Berry v. STATE THROUGH DHHR

625 So. 2d 600, 1993 WL 394621
CourtLouisiana Court of Appeal
DecidedOctober 6, 1993
Docket92-1479
StatusPublished
Cited by6 cases

This text of 625 So. 2d 600 (Berry v. STATE THROUGH DHHR) 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. STATE THROUGH DHHR, 625 So. 2d 600, 1993 WL 394621 (La. Ct. App. 1993).

Opinion

625 So.2d 600 (1993)

Rosa Lee BERRY, Plaintiff-Appellant,
v.
STATE of Louisiana through DHHR, Defendant-Appellee.

No. 92-1479.

Court of Appeal of Louisiana, Third Circuit.

October 6, 1993.

*602 F. Jean Pharis, Alexandria, for Rosa Lee Berry.

James Dey Kirk, Natchitoches, for State, DHHR.

Before STOKER, LABORDE and YELVERTON, JJ.

STOKER, Judge.

This case presents two issues for our review:

1. Whether the defendant, State of Louisiana, through the Department of Health and Human Resources, Office of Family Security (DHHR) was the employer of Robert Allen, d/b/a Broadway Transportation Service, so as to impose liability on defendant for Allen's employee's negligence which resulted in personal injuries to plaintiff—Rosa Lee Berry; and

2. Whether the defendant is responsible to plaintiff for failing to insure that Allen was adequately protected by liability insurance coverage, bonds, or personal resources from which plaintiff could recover for her personal injuries.

FACTS

On June 5, 1987, Berry and her foster son, Bryant Cheatham, Jr., were riding in a van owned by Allen and driven by Allen's employee. Allen was enrolled as a provider of "medically necessary nonemergency transportation" with defendant—State under the authority of Title XIX of the Social Security Act, 42 U.S.C.A. § 1396 et seq. and was providing such transportation services to plaintiff and Cheatham. Cheatham required kidney dialysis. Cheatham was also mentally retarded and required the assistance of plaintiff. The van struck a parked automobile as it was transporting plaintiff and Cheatham home after Cheatham's dialysis treatment. Plaintiff sustained personal injuries in the collision.

At the time of the collision, Allen was uninsured or underinsured in violation of defendant's guidelines requiring Allen to have minimum liability insurance of $50,000 per person and $125,000 per accident. Additionally, Allen was discharged in bankruptcy.

TRIAL COURT ACTION

This suit against the defendant followed. The trial court found that plaintiff failed to prove the existence of an employer-employee relationship between the State through DHHR and Allen so as to impose vicarious liability on the State. Additionally, the court held that any alleged failure of defendant to monitor its regulations (to insure Allen had adequate insurance in compliance with its regulations) was not a cause in fact of the accident. The trial court noted that defendant may have deprived plaintiff of a solvent defendant, but did not make findings or award damages in this regard. Thus, the court dismissed plaintiff's demands against defendant, and plaintiff appeals. We affirm the trial court's finding that Allen was not an employee of defendant, but we reverse the judgment to find that plaintiff is entitled to damages for defendant's failure to insure that Allen had adequate liability coverage on the van.

OPINION

Vicarious Liability[1]

Defendant is the designated state agency to administer the State's Medical Assistance *603 Program under provisions of "Title XIX" of the Federal Social Security Act and Article 18, Section 7, Subsection 1, of the Louisiana Constitution, as amended. Part of the program includes the providing of "medically necessary nonemergency transportation" services to qualified recipients. The medically necessary nonemergency transportation program is intended to provide transportation when all other reasonable means of transportation have been explored and found to be unavailable. This transportation is available without cost to the recipient.

Defendant determines Medical Assistance recipient eligibility and enrolls "providers" of the medically necessary nonemergency transportation services. Providers must be enrolled in the Medical Assistance Program in order to receive reimbursement under Title XIX. Defendant is responsible for the arrangement of such transportation for all Title XIX recipients when requested by a recipient or his responsible party or someone acting on the recipient's behalf. The provider is not allowed to initiate a trip without defendant's approval. In instances in which Title XIX funds are authorized to provide transportation, the recipient is given the freedom to choose among providers in his service area who are enrolled. If the recipient does not make a choice, defendant assigns the least expensive transportation suitable to meet the recipient's medical needs. Otherwise, the guidelines provide that trips are to be assigned on a rotating basis to available providers. Providers who advertise their services cannot use the words "free ride" on cards or other handouts and cannot put defendant's telephone number on their advertising.

In arranging transportation, defendant advises the provider of the recipients to be transported and the times of their medical appointments. It appears that a provider may decline to transport recipients and may cancel a commitment to transport. It also does not appear that a provider must confine his transportation services to defendant.

As part of the enrollment, providers are required to abide by guidelines implemented by defendant and are subject to administrative sanctions for failure to comply. The guidelines include requirements that the providers (except those who provide services for one recipient) have minimum liability insurance in an amount set by defendant, file a certificate of insurance with the Bureau of Health Services Financing, submit to vehicle inspections, carry certain equipment, submit to traffic laws, follow certain procedures in emergency situations, as well as other requirements.

The arrangement does not have a set term at the end of which it was no longer valid. The provider can terminate the arrangement at will, but the state can terminate the arrangement only if the provider has violated policies in a way sufficiently egregious to warrant that level of punitive action.

Apparently, Allen was not on salary nor did he receive retirement benefits from the state. Also, Allen was not carried on the state's health insurance plan. Allen was paid a flat fee for pickup plus mileage.

Under Louisiana Law, a principal generally is not liable for the offenses an independent contractor commits in the course of performing its contractual duties. Davis v. State Farm Ins. Co., 558 So.2d 636 (La.App. 1st Cir.1990). However, LSA-C.C. art. 2320 provides in part that "[m]asters and employers are answerable for the damage occasioned by their servants and overseers, in the exercise of the functions in which they are employed."

The single, most important factor to consider in deciding whether the employer-employee relationship exists for purposes of art. 2320 is the right of the employer to control the work of the employee. Roberts v. State, through Louisiana Health and Human Resources Administration, 404 So.2d 1221 (La.1981). Factors to be considered in assessing the right of control are the selection and engagement of the worker, the payment of wages, and the power of control and *604 dismissal. Savoie v. Fireman's Fund Ins. Co., 347 So.2d 188 (La.1977).

"It is the right of control of the time and physical activities in the other party and the existence of a close relationship between the parties which determine that one is a servant....
"Neither jurisprudence nor modern commerce will allow us to define `servant' as one who does only physical acts. `Servant' must be interpreted as that particular kind of agent who

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Bluebook (online)
625 So. 2d 600, 1993 WL 394621, Counsel Stack Legal Research, https://law.counselstack.com/opinion/berry-v-state-through-dhhr-lactapp-1993.