Transamerica Insurance v. Sydow

636 P.2d 322, 97 N.M. 51
CourtNew Mexico Court of Appeals
DecidedOctober 22, 1981
Docket5128
StatusPublished
Cited by29 cases

This text of 636 P.2d 322 (Transamerica Insurance v. Sydow) 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
Transamerica Insurance v. Sydow, 636 P.2d 322, 97 N.M. 51 (N.M. Ct. App. 1981).

Opinions

OPINION

WALTERS, Judge.

The trial court granted plaintiff’s motion to dismiss Transamerica’s “Complaint for Reimbursement” for failure to state a claim. Transamerica appeals; we reverse.

Transamerica, in a singularly terse complaint, asserted its right to reimbursement for workmen’s compensation benefits paid to appellee Sydow. It claimed that after settling with Transamerica, Sydow had filed and settled a separate malpractice claim against the doctor who treated him for the work-related injury.

Attached to the complaint as an exhibit was a letter from Sydow’s counsel to appellant acknowledging awareness of Transamerica’s “interest in [Sydow malpractice] case and [Sydow’s counsel’s readiness] to protect that interest at this time out of any settlement or judgment.” That exhibit confirmed Transamerica’s allegations that it did not intervene in Sydow’s malpractice suit because of assurance that its interest would be protected. The complaint alleged further that the malpractice suit was settled; that Sydow’s counsel had refused to account, to advise of the settlement reached, or to reimburse Transamerica for any amounts Transamerica “may have paid.”

Transamerica prayed for reimbursement of all compensation and medical payments which it had not recovered from other sources. At oral argument, Transamerica admitted that it was not entitled to be reimbursed for payments of Sydow’s medical expenses and compensation benefits covering the period before the medical injury was inflicted by the doctor’s treatment.

After Sydow’s deposition was taken by Transamerica, Sydow moved to dismiss the suit for failure to state a claim upon which relief could be granted, citing Security Ins. Co. v. Chapman, 88 N.M. 292, 540 P.2d 222 (1975). That case, the deposition produced at the hearing on the motion to dismiss, and the uncontested representations made at oral argument, lead us to consideration of §§ 52-1-49B and 52-1-56C, N.M.S.A.1978, of the Workmen’s Compensation Act, discussed in Chapman, for a resolution of this appeal.

The pertinent portion of § 52-1-49B provides:

[T]he employer furnishing . . . surgical, medical and hospital services and medicines shall be liable to the workman for injuries resulting from neglect, lack of skill or care on the part of any person . . . employed by the employer to care for the workman. In the event, however, that any employer becomes so liable to the workman, it shall be optional with the workman injured in such a manner to accept the foregoing provisions and hold the employer liable for the injuries, or to reject these provisions and retain the right to sue the person . . . employed by the employer who injures the workman through neglect, lack of skill or care. Election to accept or reject the provisions in this section shall be made by a notice in writing, signed and dated, given by the workman to his employer; and, if the workman elects to hold the employer liable for the injuries, the cause of action of the workman against the third person . . . shall be assigned to the employer, who may institute proceedings thereon in any court having jurisdiction, in the workman’s name.

Section 52-1-56C, in its relevant portion, states:

The right of any workman . . . entitled to receive payment or damages for injuries occasioned to him by the negligence or wrong of any person other than the employer or any other employee of the employer . . . shall not be affected by the Workmen’s Compensation Act, but he . . . shall not be allowed to receive payment or recover damages therefor and also claim compensation from the employer, and in such case the receipt of compensation from the employer shall operate as an assignment to the employer . . . of any cause of action, to the extent of payment by the employer to the workman for compensation, surgical, medical, osteopathic, chiropractic, and hospital services and medicine occasioned by the injury which the workman or his legal representative or others may have against any other party for the injuries or death.

