February 21, 2019- Jody Vinyard v. Palo Alto, Inc., No. A-1-CA-35270

A-1-CA-35270Nmctapp

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1 	IN THE COURT OF APPEALS OF THE STATE OF NEW MEXICO
2 JODY VINYARD,
3 	Worker-Appellant,
4 	v. 	No. A-1-CA-35270
5 PALO ALTO, INC. d/b/a PIZZA HUT,
6 and MANUFACTURER'S ALLIANCE
7 INSURANCE COMPANY,
8 	Employer/Insurer-Appellees.
9 APPEAL FROM THE WORKERS' COMPENSATION ADMINISTRATION
10 	Reginald C. Woodard, Workers' Compensation Judge
11 	Law Office of Alvin R. Garcia, LLC
12 Alvin R. Garcia
13 	Albuquerque, NM
14 for Appellant
15 	Maestas & Suggett, P.C.
16 Paul Maestas
17 	Albuquerque, NM
18 	for Appellees
19
20 	ZAMORA, Judge.
MEMORANDUM OPINION
21 	{I} 	Jody Vinyard (Worker) appeals from two orders issued by the workers'
22 	compensation judge (WCJ) denying Worker 's request for fee-shifting under the
23 	Workers' Compensation Act (the Act), for additional attorney fees over and above
24 the Act's fee cap, and for additional interest, based on the alleged bad faith conduct
Court of Appeals of New Mexico
Filed 2/21/2019 11:27 AM
Mark Reynolds
1 of Palo Alto, Inc. d/b/a Pizza Hut and Manufacturers Alliance Insurance Company
2 (collectively, Employer). Worker also requests additional attorney fees on appeal
3 pursuant to Rule 12-403(B)(3) NMRA. We affirm the WCJ's orders and deny
4 Worker's request for attorney fees on appeal.
5 	BACKGROUND
6 	{2} 	This 	case 	has 	an 	extensive 	history 	in 	the 	Workers' 	Compensation
7 Administration (WCA) and is now on its fourth appeal in this Court. For purposes
8 of this opinion, we set forth the following procedural background. On December 6,
9 2009, Worker was in a vehicular accident while in the course and scope of his
10 employment and subsequently filed a complaint with the WCA. The major issue in
11 	dispute before the WCJ was the proper calculation of Worker's average weekly wage
12 	under NMSA 1978, Section 52-1-20(B) (1990), when Worker held two concurrent
13 jobs, one for nine weeks and one for fourteen weeks. Prior to any formal hearing
14 	before the WCJ, Worker and Employer attended a mandatory mediation after which
15 	the mediator filed a recommended resolution. The mediator calculated Worker's
16 average weekly wage at $945.68. Worker accepted the recommended resolution on
17 	April 19, 2010, but Employer subsequently rejected it on May 6, 2010. Worker
18 	would eventually prevail at a hearing before the WCA and on several appeals to this
19 Court.
2
1 {3} 	On November 2, 2012, this Court issued a formal opinion on the first appeal
2 in 	Vinyard v. Palo Alto, Inc. (Vinyard I), 2013-NMCA-001, 293 P.3d 191. 	In
3 	Vinyard I, we held that the WCJ had incorrectly calculated Worker's average weekly
4 wage and remanded the case back to the WCJ. Id. ,r,r 19, 23. We also affirmed the
5 WCJ's award of $15,000 in attorney fees to be split equally between the parties. Id.
6 ,r,r 20, 23. On remand following Vinyard I, Worker filed an application on January
7 	11, 2013, with the WCA for additional attorney fees incurred in connection with the
8 appeal in Vinyard I. Worker did not raise any argument regarding fee-shifting in this
9 January 11, 2013 application.
10 	{4} 	Following the remand of Vinyard I, the WCJ incorrectly calculated Worker's
11 	average weekly wage two more times, requiring an appeal by Worker in both
12 	instances. 	We 	reversed 	the 	WCJ's 	calculation 	of average 	weekly 	wages 	in
13 	unpublished opinions in both Vinyard II and Vinyard III, 	and again remanded to the
14 	WCJ with guidance on the correct method of calculation.
15 	{5} 	After Vinyard Ill was decided, Worker asked for additional attorney fees from
16 this Court under Rule 12-403. We issued an order on November 25, 2014, noting
17 that, "it seems reasonably clear that a substantial award of attorney fees would be
18 	appropriate in this case." However, we ultimately concluded that, "given the nature
19 	of the inquiry, we remain of the opinion that the [WCJ] is in a better position to
20 render an appropriate award."
