Adams v. JE Merit Const., Inc.

712 So. 2d 88, 1998 La. LEXIS 1091, 1998 WL 252460
CourtSupreme Court of Louisiana
DecidedMay 19, 1998
Docket97-CC-2005
StatusPublished
Cited by22 cases

This text of 712 So. 2d 88 (Adams v. JE Merit Const., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Adams v. JE Merit Const., Inc., 712 So. 2d 88, 1998 La. LEXIS 1091, 1998 WL 252460 (La. 1998).

Opinion

712 So.2d 88 (1998)

Earl J. ADAMS, Jr., et al.
v.
J.E. MERIT CONSTRUCTION, INC., et al.

No. 97-CC-2005.

Supreme Court of Louisiana.

May 19, 1998.

*89 Henri Wolbrette, III, James Michael Garner, John Thomas Balhoff, II, William Jeffers Furnish, Jr., Martha Young Curtis, New Orleans, for Applicant.

Charles Joseph Ballay, Adrian Anthony Colon, Jr., Ballay & Braud, Belle Chasse, Stephen Barnett Murray, Charles R. Ward, Jr., Robert John Diliberto, New Orleans, Sherman Gene Fendler, Mark Daniel Latham, Liskow & Lewis, New Orleans, Lynn M. Luker, Robin Bryan Cheatham, Lisa Newman Sibal, Adams & Reese, New Orleans, for Respondent.

VICTORY, Justice.[*]

We granted this writ to determine whether the exclusivity provision of the Workers' Compensation Act, as it existed in 1994, precludes employees from recovering punitive damages from their employer under former Louisiana Civil Code article 2315.3 for exposure to hazardous or toxic substances in the course of their employment. We reverse the lower courts' rulings and hold that the exclusivity provision bars such a claim. In so doing, we overrule this Court's previous decision in Billiot v. B.P. Oil Co., 93-1118 (La.9/29/94), 645 So.2d 604.

FACTS AND PROCEDURAL HISTORY

On August 12, 1996, plaintiffs, employees of J.E. Merit Construction, Inc. ("JE Merit"), filed a petition seeking punitive damages under Louisiana Civil Code article 2315.3 resulting from alleged exposure to asbestos while working at the BP Oil Refinery in Alliance, Louisiana, from September 1993 through April 1994. The defendants are JE Merit, Basic Industries, Inc. ("Basic") and BP Exploration & Oil, Inc. ("BP") and three individuals employed by BP or JE Merit. JE Merit and Basic are contractors who allegedly worked at the BP refinery during plaintiffs' alleged exposure to asbestos.

In connection with their suit for punitive damages, plaintiffs propounded interrogatories to all defendants, requesting gross annual earnings, net annual earnings or profits, and other financial information. JE Merit filed a Motion for Protective Order and Motion for Partial Summary Judgment claiming that plaintiffs' punitive damages claims under Article 2315.3 were precluded by the Louisiana Workers' Compensation Act and that because plaintiffs had no punitive damages claims, the financial information was not discoverable. Relying on Billiot, the trial court denied JE Merit's motions. The Fourth Circuit denied JE Merit's writ application. Adams v. J.E. Merit Construction, Inc., 97-C-1208 (La.App. 4th Cir. 6/27/97). We granted a writ to reconsider Billiot. Adams v. J.E. Merit Construction, Inc., 97-CC-2005 (La.11/14/97), 703 So.2d 1279.

DISCUSSION

Prior to its amendment in 1995, the exclusivity provision of the Workers' Compensation Act, La. R.S. 23:1032 A, provided as follows:

Section 1032. Exclusiveness of rights and remedies; employer's liability to prosecution under other laws
A. (1)(a) The rights and remedies herein granted to an employee or his dependent on account of an injury, or compensable sickness or disease for which he is entitled to compensation under this Chapter, shall be exclusive of all other rights and remedies of such employee, his personal representatives, dependents, or relations, as against his employer, or any principal or any officer, director, stockholder, partner, or employee of such employer or principal, for said injury, or compensable sickness or disease.

La. R.S. 23:1032(A)(1)(a) (prior to 1995 amendment).[1]

*90 Prior to its repeal in 1995, La. Civil Code article 2315.3 provided in pertinent part:

In addition to general and special damages, exemplary damages may be awarded, if it is proved that plaintiff's injuries were caused by the defendant's wanton or reckless disregard for public safety in the storage, handling, or transportation of hazardous or toxic substances.

La.C.C. art. 2315.3 (repealed by Acts 1996, No. 2).

In Billiot, a decision one commentator has characterized as "disturbing"[2] and "startling,"[3] a four-justice majority of the Court held that former La. R.S. 23:1032(A)(1)(a) did not bar a worker from recovering punitive damages from his employer under former Article 2315.3. The Court based its holding on a finding that in 1914, when the Workers' Compensation Act was first enacted, Louisiana law did not recognize punitive damages; therefore, the Legislature did not intend to include punitive damages in the phrase "shall be exclusive of all other rights and remedies" because punitive damages were not a right or remedy then available under the law. 645 So.2d at 608. Expanding on this theme, the Court further held that the remedy exclusion rule of 1914 was not tacitly amended to bar an employee's rights to punitive damages under Article 2315.3 by any contemporaneous or subsequent reenactments of La. R.S. 23:1032, essentially freezing in time the term "all other rights and remedies." In addition, the Billiot court held that in light of the history and policy underlying the Workers' Compensation Act to preserve the general tort rights of an injured worker in the absence of explicit statutory language limiting or excluding such rights, punitive damages were not barred because La. R.S. 23:1032 did not contain such explicit language. Lastly, the Billiot court held that the language of Article 2315.3 did not exclude an employee's recovery of punitive damages, even though the employee would not be entitled to general damages for the same injury. Id. at 608-612.

We overrule Billiot, not only because its holding is contrary to the express language of La. R.S. 23:1032 A that "[t]he rights and remedies herein granted ... shall be exclusive of all other rights and remedies," but also because the underlying reasoning supporting its holding is erroneous. The Billiot court summarized its logic as follows:

We conclude that the remedy exclusion rule does not apply in the present case because the rule excludes only the employee's right to compensatory damages that was provided by law at the time of the enactment of the workers' compensation act. The remedy exclusion rule does not abrogate a right to a punitive award because the law of this state did not provide for such a right when the legislature enacted the rule; therefore it cannot be argued that the legislature implicitly intended to continue such an abrogation when it enacted the hazardous or toxic substance punitive damage action in 1984. Further, under established principles of constitutional law, the legislature by its enactment of the workers' compensation act's remedy exclusion rule could not prevent itself from creating a future punitive damage remedy for employees against employers. Finally, the legislature has not altered the original wording or the substantive effect of the remedy exclusion rule since its first enactment. Consequently, that rule operates to bar only the employee's right to compensatory damages and not the employee's right to a punitive award.

Id. at 608. However, a review of Louisiana jurisprudence shows that the basic premise underlying this reasoning is erroneous.

The Billiot court's main error is contained in the following:

*91 At the time of the enactment of the workers' compensation law in 1914, no personal injury of any kind gave rise to a substantive legal right to punitive or exemplary damages or a remedy or means for carrying it into effect.

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712 So. 2d 88, 1998 La. LEXIS 1091, 1998 WL 252460, Counsel Stack Legal Research, https://law.counselstack.com/opinion/adams-v-je-merit-const-inc-la-1998.