Opinion ID: 1135943
Heading Depth: 2
Heading Rank: 3

Heading: troy's tort claim against overland sheepskin

Text: 28. Troy raises an entirely different issue in his appeal than those raised by his mother and sister. Troy contends that the trial court erred in granting summary judgment on his personal injury claim against Overland Sheepskin in its capacity as supplier of pelts allegedly infected with the brucella bacteria. 29. `Summary judgment is proper if there is no genuine issue as to any material fact and the moving party is entitled to judgment as a matter of law.' If the facts are undisputed and only a legal interpretation of the facts remains, summary judgment is the appropriate remedy. Board of County Comm'rs v. Risk Management Div., 120 N.M. 178, 179, 899 P.2d 1132, 1133 (1995) (quoting Koenig v. Perez, 104 N.M. 664, 665, 726 P.2d 341, 342 (1986)) (citation omitted).
30. The trial court granted summary judgment for Overland Sheepskin based on Troy's Complete Release and Settlement Agreement, in which Troy released Overland Outfitters from any workers' compensation claim. The trial court concluded that Overland Sheepskin was Troy's employer prior to the sale of the store to Overland Outfitters and that the Overland Outfitters release also released all of Overland Outfitters' predecessors in interest including Troy's previous employers. Troy argues that the intent of the parties was only to release Overland Sheepskin in its capacity as Troy's former employer, and not in its capacity as a subsequent supplier of allegedly contaminated pelts. Overland Sheepskin counters that the terms of the release are facially unambiguous and serve to release Overland Sheepskin from all claims against it, either in its role as employer or as supplier and consignor of pelts. 31. We agree with the trial court that the release is not ambiguous. However, we disagree with the court's conclusion that, by releasing Overland Sheepskin in its role as former employer, the parties also intended to release Overland Sheepskin from all nonemployment-based claims as well. We conclude as a matter of law that the agreement only released Overland Sheepskin in its capacity as former employer and not in its capacity as supplier and consignor of allegedly infected pelts. See C.R. Anthony Co. v. Loretto Mall Partners, 112 N.M. 504, 510, 817 P.2d 238, 244 (1991) (noting that when proper interpretation of terms is sufficiently clear that no reasonable person would determine the issue in any way but one, it may properly be decided as a matter of law). 32. Troy's release provided in relevant part: In consideration of the lump sum payment referred to in Paragraph IV, ... Troy Garrity ... hereby releases and forever discharges Overland Outfitters, Inc. and USF & G ... and predecessors or successors of interest to Overland Outfitters of [sic] USF & G in their respective capacities as predecessors or successors of interest, of and from any and all claims,... including but not limited to any common law claim, statutory liability claim, Occupational Disease Disablement Act claim, Workers' Compensation Act claim, vocational rehabilitation claim, costs and attorney fees, or any other claims ... on account of, arising out of, or any way related to the Occurrence ... as more specifically set forth in the pleadings filed by Troy Garrity in the Workers' Compensation Division, Cause No. 92-05066; the scope of this release includes the release of Overland Sheepskin Co., the predecessor in interest of Overland Outfitters, Inc., from any and all Occupational Disease Disablement Act Claims and/or Workers' Compensation Act claims. (Emphasis added). 33. We note that the agreement does specifically release Overland Outfitters' predecessors in interest, which included Overland Sheepskin. However, it only releases the predecessors in interest in their respective capacities as predecessors in interest. Accordingly, this agreement is properly read as only releasing Overland Sheepskin from any claim that could be brought against it in its capacity as Troy's former employer. Troy's personal injury claim, however, is premised on Overland Sheepskin acting not as his employer but as a supplier and consignor of allegedly infected pelts, with which Troy claims he came into contact after Overland Sheepskin had sold the Santa Fe store to Overland Outfitters and was no longer Troy's employer. Accordingly, under this language, Troy only released Overland Sheepskin for any claims relating to his illness which arose before February 28, 1991, when Overland Sheepskin was still Troy's employer. 34. This interpretation is fully clarified by the final clause in the above-quoted paragraph. This clause specifically states that the scope of the agreement includes the release of Overland Sheepskin Co., the predecessor in interest of Overland Outfitters, Inc., from any and all Occupational Disease Disablement Act Claims and/or Workers' Compensation Act claims. (Emphasis added). Claims based on the Occupational Disease Disablement Act or Workers' Compensation Act can be raised only against an employer. See NMSA 1978, §§ 52-1-6, -8, -9 (Repl.Pamp.1991) (discussing applicability of Workers' Compensation Act to employers); NMSA 1978, §§ 52-3-6 to -8 (Repl. Pamp.1991) (discussing applicability of Occupational Disease Disablement Act to employers). Accordingly, the agreement can only be read as releasing Overland Sheepskin in its role as a previous employer potentially subject to Workers' Compensation claims or Occupational Disease Disablement Act claims. 35. Furthermore, extrinsic evidence of the circumstances surrounding the formation of the agreement does not support the possibility of a different interpretation. See Hansen v. Ford Motor Co., 120 N.M. 203, 206, 900 P.2d 952, 955 (1995) (noting court properly may consider extrinsic evidence to determine whether or not terms of a release are in fact ambiguous). In a letter from Overland Outfitters' attorney to Troy's attorney on the day following the execution of the release, Overland Outfitters' attorney stated: I expressed to you my intention that the Complete Release and Settlement Agreement release all workers' compensation claims and occupational disease claims of any type. In so doing this also has the legal effect of releasing [Overland Outfitters] from any negligence claims pursuant to the exclusivity provisions of the Workers' Compensation Act and the Occupational Disease Disablement Act. Along these lines, I expressed to you my belief that this same exclusivity provision would bar any claim by Mr. Garrity against Overland Sheepskin Company. . . . . I simply want to make clear that Respondents are not endorsing any third party claims Mr. Garrity claims to have. Rather any claims Mr. Garrity has or may claim to have are governed by the express language of the Complete Release and Settlement Agreement and the current status of New Mexico Law. Letter from R. Michael Shickich to Stephen D. Aarons (Mar. 2, 1993) (emphasis added). 36. This letter indicates that Overland Outfitters only intended to expressly release the employment-related claims for both itself and for Overland Sheepskin. In the letter, Overland Outfitters stated its belief that such a release would have the legal effect of also barring all other claims against itself and Overland Sheepskin. However, the legal effect of a release is for the courts to determine, and, indeed, we will address this issue below. For purposes of interpreting the agreement, this letter confirms that the parties did not expressly release all nonemployment claims against Overland Sheepskin. Overland Outfitters instead agreed to execute the more limited release and chose to stand on what it perceived to be the legal effect of that release. 37. In addition, we note that the letter sent by Troy's attorney, to which the above letter was responding, expressed a similar understanding of the agreement. Troy's affidavit to the Workers' Compensation judge in support of the settlement, which both parties initialed and which is referenced in the release agreement, also indicates that the parties intended the agreement to be a release of Overland Sheepskin for all employment-related claims.
