Court Opinion

ID: 9561921
Source: CourtListenerOpinion
Date Created: 2023-08-21 18:18:37.084403+00
Date Added: 2024-06-11T09:13:54.365439
License: Public Domain

OPINION HERNANDEZ, Judge. We concur in Judge Sutin’s holding that § 59-10-12.10(A) and (B) does not offend against the Constitution of the United States or that of the State of New Mexico. Wé do not agree, however, with his opinion regarding attorneys’ fees. Section 59-10-23(D), N.M.S.A.1953 (Repl. Vol. 9, pt. 1,1974) reads in pertinent part as follows: “In all cases where compensation to which any person shall be entitled under the provisions of Workmen’s Compensation Act shall be refused and the claimant shall thereafter collect compensation through court proceedings in an amount in excess of the amount offered in writing by an employer thirty [30] days or more prior to the trial by the court of the cause, then the compensation to be paid the attorney for the claimant shall be fixed by the court trying the same or the Supreme Court upon appeal in such amount as the court may deem reasonable and proper and when so fixed and allowed by the court shall be paid by the employer . . [Emphasis added.]  Judge Sutin argues that the use of the word “or” in the statute means that appellate courts do not have authority to award fees for the services of a successful claimant’s attorney on appeal. We hold that the use of the word “or” in § 59-10-23(D) was merely a matter of legislative imprecision and was not meant to bar awards of attorney fees on appeal. We base this holding on the following considerations: Since the passage of § 59-10-23(D) in 1955 (Ch. 274, § 1, 1955 N.M.Laws), our Supreme Court has routinely awarded attorneys’ fees to successful workmen’s compensation claimants on appeal; the Court of Appeals has done the same since it was given jurisdiction over workmen’s compensation cases at the time of its creation. Section 16-7-8(B), N.M.S.A.1953 (Repl. Vol. 4, 1970). Although § 59-10-23(D) refers in terms only to the Supreme Court, the Court of Appeals also has authority to grant attorneys’ fees under this section. See, Lauderdale v. Hydro Conduit Corporation, 89 N.M. 579, 555 P.2d 700 (Ct.App.1976). No party has ever argued successfully that § 59-10-23(D) bars awards of attorney fees on appeal. Despite the fact that so many awards of attorney fees on appeal have been made since 1955 and that the Workmen’s Compensation Act has been frequently amended since 1955, the legislature has never amended § 59-10-23(D) to indicate unequivocally to the courts that they are not to award attorney fees for appellate representation in workmen’s compensation cases. Everything about § 59-10-23, read as a whole, indicates that the intent of the legislature was not to forbid the appellate courts to award attorneys’ fees for successful appeals of workmen’s compensation cases. The opening paragraph of § 59-10-23 reads: “It shall be unlawful for any attorney to receive or agree to receive any fees or . payment directly or indirectly in connection with any claim for compensation under the Workmen’s Compensation Act . except as hereinafter provided Subsections A through H of § 59-10-23 contain the exclusive provisions covering payment of claimants’ attorneys in Workmen’s Compensation cases. If a claimant’s attorney cannot recover fees under this section, he cannot recover them at all; indeed, he is guilty of a misdemeanor, with a mandatory fine and a possible jail sentence, if he receives payment except as provided in this section. Section 59-10-23(H). We follow the commonsense rules of statutory construction which this court has long applied: “We are committed to an acceptance of the intent of the language employed by the legislature rather than the precise definition of the words themselves. [Citations omitted.] And, in construing a statute, the legislative intent must be given effect by adopting a construction which will not render the statute’s application absurd or unreasonable. [Citation omitted.] Not only must the legislative intent be given effect, but the court will not be bound by a literal interpretation of the words if such strict interpretation would defeat the intended object of the legislature. [Citation omitted.]” State v. Nance, 77 N.M. 39, 419 P.2d 242 (1966). Applying this rule, it is apparent that the words “or the Supreme Court upon appeal” in § 59-10-23(D) should be understood as though they read “and the Supreme Court upon appeal.”  Given the above construction of the statute, there still remains the problem of whether this court should award attorney fees on appeal to a successful claimant in a case such as this one, which is in the nature of an interpleader action. Defendants admitted that they were liable to some claimant, but they were essentially bystanders while the contesting claimants tried to establish their rights. Two earlier New Mexico cases have presented similar questions: Employers Mutual Liability Ins. Co. of Wis. v. Jarde, 73 N.M. 371, 388 P.2d 382 (1963); and Lauderdale v. Hydro Conduit Corporation, supra. In Jarde, supra, the employer contended that it had not “refused” to pay compensation as required in § 59-10-23(D), because it was in fact paying some benefits to the successful claimant before the trial; this contention was rejected because the employer had not offered the claimant, before trial, as much money as the claimant ultimately won at trial and on appeal. Section 59- 10-23(D). The Supreme Court held that it was proper for the trial court to award attorney fees, and it also awarded fees, without comment, to the attorneys for the successful claimants on appeal. In Lauder-dale, supra, the employer claimed that the Court of Appeals had no authority to award attorney fees on appeal in an interpleader situation where the employer did not contest the award. The employer failed to establish that it had not “refused” to pay benefits under the terms of § 59-10-23(D). The Court of Appeals said: “The employer does not claim that the Court of Appeals lacks authority to award attorney fees on appeal. . Attorney fees on appeal are authorized [by § 59-10-23(D)] if the employer refuses to pay compensation and the claimant thereafter collects compensation in the trial court. In this situation, attorney fees may be awarded against the employer, both in the trial court and on appeal." [89 N.M. 579, 585, 555 P.2d 700, 706.] [Emphasis added.] This reasoning applies a fortiori to the case at bar. The employer paid no compensation to the successful claimants, Sandra Shahan and her three children, until three weeks after Sandra filed suit. The record does not show that any offer of settlement was made to Sandra more than 30 days before trial of an amount equal to what she won at trial. For purposes of § 59-10-23(D), therefore, the employer had refused compensation to the claimants who were ultimately successful. This does not mean that the employer was at fault; as it argued at oral argument, it had no way of knowing which claimants would succeed and how much they would be awarded, and it did not deny that it was liable to some claimant. The award of attorney fees in Jarde and Lauderdale was not based on fault. The court in those cases decided as a matter of policy that it would give attorney fees in interpleader situations, in keeping with the general policy established by the legislature in § 59-10-23(D) of not making successful claimants bear the burden of attorney fees when the claimant has to go to court to enforce his or her right to benefits. This works some hardship on employers, but attorney fees are presumably one of the expenses they insure against. In view of the very substantial award of attorney fees by the court below and the narrowness of the issue on appeal, Sandra Shahan is awarded $250.00 for the services of her attorneys on appeal. LOPEZ, J., concurs. SUTIN, J., dissenting. The judgment of the trial court is affirmed. An attorney fee for services rendered Sandra in this appeal is granted in the sum of $250.00. Glenda shall pay the costs of this appeal. IT IS SO ORDERED. HERNANDEZ and LOPEZ, JJ., concur.