Flores v. A & Z Tobacco, LLC

152 So. 3d 1004, 14 La.App. 3 Cir. 505, 2014 La. App. LEXIS 2790, 2014 WL 6460865
CourtLouisiana Court of Appeal
DecidedNovember 19, 2014
DocketNo. WCA 14-505
StatusPublished
Cited by1 cases

This text of 152 So. 3d 1004 (Flores v. A & Z Tobacco, LLC) 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
Flores v. A & Z Tobacco, LLC, 152 So. 3d 1004, 14 La.App. 3 Cir. 505, 2014 La. App. LEXIS 2790, 2014 WL 6460865 (La. Ct. App. 2014).

Opinions

BILLY HOWARD EZELL, Judge.

|, In this workers’ compensation appeal, A & Z Tobacco, LLC raises issues concerning an award of penalties and attorney fees for failure to pay a judgment within thirty days pursuant to La.R.S. 23:1201(G). Belinda Flores, the claimant, answered the appeal claiming that the award of penalties should have been greater and asking for additional attorney fees for work performed on appeal.

[1007]*1007FACTS

Ms. Flores was injured on April 14, 2012, while working for A & Z. At the time of her injury she was moving and lifting a case of beverages when she felt a pop in her right arm and shoulder. She injured her rotator cuff which ultimately required surgery. Ms. Flores filed a workers’ compensation claim on May 9, 2012. A & Z contested whether Ms. Flores suffered an injury.

Trial was set for April 24, 2013. After discussions with the workers’ compensation judge, the parties entered into an agreement on a motion to compel discovery. Trial of the matter was continued until June 24, 2013. On the day set for trial, the parties entered a stipulation settling the case which was recited in open court. A & Z agreed to pay back indemnity to Ms. Flores in the amount of $9,619.02. It was also agreed that indemnity would continue at the rate of $178.13 a week while Ms. Flores received treatment from Dr. Brent Cascio, an orthopedic surgeon. If Ms. Flores required surgery, A & Z agreed to pay for medical care for six weeks after surgery. If Ms. Flores required physical therapy after surgery, then A & Z agreed to pay for ten weeks of medical care. A & Z also agreed to pay outstanding medical bills in the amount of $845.47. Additionally, A & Z agreed to pay penalties in the amount of $4,000.00 and attorney fees in the amount of 12$7,500.00. Also, Dr. Anand Roy personally obligated himself to pay the stipulated penalties and attorney fees if A & Z did not pay.

On July 25, 2013, Ms. Flores filed a motion for contempt of court and for penalties pursuant to La.R.S. 23:1201(G). Ms. Flores also complained that improper contact had been made with her treating physicians. On July 26, 2013, A & Z presented a check in the amount of $21,964.49. A hearing was held on September 18, 2013. After taking the matter under advisement, the workers’ compensation judge rendered judgment on December 26, 2013. The court awarded penalties in the amount of $2,000.00 and attorney fees in the amount of $3,000.00 pursuant to La.R.S. 23:1201(G) for failure to timely pay a final and nonap-pealable judgment within thirty days. The trial court also held that any verbal communication or personal conferences with any of Ms. Flores’s health care providers was to be conducted pursuant to La.R.S. 23:1127.

A & Z filed the present appeal. It argues that penalties and attorney fees were inappropriate. A & Z also argues that a stipulation was entered into at trial about contact with Ms. Flores’s health care providers and the judgment should have been worded in conformity with the stipulation. Ms. Flores answered the appeal claiming that the amount of penalties should be increased and asking for additional attorney fees for work performed on appeal.

PENALTIES AND ATTORNEY FEES

A & Z sets forth three reasons that penalties and attorney fees were inappropriately awarded pursuant to La.R.S. 23:1201(G). It first argues that Ms. Flores waived and compromised any right to the penalties and attorney fees when she cashed the check. Next, it argues that there was not a final and nonappealable judgment at the time it made payment. Finally, A & Z argues that it was unable to |spay the judgment due to conditions over which it had no control, falling under the exception in La.R.S. 23:1201(G).

Awards of penalties and attorney fees in workers’ compensation eases are essentially penal in nature and are imposed to deter indifference and undesirable conduct by employers and their insur[1008]*1008ers toward injured workers. Williams v. Rush Masonry, Inc., 98-2271 (La.6/29/99), 737 So.2d 41. While the benefits conferred by the Workers’ Compensation Act are to be liberally construed, penal statutes are to be strictly construed. Id.

Louisiana Revised Statutes 23:1201(G) provides:

If any award payable under the terms of a final, nonappealable judgment is not paid within thirty days after it becomes due, there shall be added to such award an amount equal to twenty-four percent thereof or one hundred dollars per day together with reasonable attorney fees, for each calendar day after thirty days it remains unpaid, whichever is greater, which shall be paid at the same time as, and in addition to, such award, unless such nonpayment results from conditions over which the employer had no control. No amount paid as a penalty under this Subsection shall be included in any formula utilized to establish premium rates for workers’ compensation insurance. The total one hundred dollar per calendar day penalty provided for in this Subsection shall not exceed three thousand dollars in the aggregate.

Louisiana Revised Statutes 28:1201(G) only applies when there is a final and nonappealable judgment. Therefore, we will first address A & Z’s argument that there was not a final and nonappealable judgment.

Final and Nonappealable Judgment

A & Z argues that there was not a final and nonappealable judgment until the trial court signed the judgment on September 11, 2013, because Ms. Flores requested that the judgment be reduced to writing and there was a dispute regarding the content and intent of the stipulation and language of the judgment. |4A & Z argues that Ms. Flores’s reliance on Trahan v. Coca Cola Bottling Co., United, Inc., 04-100 (La.3/2/05), 894 So.2d 1096, is misplaced in this case because the claimant did not cash the check in Trahan, whereas the check was cashed in this case.

Whether the check was cashed or not makes no difference as to whether there was a final and nonappealable judgment. The supreme court held that a signed judgment is unnecessary when the requirements for an oral compromise pursuant to La.Civ.Code art. 3071 are satisfied. The supreme court noted that La.Civ.Code art. 3071 “provides for two elements of a compromise: (1) mutual intention of preventing or putting an end to the litigation, and (2) reciprocal concessions of the parties to adjust their differences.” Trahan, 894 So.2d at 1104. “To be enforceable under Article 3071, a compromise must either be reduced to writing and signed by the parties or their agents, or be recited in open court and be capable of transcription from the record of the proceeding.” Id. (emphasis added).

The supreme court also observed that a compromise recited in open court and entered into by the parties, whereby the employer agrees to pay certain sums to the claimant in exchange for ending pending litigation, constitutes a confession of judgment such that defendant is not entitled to an appeal. Id. It “confers upon the parties the right of judicial performance.” Id. at 1109.

A review of the record in the present case discloses that all the elements of a compromise were met; the compromise was recited in open court and capable of transcription from the record on June 24, 2013.

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Bluebook (online)
152 So. 3d 1004, 14 La.App. 3 Cir. 505, 2014 La. App. LEXIS 2790, 2014 WL 6460865, Counsel Stack Legal Research, https://law.counselstack.com/opinion/flores-v-a-z-tobacco-llc-lactapp-2014.