38. Overland Sheepskin next contends that, even if there had been no release at all, Troy's claim would still be barred by the exclusivity provisions of the Workers' Compensation Act. See § 52-1-9 (stating that the Act provides the exclusive remedy for employees injured on the job); see generally Harger v. Structural Servs., Inc., 121 N.M. 657, 916 P.2d 1324 (1996) (discussing exclusivity provisions of Workers' Compensation Act). Overland Sheepskin argues that the change in ownership of the Santa Fe store from Overland Outfitters to Overland Sheepskin was equivalent to a change in the internal structure of a single company. Overland Sheepskin points out that the inventory in the store at the time of the February sale became Overland Outfitters' property, except for the pelts, which Overland Sheepskin retained and put on consignment at Overland Outfitters' store. Overland Sheepskin therefore argues that Troy's claim should be treated as a claim against an employer that would be governed by Section 52-1-9 of the Workers' Compensation Act and by the release. 39. Troy counters that Overland Sheepskin and Overland Outfitters are two distinct corporations and that, after the sale, Overland Sheepskin was no longer in an employment relationship with Troy. He contends that, after the sale, Overland Sheepskin became a pelt supplier and continued to ship pelts to the Santa Fe store for sale on consignment for its own profit. Troy also presented evidence that he contracted brucellosis in March from one of Overland Sheepskin's pelts sent to the Santa Fe store after Overland Sheepskin had sold the store to Overland Outfitters. 40. For legal support, both sides rely on cases addressing the dual-persona doctrine as backing their respective positions and cite cases discussing this doctrine. The dual-persona doctrine provides an exception to the exclusivity provisions of the Workers' Compensation Act in limited circumstances. Under the dual-persona doctrine, an employer may be treated as a third party, vulnerable to a tort suit by an employee, if, and only if, the employer possesses a second persona sufficiently independent from and unrelated to its status as employer. Salswedel v. Enerpharm, Ltd., 107 N.M. 728, 731, 764 P.2d 499, 502 (Ct.App.1988) (explaining that employer may be liable under dual-persona doctrine in its role as partner in real estate investment and management group that was responsible for maintaining unrelated property where employee suffered injury). However, the dual-persona doctrine is inapplicable in this case. 41. The real issue in this case is not whether Overland Sheepskin, as employer, has another persona as supplier. Instead the issue is whether Overland Sheepskin should be considered Troy's employer at all. If Overland Sheepskin and Overland Outfitters are sufficiently connected so as to represent in reality a single corporate owner and employer for the Santa Fe store, then Overland Sheepskin would gain the benefit of the exclusivity provisions of the Workers' Compensation Act, as well as the release. The dual-persona doctrine would not apply because Overland Sheepskin's role as pelt supplier would plainly be related to its role as surrogate store owner. If, on the other hand, Overland Sheepskin is independent of Overland Outfitters, then it ceased being Troy's employer on February 28, 1991, and would not be protected by the exclusivity provisions of the Workers' Compensation Act or the release. 42. As noted above, both sides in this case contest whether the sale represented a true change in ownership, which in turn will determine if Troy is entitled to maintain his suit against Overland Sheepskin as a pelt supplier. However, this argument is a factual dispute for the jury to evaluate after hearing all the evidence. 43. Overland Sheepskin also contests the date that Troy contracted brucellosis (as well as the fact that he contracted the disease at all). Of course, if Overland Sheepskin can demonstrate that Troy contracted the disease before February 28, 1991, during the time when Overland Sheepskin was still Troy's employer, then Troy's suit would be barred under the terms of the release Troy entered into with Overland Outfitters. Again, this is a factual dispute for the jury to resolve. Having determined as a matter of law that the Troy's release and settlement with Overland Outfitters does not bar Troy's suit against Overland Sheepskin in its capacity as supplier and consignor of allegedly infected pelts, we hold that the trial court erred in granting summary judgment for Overland Sheepskin on Troy's third-party, personal-injury claim.