Deris v. DHL Airways, Inc.

678 So. 2d 567, 96 La.App. 5 Cir. 137, 1996 La. App. LEXIS 1562, 1996 WL 438907
CourtLouisiana Court of Appeal
DecidedJune 25, 1996
DocketNo. 96-CA-137
StatusPublished

This text of 678 So. 2d 567 (Deris v. DHL Airways, Inc.) 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
Deris v. DHL Airways, Inc., 678 So. 2d 567, 96 La.App. 5 Cir. 137, 1996 La. App. LEXIS 1562, 1996 WL 438907 (La. Ct. App. 1996).

Opinion

JaWICKER, Judge.

Jefferey Deris (Deris) filed a claim for worker’s compensation with the Louisiana Office of Worker’s Compensation seeking compensation for a work related injury from an accident occurring December 7, 1993 at DHL Airways, Inc. (DHL). Deris was a part-time employee at DHL at the time as well as the sole proprietor of his business known as World Auto. The hearing officer awarded Deris additional compensation based on successive part-time employment. He denied Deris supplemental earnings benefits as well as penalties and attorney’s fees. Deris, DHL, and DHL’s insurer, Hartford Insurance Company (Hartford), appeal. We reverse in part and remand.

Deris appeals specifying the following errors:

1. The hearing officer erred in failing to award supplemental earnings benefits.
2. The hearing officer erred in failing to award penalties and attorney’s fees.

DHL and Hartford appeal specifying the following errors:

1. The court erred in holding that Deris was a part-time employee employed by two or more different employers at the time of his injury.
2. The court erred in holding that Deris, who was a part-time 13employee at DHL at the time of his accident and who was a sole proprietor of his own business named World Auto, was employed by two or more different employers in successive employment as defined in La.R.S. 23:1021(9) and (10)(a)(iv).
3. The court erred in holding that the hours worked per week by Deris as a sole proprietor of World Auto are to be added to the number of hours he worked per week as an employee at DHL in order to compute his weekly worker’s compensation rate.

SUCCESSIVE EMPLOYMENT

DHL and Hartford argue that Deris, who was the sole proprietor of World Auto, is not an employee under La.R.S. 23:1021(9)1 and (10)(a)(iv).2 They assert that La.R.S. [569]*56923:10443 precluded Deris from being considered an employee of World Auto since he was not rendering service for another. It is undisputed that Deris was a part-time employee of DHL.

The hearing officer found La.R.S. 23:1035(A)4 to be controlling. It provides coverage for sole proprietors. Deris testified he had no worker’s compensation at his place of business at the time of the accident. The failure to have worker’s compensation provided to himself in Lhis own business is not dispositive of whether he is entitled to the successive employer benefits. There is nothing in the successive employment statute which requires successive employers to also be covered by worker’s compensation in order for the part-time employee to get the additional benefits. La.R.S. 23:1021(10)(a)(iv)(aa) and (bb). La.R.S. 23:1035 provides that he is not precluded from coming under the act simply because he is a sole proprietor.

DHL and Hartford argue that Deris is not an employee under 23:1044 because he was not rendering service to another. The testimony shows otherwise. Deris testified he functioned as an employee of his business, World Auto, and drew commission checks as draws from the company. These checks were introduced into evidence and show that he was paid by World Auto for his services. The hearing officer correctly concluded Deris was an employee of World Auto.

Deris further testified he was unable to continue working in the business due to his injuries from the work accident. He suffered a loss of earning capacity as a result.

Malone & Johnson, 14 Louisiana Civil Law Treatise (Workers’ Compensation), § 325 at 107 (1994 ed.) opined:

To the employee this loss of earning capacity is everything, and it seems hardly just to point out to him that it is just tough luck that he lost his complete earning capacity at his part-time job.

DHL and Hartford also argue that in order to have the benefit of successive employment Deris must be paid by the hour from his employment with World Auto. They rely on 23:1021(10)(a) for this proposition. However, 23:1021(10) which defines “wages” must be read in its entirety.5 Sec[570]*570tion 10 gives more than one method for calculating wages Rother than on an hourly basis. While the provision dealing with successive employment by part-time workers is contained in the category entitled “hourly wages,” the successive employment provision does not require that the employee work on an hourly basis. Instead, it merely gives the basis on which his or her benefits are calculated. It states that the “employee shall be entitled to benefits computed by determining wages under the provisions of this Subsection using his hourly rate in employment at the time of injury and using the total hours worked for all employers of the part-time employee, but not to exceed his average, actual weekly hours worked or forty hours weekly, whichever is less.” The hearing officer calculated the rate accordingly.

Furthermore, “worker’s compensation laws must be given a liberal interpretation.” Morris v. Reve, Inc., 95-310 (La.App. 5th Cir. 10/18/95), 662 So.2d 525; writ denied, 95-3037 (La. 2/16/96), 667 So.2d 1055 at 530.

| ¡¡PENALTIES AND ATTORNEY’S FEES

William Harold Herring, the claims representative, testified he calculated Deris’ compensation rate based only on a wage statement from DHL. He was unaware of any other employment until Deris informed him he was losing money at his other employment as well. He requested verification from Deris but never received documentation of the number of hours worked. He turned the file over to the insurer’s attorney.

Since the issue of whether Deris is entitled to the benefit of successive employment is res nova we find the hearing officer was not manifestly erroneous in denying attorney’s fees6 and penalties.7

We find no error in the hearing officer’s concluding a reasonable controversy existed over whether Deris, as a sole proprietor, was entitled to the benefits of successive employment in computing his wages. Thus, there is no error in his failure to award penalties. We also find no error in the hearing officer’s evidently finding that DHL was not arbitrary and capricious in computing the wages. Accord, Ducharme v. Garland Belongia, 544 So.2d 590 (La.App. 1st Cir.1989), writ not considered, 548 So.2d 315 (La.1989).

SUPPLEMENTAL EARNINGS BENEFITS

The parties stipulated as follows:

[571]*5711. Deris was injured December 7, 1993 in the course and scope of his employment with DHL.
2. He received compensation in the amount of $137.06 per week based on an average weekly wage with DHL of $205.59 per week. Deris was paid compensation from December 10, 1993 through November 11,1995.
3. Deris was hired as a part-time employee for DHL for two days a week and the average weekly wage was based on an average of 21 hours a week for the 28 days before the accident.
4. Hartford is the compensation insurer.

The hearing officer concluded the vocational expert showed employment was available to Deris within the restrictions presented by his physicians. We find manifest error in that conclusion.

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Related

Morris v. Reve, Inc.
662 So. 2d 525 (Louisiana Court of Appeal, 1995)
Daigle v. Sherwin-Williams Co.
545 So. 2d 1005 (Supreme Court of Louisiana, 1989)
Guidry v. BOH BROS. CONST. CO., INC.
545 So. 2d 538 (Louisiana Court of Appeal, 1989)
Ducharme v. Garland Belongia
544 So. 2d 590 (Louisiana Court of Appeal, 1989)
Pinkins v. Cardinal Wholesale Supply, Inc.
619 So. 2d 52 (Supreme Court of Louisiana, 1993)
Ducharme v. Belongia
548 So. 2d 315 (Supreme Court of Louisiana, 1989)

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678 So. 2d 567, 96 La.App. 5 Cir. 137, 1996 La. App. LEXIS 1562, 1996 WL 438907, Counsel Stack Legal Research, https://law.counselstack.com/opinion/deris-v-dhl-airways-inc-lactapp-1996.