Dufrene v. Morgan Equipment Rental, Inc.

754 So. 2d 1000, 1999 WL 743965
CourtLouisiana Court of Appeal
DecidedSeptember 24, 1999
Docket98 CA 1582
StatusPublished
Cited by8 cases

This text of 754 So. 2d 1000 (Dufrene v. Morgan Equipment Rental, 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
Dufrene v. Morgan Equipment Rental, Inc., 754 So. 2d 1000, 1999 WL 743965 (La. Ct. App. 1999).

Opinion

754 So.2d 1000 (1999)

June A. Dufrene, Wife of, and Andrew J. DUFRENE
v.
MORGAN EQUIPMENT RENTAL, INC.; ABC Insurance Company; Jones Equipment Services, Inc.; DEF Insurance Company; Scott General, Inc.;[1] GHI Insurance Company, Manufacturer; and JKL Insurance Company.

No. 98 CA 1582.

Court of Appeal of Louisiana, First Circuit.

September 24, 1999.

*1001 John A. Venezia, New Orleans, Counsel for Plaintiffs/Appellants June A. Dufrene and Andrew J. Dufrene.

Musa Rahman, Baton Rouge, Counsel for Intervenor Louisiana Workers' Compensation Corporation.

Charles M. Hughes, Jr., Mandeville, Counsel for Defendant/Appellee Scott Construction Equipment.

Alan R. Sacks, Timothy W. Hassinger, New Orleans, Counsel for Defendant/Appellee Jones Equipment Services, Inc.

Before: GONZALES, FITZSIMMONS, and WEIMER, JJ.

WEIMER, J.

Plaintiffs, June A. Dufrene and Andrew Dufrene, appeal a judgment sustaining the exceptions of prescription filed by defendants/alleged third-party tortfeasors, Scott Construction Equipment ("Scott") and Jones Equipment Services, Inc. ("Jones"). The sole issue in this appeal is whether the workers' compensation insurance carrier acknowledged a debt to Mr. Dufrene, as a *1002 workers' compensation claimant, so as to interrupt the tolling of the prescriptive period of one year applicable to the Dufrenes' personal injury action against the alleged third-party tortfeasors. Considering the undisputed facts and the lack of contradictory evidence in the record, we find no manifest error in the conclusion reached by the trial court and affirm.

FACTS

It is undisputed that Mr. Dufrene was injured in a December 30, 1992 accident during the course and scope of his employment as a crane operator with Torch Incorporated ("Torch"). Torch's workers' compensation insurer, the Louisiana Workers' Compensation Corporation ("LWCC"), voluntarily began paying disability benefits after Mr. Dufrene filed a claim for benefits.

Over four years after the accident, on June 5, 1997, the Dufrenes filed suit for damages, naming Scott and Jones as two of the defendants and alleging liability on their part as repairers of the crane involved in the accident. Mr. Dufrene testified he was aware repairs had been made on the crane prior to the accident as he signed the tickets on the repairs.

The LWCC intervened in the suit for recovery of compensation paid. Testimony at the hearing of the exceptions revealed LWCC paid $106,000.00 in medical and weekly benefits from the time of the accident until the date of the hearing. On December 1, 1997, the trial court signed a judgment sustaining the exceptions of prescription filed by Scott and Jones, and dismissing plaintiffs' claims against them.

On appeal, the Dufrenes assign the following errors:

1. The Trial Court erred in finding that LWCC did not acknowledge the debt to Mr. Dufrene.
2. The Trial Court erred in finding that LWCC's acknowledgement of the debt owed to Mr. Dufrene did not interrupt prescription as to Scott and Jones.

INTERRUPTION OF PRESCRIPTION

The recent case of Gary v. Camden Fire Insurance Company, 96-0055 (La.7/2/96), 676 So.2d 553 is controlling. The Louisiana Supreme Court held that the voluntary payment of workers' compensation benefits does not interrupt prescription with regard to a worker's claims against third-party tortfeasors. In Gary, as in the instant case, the claimant did not file suit against the employer or the employer's workers' compensation insurer because compensation benefits were paid voluntarily. The court explained:

Such voluntary payments are insufficient to toll prescription under [La. Civil Code] Article 3462 which specifically requires the filing of a lawsuit.
The reason for adherence to the dictate of Article 3462, which requires filing suit to interrupt prescription, is simple. When a lawsuit is filed against the employer, prescription is interrupted as to claims against the employer pursuant to Article 3462. Because the third-party tortfeasor is a solidary obligor, the interruption of prescription is applicable also to a claim against a third-party tortfeasor, as this court held in Williams v. Sewerage & Water Bd. of New Orleans, 611 So.2d [1383] at 1387 [(La.1993)]. See also La. Civ.Code arts. 1799 and 2324C. When a lawsuit is filed against the employer in a competent court, prescription is interrupted because the legal system is put into motion and the purposes of prescriptive laws are satisfied. The time limit for filing a delictual action is a legislative device intended to promote legal finality, bar stale claims, and prevent prejudice to defendants. When the employer voluntarily pays workers' compensation benefits (which may continue for many years), and the *1003 injured employee files no lawsuit against any party, none of the goals of prescription statutes are met with regard to claims against a third-party tortfeasor. There is no analogy between a lawsuit against an employer and mere claim assertion which prompts voluntary workers' compensation payments. While the former may interrupt prescription, Williams v. Sewerage & Water Bd. of New Orleans, supra, the latter simply does not. (Emphasis supplied.)

96-0055 at pp. 3-4, 676 So.2d at 555-556.

However, the Louisiana Supreme Court noted further in Gary that the employer's voluntary payment of benefits would be an acknowledgement of debt sufficient to interrupt prescription were it not for the statutory provision of the workers' compensation law which assures employers that such payment does not constitute an admission of liability. LSA-R.S. 23:1204; Gary v. Camden Fire Insurance Company, 96-0055 at 5, 676 So.2d at 556. The court explained:

In addition to interruption by the filing of a lawsuit, Louisiana codal articles provide another means of interrupting the prescriptive period. La.Civ.Code art. 3464 provides that "[p]rescription is interrupted when one acknowledges the right of the person against whom he had commenced to prescribe." The court of appeal in this case held that the employer's voluntary payment of workers' compensation benefits constituted an acknowledgement which interrupted prescription with regard to plaintiffs' claims against defendants/third-party tortfeasors. We disagree with that conclusion.
An acknowledgement is "the recognition of the creditor's right or obligation that halts the progress of prescription before it has run its course." It involves an admission of liability, either through explicit recognition of a debt owed, or through actions of the debtor that constitute a tacit acknowledgement. Acknowledgement may be made "verbally, in writing, by partial payment, by payment of interest or by pledge, or in other ways; or it may be implicit or inferred from the facts and circumstances." A tacit acknowledgement arises from a debtor's acts of reparation or indemnity, unconditional offers or payments, or actions which lead the creditor to believe that the debtor will not contest liability. Acknowledgement interrupts prescription before it has expired, with the prescriptive period beginning to run anew from the time of the interruption.
Were it not for the existence of La. Rev.Stat. 23:1204

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