City of Bastrop v. Harris

198 So. 3d 163, 2016 La. App. LEXIS 1215
CourtLouisiana Court of Appeal
DecidedJune 22, 2016
DocketNo. 50,727-WCA
StatusPublished
Cited by6 cases

This text of 198 So. 3d 163 (City of Bastrop v. Harris) 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
City of Bastrop v. Harris, 198 So. 3d 163, 2016 La. App. LEXIS 1215 (La. Ct. App. 2016).

Opinion

STONE, J.

| j This action arises out of the Office of Workers’ Compensation Court, District 01E, Ouachita Parish, Judge Brenza Irving Jones presiding. The City of Bastrop appeals the judgment of the workers’ compensation judge which sustained Steven Harris’ peremptory exception , of res judi-cata. For the following reasons, we affirm.

FACTS AND PROCEDURAL HISTORY

On June 1, 2001, Steven' Harris (“Harris”) was injured during an accident arising out of and in the course of his employment as a fireman with the City of Bastrop (“Bastrop”).1 In connection with Harris’ knee injury, Bastrop paid Harris workers’ compensation under total temporary disability and thereafter; supplemental earnings benefits (“SEBs”). Due to the statutory five hundred and twenty (520) week maximum,2 the benefits terminated on May 31, 2012.3 On September 8, 2011, Harris filed a Louisiana Department of Labor Form 1008 against Bastrop alleging his workers’ compensation rate was incorrect and he was being underpaid.4 • Bas-trop answered the suit and filed a recon-ventional demand claiming, among other things, it made SEB payments in excess of 520 weeks and was entitled to recover the overpayment. After considering the evidence and testimony presented at trial, the Workers’ Compensation Judge (‘WCJ”) denied Harris’ claim that he had received insufficient benefits. Instead, the WCJ found Bastrop’s adjuster incorrectly calculated- Harris’ qualified ^monthly payment amount, which resulted in Harris being overpaid $4,368.005 in SEBs. Bastrop’s reconventional demand was dismissed.6

[165]*165On January 14, 2015, this court affirmed the WCJ’s ruling. Harris v. City of Bastrop, 49,534 (La.App.2d Cir.1/14/15), 161 So.3d 948. On March 17, 2015, Bastrop filed, in a separate suit, a petition with the Office of Workers’ Compensation seeking recovery of the $4,368.00 overpayment. In response to the petition, Harris filed peremptory exceptions of res judicata and prescription. In support of his exception of res 'judicata, Harris argued Bastrop was obligated to bring its claim for reimbursement in the prior proceedings; however, since it failed to successfully do so, Bas-trop was now precluded from pursuing reimbursement in a separate action.

Bastrop claimed its présent reimbursement cause of action was derived from a different transaction or occurrence — one that did not arise until the WCJ ruled Bastrop overpaid due to an error in how the benefits were calculated. Bastrop averred there was no way it could have known of the miscalculation prior to the WCJ’s ruling,’ and therefore, there was no way it could have previously asserted the claim.

After the hearing on the exceptions, the WCJ granted the peremptory exception of res judicata and dismissed Bastrop’s suit.7 The WCJ applied La. C.C.P. art. 1061(B) and determined Bastrop’s claim for reimbursement |ashould have been brought during the original litigation. Bastrop now appeals the ruling of the WCJ.

DISCUSSION

Bastrop argues the WCJ erred in granting Harris’ peremptory exception of res judicata and denying Bastrop’s $4,368.00 reimbursement claim. Bastrop argues this cause of action was not available to the parties until January 14, 2015 when this Court upheld the trial court’s ruling. Bas-trop further asserts this action did not arise from the same transaction or occurrence of the initial suit. Accordingly, Bas-trop contends its suit is not precluded by the application of res judicata.

Conversely, Harris asserts the WCJ did not err in granting the peremptory exception of res judicata. He contends his initial suit and Bastrop’s second suit arose from the same transaction or occurrence, specifically the workers’ compensation benefits. Harris maintains if Bastrop believed it had overpaid funds, it was obligated to bring its reimbursement claim as a compulsory reconventional demand in the initial litigation and its failure to properly do so now bars Bastrop from pursuing any reimbursement claim.

The standard of review of a ruling sustaining an exception of res judicata is manifest error when the exception is raised prior to the case being submitted and evidence is received from both parties. Jones ex rel. Jones v. GEO Group, Inc., 2008-1276 (La.App. 3d Cir.4/1/09), 6 So.3d 1021. The res judicata effect of a prior judgment is a question of law that is reviewed de novo on appeal. Alpine Meadows, L.C. v. Winkler, 49,490 (La.App.2d Cir.12/10/14), 154 So.3d 747, writ denied, 2015-0292 (La.4/24/15), 169 So.3d 357. The party urging the exception bears the burden of proving its essential elements by a preponderance of the evidence. If there is any doubt as to its applicability, the exception must be overruled. Eddens v. Exceptional Client Care, LLC, 48,747 (La.App.2d Cir.2/26/14), 135 So.3d 784.

Res judicata ensures the finality of judgments and prevents litigation of all grounds for, or defenses to, recovery that were previously available to the parties, regardless of whether they were asserted dr determined in the prior proceeding. [166]*166Paradise Village Children’s Home, Inc. v. Liggins, 38,926 (La.App.2d Cir.10/13/04); 886. So.2d 562, writ denied, 2005-0118 (La.2/4/05), 893 So.2d 884. This doctrine serves public policy interests by promoting judicial efficiency and fairness between the parties. Wagoner v. Chevron USA, Inc., 48,119 (La.App.2d Cir.7/24/13), 121 So.3d 727, writs denied, 2013-2037 (La.11/15/13), 126 So.3d 470, 2013-2041 (La.11/15/13), 126 So.3d 471, 2013-2466 (La.11/15/13), 126 So.3d 473, and 2013-2272 (La.11/15/13), 129 So.3d 523. It also promotes the final resolution of disputes. Hawthorne v. Couch, 41,603 (La.App.2d Cir.12/20/06), 946 So.2d 288, writ not considered, 2007-0173 (La.3/16/07), 952 So.2d 685.

Under Louisiana’s res judicata statute, if a judgment is in favor of the defendant, all causes of action existing at the time of final judgment arising out of the transaction or occurrence that is the subject matter of the litigation are extinguished and the judgment bars a subsequent action on those causes of action. La. R.S. 13:4231. Moreover, a judgment in favor of either the plaintiff or the defendant is conclusive, in any subsequent action between |5them, with respect to any issue actually litigated and determined if its determination was essential to the judgment. La. R.S, 13:4231. The Louisiana res judicata law encompasses both claim and issue preclusion. Five N Company, L.L.C. v. Stewart, 02-0181 (La.App. 1st Cir.7/2/03), 850 So.2d 51.

In Burguieres v. Pollingue, 02-1385 (La.2/25/03), 843 So.2d 1049, 1052, 1053 the Louisiana Supreme Court established the five prerequisites for a finding of res judicata under the provisions of La. R.S. 13:4231:(1) the judgment is valid; (2) the judgment is final; (3) the parties are the same; (4) the cause or causes of action asserted in the second suit existed at the time of the final judgment in the first litigation; and (5) the cause or causes of action asserted in the second suit arose out of the transaction or occurrence that was the subject matter, of the first litigation.

After applying the Burguieres five-part test to the facts of this case, this court holds Bastrop’s suit for reimbursement is precluded under the principles of res judi-cata.

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198 So. 3d 163, 2016 La. App. LEXIS 1215, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-bastrop-v-harris-lactapp-2016.