Harrison v. Animas Valley Auto & Truck Repair

733 P.2d 873, 105 N.M. 425
CourtNew Mexico Court of Appeals
DecidedJanuary 29, 1987
DocketNo. 9285
StatusPublished
Cited by3 cases

This text of 733 P.2d 873 (Harrison v. Animas Valley Auto & Truck Repair) 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
Harrison v. Animas Valley Auto & Truck Repair, 733 P.2d 873, 105 N.M. 425 (N.M. Ct. App. 1987).

Opinion

OPINION

DONNELLY, Chief Judge.

The prior opinion of the court is withdrawn and the following opinion is substituted.

Plaintiff, Marion Harrison, appeals from a judgment denying his claim for workmen’s compensation. The central issue raised by plaintiff on appeal is whether the trial court erred in concluding plaintiff was not an employee for purposes of qualifying for workmen’s compensation benefits at the time of his injury. We reverse and remand with instructions to the trial court to address other essential issues raised by the pleadings.

FACTS

The factual issue of whether plaintiff was injured during the course and scope of his employment was bitterly disputed at trial. The trial court did not reach this issue because it found that at the time of plaintiff's injury, his employment contract had not been renewed or extended and plaintiff, therefore, did not have an enforceable right to receive any remuneration for his service to Animas Valley Auto and Truck Repair, Inc. (Animas).

Plaintiff was an automobile mechanic and, together with Dr. Ivan Sergejev and Carroll “Red” Achenbach formed Animas in December 1982. Plaintiff and Achenbach each owned 30% of the corporate shares and Dr. Sergejev owned 40%. Plaintiff, Achenbach, and Sergejev were the officers and directors of Animas and it was agreed that plaintiff and Achenbach were to work for the corporation; Achenbach was to be the general manager and plaintiff was to help manage and serve as a mechanic. Other mechanics worked on the premises but they were independent contractors.

Articles of incorporation were signed and filed for the company. In addition, the three principals signed a pre-incorporation agreement. This agreement contained a provision governing the employment of the principals and recited that plaintiff and Achenbach would agree to sign a contract of employment whereby they would both devote full time to the corporation for a salary of $500 per week. The agreement further provided that the contract was to begin in December and last for six months. If the corporation failed to show a net profit at the end of three months, then receipt of the salaries would be deferred until such time as there was a net profit sufficient to pay the salaries; and continued employment was contingent on the approval of the board of directors. The employment agreements were never signed, nor were any other corporate documents, such as buy-sell agreements and corporate meeting minutes, that were drafted. It is undisputed, however, that the business opened its doors and operated despite the unsigned documents.

Plaintiff and Achenbach worked for Animas, earning and collecting their $500 per week salaries until May or June 1983. After that, both testified that their wages were deferred and that they continued working until August 1983. In August, plaintiff and Dr. Sergejev decided to terminate Achenbach’s employment. Achenbach left and plaintiff took over as general manager.

Plaintiff continued to work for the corporation until the end of September, when the incident giving rise to this suit occurred. The manner in which plaintiff was injured was the subject of conflicting testimony. Plaintiff alleged that on September 23, 1983, he was working late at night, attempting to put an engine into a car, when the car slipped off a jackstand, crushing his hand. He then fell through a. plate-glass window while attempting to run for help. Plaintiff gave timely notice of the accident and received workmen’s compensation benefits for approximately fifteen months until defendants stopped paying them. Defendants terminated payments of benefits based upon allegations of fraud concerning how plaintiff’s injuries were incurred.

Phillip Holman worked for Animas and was with plaintiff on the night of plaintiff’s injury. Holman, however, quit following plaintiff’s injury. About a month later, Animas closed its doors. Holman arranged to purchase equipment from plaintiff to open his own shop. Plaintiff and Holman became embroiled in a dispute concerning the payment for this equipment. Plaintiff’s wife removed some equipment from Holman’s shop.

Holman informed defendants that the facts surrounding plaintiff’s injuries did not occur as related by the plaintiff. Holman said that on the night the injuries occurred, he and plaintiff had been at a party and had been drinking. Plaintiff got into a fight with an individual concerning plaintiff’s race car. After the party, plaintiff, still angry, returned to the garage and put his fist through the window. Based on Holman’s information, defendants stopped paying compensation benefits.

Thereafter, plaintiff filed suit to compel payment of workmen’s compensation benefits. After hearing the evidence, the trial court determined that plaintiff had neither an employment contract nor an average weekly wage. In light of this ruling, the court did not make findings concerning the other issues in the case, e.g., whether plaintiff was injured as a result of an accident arising out of and in the course of his employment or was injured by intentionally putting his fist through the window due to his frustration and anger resulting from his earlier fight.

Defendants requested findings of fact to the effect that: plaintiff’s employment contract was for six months; plaintiff’s employment contract was never renewed, either expressly or impliedly; Animas never took the required corporate action to extend or renew the contract; after June 1983, Animas never had sufficient income with which to pay plaintiff and plaintiff has no enforceable right to receive remuneration; and at the time of plaintiff’s injury he had no wage and thus no basis for computing an average weekly wage. Based on these requested findings, defendants requested a conclusion to the effect that the possibility that plaintiff might be paid in the future was not a receipt of a wage within the contemplation of NMSA 1978, Section 52-1-20, citing Gilliland v. Hanging Tree, Inc., 92 N.M. 23, 582 P.2d 400 (Ct.App.), cert. denied, 92 N.M. 180, 585 P.2d 324 (1978).

The trial court, apparently relying upon Gilliland, adopted defendants’ requested findings and conclusions of law with minor modifications. The court also adopted the additional conclusions that an average weekly wage could not be computed and that the case should be dismissed.

GILLILAND

We determine that Gilliland is not controlling in the instant case. Gilliland was a case factually similar to the matter before us, but with an important difference: plaintiff in Gilliland never earned a wage and there was never any monetary amount of remuneration discussed. In other respects, the cases are quite similar: plaintiffs in each case worked for corporations in which they owned approximately a one-third interest; both corporations expected to pay the workers when circumstances would permit; and, at the precise time of the accidents, neither worker was actually collecting a wage.

Our decision in Gilliland turned on the fact that there was no money rate at which the worker’s services were being recompensed at the time of the accident. There was, accordingly, no average weekly wage within the meaning of the statute.

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Related

State v. Nehemiah Child G.
417 P.3d 1175 (New Mexico Court of Appeals, 2018)
Harrison v. Animas Valley Auto and Truck Repair
758 P.2d 787 (New Mexico Supreme Court, 1988)

Cite This Page — Counsel Stack

Bluebook (online)
733 P.2d 873, 105 N.M. 425, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harrison-v-animas-valley-auto-truck-repair-nmctapp-1987.