Wiley v. Industrial Com'n of Arizona

847 P.2d 595, 174 Ariz. 94, 135 Ariz. Adv. Rep. 32, 1993 Ariz. LEXIS 2
CourtArizona Supreme Court
DecidedMarch 18, 1993
DocketCV-91-0249-PR
StatusPublished
Cited by31 cases

This text of 847 P.2d 595 (Wiley v. Industrial Com'n of Arizona) is published on Counsel Stack Legal Research, covering Arizona Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Wiley v. Industrial Com'n of Arizona, 847 P.2d 595, 174 Ariz. 94, 135 Ariz. Adv. Rep. 32, 1993 Ariz. LEXIS 2 (Ark. 1993).

Opinion

AMENDED OPINION

Memorandum Decision of the Court of Appeals, Division Two, filed April 25, 1991, vacated in part

FELDMAN, Chief Justice.

We granted review in these consolidated workers’ compensation cases to re-examine *96 the question of whether, for purposes of determining disability benefits, a worker’s average monthly wage includes wages from concurrent dissimilar employment. See Ariz.R.Civ.App.P. 23(c)(4). We have jurisdiction pursuant to Ariz. Const. art. 6, § 5(3), A.R.S. § 12-120.24, and Ariz.R.Civ. App.P. 23.

FACTS AND PROCEDURAL HISTORY

The Casper Baca Rodeo Company (“Baca”) entered into a contract with the Greenlee County Fair and Rodeo Association (“Association”) to stage the Association’s annual rodeo at Duncan, Arizona in September 1988. Under the contract, Baca agreed to provide all rodeo stock and chute help. Baca, who only had bucking stock, entered into a subcontract to have Sam Trujillo provide all timed-event stock for the rodeo. 1 Trujillo, in turn, hired Jimmy Wiley as a rodeo assistant. While working at the rodeo, Wiley suffered a significant injury to his right leg resulting in a temporary total and a permanent partial disability-

Following his injury, Wiley filed workers’ compensation claims against both Baca and Trujillo. Neither Baca nor Trujillo had procured workers’ compensation insurance and the No Insurance Section/Special Fund of the Industrial Commission of Arizona (“Commission”) processed the claims. See A.R.S. §§ 23-907, 23-1065. The administrative law judge (“AU”) found that Baca was not Wiley’s statutory employer because Baca had delegated to Trujillo his right to control Wiley’s employment. The AU found that Trujillo was responsible for Wiley’s medical, surgical, and hospital benefits as well as disability benefits.

Trujillo paid Wiley a total of $80 for two days of work as a rodeo assistant. Prior to the injury, Wiley earned $2,175 per month as a full-time electrician. In addition, he worked as a football referee, officiating three games and receiving $22.80 per game, including travel reimbursement. In determining Wiley’s pre-injury average monthly wage, however, the AU refused to include Wiley’s income as an electrician or referee because that work was dissimilar to his work as a rodeo assistant. The AU found that Wiley had received a total of $80 in wages as a rodeo assistant in the year prior to his injury. Thus, the average monthly wage used to calculate Wiley’s disability benefits was $6.67. Accordingly, Wiley’s award for temporary total disability was sixty-six and two-thirds percent of $6.67 or $4.45 per month.

Wiley and Trujillo challenged the Commission’s awards in special actions before the court of appeals. That court consolidated the special actions, set aside the finding that Baca was not Wiley’s statutory employer, and affirmed the average monthly wage determination. Wiley v. Trujillo, Nos. 2 CA-IC 90-0054, -0055, -0057 (Ariz. Ct.App. Apr. 25, 1991) (mem. dec.). Wiley petitioned this court to review the court of appeals’ decision affirming the average monthly wage determination. 2 We granted review to examine the following issues:

1. Are our previous decisions unfair and discriminatory by refusing to combine wages from concurrent “dissimilar” employment in setting an injured employee’s average monthly wage while allowing the combination of wages from concurrent “similar” employment?
2. Should the cases refusing to combine wages from concurrent “dissimilar” employment be overruled?

Essentially, the issue before us is whether Wiley’s total wages from his various jobs should be aggregated in computing his average monthly wage (and thus in determining his lost earning capacity and resulting compensation) or whether, because his jobs were dissimilar, only the income from the single job in which he was working at the time he was injured should be considered.

DISCUSSION

A. The Concurrent Dissimilar Employment Rule

Under the Arizona Workers’ Compensation Act (“Act”), A.R.S. §§ 23-901 to 23- *97 1091, a claimant’s average monthly wage is defined by statute. See A.R.S. § 23-1041. The ALJ and the court of appeals relied on our construction of this statutory provision in Wesolowski v. Industrial Comm’n, 99 Ariz. 4, 405 P.2d 887 (1965), and Sanchez v. Industrial Comm’n, 96 Ariz. 19, 391 P.2d 579 (1964), to determine Wiley’s average monthly wage. Thus, we begin our analysis with the applicable statutory language and its judicial construction.

Under the Act, benefits are based on a claimant’s “average monthly wage at the time of injury.” A.R.S. § 23-1041(A). The average monthly wage determination directly affects the amount of benefits a claimant receives. See generally A.R.S. §§ 23-1044; 23-1045. “Monthly wage” is defined as “the average wage paid during and over the month in which the employee is killed or injured.” A.R.S. § 23-1041(D); see also A.R.S. § 23-1041(B) (monthly wage for short-term employment); A.R.S. § 23-1042 (monthly wage for permanently incapacitated minors). The statutory definition of monthly wage has remained constant — virtually to the letter — from the time it first appeared in the Act. See, e.g., A.R.S. § 23-1041(D); Ariz.Rev.Stat.Ann. § 56-952 (1939); A.R.S. § 1438 (1928); 1939 Ariz.Sess.Laws ch. 28, § 6; 1933 Ariz. Sess.Laws, 1st S.S. ch. 11, § 6; 1925 Ariz. Sess.Laws ch. 83, § 70. However, in determining the average monthly wage of claimants who hold more than one job, judicial construction of this statutory phrase has fluctuated.

1. Prior Judicial Construction

Our construction of the applicable statutory language has been both confusing and contradictory.

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847 P.2d 595, 174 Ariz. 94, 135 Ariz. Adv. Rep. 32, 1993 Ariz. LEXIS 2, Counsel Stack Legal Research, https://law.counselstack.com/opinion/wiley-v-industrial-comn-of-arizona-ariz-1993.