Vinyard v. Palo Alto, Inc.

2013 NMCA 1, 2013 NMCA 001, 3 N.M. 134
CourtNew Mexico Court of Appeals
DecidedNovember 2, 2012
DocketDocket 30,846; Docket 31,044
StatusPublished
Cited by8 cases

This text of 2013 NMCA 1 (Vinyard v. Palo Alto, 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
Vinyard v. Palo Alto, Inc., 2013 NMCA 1, 2013 NMCA 001, 3 N.M. 134 (N.M. Ct. App. 2012).

Opinion

OPINION

KENNEDY, Judge.

{1} This worker’s compensation case poses the question of how to properly calculate a worker’s average weekly wage when the worker held two concurrent jobs, one for nine weeks and one for fourteen weeks. Wages from both jobs must be assessed for the calculation of the average weekly wage. The method of calculating the average weekly wage when each job has a different duration is the sole issue in this case.

{2} The Workers’ Compensation Judge (WCJ) calculated the worker’s wage based on the roughly nine-week time period 1 that the two jobs overlapped, holding as a matter of law that the method of calculation directed by NMSA 1978, Section 52-1-20(B) (1990) could notbe fairly applied. The WCJ rejected the application of Subsection (B) to the full period of employment in each job because “it would result in counting of weeks where there was a wage from only one [ejmployer.” The WCJ instead employed Section 52-120(C) to craft the average weeklywage based only on the nine weeks when the two jobs overlapped. The worker, who wanted the entire fourteen weeks of his second job included in the average, appealed.

{3} We reverse, holding that when the facts support a separate computation for each employer, Subsection (B) should be employed to compute an aggregate average weekly wage for both employers. Subsection (B)(1) should be employed using the entire time of employment if the period is fewer than twenty-six weeks for any concurrent employer. Subsection (B) should be applied separately to each job, not limited to the shortest job, with an aggregate average weekly wage for all concurrent employers then being computed. In this case, the W CJ was required to average the wages the worker received from his other job for the full fourteen weeks of the worker’s employment.

{4} In addition, the employer appealed the award of attorney’s fees. The employer maintained that the worker’s attorney did not secure the entire award and lacked evidentiary proof and, therefore, was not fully entitled to compensation. We affirm the WCJ’s award of attorney fees and remand for proceedings consistent with our Opinion.

I. FACTS

{5} The facts of this case are not disputed. Jody Vinyard (Worker) was injured in a traffic accident while working as a delivery driver for his employer, Palo Alto, d/b/a Pizza Hut (Employer) on December 6,2009. This injury arose out of, and in the course of, that employment. The responsibility of Employer and its insurer, Manufacturers Alliance Insurance Company (collectively, Employer) to pay benefits is not at issue here. Worker began working for Employer on October 1, 2009. He had also been employed as a horse trainer for his family’s business since September 1, 2009. There is no dispute that Worker is entitled to receive compensation benefits reflecting his wages from both jobs. The parties vigorously disputed how to compute the aggregate weekly wage to be used to determine the value of those benefits.

{6} The WCJ considered four calculation options. Employer suggested taking the sum of all wages that Worker was paid during the time employed by them, but calculating average wages for a twenty-six-weelc period, relying on Section 52-1-20 (B). The WCJ specifically rejected this suggestion, stating that it would result in counting weeks when Worker only had one employer. The WCJ noted another option — counting the fourteen weeks for both employers — but concluded that this would also count wages for only one employer in some weeks. Worker suggested the calculation of an average weekly wage by what the WCJ called an “asymmetric option” that would have divided the horse training wages by fourteen weeks and the pizza delivery wages by nine weeks and then averaged the two. This approach was taken by a mediator in the case. Employer disdained this recommended resolution, claiming that this would count time with another employer prior to Worker’s employment with Employer, and the WCJ rejected it as well.

{7} The method of computation has real implications. When the wages for each employer received during this finite period of 9.428 weeks was divided, the result was an aggregate average weekly wage of $886.74. In comparison, the mediator’s figure of $945.68 was based on the full fourteen weeks of Worker’s employment as a horse trainer from September 1 through December 6, 2009.

{8} The WCJ concluded thatbecause Worker had multiple employers for different amounts of time, there is “no controlling authority in New Mexico determining how this particular wage calculation should be arrived at” and that Worker’s wage could not “be fairly calculated under Section 52-1-20(B).” The WCJ thus held that “the most rational and reasonable option” was to count those weeks only “where Worker was employed by both [ejmployers” and adopted that approach as “a matter of law” for the calculation in his partial summary judgment. The WCJ computed an average weekly wage for Worker by dividing his wages from each job by the period of October 1, 2009 through December 6, 2009, the nine-week period of time that Worker was employed in both jobs. Worker maintains the full time he was employed in each job should be counted and asks us to address the appropriate application of Section 52-1-20 in this appeal.

II. DISCUSSION

{9} We review questions of statutory interpretation and application de novo. State ex rel. Children, Youth and Families Dep't v. Steve C., 2012-NMCA-045, ¶ 8, 277 P.3d 484. Although a misapplication of the law is considered an abuse of discretion, our courts review de novo the initial decision of whether the correct legal standard has been applied. N.M. Right to Choose/NARAL v. Johnson, 1999-NMSC-028, ¶ 7, 127 N.M. 654, 986 P .2d 450. If the correct law has been applied to the facts, the district court’s decision must be affirmed when it is supported by substantial evidence. See id. ¶ 8.

A.Calculation of Two Average Weekly Wages Under Section 52-1-20

{10} The purpose of the Workers’ Compensation Act is to compensate an injured employee for the reduction of his earning capacity. Lozano v. Archer, 71 N.M. 175, 180, 376 P.2d 963, 967 (1962). The test for entitling a worker to compensation is the worker’s entire capacity to earn wages for performing work. Justiz v. Walgreen’s, 106 N.M. 346, 348, 742 P.2d 1051, 1053 (1987). The compensation due is for loss of earning capacity. Id. Fairness mandates compensating the worker according to what he would have earned in total had he not been injured. Id. at 349, 742 P.2d at 1054. Section 52-1-20 was enacted to promote fair calculation of average wages for injured workers, as well as to provide a measure of fairness to employers by trying to eliminate influences that might inflate or deflate the wage from a fair average. Considering “periods of unusually high or low wages” dictates finding an average over time, so as not to unfairly benefit or prejudice the worker. Shaw v. Wal-Mart Stores, Inc., 117 N.M. 118, 119-20, 869 P.2d 306, 307-08 (Ct. App.

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Bluebook (online)
2013 NMCA 1, 2013 NMCA 001, 3 N.M. 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vinyard-v-palo-alto-inc-nmctapp-2012.