3
1 {6} 	Ultimately, after Vinyard III , the WCJ correctly calculated the average weekly
2 	wage as $971.37. Worker filed another application for attorney fees with the WCA
3 	on August 17, 2015. This application included an argument for fee-shifting that had
4 	not been included in the January 11 , 2013 application.
5 	{7} 	On August 31 , 2015 , Employer moved the WCJ for an order authorizing an
6 	independent medical examination (IME) of Worker based on his use of narcotic pain
7 medications. Shortly thereafter, Worker filed a response to the IME request as well
8 as a motion to strike the request, alleging bad faith. Worker also asked for additional
9 	attorney fees. The WCJ denied both motions.
10 	{8} 	In disposing of Worker's applications, the WCJ awarded an additional $7,500
11 	in attorney fees , representing the maximum available under the Act ' s attorney fee
12 	cap, which is currently set at $22,500. Consistent with the earlier $15 ,000 attorney
13 	fee award , payment of the additional amount was to be split equally between Worker
14 	and Employer. The WCJ also awarded interest on half of the earlier fee award,
15 	calculated at 8.75 percent. The WCJ concluded that there was no showing of bad
16 	faith and no basis to award attorney fees above the cap. The WCJ denied Worker ' s
17 request that responsibility for payment of the additional $7,500 fee 	be shifted
18 	entirely to Employer ; although not mentioned in the order, a review of the record
19 	indicates that the WCJ concluded that Worker had waived his fee-shifting argument
20 	by failing to make the argument in his original January 11 , 2013 application, and by
4
1 previously accepting payment from 	Employer related to the 	original 	$15,000
2 attorney fee award. Worker now appeals from the WCJ's order denying his request
3 for an additional attorney fees based on Employer's alleged bad faith request for an
4 IME and the WCJ's order denying his fee-shifting request as to the entire $22,500
5 award.
6 	{9} 	Worker makes several arguments pertaining to the WCJ's rulings on the
7 award of attorney fees and interest. First, Worker argues that the responsibility for
8 the entire fee award should be shifted to Employer pursuant to NMSA 1978, Section
9 52-1-54(E), (F) (2013) of the Act. Worker also argues that Employer's request for
10 the IME was in bad faith, thus warranting additional attorney fees above the cap
11 	pursuant to Section 52-1-54(1) and Rule 1-011 NMRA, as well as additional interest
12 	at 15 percent pursuant to NMSA 1978, Section 56-8-4(A)(2) (2004). As a final
13 	matter, Worker seeks additional attorney fees based on Rule 12-403.
14 	DISCUSSION
15 	{IO} 	This Court reviews the orders of a WCJ using the whole record standard of
16 	review. Leonardv. Payday Prof'!, 2007-NMCA-128, ,r 10, 142 N.M. 605, 168 P.3d
17 	177. "Whole record review requires us to consider all the evidence properly admitted
18 	by the WCJ to determine whether there is substantial support for the judgment."
19 Sanchez v. Zanio 's Foods, Inc., 2005-NMCA-134, ,I 9, 138 N.M. 555, 123 P.3d 788.
20 Whole record review is deferential to the WCJ. Id. ,I 11.
5
1 {11} 	Normally, we review the WCJ's award of attorney fees for abuse of discretion.
2 Leonard, 2007-NMCA-128, ,r 21. However, we review the WCJ's interpretation of
3 the Act and the application of the law to the facts of this case de novo. See Vialpando
4 v. Ben 's Auto. Servs. , 2014-NMCA-084, ,r 5, 331 P.3d 975. "In interpreting statutes,
5 we seek to give effect to the Legislature's intent, and in determining intent we look
6 to the language used and consider the statute' s history and background." Valenz uela
7 v. Sny der, 2014-NMCA-061, ,r 16 , 326 P.3d 1120 (internal quotation marks and
8 citation omitted). "In addition, we should read the entire statute as a whole so that
9 each provision may be considered in relation to every other part." Id. 	(internal
10 quotation marks and citation omitted).
