Bowens v. General Motors Corp.

596 So. 2d 243, 1992 WL 45858
CourtLouisiana Court of Appeal
DecidedJune 5, 1992
Docket90-929
StatusPublished
Cited by6 cases

This text of 596 So. 2d 243 (Bowens v. General Motors Corp.) 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
Bowens v. General Motors Corp., 596 So. 2d 243, 1992 WL 45858 (La. Ct. App. 1992).

Opinion

596 So.2d 243 (1992)

Clyde A. BOWENS, Plaintiff-Appellant,
v.
GENERAL MOTORS CORPORATION, Defendant-Appellee, and Louisiana Insurance Guaranty Association, Defendant-Appellant.

No. 90-929.

Court of Appeal of Louisiana, Third Circuit.

March 11, 1992.
Rehearing Denied April 8, 1992.
Writ Granted June 5, 1992.

*244 Broussard, Bolton, Halcomb & Vizzier, Roy S. Halcomb, Jr., Alexandria, for plaintiff-appellant.

Stafford, Stewart & Potter, Russell L. Potter, Alexandria, for defendant-appellant LIGA.

Lunn, Irion, Johnson, Salley & Carlisle, Frank M. Walker, Jr., Shreveport, for defendant-appellee GM.

Before FORET and LABORDE, JJ., and PATIN[*], J. Pro Tem.

LABORDE, Judge.

This case arose from a motor vehicle accident in which the plaintiff ran into the back of an eighteen wheeler. Plaintiff was delivering parts for General Motors from Michigan to Louisiana. Plaintiff was injured as a result of this accident and filed suit against General Motors Corporation (GM), Bonded Freight Service, Inc., and Louisiana Insurance Guaranty Association (LIGA) for worker's compensation benefits. After trial on the merits, the trial court found General Motors was not plaintiff's statutory employer and that LIGA was liable to plaintiff for worker's compensation benefits as well as penalties and attorney's fees. We reverse the decision of the trial court finding GM is the statutory employer of the plaintiff, and thus, LIGA is not responsible for worker's compensation benefits, penalties or attorney's fees.

FACTS

On February 5, 1989, plaintiff was employed by Bonded Freight Service, Inc. (Bonded). Bonded had been hired by General Motors Corporation (GM) to transport parts for their trucks from the manufacturing plants in Michigan to the assembly plant in Shreveport, Louisiana. After picking up a load of engines from the Michigan plant, plaintiff was en route to Shreveport when he slid into the back of an eighteen wheeler after attempting to stop on an icy road.

This accident occurred on Louisiana Highway 3 approximately five or six miles north of Plain Dealing, Louisiana. Plaintiff suffered disabling injuries to his neck, both shoulders and arms, back, and left leg. Plaintiff requested worker's compensation benefits from his employer, Bonded, and their insurer, Anglo American Insurance Company. Plaintiff received three checks from Bonded in the amount of $267.00. After no further payments were received, plaintiff filed suit for worker's compensation benefits naming General Motors, Bonded, and LIGA as defendants. Prior to trial, Anglo American Insurance Co. was declared insolvent with LIGA assuming responsibility for their policies and Bonded declared bankruptcy causing a stay order to be placed on all proceedings against them. Plaintiff's claims against Bonded was severed, and the matter proceeded *245 to trial against the remaining defendants, GM and LIGA.

The trial court found GM was not plaintiff's statutory employer and thus not responsible for worker's compensation benefits. The court also found LIGA was responsible for worker's compensation benefits to the plaintiff and that LIGA had acted arbitrarily and capriciously in withholding such benefits and was therefore liable for penalties and attorney's fees. The plaintiff and defendant, LIGA, now appeal this judgment alleging five assignments of error. Since the plaintiff and LIGA have appealed separately, we will address each of their assignments of error individually.[1]

WORKER'S COMPENSATION

The plaintiff alleges in his first assignment of error the trial court erred in not applying the amendment to La.R.S. 23:1061. This statute reads as follows:

PART I. SCOPE AND OPERATION
SUBPART C. LIABILITY OF PRINCIPAL TO EMPLOYEES OF INDEPENDENT CONTRACTOR
§ 1061. Principal contractors; liability
A. When any person, in this Section referred to as the "principal", undertakes to execute any work, which is a part of his trade, business, or occupation or which he had contracted to perform, and contracts with any person, in this Section referred to as the "contractor", for the execution by or under the contractor of the whole or any part of the work undertaken by the principal, the principal shall be liable to pay to any employee employed in the execution of the work or to his dependent, any compensation under this Chapter which he would have been liable to pay if the employee had been immediately employed by him; and where compensation is claimed from, or proceedings are taken against, the principal, then, in the application of this Chapter reference to the principal shall be substituted for reference to the employer, except that the amount of compensation shall be calculated with reference to the earnings of the employee under the employer by whom he is immediately employed. The fact that work is specialized or nonspecialized, is extraordinary construction or simple maintenance, is work that is usually done by contract or by the principal's direct employee, or is routine or unpredictable, shall not prevent the work undertaken by the principal from being considered part of the principal's trade, business, or occupation, regardless of whether the principal has the equipment or manpower capable of performing the work.
B. When the principal is liable to pay compensation under this Section, he shall be entitled to indemnity from any person who independently of this Section would have been liable to pay compensation to the employee or his dependent, and shall have a cause of action therefor.

Amended by Acts 1989, No. 454, § 3, eff. Jan. 1, 1990. (Amendment emphasized)

This statute was amended by Acts 1989, No. 454, section 3, effective January 1, 1990. The cause of action in the present case arose on February 5, 1989, thus the pertinent issue is whether this amendment should be applied retroactively or prospectively. This issue was directly addressed by this court in Fountain v. Central Louisiana Electric Co., Inc., 578 So.2d 236 (La.App. 3d Cir.1991), writ denied, 581 So.2d 707 (La.1991). Judge Domengeaux in his concurring opinion stated:

"However, I think it should be mentioned that by Acts 1989, No. 454, effective January 1, 1990, the Legislature amended La.R.S. 23:1061(A), apparently overruling Berry and much of the other jurisprudence defining `trade, business, or occupation.' Considering the sweeping change this amendment makes in our *246 prior law, I think it is clearly substantive and should not be applied retroactively."

The La.C.C. art. 6 states that in the absence of contrary legislative expression, substantive laws are to be applied prospectively only. There has also been much jurisprudence in this area holding laws that are substantive in nature are to be applied prospectively. Graham v. Sequoya Corp., 478 So.2d 1223 (La.1985); Miller v. J.P. Owen Co., Inc., 509 So.2d 1038 (La.App. 3d Cir.1987), writ denied, 514 So.2d 455 (La. 1987). Applying the above statute and jurisprudence, we agree with Judge Domengeaux and find the amendment to be substantive and thus will not be applied retroactively. Therefore, the trial court did not err in not applying this amendment to the present case.

STATUTORY EMPLOYEE

Plaintiff asserts in his second assignment of error the trial court erred in finding GM was not plaintiff's statutory employer.

As stated in La.R.S.

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Related

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608 So. 2d 999 (Supreme Court of Louisiana, 1992)
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Graves v. Lou Ana Foods, Inc.
604 So. 2d 150 (Louisiana Court of Appeal, 1992)

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596 So. 2d 243, 1992 WL 45858, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bowens-v-general-motors-corp-lactapp-1992.