Frith v. Riverwood, Inc.

878 So. 2d 595, 2004 WL 691250
CourtLouisiana Court of Appeal
DecidedJuly 2, 2004
Docket2003 CA 1340
StatusPublished
Cited by5 cases

This text of 878 So. 2d 595 (Frith v. Riverwood, 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
Frith v. Riverwood, Inc., 878 So. 2d 595, 2004 WL 691250 (La. Ct. App. 2004).

Opinion

878 So.2d 595 (2004)

Linda FRITH
v.
RIVERWOOD, INC.

No. 2003 CA 1340.

Court of Appeal of Louisiana, First Circuit.

April 2, 2004.
Writ Granted July 2, 2004.

*597 Mark Zimmerman, Lake Charles, Counsel for Appellee Linda Frith.

Lawrence B. Frieman, Metairie, Counsel for Appellant Riverwood, Inc.

Before: PETTIGREW, DOWNING and McCLENDON, JJ.

DOWNING, J.

This appeal arises out of a workers' compensation suit. The employer presented the following issues for review: (1) whether the workers' compensation judge (WCJ) erred in finding that the employer was not entitled to a credit against the supplemental earning benefit (SEB) obligation for the total number of weeks it paid temporary total disability (TTD) benefits; (2) whether the WCJ erred in finding it arbitrary and capricious for the employer to terminate benefits after paying in excess of 520 weeks of TTD benefits; (3) whether the WCJ erred in ordering the employer to provide prompt rehabilitation services; and (4) whether fibromyalgia was compensable. The employee answered the appeal assigning error to the WCJ's holding that she did not prove a permanent and total disability (PTD). The employee also requested additional attorney fees for this appeal. For the following reasons, we reverse in part, affirm in part, and remand.

FACTS

Linda Frith incurred an on-the-job back injury on March 17, 1989, while working for Riverwood, Inc., as a forklift operator. Riverwood began immediately paying her a weekly benefit. Frith had two back surgeries in 1999, after nearly ten years of treatment. On June 30, 2000, her physician sent a letter to the claims adjuster, stating that Frith had "significant permanent restrictions as far as work activities," and that "I think she could resume some form of work activity if these restrictions are met."

After receiving this letter, Riverwood terminated Frith's $267.00 weekly benefit on July 17, 2000, having paid her for 535 weeks. On August 30, 2000, Frith filed a claim form disputing the termination of benefits. The matter was tried December 16, 2002. On February 25, 2003, the WCJ held that Frith failed to meet her burden of proof for PTD or TTD benefits, but held that she did prove her entitlement to SEB from July 17, 2000 forward in accordance with the law. The WCJ further ruled that Frith had received SEB from April 1998 through May 1999 (52 weeks), and from April 10, 2000 through July 17, 2000 (24 weeks). The WCJ also ruled that Riverwood was not entitled to a credit for any TTD benefit it paid against its SEB obligation. The WCJ found that the medical treatment rendered by Dr. Manuel Calvin was compensable except where it was *598 solely related to inflammatory arthritis, high cholesterol, and colitis. The WCJ ordered Riverwood to provide prompt rehabilitation services and ordered Frith to comply with those services. It also found Riverwood arbitrary and capricious and without probable cause for terminating Frith's benefits and awarded her $7,500.00 in attorney fees.

DISCUSSION

Credit Entitlement

Riverwood's first assignment of error alleges that the trial court erred in finding that it was not entitled to a credit for the TTD benefits paid after January 1, 1990, against its SEB obligation.

Louisiana Revised Statute 23:1221(3)(d)(ii) provides:

After receipt of a maximum of five hundred twenty weeks of benefits, provided that for any week during which the employee is paid any compensation under this Paragraph, the employer shall be entitled to a reduction of one full week of compensation against the maximum number of weeks for which compensation is payable under the Paragraph.

