Mera-Hernandez v. U.S.D. 233

• Decision Date: 24 March 2017
• Docket Number: No. 112,760,112,760
• Citation: 390 P.3d 875,305 Kan. 1182
• Parties: Leticia MERA–HERNANDEZ, Appellee, v. U.S.D. 233, Appellant.
• Court: Kansas Supreme Court

305 Kan. 1182

390 P.3d 875

Leticia MERA–HERNANDEZ, Appellee,

v.U.S.D. 233, Appellant.

No. 112,760

Supreme Court of Kansas.

Opinion filed March 24, 2017

Kip A. Kubin, of Bottaro, Kubin and Yocum, P.C., of Leawood, argued the cause and was on the briefs for appellant.

C. Albert Herdoiza, of Kansas City, and Gary P. Kessler, of Kessler Law Office, Inc., of Kansas City, argued the cause and were on the brief for appellee.

The opinion of the court was delivered by Johnson, J.:

Unified School District 233 (U.S.D. 233) petitions this court for review of the Court of Appeals' decision in Mera–Hernandez v. U.S.D. 233 , No. 112760, 2015 WL 5009902 (Kan. App. 2015) (unpublished opinion), which affirmed an order from the Workers Compensation Board (Board) awarding benefits to Leticia Mera–Hernandez for a back injury she suffered while working for U.S.D. 233. Mera–Hernandez was not legally authorized to work in the United States when she was hired; she used a false name and identification documents to apply for the job. U.S.D. 233 claims that Mera–Hernandez' fraudulent conduct to induce her hiring renders her employment contract void ab initio , thus precluding any recovery under the Kansas Workers Compensation Act (Act). We disagree and affirm the Court of Appeals' affirmance of the Board's award.

FACTUAL AND PROCEDURAL OVERVIEW

The parties do not dispute the underlying facts. U.S.D. 233 hired Mera–Hernandez as a custodian in 2009. She had worked for the school district on two prior occasions, in 2000 and 2003, under her true name. But when applying for the job in 2009, Mera–Hernandez used a false name, Hilda Reina, and provided false identification documents. She would later admit that she had used a false name to obtain employment because she was not legally authorized to work in the United States, and the Board would find that there was insufficient evidence to find that U.S.D. 233 was aware of Mera–Hernandez' true identity during her latest employment.

In March 2012, nearly 3 years after being hired, Mera–Hernandez injured her back on the job while moving furniture. U.S.D. 233 initially paid for Mera–Hernandez' medical treatment and, after a period of medical leave, she returned to work. But continuing to have pain, she sought additional medical treatment. When U.S.D. 233 denied further benefits, Mera–Hernandez filed a workers compensation claim using her true name. After discovering that Mera–Hernandez had been employed under a false name, U.S.D. 233 fired her.

From the outset, U.S.D. 233's defense has focused on the validity of Mera–Hernandez' employment contract. U.S.D. 233 claims that Mera–Hernandez fraudulently induced it to hire her by providing a false name; that because the employment contract was induced by fraud it was void ab initio ; and that no employment relationship ever existed under which U.S.D. 233 would be liable for compensation under the Act.

The school district's void-contract theory has been rejected at every level to this point. The Administrative Law Judge (ALJ) found that an employment relationship did exist, notwithstanding Mera–Hernandez' misrepresentations. The ALJ awarded Mera–Hernandez benefits under the Act. The Board affirmed that decision, as did a panel of the Court of Appeals. See Mera–Hernandez v. U.S.D. 233 , No. 112760, 2015 WL 5009902 (Kan. App. 2015) (unpublished opinion). We granted the school district's petition for review.

APPLICABILITY OF THE WORKERS COMPENSATION ACT

U.S.D. 233 does not dispute that, for years, Mera–Hernandez worked for the school district and received wages from U.S.D. 233 for that work. Likewise, U.S.D. 233 does not refute that the injuries suffered by Mera–Hernandez arose out of and in the course of her work on behalf of the school district. It does not contend that Mera–Hernandez' immigration status makes her ineligible for workers compensation benefits. Further, the school district does not quibble with the amount of the ALJ's award.

