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

• Paul Jackson, the sole owner and executive of Jackson Construction, Inc. (JCI), a New Mexico-licensed general contractor, elected to exempt himself from coverage by the Workers’ Compensation Act in 2008. JCI does not employ any workers or executives other than Mr. Jackson. The issue arose whether JCI, despite Mr. Jackson's exemption, is still required to procure workers' compensation insurance under the Act (para 1).

Procedural History

• Appeal from the District Court of Otero County: The district court's decision was reversed, and the order of the Workers’ Compensation Administration (WCA) was affirmed.

Parties' Submissions

• Petitioners-Appellees (JCI and Paul Jackson): Argued that JCI, having no employees other than Mr. Jackson who elected to exempt himself from the Act, should not be subject to the Act's requirements to procure workers' compensation insurance.
• Respondent-Appellant (Director of the State of New Mexico Workers’ Compensation Administration): Contended that JCI is still subject to the Act and must procure workers' compensation insurance regardless of Mr. Jackson's exemption, based on the statutory requirement that applies to all employers engaged in activities requiring a construction license, irrespective of the number of employees (para 1).

Legal Issues

• Whether a construction company, with its sole executive having elected to exempt himself from coverage under the Workers’ Compensation Act, is still required to procure workers' compensation insurance (para 1).

Disposition

• The Court of Appeals reversed the district court's decision and affirmed the WCA's order that JCI is subject to the Workers’ Compensation Act and must procure the required workers' compensation insurance (para 18).

Reasons

• J. MILES HANISEE, Judge, with LINDA M. VANZI, Judge, and TIMOTHY L. GARCIA, Judge concurring, provided the opinion. The court held that under a plain-meaning reading of NMSA 1978, Section 52-1-6(A) (1990), JCI is required to procure workers' compensation insurance because the Act applies to all employers engaged in activities requiring a construction license, regardless of the number of employees. The court found the statute to be ambiguous regarding whether an officer, shareholder, or executive is considered a "worker" under the Act, but determined that Mr. Jackson qualifies as an executive employee and thus counts towards JCI's worker status under the Act. The court rejected JCI's arguments that Mr. Jackson's exemption should exclude JCI from the Act's requirements and found no absurdity or contradiction to legislative intent in requiring JCI to maintain insurance coverage. The decision emphasizes the Act's application to all construction employers, focusing on the nature of the business activity rather than its size or the employment status of its executives (paras 2-17).