Freeman v. Elliott Co.

34 So. 3d 344, 9 La.App. 5 Cir. 921, 2010 La. App. LEXIS 193, 2010 WL 446569
CourtLouisiana Court of Appeal
DecidedFebruary 9, 2010
Docket09-CA-921
StatusPublished
Cited by1 cases

This text of 34 So. 3d 344 (Freeman v. Elliott Co.) 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
Freeman v. Elliott Co., 34 So. 3d 344, 9 La.App. 5 Cir. 921, 2010 La. App. LEXIS 193, 2010 WL 446569 (La. Ct. App. 2010).

Opinion

SUSAN M. CHEHARDY, Judge.

12This is a workers’ compensation proceeding in which the claimant appeals the ruling of the workers’ compensation judge that he forfeited his right to receive any further benefits. We affirm.

FACTS

John J. Freeman was employed by Elliott Company as a steam turbine mechanic when he sustained a back injury in a work-related accident on January 22, 1998. 1 He underwent several surgeries over the course of time and attempted to perform light-duty jobs for his employer, but eventually was laid off by Elliott. As a result of the injury he received medical benefits and indemnity benefits for several years.

In September 2004, Freeman was involved in a non-work-related motor vehicle accident. He filed suit regarding that accident and the suit eventually was settled. 2 He neither notified Elliott Company of the pendency of the lawsuit nor sought the company’s approval before settling it.

In November 2007 Freeman filed a Disputed Claim for Compensation against Elliott Company and its workers’ compensation insurer, Hartford Fire [¡¡Insurance *346 Company (both hereafter collectively called “Elliott”). Freeman complained that Elliott had refused to authorize medical treatment recommended by his treating physicians. He also sought attorney’s fees and penalties for nonpayment for his medical treatment.

In answer Elliott denied that Freeman is entitled to additional benefits or to penalties and attorney’s fees. Elliott asserted its right to reduce benefits and to various credits/offsets pursuant to La. R.S. 23:1206, La. R.S. 23:1212, and La. R.S. 23:1225. 3 Elliott further asserted the right to a credit for any amounts that Freeman receives or has received from third parties as a result of his alleged job injuries, as well as a credit for any wages that he earned with any employer after the date of this accident. Finally, Elliott asserted the right to a credit for any amounts that it paid to or on behalf of Freeman as a result of the January 22, 1998 job accident.

In January 2008, Elliott ceased payment of benefits for the 1998 injury. 4 In December 2008 Freeman filed an Amended and Supplemental Disputed Claim for Compensation. He sought a determination that he is permanently and totally disabled as a result of the 1998 accident, reinstatement of his disability benefits and medical payments, and penalties and attorney’s fees.

In answer to the amended and supplemental claim, Elliott denied that Freeman is entitled to additional benefits, denied that he requires additional medical treatment as a result of the January 1998 job accident, and denied that he is entitled to penalties and attorney’s fees. Elliott asserted that, pursuant to La. R.S. 23:1102(B), by settling his claim against a third party without Elliott’s prior written approval, Freeman forfeited the right to additional benefits. Elliott |4reiterated its rights to reduction/offset of and/or credits against benefits pursuant to La. R.S. 23:1206, 23:1212, and 23:1225.

At the start of trial, the parties stipulated that Freeman was an employee of Elliott Company on January 22,1998; that he suffered an accident in the course and scope of his employment on that date; that Hartford Fire Insurance Company is the workers’ compensation insurer of Elliott Company for the January 1998 accident; and that Freeman’s average weekly wage for the four weeks prior to his January 1998 accident was $1,059.28.

The issues at trial were the extent of Freeman’s present disability as a result of the January 1998 accident, whether Freeman is entitled to penalties and attorney’s fees for premature and unwarranted cessation of his benefits, and whether Freeman forfeited his rights to additional workers’ compensation benefits by settling the lawsuit arising out of the 2004 accident without Elliott’s written approval. Freeman filed into evidence his medical records from numerous healthcare providers, as well as a rehabilitation job analysis, a job accidents report, and his earnings statement. Elliott filed in evidence the deposi *347 tions of Freeman and of his treating psychiatrist, as well as a copy of the pleadings from Freeman’s tort suit arising out of the 2004 vehicle accident.

After taking the case under advisement, the workers’ compensation judge dismissed Freeman’s claim with prejudice and at his costs. In written reasons incorporated into the judgment, the judge held that Freeman had forfeited his right to additional compensation as a result of his January 22, 1998 job accident. The judge concluded that Freeman did not carry his burden of proving by clear and convincing evidence that he is permanently and totally disabled. Citing Freeman’s testimony that he occasionally provides and is paid for renovation services to customers, the judge found that Freeman presented no medical evidence to support |shis claim of permanent total disability. The judge stated further that the only medical evidence regarding Freeman’s disability status was the deposition of his psychiatrist, who testified that Freeman is disabled from a psychiatric standpoint only to the extent that he is disabled from a physical standpoint. The judge noted that Freeman introduced no evidence of total disability from a physical standpoint.

Freeman appeals. He asserts the trial court erred (1) by finding that Freeman had forfeited his rights to additional benefits, and (2) by failing to grant Elliott a credit against future benefits instead of finding that Freeman forfeited his rights to additional workers’ compensation benefits pursuant to La. R.S. 23:1102(B).

LAW AND ANALYSIS

Forfeiture of Right to Future Compensation

La. R.S. 23:1101 provides that any person who has paid compensation to an employee may bring suit to recover such amount from a third person whose action has aggravated the employee’s pre-exist-ing injury for which compensation is due. La. R.S. 23:1101(B)-(C).

Either party (whether employee or employer) who files suit against the third party shall notify the other in writing. La. R.S. 23:1102(A)(1). In addition, “[i]f the employee ... fails to notify the employer or insurer of the suit against the third person or fails to obtain written approval of the compromise from the employer and insurer at the time of or prior to such compromise, the employee ... shall forfeit the right to future compensation, including medical expenses.” La. R.S. 23:1102(B).

If the employee makes a compromise with the third person, the employer/insurer shall be liable to the employee for any benefits in excess of the full amount paid by the third person, “only after the employer or the insurer receives a dollar for dollar credit against the full amount paid in compromise ... | fiand only if mitten approval of such compromise is obtained from the employer or insurer by the employee or his dependent, at the time of or prior to such compromise.” (Emphasis added.) Id.

La. R.S.

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34 So. 3d 344, 9 La.App. 5 Cir. 921, 2010 La. App. LEXIS 193, 2010 WL 446569, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-v-elliott-co-lactapp-2010.