Berry v. Insurance Co. of North America

683 So. 2d 310, 1996 WL 626221
CourtLouisiana Court of Appeal
DecidedOctober 30, 1996
Docket28580-CA
StatusPublished
Cited by11 cases

This text of 683 So. 2d 310 (Berry v. Insurance Co. of North America) is published on Counsel Stack Legal Research, covering Louisiana Court of Appeal primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Berry v. Insurance Co. of North America, 683 So. 2d 310, 1996 WL 626221 (La. Ct. App. 1996).

Opinion

683 So.2d 310 (1996)

Michael BERRY and Elizabeth Berry, Individually, and on behalf of their minor child, Amber Nicole Berry, Plaintiffs-Appellants,
v.
INSURANCE COMPANY OF NORTH AMERICA, et al. and Hinton Well Servicing, Inc., d/b/a Hinton Well Services, Defendants-Appellees.

No. 28580-CA.

Court of Appeal of Louisiana, Second Circuit.

October 30, 1996.
Rehearing Denied December 5, 1996.

*311 Norman R. Gordon & Associates by W. Orie Hunter, III, Shreveport, for Plaintiffs-Appellants.

Brittain & Sylvester by Russell L. Sylvester, Natchitoches, Young, Richard & Meyers by George J. Richaud, New Orleans, for Defendants-Appellees.

Before MARVIN, NORRIS HIGHTOWER, GASKINS and CARAWAY, JJ.

CARAWAY, Judge.

In this case, we are asked by an injured employee to extend the ruling in Weber v. State, 93-0062 (La. 4/11/94), 635 So.2d 188, to allow this action in tort against the employer and the worker's compensation insurer for their intentional refusal to authorize a medical procedure which would have prevented a significant worsening of his employment-related injury. Since we find that the Worker's Compensation Act exclusively provides for the plaintiff's remedies, we refuse to extend the Weber ruling to this case and affirm the trial court's grant of the exception of no cause of action dismissing the suit.

Procedural background

According to the petition, the plaintiff, Michael Berry, sustained an injury while working for Hinton Well Servicing on June 10, 1992, which resulted in his suffering reflex sympathetic dystrophy ("RSD"). Hinton and its insurer, INA, began paying all weekly and medical worker's compensation benefits. On July 22, 1993, Berry's doctors requested the defendants' approval and payment for "a trial spinal cord stimulator and a trial spinal cord infusion pump to treat Michael's [RSD]." Berry alleged that these were

reasonable and necessary treatments, which would have prevented the spread of Michael Berry's [RSD], would have prevented the [RSD] from becoming intractable, would have prevented Michael Berry from suffering needless pain and suffering, and would have allowed Michael Berry to regain use of his right leg.

The defendants thereafter repeatedly refused to pay for this trial procedure. On April 22, 1994 the doctors requested approval and payment for a permanent spinal cord stimulator and infusion pump which, according to the petition, were needed immediately, would have prevented the spread of the RSD, would have prevented the RSD from becoming intractable, would have averted needless pain and suffering, and would have allowed Berry to regain the use of his right leg. This request was also denied. The petition further alleges that the defendants refused to authorize this necessary medical procedure despite knowledge that timely treatment is critical and that denial of such treatment would cause Berry's RSD to become intractable (unmanageable or hard to cure), to worsen, spread, cause excruciating pain and suffering, and deprive him of the use of his leg.

Berry filed this petition for his own damages (physical pain and suffering, loss of earning capacity, loss of enjoyment of life, medical expenses, lost wages, emotional distress, living expenses, interest and costs) and his daughter's loss of consortium; his wife *312 also sued for loss of consortium, wages and fringe benefits.

The defendants filed exceptions of no cause of action, urging that under the compensation Act, Berry's sole remedy for the failure to pay medical benefits is statutory penalties and attorney fees. La. R.S. 23:1201 and 1201.2; Bergeron v. North American Underwriters, Inc., 549 So.2d 315 (La.1989).

The Berrys opposed the exception citing the Weber decision and arguing that on the facts alleged, the defendants' intentional and arbitrary refusal to pay was not subject to the exclusive remedies of the Act. La. R.S. 23:1032 B. Following the district court's dismissal of their case as a no cause of action, the Berrys (hereinafter referred to collectively as plaintiff) have appealed.

Applicable law

The purpose of the exception of no cause of action is to determine the sufficiency in law of the petition. The exception is triable on the face of the papers, and, for the purposes of determining the issues raised by the exception, the well-pleaded facts in the petition must be accepted as true. La. C.C.P. art. 927; Roberts v. Sewerage and Water Board of New Orleans, 92-2048 (La. 3/21/94), 634 So.2d 341. The general rule is that an exception of no cause of action must be overruled unless the allegations of the petition exclude every reasonable hypothesis other than the premise upon which the defense is based, i.e., unless the plaintiff has no cause of action under any evidence admissible under the pleadings. Id.; Haskins v. Clary, 346 So.2d 193 (La.1977). Every reasonable interpretation must be accorded the allegations in favor of maintaining the sufficiency of the petition and affording the litigant the opportunity to present his evidence. Jarrell v. Carter, 577 So.2d 120 (La.App. 1st Cir.1991), writ denied 582 So.2d 1311.

The compensation Act is remedial in nature and must be construed in favor of the injured employee. Pinkins v. Cardinal Wholesale Supply Inc., 619 So.2d 52 (La. 1993); Roberts v. Sewerage and Water Board of New Orleans, supra. The rights and remedies granted by the compensation Act are generally exclusive of tort remedies. La. R.S. 23:1032 A(1)(a). However, the exclusive nature of the compensation remedy is inapplicable to intentional acts. R.S. 23:1032 B; Gagnard v. Baldridge, 612 So.2d 732 (La. 1993).

At the time of the defendants' alleged actions withholding medical benefits, La. R.S. 1201E provided for penalties of twelve percent of the amount due or fifty dollars per day (up to a $2,000 maximum) for each day of delinquency, whichever was greater, for the untimely payment of medical benefits. Act No. 1003 of 1992, effective January 1, 1993. The penalty for untimely payment was inapplicable only if the necessity for the medical benefits was "reasonably controverted" by the employer or its insurer. In addition to this penalty for untimely payment, La. R.S. 23:1201.2 provides the employee with the remedy of reasonable attorney's fees when the employer's failure to pay benefits is found to be arbitrary, capricious or without probable cause.

Discussion

Plaintiff asserts a cause of action outside the exclusive framework of the worker's compensation system for the intentional failure to provide medical treatment. In Weber v. State, supra, the Supreme Court reviewed a similar denial of medical benefits and the application of the penalty and attorney's fees provisions of the Act in a situation where the employee had died shortly after his treating physician had advised the employer of the necessity for heart transplant surgery to possibly save the employee's life. The court made its ruling recognizing the plaintiff's tort claim based upon an analysis of the legislative intent for the scope of the penalty provisions of the Act and found that those penalties were never intended to "encompass the situation where the employer knew to a substantial certainty that a refusal [of medical treatment] would cause death." Id., p. 193.

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Bluebook (online)
683 So. 2d 310, 1996 WL 626221, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berry-v-insurance-co-of-north-america-lactapp-1996.