The complaint and defendant’s deposition establish a sequence of events, confirmed by counsel during oral argument, occurring after the injury for which Sydow’s compensation claim was made:

(1) Defendant Sydow sued for workman’s compensation for an on-the-job injury suffered when the concrete chute of a cement truck (owned by a contractor other than defendant’s employer) struck him in the back.
(2) Defendant was treated for that accident and injury by Drs. Lehman, Hollinger, Rock, Marón and Francis; Dr. Hollinger performed a laminectomy on Sydow after diagnosing a ruptured disc caused by the concrete chute accident.
(3) Sydow thereafter brought a third-party suit against the company whose employee had struck him with the chute. That case was settled; Transamerica was reimbursed in an amount less than $1,000 (the complaint alleges $878.34) from Sydow’s settlement with that third party.
(4) Dr. Hollinger’s deposition was taken in the third-party action, before settlement with Transamerica of Sydow’s workmen’s compensation claim. Following the workman’s compensation settlement, and following Sydow’s suit against the third-party tortfeasor, Mr. Sydow reviewed Dr. Hollinger’s deposition and determined that he had a malpractice claim against the doctor for operating at the wrong level. Sydow obtained a settlement from Dr. Hollinger after filing a malpractice suit against him.
(5) During the pendency of Sydow’s suit against the doctor, his counsel wrote to Transamerica’s attorney (as outlined above), agreeing to protect Transamerica “out of any settlement or judgment” and expressing his “desire that you accept this letter as a letter of protection and not intervene in the [malpractice] case. As you can see, if we can proceed on this basis, I would appreciate it very much.” (Exhibit A to the complaint.)

This background of information is crucial to an interpretation of the statutes we have quoted above, because it sets the time frame and elucidates an understanding of Transamerica’s claim.

Section 52-1-49B holds the employer furnishing medical attention liable for any injuries caused the workman by such care. However, it also gives the workman the option to pursue a claim for those injuries against the employer or the person responsible, if he notifies his employer in writing of the election he intends to make. The employee gave his employer no such notice in this case, but he proceeded with an independent malpractice action against the physician who performed surgery for the work-related injury, after he had settled his claim against his employer. It is clear, as Transamerica has argued and defendant admits in his Answer Brief, that Dr. Hollinger’s surgery occurred during treatment for the original injury. It is thus fair to assume that at the time Transamerica settled with defendant, the disabling condition for which Transamerica paid had been partially contributed to by the doctor’s alleged malpractice.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Magallanes v. Farmers Ins.
New Mexico Court of Appeals, 2016
Running Bear v. City of Las Vegas
New Mexico Court of Appeals, 2012
Schneider National Inc. v. State, Taxation & Revenue Department
2006 NMCA 128 (New Mexico Court of Appeals, 2006)
AIK Selective Self Insurance Fund v. Bush
74 S.W.3d 251 (Kentucky Supreme Court, 2002)
Quintana v. Los Alamos Medical Center, Inc.
889 P.2d 1234 (New Mexico Court of Appeals, 1995)
Ramer v. Place-Gallegos
881 P.2d 723 (New Mexico Court of Appeals, 1994)
United Nuclear Corp. v. State ex rel. Martinez
870 P.2d 1390 (New Mexico Court of Appeals, 1994)
Baptiste v. City of Las Cruces
848 P.2d 1105 (New Mexico Court of Appeals, 1993)
Amaya v. Santistevan
835 P.2d 856 (New Mexico Court of Appeals, 1992)
Vigil Ex Rel. Estate of Vigil v. Martinez
832 P.2d 405 (New Mexico Court of Appeals, 1992)
DiMatteo v. County of Dona Ana
785 P.2d 285 (New Mexico Court of Appeals, 1989)
Rivera v. King
765 P.2d 1187 (New Mexico Court of Appeals, 1988)
Transamerica Insurance v. Sydow
753 P.2d 350 (New Mexico Supreme Court, 1988)
Martinez v. Kaune Corp.
745 P.2d 714 (New Mexico Court of Appeals, 1987)
Trujillo v. Berry
738 P.2d 1331 (New Mexico Court of Appeals, 1987)
Bombach v. Battershell
735 P.2d 1131 (New Mexico Supreme Court, 1987)
Abalos v. Bernalillo County District Attorney's Office
734 P.2d 794 (New Mexico Court of Appeals, 1987)
Abalos v. Bernalillo County DA's Office
734 P.2d 794 (New Mexico Court of Appeals, 1987)
Armijo v. Ed Black's Chevrolet Center, Inc.
733 P.2d 870 (New Mexico Court of Appeals, 1987)
Beyale v. Arizona Public Service Co.
729 P.2d 1366 (New Mexico Court of Appeals, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
636 P.2d 322, 97 N.M. 51, Counsel Stack Legal Research, https://law.counselstack.com/opinion/transamerica-insurance-v-sydow-nmctapp-1981.