11 	I. 	Fee-Shifting
12 	A. 	Fee-Shifting Under Section 52-1-54(F)
13 	{12} 	Worker' s main argument on appeal is that the entire attorney fees award of
14 	$22,500, representing the maximum amount allowed under Section 52-1-54(1) of the
15 	Act, should be shifted to Employer. 1 This contention is based on two alternative
16 grounds: (1) that Worker ultimately prevailed in each of his three prior appeals
17 	following the Employer' s failure to accept the mediator' s recommended resolution
1 Because we conclude that Section 54-1-54(F), (J) does not allow for fee-
shifting under the facts of this case, we need not address whether Worker waived his
fee-shifting argument for any award of attorney fees. See Maez v. Riley Indus. , 2015-
NMCA-049, ,r 31 , 347 P.3d 732 (holding that this Court will affirm if WCJ is right
for any reason).
6
1 in 2010, and (2) that the WCJ should have construed Worker's acceptance of the
2 	recommended resolution as an offer of settlement and as an offer of judgment.
3 	{13} 	Section 52-1-54 governs attorney fee awards in connection with worker ' s
4 	compensation proceedings. Section 52- l-54(A) prohibits payment of any fee except
5 	as provided in Section 52-1-54. Section 52-1-54(1) generally prohibits an award of
6 	attorney fees in excess of $22,500 to either the worker or the employer. Section 52-
7 	1-54(1) provides that payment of the worker' s attorney fees are split equally between
8 the 	worker and the employer except as provided in paragraphs (3) and ( 4) of
9 	Subsection (F).
10 	{14} 	Section 52- l-54(F) provides that"[ a]fter a recommended resolution has been
11 	issued and rejected ... the employer or claimant may serve upon the opposing party
12 	an offer to allow a compensation order to be taken against the employer or claimant
13 	for the money or property or to the effect specified in the offer[.]" Section 52-1-
14 	54(F)(3) provides that " if the employer' s offer was greater than the amount awarded
15 	by the compensation order, the employer shall not be liable for the employer's fifty
16 percent share of the attorney fees to be paid the worker's attorney and the worker
17 	shall pay one hundred percent of the attorney fees due to the worker's attorney[.]"
18 	Section 52-1-54(F)( 4) then provides "if the worker's offer was less than the amount
19 	awarded by the compensation order, the employer shall pay one hundred percent of
7
1 the attorney fees to be paid the worker's attorney, and the worker shall be relieved
2 from any responsibility for paying any portion of the worker' s attorney fees."
3 	{ 15} 	Section 52- l- 54 (F) constitutes a fe e-shifting provision. See Abeyta v. Bumper
4 	To Bumper Auto Salvage, 2 00 5-NMCA-087, ~ 9, 137 N. M. 800, 11 5 P .3 d 816. These
5 provisions are intended to be a fin an cial sanction aga in st a party who fa ils to accept
6 an offer of judgment a nd do es not eventua ll y obta in a better outcome. Leonard,
7 2007-NMCA -1 28, ~ 25. The pu rp o se of t hi s fi nancial sanction is to encourage
8 set tl ement. i d.
9 {16} 	A worker's offer of judgment must make clear that the worker "was allowing
10 a compensation order to be taken if [thee]mployer accepted the terms of the offer[,]"
11 	thereby putting the employer "on notice that the offer was intended to trigger the
12 	fee-shifting provision of Section 52-l-54(F)[.]" Baker v. Endeavor Servs ., Inc. 2018-
13 	NMSC-035 , ~ 20, 428 P.3d 265. In Bake r, the Court enumerated three requirements
14 necessary to trigger the fee-shifting provision pursuant to 52-1-54(F)(4): (1) a valid
15 	offer of judgment under Section 52-1-54(F)(4), (2) for an amount less than the award
16 at trial, and (3) which the employer rejected. Baker, 2018-NMSC-035 , 1 18. Thus,
17 	under the holding of Baker, "[f]or an offer of judgment to be legally binding it must
18 	set forth 	language making clear the intent of the offeror and implications 	of
19 	acceptance by the opposing party." Id. 120. The worker's offer of judgment in Baker
20 specifically stated that the worker was "allowing a compensation order to be taken"
8
1 if the employer accepted the terms of the offer. Id. (alteration, internal quotation
2 marks, and citation omitted). In other words, the offer of judgment put the employer
3 on notice that it was intended to trigger the fee-shifting provision of Section 52-1-
4 54(F). Baker, 2018-NMSC-035, 120.
