2021 New Mexico Statutes
Chapter 52 - Workers' Compensation
Article 1 - Workers' Compensation
Section 52-1-52 - Exemption from creditors.

Universal Citation: NM Stat § 52-1-52 (2021)

A. Compensation benefits shall be exempt from claims of creditors and from any attachment, garnishment or execution and shall be paid only to such worker or his personal representative or such other persons as the court may, under the terms hereof, appoint to receive or collect compensation benefits.

B. Notwithstanding the provisions of Subsection A of this section, compensation benefits being paid or owing to a worker shall be considered wages for the purpose of securing support for a minor dependent. No order may be entered against such benefits which results in the worker retaining less than one hundred dollars ($100) a week or an amount each week equal to forty times the federal minimum wage rate if legally required to support minor dependents other than those for whom the action is brought.

History: Laws 1929, ch. 113, § 20; C.S. 1929, § 156-120; 1941 Comp., § 57-921; 1953 Comp., § 59-10-21; Laws 1983, ch. 78, § 1; 1984, ch. 95, § 1; 1989, ch. 263, § 31.

ANNOTATIONS

Section not unconstitutional on either due process or equal protection grounds. Pedrazza v. Sid Fleming Contractor, Inc., 1980-NMSC-018, 94 N.M. 59, 607 P.2d 597.

Applicability of exemption. — By its terms, the exemption applies to "claims of creditors" and to "any attachment, garnishment or execution." It does not address assignments. If the legislature had intended a "spendthrift" provision that would preclude the assignment of all or part of the proceeds before received, such a provision readily could have been articulated. Romero v. Earl, 1991-NMSC-042, 111 N.M. 789, 810 P.2d 808.

Dependent residing outside country at time of injury barred from common-law remedies. — Resident dependents residing outside the United States at the time of the worker's injury are barred from pursuing their common-law remedies due to the exclusive remedy provisions under the Workmen's (Workers') Compensation Act. Kent Nowlin Constr. Co. v. Gutierrez, 1982-NMSC-123, 99 N.M. 389, 658 P.2d 1116, appeal dismissed, 462 U.S. 1126, 103 S. Ct. 3104, 77 L. Ed. 2d 1359 (1983).

Domicile of child conceived before father's injury is domicile of mother at time of child's birth. — Where the mother of an accident victim's illegitimate unborn child returned to Mexico following the accident but before the child's birth, the child is domiciled in Mexico and is not a "resident of the United States at the time of the injury." Gomez v. Snyder Ranch, 1983-NMCA-146, 101 N.M. 44, 678 P.2d 219, cert. denied, 101 N.M. 77, 678 P.2d 705 (1984).

Temporary residence in foreign country. — Where the employee's wife moved to Mexico, at her husband's direction, to take care of his mother, without any legal separation and in readiness to return whenever called, and remained there until his death, she is not precluded by this section from receiving compensation for his death. Gallup Am. Coal Co. v. Lira, 1935-NMSC-071, 39 N.M. 496, 50 P.2d 430.

Bankruptcy debtor's checking account containing proceeds exempt. — Debtor's checking account, consisting of the proceeds of the settlement of the workmen's (workers') compensation claim, may be exempted from claims of creditors under this section. Waldman v. Nolen, 65 Bankr. 1014 (Bankr. D.N.M. 1986).

Law reviews. — For article, "Attachment in New Mexico - Part II," see 2 Nat. Resources J. 75 (1962).

Am. Jur. 2d, A.L.R. and C.J.S. references. — 31 Am. Jur. 2d Exemptions §§ 16, 117, 124; 82 Am. Jur. 2d Workers' Compensation §§ 219, 220.

Workers' compensation: incarceration as terminating benefits, 54 A.L.R.4th 241.

Validity, construction, and effect of statutory exemptions of proceeds of workers' compensation awards, 48 A.L.R.5th 473.

99 C.J.S. Workmen's Compensation §§ 330, 343.

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