Michaels v. Anglo American Auto Auctions, Inc.

869 P.2d 279, 117 N.M. 91
CourtNew Mexico Supreme Court
DecidedFebruary 10, 1994
Docket21184
StatusPublished
Cited by38 cases

This text of 869 P.2d 279 (Michaels v. Anglo American Auto Auctions, 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
Michaels v. Anglo American Auto Auctions, Inc., 869 P.2d 279, 117 N.M. 91 (N.M. 1994).

Opinion

OPINION

FRANCHINI, Justice.

Today we decide whether an employee who alleges that he or she was wrongfully discharged in retaliation for filing a workers’ compensation action has a cause of action independent from that set out in NMSA 1978, Section 52-1-28.2 (Repl.Pamp.1991). We hold that plaintiff may assert a retaliatory discharge claim independently of and in view of the policy set out by Section 52-1-28.2. We reverse the district court’s dismissal of plaintiff Michaels’s complaint for failure to state a claim pursuant to SCRA 1986, 1-012(B)(6) and answer questions certified to us by our Court of Appeals.

We assume the truth of the facts alleged in the complaint for purposes of a motion to dismiss for failure to state a claim. Castillo v. County of Santa Fe, 107 N.M. 204, 205, 755 P.2d 48, 49 (1988). Michaels worked for Anglo American Auto Auctions, Inc. as an auto painter in the body shop of the Albuquerque Auto Auction. In the spring of 1992, Michaels contacted Anglo American about filing a workers’ compensation claim for health problems including skin and kidney disorders caused by exposure to chemicals used to prime and paint automobiles. In a subsequent workers’ compensation claim, Michaels alleged that his injuries occurred because the American Auto Auction failed to use adequate safety devices, precautions, and warnings to prevent hazardous levels of exposure to paints and solvents he used everyday in the body shop. Michaels sought disability benefits as well as a safety device enhancement penalty pursuant to NMSA 1978, Section 52-1-10 (Repl.Pamp.1991).

On May 18, 1992 Anglo American discharged Michaels from his position as an auto painter. Michaels contends the discharge was in retaliation for exercising his rights under the Workers’ Compensation Act (the Act). On September 16, 1992 Michaels filed suit for retaliatory discharge seeking compensatory and punitive damages. Upon Anglo American’s motion, the district court dismissed Michaels’s complaint. The Court of Appeals certified this case to us pursuant to NMSA 1978, Section 34-5-14(0(2) (Repl. Pamp.1990), noting that it involved “the issue of whether the [Act] provides the exclusive remedy” for a worker’s claim against an employer for damages resulting from the employer’s retaliatory discharge of the worker for filing a worker’s compensation claim.

I.

The tort of retaliatory discharge was first recognized in this state by our Court of Appeals in Vigil v. Arzola, 102 N.M. 682, 688, 699 P.2d 613, 619 (Ct.App.1983), rav’d in part on other grounds, 101 N.M. 687, 687 P.2d 1038 (1984), modified by Boudar v. E.G. & G., 106 N.M. 279, 280-81, 742 P.2d 491, 492-93 (1987), and modified by Chavez v. Manville Prods. Corp., 108 N.M. 643, 649-50, 777 P.2d 371, 377-78 (1989). In Chavez, we adopted the Vigil court’s standard of recovery for retaliatory discharge:

“For an employee to recover under this new cause of action, he must demonstrate that he was discharged because he performed an act that public policy has authorized or would encourage, or because he refused to do something required of him by his employer that public policy would condemn.”

Chavez, 108 N.M. at 647, 777 P.2d at 375 (quoting Vigil, 102 N.M. at 689, 699 P.2d at 620.) “The linchpin of a cause of action for retaliatory discharge is whether by discharging the complaining employee the employer violated a ‘clear mandate of public policy.’” Shovelin v. Central N.M. Elec. Coop., 115 N.M. 293, 303, 850 P.2d 996, 1006 (1993) (quoting Vigil, 102 N.M. at 688, 699 P.2d at 619). In Shovelin we described several categories sufficient to support a claim of retaliatory discharge including legislation that defines public policy and provides a remedy for violation of that policy and legislation that protects employees but does not specify a remedy. Id. As to the latter, the employee would seek an implied remedy. Id.

In Williams v. Amax Chemical Corp., 104 N.M. 293, 294, 720 P.2d 1234, 1235 (1986), we held that an employee discharged for exercising rights afforded by the Act had no retaliatory discharge claim.

Although the Vigil court determined that a cause of action should lie when the discharge of an employee contravenes some clear mandate of public policy, when an Act is sui generis, public policy, other than that reflected in the Act, is generally not to be invoked.

Id. Both our court in Williams and the Court of Appeals in Bottijliso v. Hutchison Fruit Co., 96 N.M. 789, 635 P.2d 992 (Ct.App.1981), held that any recognition of a tort for retaliatory discharge of an employee who files a worker’s compensation claim should be done by the legislature. Williams, 104 N.M. at 294, 720 P.2d at 1235; Bottijliso, 96 N.M. at 794-95, 635 P.2d at 997-98. As indicated below, we now disapprove this holding.

In January 1991, an amendment to the Act entitled “Retaliation against employee seeking benefits; civil penalty” became effective. Section 52-1-28.2. It states in part:

A. An employer shall not discharge, threaten to discharge or otherwise retaliate in the terms or conditions of employment against a worker who seeks workers’ compensation benefits for the sole reason that that employee seeks workers’ compensation benefits.

Id. The provision requires an employer who violates Subsection A to rehire the employee (provided the worker agrees to be rehired) and pay a civil penalty to the workers’ compensation administrative fund of up to five thousand dollars for each violation. See Section 52-l-28.2(B)-(D).

In enacting Section 52-1-28.2 the legislature expressly set out the clear mandate of public policy that was missing when Williams and Bottijliso were decided. We must now decide whether the remedy set out in Section 52-1-28.2 is exclusive.

The employer argues that the remedy provided within the Act for retaliatory discharge was intended by the legislature to be the sole and exclusive remedy for all workers allegedly discharged for seeking compensation benefits. The employer points to the following language in the Act:

The Workers’ Compensation Act provides exclusive remedies. No cause of action outside the Workers’ Compensation Act shall be brought by an employee or dependent against the employer or his representative, including the insurer, guarantor or surety of any employer, for any matter relating to the occurrence of or payment for any injury or death covered by the Workers’ Compensation Act.

NMSA 1978, Section 52-l-6(E) (Repl. Pamp.1991).

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Bluebook (online)
869 P.2d 279, 117 N.M. 91, Counsel Stack Legal Research, https://law.counselstack.com/opinion/michaels-v-anglo-american-auto-auctions-inc-nm-1994.