5 {17} 	Here, Worker argues that he accepted the mediator's recommended resolution
6 of an average weekly wage of $945 .68, and Employer rejected it. Worker contends
7 that because he was eventually awarded a higher average weekly wage of $971.3 7,
8 the WCJ should have construed Worker 's acceptance of the recommended resolution
9 as an offer of settlement and therefore shifted the attorney fees pursuant to Section
10 	52-1-54 (E), (F).
11 	{18} 	The difficulty of Worker's argument is that he conflates an offer of judgment
12 	with an offer of settlement. However, our case law interpreting both Subsections (E)
13 	and (F) makes clear that an offer of settlement is substa nti ve ly different from an
14 	offer of judgment. See Riv era v. Flint Energy, 2011-NMCA-l 19 , 1111-12, 268 P.3d
15 	525. Section 52- l-54(E) authorizes an attorney fee award (but not fee-shifting)
16 where the worker ultimately recovers compensation in excess of what the employer
17 	proposes in an offer of settlement: "In all case where compensation ... is refused
18 	and the claimant thereafter collects compensation through proceedings before the
19 	[WCA] or courts in an amount in excess of the amount offered in writing by an
20 	employer five 	business days or more prior to the informal hearing before the
9
1 administration, the compensation to be paid the attorney for the claimant shall be
2 fixed by the [WCJ .]" A Section 52-l-54(F) offer of judgment contemplates that a
3 judgment will be entered, while an offer of settlement allows the parties to "settle
4 the dispute informally without an entry of judgment." Rivera, 2011-NMCA-119,
5 ,r 12 ; see Baber v. Desert Sun Motors, 2007-NMCA-098, ,r 8 n.1, 142 N.M. 319, 164
6 P.3d 1018 (noting that appellate courts have commonly referred to an "offer to allow
7 a compensation order to be taken" against a party as an offer of judgment (internal
8 quotation marks and citation omitted)). Further, the plain language of Section 52-1-
9 54(F) indicates that an offer of judgment can only occur after a recommended
10 resolution has been proposed and rejected. State v. Rivera, 2004-NMSC-001, ,r 10,
11 	134 N.M. 768, 82 P.3d 939 (noting that because the language of this statute is
12 	unambiguous we "give effect to that language and refrain from further statutory
13 	interpretation" (internal quotation marks and citation omitted)).
14 	{19} 	The questions before us are wh ether Worker made a valid offer of judgment
15 	as required by Section 52-1-54(F)(4); whether it was for an amount less than that
16 awarded by the WCJ; and whether Employer rejected that offer of judgment. See
17 Baker, 2018-NMSC-035 , ,r 18. We conclude that Worker failed to satisfy the first
18 	requirement because he never made the requisite valid offer of judgment.
19 	{20} 	Worker 	accepted 	the 	recommended 	resolution 	on 	April 	19 , 	2010, 	and
20 	Employer rejected the recommended 	resolution on May 	6, 	20 I 0. 	Worker was
10
1 required to serve on Employer, more than ten days before trial, an offer to allow a
2 compensation order, or an offer ofjudgment, to be taken against Employer. See§ 52-
3 	1-54(F). Only if Employer had rejected that offer would the rejection have allowed
4 	Worker to 	shift attorney 	fees 	under Section 	52- l-54(F)(4). 	See Abeyta, 	2005-
5 NMCA-087 , 	~ 	19 	("Once 	[the 	e]mployer 	rejected 	[the 	w]orker's 	offer, 	[the
6 e]mployer 	became 	vulnerable 	to 	the 	fee[-]shifting 	provision 	of Section 	52-1-
7 	54(F)(4) if the final compensation order exceeded [the w]orker's offer.").
8 	{21} 	Worker's failure to show that his acceptance of the recommended resolution
9 was a valid offer ofjudgment under Section 52- l-54(F) and as required by Baker is
10 	fatal to his argument. We have held that "at a minimum, if counsel ' s aim is to invoke
11 	the provisions of Section 52-1-54(F), the document conveying the offer must refer
12 	to the statute explicitly or address each of its material requirements, including that if
13 	the offer is accepted a judgment is to be entered against [the e]mployer." Rivera,
14 	2011-NMCA-l 19 , 	~ 	13. 	Worker 	makes 	no 	argument 	that 	the 	recommended
15 	resolution satisfies these requirements, nor can we make such a conclusion based on
16 	our own review of the record.
