Luna v. Lewis Casing Crews, Inc.

2007 NMSC 020, 159 P.3d 256, 141 N.M. 607
CourtNew Mexico Supreme Court
DecidedApril 18, 2007
Docket29,768
StatusPublished
Cited by2 cases

This text of 2007 NMSC 020 (Luna v. Lewis Casing Crews, Inc.) 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
Luna v. Lewis Casing Crews, Inc., 2007 NMSC 020, 159 P.3d 256, 141 N.M. 607 (N.M. 2007).

Opinions

OPINION

BOSSON, Justice.

{1} Having recently held that a worker who is injured on the job need not forego all benefits under the Workers’ Compensation Act (the Act) while pursuing an intentional tort action under Delgado v. Phelps Dodge Chino, Inc., 2001-NMSC-034, 131 N.M. 272, 34 P.3d 1148, we apply that holding to the facts of this case. See Salazar v. Torres, 2007-NMSC-019, 141 N.M. 559, 158 P.3d 449 (2007). Although proeedurally different, our holding in Salazar is controlling. Applying that holding to the facts of this case, we now affirm the Court of Appeals.

BACKGROUND

{2} Johnny Luna (Worker) was injured while under the employ of Lewis Casing Crews, Inc. (Employer). The record indicates that an oil well casing joint fell on Worker, causing numerous injuries including broken ribs, a fractured clavicle, back injuries, lacerations, and head injuries. Immediately after the incident, Employer and its insurer accepted the injuries as being compensable under the Act, and Worker began receiving workers’ compensation benefits, including periodic medical and indemnity benefits. Worker then filed a lawsuit in district court against Employer and others alleging, under the standard enunciated by this Court in Delgado, that Employer intentionally and willfully caused his injuries. See id., 2001-NMSC-034, ¶¶ 26-28, 131 N.M. 272, 34 P.3d 1148.

{3} Sometime after filing the tort action in district court, Worker petitioned the Workers’ Compensation Administration for a partial lump-sum payment of his future permanent partial disability benefits. Specifically, Worker requested a lump-sum payment of $26,824.00 to cover items such as grocery costs, the cost of purchasing a used automobile, hospital and doctor bills, insurance costs, cable and telephone bills, and $15,000.00 to pay his ex-wife for his share of a house they owned when married.

{4} Employer filed a motion in opposition to Worker’s petition arguing that the benefits under the Act were Worker’s exclusive remedy. Employer further asserted that the election of remedies doctrine also precluded Worker from seeking lump-sum workers’ compensation benefits while his Delgado action was pending. The Workers’ Compensation Judge (WCJ) disagreed with Employer and granted Worker a partial lump-sum payment, although lowering the lump-sum payment significantly from that requested to $2,304.59. The WCJ allowed the lump-sum payment to pay debts that Worker had incurred during the course of his disability due to limitations on Worker’s ability to support himself, including insurance costs, hospital and doctor fees, and miscellaneous living expenses such as back rent, property taxes, and telephone service. The WCJ disallowed payment for items that are not considered debts under the Act, such as the cost of groceries and a new vehicle, as well as debts not incurred during the course of the disability or that had not yet become due.

{5} Employer appealed the WCJ’s decision to the Court of Appeals. In a Memorandum Opinion, relying heavily on its recent holding in Salazar v. Torres, 2005-NMCA-127, 138 N.M. 510, 122 P.3d 1279, the Court of Appeals affirmed the WCJ. Luna v. Lewis Casing Crews, Inc., No. 26,338 (N.M.Ct.App. Apr. 4, 2006). Employer then petitioned this Court for a writ of certiorari. Having now reviewed the Court of Appeals’ opinion in Salazar, we take this opportunity to address this case in light of our holding there.

