Eberline Instrument Corp. v. Felix

708 P.2d 334, 103 N.M. 422
CourtNew Mexico Supreme Court
DecidedOctober 31, 1985
Docket15771
StatusPublished
Cited by16 cases

This text of 708 P.2d 334 (Eberline Instrument Corp. v. Felix) 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
Eberline Instrument Corp. v. Felix, 708 P.2d 334, 103 N.M. 422 (N.M. 1985).

Opinion

OPINION

RIORDAN, Justice.

Petitioners Eberline Instrument Corporation and Commercial Union Insurance Company, (Eberline) appealed a worker’s compensation award, claiming that the trial court applied an incorrect hourly rate when computing benefits due. Respondent Chris W. Felix, (Felix) cross-appealed raising various issues. The Court of Appeals ruled against Eberline. We granted Eberline’s petition for certiorari, and now reverse the Court of Appeals.

The issue on certiorari is whether compensation benefits should be computed based on the average weekly wage that a workman is earning at the time of his accident or, on an average weekly wage which a workman was earning in his “primary employment” sometime prior to the accident.

Facts.

Felix went to work for Eberline in October, 1978. Felix’s starting salary at that time was $3.33 per hour as a utility worker in the machine shop. Between the years 1978 and 1982, Felix received promotions and increases in wages so that in October, 1982, he had risen to a grade 4-B welder and was earning $9.72 per hour. On October 18, 1982, due to lack of work, Eberline gave Felix the choice of being laid off or accepting a lower grade job as a machine operator at $6.35 per hour. Felix chose to continue working at the lower wage and was working at this rate when he was injured on December 9, 1982.

Eberline paid Felix temporary weekly benefits based on the $6.35 hourly rate from the time of the accidental injury until April 5, 1983. On April 6, 1983, Felix returned to work with Eberline as a grade 4-B welder and was earning an hourly wage of $9.04 per hour. A short time later he was again laid off and did not return to work for Eberline.

Both the trial court and the Court of Appeals ruled that Felix was entitled to compensation at the $9.72 per hour rate that he had earned as a welder rather than the $6.35 per hour rate that he was earning as a machine operator at the time of the accident. Both courts concluded that Felix’s “primary employment” with Eberline had been as a welder at the higher rate.

The determination of average weekly wage for the purpose of computing compensation payments is governed by NMSA 1978, Section 52-1-20, which provides in pertinent part:

A.[Wjhenever the term “wages” is used, it shall be construed to mean the money rate at which the services rendered are recompensed under the contract of hire in force at the time of the accident. * * * (Emphasis added.)

The plain language of this statute dictates that the contract of hire in force at the time of the accident determines the amount of “wages” that a workman was receiving at the time of the accident. In this case it is undisputed that those “wages” were at the rate of $6.35 per hour.

Further, Section 52-l-20(B) is used to compute benefits based on that average weekly wage. It provides 'in pertinent part:

B. [Ajverage weekly wages for the purpose of computing benefits provided in the Workmen’s Compensation Act shall, except as hereinafter provided, be calculated upon the monthly, weekly, daily, hourly, or other remuneration which the injured or killed employee was receiving at the time of the injury, and in the following manner, to wit:
* * * * * *
(4) where the employee is being paid by the hour, the weekly wage shall be determined by multiplying the hourly rate by the number of hours in a day during which the employee was working at the time of the accident, or would have worked if the accident had not intervened, to determine the daily wage; then the weekly wage shall be determined from said daily wage in the manner set forth in Paragraph (3) hereof; provided, that in no case shall the hourly rate be multiplied by less than seven[.]

At the time of the accidental injury Felix was earning $6.35 per hour. Thus, under the foregoing provisions, that rate applies unless the circumstances of the case allow use of an exception. The Court of Appeals determined that Section 52-l-20(C) provides such an exception. It provides:

C. [Pjrovided, further, however, that m any case where the foregoing methods of computing the average weekly wage of the employee by reason of the nature of the employment or the fact that the injured employee has not worked a sufficient length of time to enable his earnings to be fairly computed thereunder, or has been ill or in business for himself, or where for any other reason said methods will not fairly compute the average weekly wage; in each particular case, computation of the average weekly wage of said employee [shall be made] in such other manner and by such other method as will be based upon the facts presented [to] fairly determine such employee’s average weekly wage[.]

The question then is whether the formula provided by Section 52-l-20(B)(4) fairly represents Felix’s average weekly wage at the time of the accident. If it does not, then the exception provided by Section 52-1-20(C) would allow for the determination of the average weekly wage by any method which was supported by the evidence.

The Court of Appeals based its decision on Kendrick v. Gackle Drilling Co., 71 N.M. 113, 376 P.2d 176 (1962). In Kendrick, the injured workman had a very erratic income because he worked only a few days at each job. The rate of pay and length of employment varied with each job. The Court determined that the only possible method of determining an average weekly wage in that situation was to take an average of the preceding twenty-eight weeks earnings. The method of determining the workman’s average weekly wages in Kendrick was a method which would most accurately reflect the workman’s wages at the time of his injury. However, the instant case does not lend itself to use of such method. Felix opted to take the position as a machine operator with the reduced rate of pay. He worked at this position for approximately seven weeks pri- or to his injury and, under the contract for hire then in effect, earned $6.35 per hour at the time of his injury. Thus, under the plain wording of Section 52-l-20(B)(4), the method to be used to compute Felix’s benefits under the Workmen’s Compensation Act would be calculated upon the hourly remuneration which he was receiving at the time of the injury. There is no reason to calculate Felix’s benefits under Section 52-1-20(C) because the method provided under Section 52 — 1—20(B)(4) fairly computes what Felix’s average weekly wage was at the time of the accident. Section 52-l-20(C) is to be resorted to only in unusual circumstances as in Kendrick, where a worker’s average weekly wage cannot fairly be determined by the precise methods outlined in Section 52-l-20(B).

To allow the Court of Appeals’ opinion to stand would create numerous problems. In the instant case the workman is benefited by the use of the “primary employment” test.

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Bluebook (online)
708 P.2d 334, 103 N.M. 422, Counsel Stack Legal Research, https://law.counselstack.com/opinion/eberline-instrument-corp-v-felix-nm-1985.