17 	{22} 	Rather, Worker relies on Davis v. 	Los Alamos National Laboratory, 1989-
18 	NMCA-023 , l 08 NM. 587, 775 P.2d 1304, in support of his argument that his
11
1 acceptance of the recommended resolution was an offer of settlement. 2 In Davis, the
2 worker rejected a recommended resolution but the employer accepted it. Id. ,I 2. The
3 hearing officer found, and this Court agreed, that "the recommended resolution as
4 accepted by the employer was an offer of settlement." Id. ,r,r 14-15. Ultimately, the
5 offer was for more than the worker received; therefore he was not entitled to attorney
6 fees. Id. ,r,r 15 , 17 .
7 	{23} 	Worker's reliance on Davis is misplaced. Section 52-l-54(E) permits the
8 recovery of attorney fees when compensation to which any person is entitled is
9 	refused and a worker thereafter collects compensation in a proceeding before the
10 	WCA that is more than the "amount offered in writing by an employer five business
11 	days or more prior to the informal hearing before the administration[.]" We have
12 	referred to an offer under this provision as an offer of settlement. Davis, 	1989-
13 	NMCA-023, ,r,r 12-17; see also Ba ca v. Highlands Univ., 1992-NMSC-010, ,r 7, 113
14 N.M. 170, 824 P.2d 310 (interpreting the predecessor statute, NMSA 1978, Section
15 	52-I-54(D) (1989), which was redesignated as Section 52-1-54(E)).
16 	{24} 	Davis does not, however, support Worker 's argument that he is entitled to fee-
17 shifting under Section 	52-1-54(E). 	We have previously held that to allow fee-
18 	shifting based on other provisions in Section 52-1-54 would render Section 52-1-
2 Davis relied on NMSA 1978, Section 52-1-54 (D) (1987). Davis, 	1989-
NMCA-023, ,r 12. This subsection was amended in 1990 to redesignate Subsection
(D) as Subsection (E).
12
1 54(F)(3) and (4) superfluous. Cordova v. Taos Ski Valley , Inc., 1996-NMCA-009,
2 ,r 22 , 121 N .M. 258, 910 P .2d 334. Because Section 52- l-54(E) is a basis only for
3 an award of attorney fees and not fee-shifting, the analogy to Davis does not support
4 Worker' s contention. See Carrillo v. Compusys , Inc., 2002-NMCA-099, ,r 10, 132
5 N.M. 710, 54 P.3d 551 	(stating that the Legislature may override the traditional
6 American Rule that requires litigants to pay their own attorney fees by enacting a
7 fee-shifting statute and that "Section 52-l-54(F)(4) is an example of a fee-shifting
8 statute"). Quite simpl y, even assuming we were to treat Worker's acceptance of the
9 recommended resolution as an offer of settlement as suggested by Davis , it still
10 	would not constitute an offer of judgment that is the predicator to fee-shifting under
11 	Section 52- l-54(F).
12 	{25} 	Because Worker did not make a valid offer of judgment, we hold that Worker
13 	is not entitled to fee-shifting pursuant to Section 52- l-54(F)(4) and affirm the WCJ' s
14 order.
15 	B. 	Fee-Shifting Under Section 52-1-54(1)
16 	{26} 	Worker' s fee-shifting argument also relies on Section 52-1-54(!). As stated
17 	above, Section 52-1-54(!) generally places a $22,500 limitation on either party's
18 	recovery of attorney fees. However, it permits an additional $5,000 attorney fee
19 award if a party acted in bad faith with regard to the handling of a worker's claim
20 	and the other party suffered economic loss as a result. Id. 	In this provision, the
13
1 Legislature speci fi cally defined bad faith as conduct that amounts to "fraud, malice,
2 	oppression or willful, wanton or reckless disregard of the rights of the wo rk er[.]" I d.
