AI Generated Opinion Summaries

This summary was computer-generated without any editorial revision. It is not official, has not been checked for accuracy, and is NOT citable.

Facts

A worker sustained an injury in 1999 while employed by one employer and later became disabled in 2003 while working for a different employer. The worker sought disability benefits, and the dispute arose over which employer and insurer were liable for the compensation. The first employer and its insurer had only provided medical benefits for the 1999 injury, while the second employer and its insurer were involved at the time of the worker's disability.

Procedural History

• Workers’ Compensation Administration, January 21, 2009: The Workers’ Compensation Judge (WCJ) determined that the first employer and its insurer were liable for the worker's disability benefits and allowed the second employer and its insurer to offset their liability.

Parties' Submissions

• Appellant (First Employer and Insurer): Argued that they should not be liable for the worker's disability benefits because the worker was not disabled while employed by them, and no prior compensation order existed to modify. They also contended that the second employer and its insurer should bear full liability under applicable case law.
• Respondent (Second Employer and Insurer): Asserted that the first employer and its insurer were partially liable due to a causal connection between the 1999 injury and the worker's subsequent disability. They also argued that they were entitled to offset their liability under statutory provisions.

Legal Issues

• Did the Workers’ Compensation Judge err in holding the first employer and its insurer liable for the worker's disability benefits despite the absence of a prior compensation order?
• Should the second employer and its insurer bear full liability for the worker's disability benefits under applicable case law?
• Was the second employer and its insurer entitled to offset their liability under statutory provisions?

Disposition

• The Court of Appeals reversed the Workers’ Compensation Judge's decision, holding that the first employer and its insurer were not liable for the worker's disability benefits.
• The Court determined that the second employer and its insurer were fully liable for the worker's disability benefits.
• The Court ruled that the second employer and its insurer were not entitled to offset their liability.

Reasons

Per Vigil J. (Bustamante and Castillo JJ. concurring):

The Court found that the Workers’ Compensation Judge erred in holding the first employer and its insurer liable for the worker's disability benefits. Under NMSA 1978, Section 52-1-56, a prior compensation order is required to modify liability, and no such order existed in this case. The first employer and its insurer had only provided medical benefits, and there was no determination of disability or impairment rating during the worker's employment with them.

The Court relied on Tom Growney Equipment Co. v. Jouett, which established that liability for disability benefits lies with the employer and insurer at the time of the worker's disability. Since the worker became disabled while employed by the second employer, the second employer and its insurer were fully liable for the compensation award. Evidence of a causal connection between the 1999 injury and the disability did not alter this conclusion, as the disability occurred during the second employment.

The Court also ruled that the second employer and its insurer were not entitled to offset their liability under NMSA 1978, Section 52-1-47(D). The statute permits offsets only when benefits for the initial injury would duplicate benefits for the subsequent injury. Since the first employer and its insurer had not paid any disability benefits, no duplication occurred, and the offset was improperly granted.

The Court reversed the Workers’ Compensation Judge's decision and remanded the case for further proceedings consistent with its opinion.