Martinez v. Northern Rio Arriba Electric Cooperative, Inc.

2002 NMCA 083, 51 P.3d 1164, 132 N.M. 510
CourtNew Mexico Court of Appeals
DecidedJune 12, 2002
Docket21,773
StatusPublished
Cited by12 cases

This text of 2002 NMCA 083 (Martinez v. Northern Rio Arriba Electric Cooperative, 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
Martinez v. Northern Rio Arriba Electric Cooperative, Inc., 2002 NMCA 083, 51 P.3d 1164, 132 N.M. 510 (N.M. Ct. App. 2002).

Opinion

OPINION

BOSSON, Chief Judge.

{1} Verna Martinez, a retired Northern Rio Arriba Electric Cooperative, Inc. (NORA) employee, brought suit against her former employer, arguing that she was not adequately compensated for unused sick leave upon her retirement. NORA appeals from a judgment entered upon a jury verdict in Martinez’s favor. NORA contends that the district court erred in permitting the jury to award Martinez compensatory damages for breach of an implied contract and emotional distress, and in entering judgment upon the jury award for punitive damages. We affirm the award of contract damages, but reverse the awards for emotional distress and punitive damages. We remand for verdict restructuring and recalculation of prejudgment interest.

BACKGROUND

{2} NORA is the electric utility cooperative for northern Rio Arriba county. Martinez worked for NORA for forty-four years, retiring in January 1994. Martinez began her employment at NORA in 1949 as an office clerk and cashier. At the time of her retirement, Martinez held the position of office manager and accountant. Because she took very little time off from work, Martinez accrued a large amount of sick leave, in excess of 2800 hours.

{3} A few days before Martinez retired, NORA’s manager, Emery Maez, informed her that the compensation for her unused sick leave would be considerably less than she had expected. Martinez appealed the amount of her sick leave compensation, first to the personnel committee and then to NORA’s Board of Trustees, but was unsuccessful.

{4} In 1995, Martinez filed a federal lawsuit for gender discrimination, claiming that she had been treated differently from a similarly situated male employee, and also raising several state law claims. The federal district court entered summary judgment for NORA on the gender discrimination claim and dismissed the state claims without prejudice.

{5} In March of 1997, Martinez filed a complaint in Rio Arriba County district court for her sick leave compensation, alleging three legal theories: breach of implied contract, prima facie tort, and constructive fraud. The case went to trial in June 2000. After denying NORA’s motion for directed verdict, the court submitted all three theories of liability to the jury, along with instructions permitting the jury to award damages for breach of contract, emotional distress, and punitive damages.

{6} The jury found NORA liable on all three theories and then awarded three kinds of damages. As compensation for breach of implied contract, the jury awarded Martinez $38,183.18 for unpaid sick leave, representing the difference between the amount Martinez was actually paid for her sick leave and the amount she had expected to be paid. The jury also awarded emotional distress damages totaling $53,600 ($41,600 for general emotional distress, $9000 for psychological counseling, and $3000 for mileage to obtain counseling). The award of punitive damages proved more problematic. Instead of entering a dollar amount, the jury wrote on the verdict form, in the space provided for punitive damages, “[a]ll court costs and lawyer fees acquired over the last 6 years related to this case.” The verdict form did not specify under which theory or theories the jury awarded each type of damages. Neither party objected to the form of the verdict.

{7} After the trial was concluded and the jury discharged, Martinez asked the court to award her attorney fees and costs based on the jury’s undetermined award of punitive damages. She submitted a statement of all of her attorney fees and costs, including those accrued during her unsuccessful federal lawsuit, and also moved for pre-judgment interest. NORA opposed Martinez’s motions and moved for judgment as a matter of law, or in the alternative for a new trial, arguing that the punitive damages verdict was a legal nullity.

{8} In response, the court set a hearing for August 2000, but the trial judge was unable to conduct the hearing due to a family emergency. Instead, another judge, acting as a substitute, canceled the hearing and issued a memorandum decision. That judge entered judgment for Martinez in the full amount of the jury verdict for contract damages and emotional distress, and added an award of $144,281.51 in attorney fees as punitive damages. The substitute judge also awarded $91,783.18 in pre-judgment interest.

DISCUSSION

Contract Damages

{9} NORA argues that the trial court erred in denying its motion for directed verdict and then submitting the implied contract claim to the jury. We treat NORA’s argument as a challenge to the sufficiency of the evidence upon which the jury based its verdict. See Gonzales v. N.M. Dep’t of Health, 2000-NMSC-029, ¶ 18, 129 N.M. 586, 11 P.3d 550 (stating that when a case has been fully tried on the merits, an appellate court reviews the record to determine whether the evidence is sufficient to support the jury’s verdict, rather than assessing only the sufficiency of the prima facie case).

{10} We will affirm a verdict supported by substantial evidence, which we have defined as “such relevant evidence that a reasonable mind would find adequate to support a conclusion.” Landavazo v. Sanchez, 111 N.M. 137, 138, 802 P.2d 1283, 1284 (1990). Accordingly, we review the evidence in the light most favorable to the verdict to determine, “not whether substantial evidence exists to support the opposite result, but rather whether such evidence supports the result reached.” Las Cruces Prof'l Fire Fighters v. City of Las Cruces, 1997-NMCA-044, ¶ 12, 123 N.M. 329, 940 P.2d 177.

{11} Focusing on the sufficiency of the evidence, the question before us is not whether NORA had an obligation to pay Martinez for unused sick leave; the parties do not dispute that NORA undertook such a commitment. The sole question is how NORA should have calculated that compensation, and specifically whether substantial evidence supports the jury’s determination of an implied contract between NORA and Martinez to calculate that compensation in the manner Martinez suggested at trial. We begin by examining the evidence in support of the verdict.

{12} A few days before Martinez retired, Maez informed her that the compensation for her unused sick leave would be $19,532.61, which was less than half of what she expected to receive. Maez presented Martinez with a chart that detailed her proposed sick leave compensation. According to Maez’s chart, Martinez was to be paid for all of her 2845 sick leave hours, but only at the wage rates she was earning during the years of accrual. For example, sick leave accrued in 1949, when she was earning only 89 cents an hour, would be calculated at that low hourly rate. Martinez disagreed with Maez’s proposal and appealed to NORA’s personnel committee.

{13} The personnel committee, using a different method of calculation, arrived at a slightly lower figure: $19,313.87. The committee began its calculations by deducting-600 hours from the 2845 sick leave hours that Martinez had accrued.

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Bluebook (online)
2002 NMCA 083, 51 P.3d 1164, 132 N.M. 510, Counsel Stack Legal Research, https://law.counselstack.com/opinion/martinez-v-northern-rio-arriba-electric-cooperative-inc-nmctapp-2002.