Rather, U.S.D. 233 seeks to avoid responsibility for its de facto employee's work-related injuries by declaring that the worker's fraudulent misrepresentations in the hiring process voided Mera–Hernandez' employment contract from the beginning, as a matter of law; and that, without a legally valid employment contract, Mera–Hernandez is not covered by the Act. We find the school district's attempt to determine Mera–Hernandez' eligibility for workers compensation benefits outside the specific provisions of the Act to be unavailing.

Standard of Review/Burden of Proof

Final orders of the Board are subject to review under the Kansas Judicial Review Act, K.S.A. 77–601 et seq. , as amended. K.S.A. 2015 Supp. 44–556(a). Here, neither party challenges the Board's factual findings under K.S.A. 2015 Supp. 77–621(c)(7) ; when the facts are undisputed, the issue is reviewed de novo. Nuessen v. Sutherlands , 51 Kan.App.2d 616, 618, 352 P.3d 587 (2015). Moreover, U.S.D. 233 specifically invokes K.S.A. 2015 Supp. 77–621(c)(4) to challenge the Board's interpretation or application of the law. Questions of law are reviewed de novo, with no deference to the administrative board. Douglas v. Ad Astra Information Systems , 296 Kan. 552, 559, 293 P.3d 723 (2013). The burden lies on the party asserting the invalidity of the agency's action. K.S.A. 2015 Supp. 77–621(a)(1).

Analysis

The Court of Appeals based its decision principally on the Act's definition of "employee," found in K.S.A. 2015 Supp. 44–508(b), which states that an employee is "any person who has entered into the employment of or works under any contract of service or apprenticeship with an employer." The panel held that, under the plain language of the statute, Mera–Hernandez was U.S.D. 233's employee, specifically stating:

"Mera–Hernandez, clearly qualifying as any person, did enter into the employment of U.S.D. 233. She did the work she was directed to do by U.S.D. 233, and U.S.D. 233 paid her for that work, albeit under a different name. Because Mera–Hernandez fits the broad definition of an employee under the Act, she is entitled to its coverage. That status as an employee alone trumps any defect U.S.D. 233 asserts regarding her original hiring." Mera–Hernandez , 2015 WL 5009902, at *2.

U.S.D. 233 contends that the panel erred in finding that the Act's statutory definition trumps the general principles of contract law upon which the school district relies to declare the employment contract void ab initio . It suggests that one has to resort to the common law first to determine whether there was a valid employment contract, before turning to the Act. Pointedly, the school district cites to no authority for that proposition. On the other hand, we do have precedent for the proposition that specific statutes control over the common law. See In re Marriage of Traster , 301 Kan. 88, 108, 339 P.3d 778 (2014) ("Once the legislature has spoken, the legislative statement supersedes the common law."); see also Aetna Life Ins. Co. v. Swayze, Adm'x. , 30 Kan. 118, 122–23, 1 P. 36 (1883).

Likewise, we have precedent refusing to void an employment contract for misrepresentations in the employment application, albeit in connection with the Federal Employer's Liability Act (FELA). In White v. Thompson , 181 Kan. 485, 312 P.2d 612 (1957), a railroad employee made a number of misrepresentations in his application for employment regarding prior injuries and his overall physical condition. He was later injured on the job; upon discovering the discrepancies the railroad argued that his employment contract was void and that the FELA did not apply. This court disagreed:

"[W]e think the majority of the decided cases, both federal and state, support the rule that misrepresentations in an application for employment with an interstate carrier do not render the contract of employment void so as to preclude recovery under the Federal Employers' Liability Act for negligent injuries inflicted upon him, where the employee was found to be in good health and acceptable physical condition at the time of his physical examination and the misrepresentations had no causal relation to the applicant's fitness to perform the duties required of him and to the injuries he sustained, notwithstanding they may render the contract voidable and form the basis for its rescission by a dismissal of the employee." 181 Kan. at 493, 312 P.2d 612.

The White court analyzed numerous cases from other jurisdictions,...