Louisiana Revised Statute 23:1223[1] provides:

Deduction from benefits
A. Except as provided in R.S. 23:1221(4)(s), when compensation has been paid under R.S. 23:1221(1), (2), or (3), the amount of such payment shall be deducted from any compensation allowed under R.S. 23:1221(4) or Subpart C of this Part.
B. Except as provided in R.S. 23:1221(4)(s), when compensation has been paid under R.S. 23:1221(1), (2), or (4), the amount of such payment shall be deducted from any compensation allowed under R.S. 23:1221(3) or Subpart C of this Part.

The Louisiana Supreme Court in Thibodeaux v. Diamond M. Drilling Co., 93-2963 (La.2/25/94), 632 So.2d 736, ruled that retroactive application of La.R.S. 23:1223 is impermissible and that the employer has no right to a reduction of benefits because no such reduction was authorized at the time of plaintiff's injury. Riverwood argues that this holding only addresses the retroactivity of La.R.S. 23:1223 and not whether TTD payments paid after the January 1, 1990 effective date can be credited against the employer's SEB payments. We agree with Riverwood that Thibodeaux only addressed the retroactivity of La.R.S. 23:1223 and did not address the prospective application of the statute.

It is undisputed that the La.R.S. 23:1223 "credit" would apply had the injury occurred after the effective date of the amendment.[2] Thus, the issue before us is whether the employer is entitled to receive a credit for benefits paid after the 1990 effective date where the employee's injury occurred before the 1990 effective date. The First Circuit has not addressed this issue, and the decisions rendered in other circuits are split.

Riverwood urges this Court to follow the Fourth Circuit's decision in Fallen v. New Orleans Police Dept., 97-0022 (La.App. 4 Cir. 7/23/97), 697 So.2d 1077, which followed Cline v. St. Jude Medical Center, Inc., 619 So.2d 712 (La.App. 4 Cir.1993), *599 where a credit was allowed for TTD payments that the employee received after the effective date of the statute. In allowing the credit, the court reasoned that those benefits had not become due until after the amendment became effective. Cline 619 So.2d at 716.

Frith, however, disagrees and asserts that we should follow the Third Circuit's en banc decision of Burge v. Louisiana Ins. Guar. Assn., 02-33 (La.App. 3 Cir. 5/15/02), 819 So.2d 1098, writ denied 02-2209 (La.11/15/02), 829 So.2d 427. Relying on Thibodeaux, the Burge court held that the employer was not entitled to a credit for payments paid after January 1, 1990, because La.R.S. 23:1223(B) was not in effect on the date of the employee's injury. Burge, 02-33 at p. 4, 819 So.2d at 1100.

In workers' compensation cases, generally, the law governing an action for benefits is the law in effect at the time of the injury. Bruno v. Harbert Intern. Inc., 593 So.2d 357, 360 (La.1992). Frith's injury occurred on March 17, 1989, before the 1990 effective date of the amendment.

However, in Resweber v. Haroil Constr. Co., 94-2708, 94-2708 p. 3 (La.9/5/95), 660 So.2d 7, 10, the Supreme Court made it clear that the general rule applies when the court is deciding fundamental matters such as what constitutes an "accident" or what injuries are compensable. Id. In related matters such as this, however, it is the "triggering mechanism," and not the "date of the accident," that determines which version of a workers' compensation statute controls. Id. In Resweber, the Court explained that the general rule is not intended to apply to a statute that is triggered by post-accident acts. In particular, the statute in Resweber called for a forfeiture penalty triggered by post-accident misrepresentations.

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Related

Frith v. Riverwood, Inc.
892 So. 2d 7 (Supreme Court of Louisiana, 2005)
Hand v. City of New Orleans
892 So. 2d 609 (Louisiana Court of Appeal, 2004)

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Bluebook (online)
878 So. 2d 595, 2004 WL 691250, Counsel Stack Legal Research, https://law.counselstack.com/opinion/frith-v-riverwood-inc-lactapp-2004.