Chevalier v. LH Bossier, Inc.

676 So. 2d 1072, 1996 La. LEXIS 1697, 1996 WL 363658
CourtSupreme Court of Louisiana
DecidedJuly 2, 1996
Docket95-C-2075
StatusPublished
Cited by24 cases

This text of 676 So. 2d 1072 (Chevalier v. LH Bossier, 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
Chevalier v. LH Bossier, Inc., 676 So. 2d 1072, 1996 La. LEXIS 1697, 1996 WL 363658 (La. 1996).

Opinion

676 So.2d 1072 (1996)

Ralph CHEVALIER
v.
L.H. BOSSIER, INC.

No. 95-C-2075.

Supreme Court of Louisiana.

July 2, 1996.
Rehearing Denied September 3, 1996.

*1073 Albin Alexandre Provosty, B. Scott Cowart, Provosty, Sadler & deLaunay, for Applicant.

Joseph Texada Dalrymple, Rivers, Beck & Dalrymple, for Respondent.

KIMBALL, Justice.[*]

ISSUE

We granted the writ in this worker's compensation case to determine whether a covered independent contractor who has received and continues to receive all compensation benefits to which he is entitled from his employer's compensation insurer may recover compensation benefits under La. R.S. 23:1163, or otherwise, from an employer who has violated La.R.S. 23:1163 by charging the covered claimant for the cost of his worker's compensation insurance. We hold that La.R.S. 23:1163 does not provide an employee with a private cause of action against his employer for unpaid compensation benefits and, further, that claimant in this particular case, having received all compensation benefits to which he is entitled from the employer's compensation insurer, may not recover the same compensation benefits from his employer.

FACTS AND PROCEDURAL HISTORY

The facts of this case are not disputed by the parties. Claimant, Ralph Chevalier, was hired by L.H. Bossier, Inc. ("Bossier"), a highway construction company, as an "independent hauler" to drive his own truck hauling road materials for Bossier. Though Bossier owned trucks which were driven by its own employees and paid all the maintenance, operation and insurance costs associated with its trucks, claimant, who owned his own truck, was required under his agreement with Bossier to pay for all maintenance and operation costs of his truck. Further, although Bossier withheld all required payroll deductions from the paychecks of its employee-drivers (i.e., FICA, etc.), the only sum it withheld from claimant's check was a sum remitted by Bossier to its worker's compensation insurer, Reliance Insurance Company of Illinois ("Reliance"), for the cost of worker's compensation coverage for claimant. As Bossier concedes, under this employment arrangement claimant was a covered independent contractor pursuant to La.R.S. 23:1021(6), and was therefore entitled to worker's compensation coverage from Bossier, at Bossier's cost. As such, Bossier further concedes that its deduction from claimant's paycheck of the cost of worker's compensation coverage for claimant was *1074 a violation of La.R.S. 23:1163.[1]

On November 26, 1985, while hauling materials for Bossier, claimant was injured in an automobile accident. Claimant sustained injuries in the accident which resulted in his being assessed as temporarily totally disabled under La.R.S. 23:1221(2). Since his accident in 1985, claimant has been and remains temporarily totally disabled and has received full worker's compensation benefits, weekly and medical, from Reliance, Bossier's insurer.

In 1992, claimant learned from his attorney in the instant case that the deductions made by Bossier from his paycheck for the cost of his worker's compensation coverage were made in violation of La.R.S. 23:1163. Claimant thereafter filed a claim in the Office of Worker's Compensation alleging that as Bossier had never provided compensation coverage for him, but was legally obligated to provide him with such coverage, Bossier was still liable for his compensation even though he had received and was still receiving full compensation from Reliance. In this regard, claimant maintained that since he had actually paid for his worker's compensation coverage through Bossier's payroll deductions from his paychecks, Bossier should not be allowed to take a credit for the compensation paid to him by Reliance. See La.R.S. 23:1225(C); Bryant v. New Orleans Public Service, Inc., 414 So.2d 322 (La.1982) (holding an employer and its worker's compensation insurer are not entitled to a credit against the employer's statutory worker's compensation obligation for medical expenses covered by an employee's husband's non-worker's compensation benefit plan). Claimant further asserted that his claim against Bossier was not prescribed, even though it was filed more than seven years after his accident, as he was not aware and should not have been aware of the existence of such a claim due to Reliance's payment of his compensation benefits.

Bossier, conceding its violation of La.R.S. 23:1163, nevertheless maintained Chevalier's claim had prescribed because it was filed more than one year after claimant's accident, Bossier had done nothing to prevent claimant from asserting his claim, and Chevalier's assertions regarding prescription amounted to nothing more than a claim that because he was unaware of the requirements of La.R.S. 23:1163, i.e., that because he was ignorant of the law, he was unable to timely assert his claim for benefits against Bossier. Regarding the merits of Chevalier's claim, Bossier argued that nothing in La.R.S. 23:1163 entitled claimant to a "double recovery" of worker's compensation benefits, and that in any event, Bossier and its insurer were solidary obligors for the compensation benefits to which claimant was entitled such that Reliance's payment of claimant's benefits relieved Bossier of any such obligation.

After a hearing on the claim, the worker's compensation Hearing Officer ruled the claim was not prescribed because:

Claimant reasonably believed that these payments [the Reliance payments] were in accordance with law and failed to file his claim earlier. It is only after he was advised *1075 by an attorney that his own payment of the premiums might be illegal under R.S. 23:1163 that he filed this claim. Defendant made no showing that plaintiff was unreasonable in this belief.... Benefits are being paid and the filing of this claim was delayed because of action taken by the employer intentionally or unintentionally, which led plaintiff to reasonably believe his employer was performing its duty to him.

However, the Hearing Officer, addressing the merits of Chevalier's claim against Bossier, further held:

Considering the specific facts of this case, and that claimant would be entitled to recover worker's compensation benefits from Reliance anyway in the amounts already being paid, regardless of who paid the premiums, claimant is not entitled to a double recovery. A violation of R.S. 23:1163 entitled claimant only to recovery of a penalty of $500.00 and, possibly in another jurisdiction, return of premiums paid by claimant.

The Hearing Officer therefore rendered judgment in favor of claimant for $500.00 for Bossier's violation of La.R.S. 23:1163.

On appeal, a five-judge panel of the third circuit court of appeal, in a 3-2 decision, affirmed the Hearing Officer's decision on the issue of prescription, but reversed on the merits. The court of appeal, while noting that La.R.S. 23:1163 is a criminal provision, nevertheless held that claimant could recover the $500.00 fine prescribed by La.R.S. 23:1163 from Bossier in this worker's compensation suit. The court of appeal further held that Bossier and Reliance are not solidary obligors, and that Bossier's violation of La.R.S. 23:1163 prevented Bossier from claiming a credit for the benefits paid to claimant by Reliance. The court of appeal therefore held Bossier is still liable for the entire amount of claimant's compensation benefits from the date of claimant's accident. Chevalier v. L.H. Bossier, 94-1537 (La.App. 3rd Cir. 7/12/95), 663 So.2d 70.

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Cite This Page — Counsel Stack

Bluebook (online)
676 So. 2d 1072, 1996 La. LEXIS 1697, 1996 WL 363658, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chevalier-v-lh-bossier-inc-la-1996.