3 	Section 52-1-54(1) also articulates another exception to the general rule on the
4 	a ll ocation 	of attorney 	fees, 	in 	addition 	to 	that 	found 	in 	Section 	52-l-54(F):
5 "Notwithstanding the provisions of Subsection J of this section, the party found to
6 have acted in bad faith shall pay one hundred percent of the additional fees awarded
7 for representation of the prevailing party in a bad faith action." Section 52-1-54(1);
8 see also Sosa v. Empire Roofing Co., 1990-NMCA-097, ilil 8-9, 110 N.M. 614, 798
9 	P.2d 2 15 (stating that it is the worker's burden to show that the employer's conduct
10 amounted to bad faith, relying on 52-1-54 (G) (1989), which was redesignated as
11 52-1-54(1) in 1990).
12 	{27} 	Worker argues that the WCJ erred by denying additional attorney fees in
13 	excess of the cap because of Employer's bad faith request for an IME. Under the
14 	Act, requesting an IME from the WCJ is permissible "in the event of a dispute
15 	between the 	parties 	concerning the reasonableness 	or necessity 	of medical 	or
16 surgical treatment, 	the 	date 	upon 	which 	maximum 	medical 	improvement was
17 reached, the correct impairment rating for the worker, [or] the cause of an injury or
18 	any oth er medical issue[.]" NMSA 1978, § 52-l-5l(A) (2013). Employer filed the
19 motion requesting the IME based on concerns over Worker's use of narcotic pain
14
1 and other medications and whether his continued medical care and treatment was
2 	reasonable and necessary and causally related to Worker's accident.
3 	{28} 	At the motion hearing, Employer argued that the question before the WCJ was
4 whether 	Worker's continued treatment was reasonable and necessary given its
5 concern for Worker's long-term use of narcotics. In response, Worker argued that
6 the IME was unnecessary and reminded the WCJ that he requested Rule 	1-011
7 sanctions. The WCJ emphasized that his focus was on how to ensure, "within the
8 guidelines of the Act, that [Worker was] getting all the reasonable and necessary
9 	medical care that [is] appropriate, not only in the sh01i run, but in the long run." The
10 	WCJ 	ultimately 	denied 	Employer's 	motion 	but allowed 	Employer to 	"depose
11 	Worker's 	current 	[a]uthorized 	[h]ealth 	[c]are 	[p]roviders 	to 	obtain 	additional
12 	information regarding the reasonableness and necessity of Worker's current pain
13 	management regimen." Worker continues to assert that this constituted a baseless
14 collateral attack on his indemnity benefits and, thus, the request for the IME was
15 	made in bad faith. Worker does not direct us to any evidence in the record to support
16 his 	assertions. 	See 	Rule 	12-3 l 8(A)( 4) 	NMRA 	("Th[ e] 	summary 	shall 	contain
17 citations to the record proper, transcript of proceedings, or exhibits supporting each
18 	factual 	representation[.]"). The WCJ's order denying the 	IME request made no
19 mention, much less findings, 	of bad faith. 	Nor do we see how using a proper
20 procedure provided in the Act, without more, could constitute bad faith. See Sanchez,
15
1 2005-NMCA-134, ,-i 9 (noting that the reviewing court "must be satisfied that the
2 evidence demonstrates the reasonableness of the decision" ). We affirm the WCJ's
3 orders denying Employer' s request for an IME and Worker's request for fees in
4 excess of the Act's cap. As a result, we need not address whether Worker suffered
5 an economic loss. See Sanchez v. Wohl Shoe Co ., 1989-NMCA-003, ,-i 17, 108 N.M.
6 276, 771 P.2d 984.
7 II. 	Remaining Attorney Fees Issues
8 	{29} 	Worker makes additional arguments based on Employer' s alleged bad faith in
9 	requesting an IME. His first argument is for additional attorney fees pursuant to Rule
10 	1-011 , and the second argument is for additional interest pursuant to Section 56-8-
11 	4(A)(2). 	Because Employer did not act in bad faith 	in requesting the IME, we
12 	conclude that Worker was not entitled to additional attorney fees beyond the WCA's
13 	limitation on attorney fees or an additional award of interest.
