim. Although the Fund concedes that Jojola is dispositive of the issue arising under Section 52-2-6(D), it argues that the reasoning in that case should not be extended to Section 52-2-14(B). Employer contends that the rule of Jojola applies also to Section 52-2-14(B).

Under the rule of construction announced in Jojola, Section 52-2-14(B) would apply only to causes of action accruing after March 8, 1988, absent express statutory language or compelling reasons to the contrary. We do not believe the Fund has advanced any compelling reasons why the new provision should be applied retroactively. Moreover, the fact that the legislature mandated that the Act take immediate effect evidences an intent that it be applied prospectively. Franklin v. State ex rel. Dep’t of Human Servs., 730 F.2d 86 (10th Cir.1984).

The Fund argues that Section 52-2-14(B) is a remedial procedure change to the Subsequent Injury Act, thereby calling for retroactive application. See Wilson v. New Mexico Lumber & Timber Co., 42 N.M. 438, 81 P.2d 61 (1938) (procedural changes may be applied retroactively). The Fund contends that the majority opinion in Jojola conflicts with the supreme court’s holding in Wilson. See Alexander v. Delgado, 84 N.M. 717, 507 P.2d 778 (1973) (court of appeals bound by supreme court precedent). We disagree.

The holding in Jojola was based on recognition of the sui generis nature of the Workers’ Compensation Act. See id. In Wilson, the supreme court held that the statute of limitations in our Workers' Compensation Act is “a limitation upon the right as well as the remedy” and should not be applied retroactively. Id. 42 N.M. at 442, 81 P.2d at 64. See also Davis v. Meadors-Cherry Co., 65 N.M. 21, 331 P.2d 523 (1958) (remedy in a workmen’s compensation case is part of the right). Our pronouncement of a uniform rule in Jojola was simply a realization of the teaching of our case law. We also recognized the futility of analyzing provisions of the Workers’ Compensation Act as matters of remedial procedure in determining whether they should be applied retroactively. We therefore reiterate our holding in Jojola that new provisions of the Workers’ Compensation Act shall apply only to causes of action accruing after the effective date of the provision. We see no reason to distinguish Section 52-2-14(B) from Section 52-2-6(D).

Furthermore, we determine that under the previous remedial procedure distinction, Section 52-2-14(B) must be applied prospectively. As previously noted, the statute of limitations in workers’ compensation cases has been applied prospectively. Wilson v. New Mexico Lumber & Timber Co.

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Bluebook (online)
793 P.2d 1354, 110 N.M. 201, Counsel Stack Legal Research, https://law.counselstack.com/opinion/consolidated-freightways-inc-v-subsequent-injury-fund-nmctapp-1990.