Salswedel v. Enerpharm, Ltd.

764 P.2d 499, 107 N.M. 728
CourtNew Mexico Court of Appeals
DecidedOctober 11, 1988
Docket9813
StatusPublished
Cited by18 cases

This text of 764 P.2d 499 (Salswedel v. Enerpharm, Ltd.) 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
Salswedel v. Enerpharm, Ltd., 764 P.2d 499, 107 N.M. 728 (N.M. Ct. App. 1988).

Opinion

OPINION

MINZNER, Judge.

Plaintiff appeals from the trial court’s decision granting defendant’s motion for summary judgment and dismissing her negligence action with prejudice. At the time of her accident, plaintiff was an employee of Nuclear Pharmacy, one of three corporations which formed defendant partnership Enerpharm. Plaintiff contends that her action is not barred by NMSA 1978, Section 52-l-6(D) (Repl.Pamp.1987), because Enerpharm is a “person other than [her] employer” within the meaning of the Workers’ Compensation Act. We invited the participation of amicus curiae and scheduled oral argument. We now reverse.

BACKGROUND.

Enerpharm was organized for the purpose of acquiring, improving, and maintaining real property located in Bernalillo County. Nuclear Pharmacy manufactures pharmaceutical supplies. It leased a building and an adjacent parking lot from Enerpharm.

In the course and scope of her employment, plaintiff parked her car in the parking lot. On December 30,1982, she slipped and fell on layers of ice covered by newly-fallen snow and sustained a severe head injury..

Plaintiff’s complaint alleged that Enerpharm negligently maintained the sprinkler system, creating thick layers of ice on the pavement. Snow then covered the ice. Plaintiff sought judgment against the partnership; she did not join the partners.

In its answer, defendant raised the affirmative defense that plaintiff’s exclusive remedy was under the New Mexico Workers’ Compensation Act. See § 52-l-6(D). The trial court apparently granted summary judgment because it considered the employer and the partnership in which it participated essentially the same defendant, making plaintiff’s only possible cause of action a claim for workers’ compensation benefits. Plaintiff claimed workers’ compensation benefits and collected those benefits from Nuclear Pharmacy during November and December of 1984 and January of 1985. The trial court conditioned its order dismissing plaintiff’s negligence action on the filing of a claim for workers’ compensation benefits and the admission by Nuclear Pharmacy and its workers’ compensation carrier that plaintiff was injured in the scope and course of her employment. At oral argument before this court, counsel for defendant advised the panel that plaintiff’s entitlement to workers’ compensation benefits had been settled as a result of a suit filed against Nuclear Pharmacy pursuant to the trial court’s condition.

On appeal, plaintiff asserts that the trial court erred in granting summary judgment on the issue of Enerpharm’s liability because material issues of fact remain. She argues, first, that Nuclear Pharmacy may not be immune from suit under Section 52-l-6(D), because Nuclear Pharmacy was acting in a “dual capacity” or has a “dual persona.” Second, plaintiff argues that even if Nuclear Pharmacy is immune from suit, Nuclear Pharmacy’s immunity cannot be extended to Enerpharm or to the partners in Enerpharm other than Nuclear Pharmacy.

For the reasons that follow, we conclude that, under some circumstances, a partnership in Enerpharm’s position is subject to suit. We conclude that summary judgment in favor of Enerpharm was inappropriate and remand for factual determinations on several issues.

DISCUSSION.

Under Section 52-l-6(D), both an employer and an employee covered under the Workers’ Compensation Act (Act) are deemed to have surrendered any right to seek “any other method, form or amount of compensation or determination thereof” outside the provisions of the Act. However, the same subsection explicitly states: “Nothing in the ... Act, however, shall affect or be construed to affect, in any way, the existence of or the mode of trial of any claim or cause of action which the workman has against any person other than his employer..-..” Clearly, the Act intends to preserve an injured worker’s right to pursue an action against a third party.

The dispositive appellate issue is whether a partnership in which the employer participates can ever be considered a third party for purposes of Section 52-l-6(D). We hold that the possibility exists and remand for further proceedings to determine whether this is such an instance.

Our initial inquiry is whether Enerpharm can be considered plaintiff’s employer within the meaning of Section 52-l-6(D). The trial court apparently determined that, as a matter of law, Enerpharm had to be considered the same entity as plaintiff’s employer, Nuclear Pharmacy, because of the relationship between Enerpharm and Nuclear Pharmacy. We disagree.

The Uniform Partnership Act, adopted in New Mexico and appearing at NMSA 1978, Sections 54-1-1 to -43 (Repl. Pamp.1988), recognizes that a partnership is a legal entity distinct from its member partners for some purposes. See Loucks v. Albuquerque Nat’l Bank, 76 N.M. 735, 418 P.2d 191 (1966). For example, a partnership is a distinct legal entity to the extent that it may sue or be sued in the partnership name. Id. The situation presented here turns on whether a partnership is a legal entity distinct from one of its individual members.

However, we believe resolution of the question of whether Enerpharm can be considered plaintiff’s employer for purposes of Section 52-l-6(D) depends not so much upon the relationship between Enerpharm and Nuclear Pharmacy, but rather upon the relationship between Enerpharm and plaintiff. The crucial determination is whether an employment relationship existed between Enerpharm and plaintiff. See Swiezynski v. Civiello, 126 N.H. 142, 489 A.2d 634 (1985); Lindner v. Kew Realty Co., 113 A.D.2d 36, 494 N.Y.S.2d 870 (1985). The factors to be considered in this determination are whether Enerpharm had a right to control plaintiff’s performance and whether there was a corresponding right in plaintiff to seek remuneration from Enerpharm.

We therefore vacate the decision of the trial court and remand for a factual determination as to whether Enerpharm can be considered plaintiff’s employer. If an employment relationship is found, then Section 52-l-6(D) clearly presents a bar to this suit.

Our inquiry does not end here, because, while Enerpharm can be sued as an entity, Loucks v. Albuquerque Nat’l Bank, it can be held liable only for the commission of a tort by a member partner or other agent. Gatley v. Deters, 128 Misc.2d 209, 489 N.Y.S.2d 684 (1985). According to New Mexico’s Uniform Partnership Act, Section 54-1-13, the partnership is liable for the wrongful conduct of a partner “to the same extent" (emphasis added) as the offending partner. Thus, if plaintiff’s claim is based solely or partially upon negligence attributable to her employer, Nuclear Pharmacy, the trial court must decide whether Enerpharm can claim derivative immunity with respect to that portion of liability pursuant to Section 54-1-13.

In deciding whether Enerpharm can claim derivative immunity from Nuclear Pharmacy, the first issue is whether Nuclear Pharmacy is immune from suit under Section 52-l-6(D).

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Bluebook (online)
764 P.2d 499, 107 N.M. 728, Counsel Stack Legal Research, https://law.counselstack.com/opinion/salswedel-v-enerpharm-ltd-nmctapp-1988.