14 	A.
15
16 	{30}
Worker's Request for Sanctions Against Employer Pursuant to Rule
1-011
Worker argues that because he filed a motion to strike Employer's request for
17 	the IME and the WCJ denied Employer's request, Worker prevailed and therefore
18 	should have been awarded attorney fees pursuant to Rule 1-011. Rule 1-011 allows
19 a court to sanction a party for, among other things, signing a paper that is not well
20 grounded in fact, is not warranted by existing law, or is interposed for an improper
21 	purpose. See Air Ruidoso, Ltd. v. Exec. Av;ation Ctr .. Inc. , 1996-NMSC-042, 115,
16
1 122 N.M. 71,920 P.2d 1025. "The abuse of discretion standard is also ... for review
2 	of the imposition of Rule l-011 ... sanctions[.]" Weiss v. THI ofN. M. at Valle Norte,
3 LLC , 2013-NMCA-054, ,r I 6, 301 P.3d 875. We will only overturn a Rule 1-011
4 decision on appeal that is contrary to logic and reason. See Air Ruidoso, Ltd., 1996-
5 NMSC-042, ,r 15. Worker 's contention that he prevailed on a motion, without more,
6 does not support the imposition of Rule 1-01 l sanctions against Employer. We
7 cannot conclude that the WCJ's order was contrary to logic and reason. We therefore
8 hold that the WCJ did not abuse his discretion by denying Worker 's request for
9 sanctions.
10 B. 	Additional Interest Pursuant to Section 56-8-4(A)(2)
11 	{31} 	Worker argues that he should have been awarded interest in the amount of 15
12 percent pursuant to Section 56-8-4(A)(2), rather than the traditional 8.75 percent,
13 	because Employer acted in bad faith. Post-judgment interest will be computed at
14 8.75 	percent unless the "judgment is based on tortious conduct, bad faith 	or
15 	intentional or willful acts, in which case interest shall be computed at the rate of
16 	fifteen percent." Section 56-8-4(A)(2 ). Because the WCJ did not abuse his discretion
17 	in declining to find that the Employer acted in bad faith, Worker's request for
18 	additional interest is not based on any of the conduct enumerated in Section 56-8-
19 	4(A)(2). We therefore affirm the WCJ award of post-judgment interest at the rate of
20 8.75 percent to Worker's attorney fee award.
17
1 III. 	Worker's Request for Attorney Fees Pursuant to Rule 12-403
2 	{32} 	Worker seeks an award of fees under Rule 12-403 for work done on the four
3 appeals. Rule 12-403 only allows us to award fees if permitted by law. See Romero
4 v. Earl, 1991-NMSC-042, , 	13, 111 N.M. 789, 810 P.2d 808; see also Rule 12-
5 403(8)(3). As has been discussed at length above, Section 52-1-54 does permit an
6 award for attorney fees. However, the statutory cap on attorney fees limits our ability
7 to award attorney fees. See § 52-1-54(1) ("Attorney fees ... including representation
8 before ... the courts on appeal, shall not exceed twenty-two thousand five hundred
9 dollars ($22,500)." (emphasis added)). The provision applies to all work done in
10 	front of the WCA as well as on appeal. See Alber v. Nolle, 1982-NMCA-085,, 50,
11 98 N.M. 100, 645 P.2d 456. Consistent with our November 25, 2014 order on
12 	Worker's 	previous 	motion 	for Rule 	12-403 	attorney 	fees, 	the 	WCJ 	awarded
13 	additional attorney fees up to the maximum Worker is entitled to receiv e.
14 	{33} 	While we understand Worker's frustration with the Act's cap on attorney fees
15 	given his success on multiple appeals, this Court is nevertheless bound to enforce
16 the plain terms of Section 52-1-54(1) as written. We must therefore deny Worker's
17 	request for additional attorney fees pursuant to Rule 12-403(8)(3), unsupported as it
18 	is by legal authority. See Lasen, In c. v Tadjikov, _ 	-NMCA-_ , , 33 , _P.3d_
19 (No. 	A-1-CA-34744, Dec. 	21 , 2018) (denying recovery 	of Rule 	12-403(8)(3)
18
1 attorney fees where movant failed to "identify the legal basis" supporting an award
2 	of such fees) .
3 III. 	CONCLUSION
4 	{34} 	For the reasons stated in this opinion, we affirm the WCJ' s orders.
5 	{35} 	IT IS SO ORDERED.
6
7
8 I CONCUR:
9 	1.J 	1-,/~
10 HENRY M. BOHNHQF;,;: gePro Tempore
11 	LINDA M. VANZI, Judge (concurs in result only).
19

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