Korba v. ATLANTIC CIRCULATION, INC.

2010 NMCA 029, 231 P.3d 118, 148 N.M. 137
CourtNew Mexico Court of Appeals
DecidedJanuary 11, 2010
Docket28,774; 32,218
StatusPublished
Cited by3 cases

This text of 2010 NMCA 029 (Korba v. ATLANTIC CIRCULATION, INC.) 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
Korba v. ATLANTIC CIRCULATION, INC., 2010 NMCA 029, 231 P.3d 118, 148 N.M. 137 (N.M. Ct. App. 2010).

Opinion

OPINION

VIGIL, Judge.

{1} This is a personal injury case in which Atlantic Circulation, Inc., a magazine subscription processing company, obtained summary judgment on the basis that magazine sales managers and salespersons were not its employees. Plaintiffs appeal, and we affirm.

BACKGROUND

{2} Sales managers and salespersons who process sales subscriptions through Atlantic Circulation were riding in a 1992 Chevrolet Suburban overloaded with fifteen people when a rear tire blew out, resulting in a single-vehicle accident. The vehicle was driven by Jaime Miller and owned by Michelle Sanchez. Two persons, Brandy Korba and Alicia Gerandt were killed, and two others, Richard Hooke and Steven Rouse, were injured. Korba and her estate, Gerandt and her estate, Hooke, and Rouse are Plaintiffs and allege a variety of claims based upon the accident. The liability of Atlantic Circulation hinges on whether it was the employer of Miller, Sanchez, Korba, Gerandt, Hooke, or Rouse at the time of the accident.

{3} Atlantic Circulation moved for summary judgment on the basis that it was not the employer of Miller, Sanchez, Korba, Gerandt, Hooke, or Rouse. The district court granted summary judgment and dismissed the complaint with prejudice. Plaintiffs appeal.

STANDARD OF REVIEW

{4} Summary judgment is proper “if the pleadings, depositions, answers to interrogatories and admissions on file, together with the affidavits, if any, show that there is no genuine issue as to any material fact and that the moving party is entitled to a judgment as a matter of law.” Rule 1 — 056(C) NMRA. Whether this standard is satisfied presents a question of law, which we review de novo. Self v. United Parcel Serv., Inc., 1998-NMSC-046, ¶ 6, 126 N.M. 396, 970 P.2d 582. As the movant, Atlantic Circulation was required to make a prima facie showing that it was entitled to summary judgment. See Savinsky v. Bromley Group, Ltd., 106 N.M. 175, 176, 740 P.2d 1159, 1161 (Ct.App.1987) (noting that the defendant satisfied its burden to obtain summary judgment by establishing it did not have the ability to control the work of the alleged employee). Once Atlantic Circulation satisfied its burden, the burden shifted to Plaintiffs to establish the existence of a genuine issue of material fact. Ciup v. Chevron U.S.A., Inc., 1996-NMSC-062, ¶ 7, 122 N.M. 537, 928 P.2d 263 (“[T]he opponent must come forward and establish with admissible evidence that a genuine issue of fact exists.”).

DISCUSSION

A. Distinguishing an Employee From an Independent Contractor

{5} New Mexico courts have utilized the right to control test to determine whether an employer-employee or independent contractor relationship exists. Celaya v. Hall, 2004-NMSC-005, ¶ 11, 135 N.M. 115, 85 P.3d 239. The test focuses on “whether the principal exercised sufficient control over the agent to hold the principal liable for the acts of the agent.” Id. ¶ 12. Recognizing that the right to control test is more complex and “demands a more nuanced approach, than simply determining the degree of control over the details or methods of the work[,]” our Supreme Court has adopted the method used by the Restatement (Second) of Agency § 220(a)-(j) (1958) to distinguish an employee from an independent contractor. Celaya, 2004-NMSC-005, ¶ 14, 135 N.M. 115, 85 P.3d 239.

{6} The Restatement approach continues to consider the degree of control exercised by the principal over the details of the agent’s work, but this factor is not exclusive. Id. ¶ 15. The analysis also requires an assessment of other factors which include: “1) the type of occupation and whether it is usually performed without supervision; 2) the skill required for the occupation; 3) whether the employer supplies the instrumentalities or tools for the person doing the work; 4) the length of time the person is employed; 5) the method of payment, whether by time or job; 6) whether the work is part of the regular business of the employer; 7) whether the parties intended to create an employment relationship; and 8) whether the principal is engaged in business.” Id. A complete analysis may require the court to evaluate “the circumstances unique to the particular case.” Id. In the court’s consideration of the Restatement factors,

“[N]o particular factor should receive greater weight than any other, except when the facts so indicate, nor should the existence or absence of a particular factor be decisive. Rather, the totality of the circumstances should be considered in determining whether the employer has the right to exercise essential control over the work or workers of a particular contractor.”

Id. (alteration in original) (quoting Harger v. Structural Servs., Inc., 121 N.M. 657, 667, 916 P.2d 1324, 1334 (1996)).

B. The Undisputed Material Facts

{7} The material facts establishing the relationships of sales managers and salespersons with Atlantic Circulation are undisputed. Atlantic Circulation is a processing center for direct sales of magazine subscriptions. Atlantic Circulation’s practice is to enter into independent contractor agreements with sales managers throughout the country. Sales managers in turn each hire their own sales crews — salespersons who sell magazine subscriptions to consumers. It is also the practice for sales managers to enter into a separate independent contractor agreement with salespersons, called an “Agreement for Subscription Solicitation Services.”

{8} Atlantic Circulation has independent contractor agreements with sales managers Korba and Sanchez. There is no agreement in the record for Miller, who was the driver. He is a defendant, but was never served. However, Hooke, who was a salesperson and a passenger in the van, testified that Miller was also a sales manager, and his testimony is not disputed. Each sales manager operates his or her crew as a separate company, with a different name. Korba’s sales company was called Korba Sales, and Sanchez’s sales company was called either Power Sales, Inc., or Strictly Business, Inc. The independent contractor agreement between Atlantic Circulation and the sales managers expressly states, “[Atlantic Circulation] desires to engage Contractor as an independent contractor to perform certain solicitation for magazine and book subscriptions and Contractor desires to perform the solicitation as an independent contractor under the terms and conditions set forth herein.” The agreement further provides, “The parties intend this Agreement to create an independent contractor relationship and not an employer-employee relationship. Nothing in this agreement shall be interpreted or construed to create an employer-employee relationship.”

{9} Plaintiffs rely upon Chevron Oil Co. v. Sutton to argue that the independent contractor agreements are not dispositive of the issue of whether there is an employee-employer relationship. 85 N.M. 679, 681, 515 P.2d 1283

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2010 NMCA 029, 231 P.3d 118, 148 N.M. 137, Counsel Stack Legal Research, https://law.counselstack.com/opinion/korba-v-atlantic-circulation-inc-nmctapp-2010.