DISCUSSION

Standard of Review

{6} Because Employer does not challenge the WCJ’s factual determinations, whole record review is unnecessary. Cf. Wagner v. AGW Consultants, 2005-NMSC-016, ¶ 79, 137 N.M. 734, 114 P.3d 1050 (applying whole record review when the WCJ’s factual determinations are challenged). We therefore “review de novo the application of the law to the facts.” Id. (citing Hise v. City of Albuquerque, 2003-NMCA-015, ¶ 8, 133 N.M. 133, 61 P.3d 842).

Salazar v. Torres

{7} We first turn our attention to our holding in Salazar which controls here. In Salazar the injured worker received workers’ compensation benefits including a partial lump-sum payment for debts accumulated during disability, and later applied for and received a lump-sum payment of all permanent partial disability and future indemnity benefits, except for future medical costs, effectively terminating his workers’ compensation action. Salazar, 2007-NMSC-019, ¶ 3, 141 N.M. 559, 158 P.3d 449. Shortly thereafter, the worker filed a complaint in district court under Delgado. Id. ¶ 4. The employer responded with a motion for summary judgment arguing to the district court that the Delgado claim was barred because the workers’ compensation benefits constituted worker’s exclusive remedy. Id. The district court granted summary judgment on that basis for the employer. Id. The Court of Appeals reversed. Id. We granted certiorari to determine “whether and when a worker can receive benefits under the Act without compromising a potential intentional tort action under Delgado.” Id.

{8} In Salazar, we recognized that it may take some time for the worker to investigate and pursue a Delgado claim to ending resolution. Id. ¶¶ 13-14. Until the Delgado claim is determined, one way or the other, we held that the injured worker cannot be punished for receiving interim workers’ compensation benefits under the Act. Id. ¶¶ 16, 19. Therefore, we concluded that if a worker seeks interim benefits under the Act and files a Delgado claim in district court, the WCJ should award compensation benefits until it is finally determined by the district court that the claim falls outside of the Act; in other words, that the injury was intentionally and willfully caused by the employer and not the result of an accident as defined by the Act. See id. ¶ 25 (citing Eldridge v. Circle K Corp., 1997-NMCA-022, ¶ 29, 123 N.M. 145, 934 P.2d 1074).

{9} However, we did put limits on our holding in Salazar. First, a worker cannot ultimately recover both workers’ compensation and tort damages. Id. ¶20. Any benefits paid under the Act, including those awarded as partial lump-sum benefits for debts, must be reimbursed to employer or employer’s insurer upon a favorable verdict for worker under Delgado. Id. Second, if a worker elects to receive a lump-sum payment under NMSA 1978, § 52-5-12(A) (2003), resolving the worker’s compensation claim against the employer, then a Delgado claim is barred. Salazar, 2007-NMSC-019, ¶ 28, 141 N.M. 559, 158 P.3d 449. The worker in Salazar received such a payment, which this Court held constituted a final resolution of his claim against his employer, and then filed a Delgado claim which we determined was barred. Id. ¶ 29.

Application of Salazar to the Present Claim

{10} According to Salazar, receipt of workers’ compensation benefits clearly does not preclude Worker from simultaneously pursuing a Delgado suit in district court. Id. ¶¶ 16-20. The question presented to us in this case, however, is not whether the Delgado claim is barred, but rather whether Worker’s compensation claim is barred. More specifically, we must evaluate whether Worker can receive additional benefits under the Act in the form of a partial lump-sum payment for payment of debts while pursuing his Delgado claim. In essence, this is the mirror image of what we resolved in Salazar.

{11} Our resolution, however, is the same.

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Related

Torres v. Cintas Corp.
707 F. Supp. 2d 1284 (N.D. Oklahoma, 2010)
Luna v. Lewis Casing Crews, Inc.
2007 NMSC 020 (New Mexico Supreme Court, 2007)

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Bluebook (online)
2007 NMSC 020, 159 P.3d 256, 141 N.M. 607, Counsel Stack Legal Research, https://law.counselstack.com/opinion/luna-v-lewis-casing-crews-inc-nm-2007.