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Garrity v. Overland Sheepskin Co.

5/29/1996

ated 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.


B. The Overland Outfitters Release Does Not Preclude Troy's Third-Party Personal Injury Suit Against Overland Sheepskin


{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 ยง 52-1-9 (stating that the Act provides the exclusive remedy for employees injured on the job ); see generally Harger v. Structural Servs., Inc., 1996 N.M. LEXIS 153, N.M. , P.2d (Apr. 17, 1996) (No. 22,527) (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. ) (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 inapplica

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