Harris v. Olivier's Contractors

155 So. 3d 652, 14 La.App. 3 Cir. 765, 2014 La. App. LEXIS 2927, 2014 WL 6917235
CourtLouisiana Court of Appeal
DecidedDecember 10, 2014
DocketNo. CA 14-765
StatusPublished
Cited by1 cases

This text of 155 So. 3d 652 (Harris v. Olivier's Contractors) 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
Harris v. Olivier's Contractors, 155 So. 3d 652, 14 La.App. 3 Cir. 765, 2014 La. App. LEXIS 2927, 2014 WL 6917235 (La. Ct. App. 2014).

Opinions

EZELL, Judge.

|, Sylvester Harris filed suit for damages in district court pursuant to La.R.S. 23:1032.1 asserting that his employer neither had workers’ compensation insurance nor was self-insured, and failed to pay a workers’ compensation judgment for sixty days after it was final. Jason Olivier d/b/a Olivier’s Contractors (hereinafter collectively referred to as Mr. Olivier) appealed the trial court judgment which awarded $205,547.90 in damages to Mr. Harris.

FACTS

Mr. Harris was employed as a “jack man” in 2009 by a business that raised houses to higher elevations. During that time many houses were raised due to hurricane standards. On March 13, 2009, Mr. [657]*657Harris placed a shimmy underneath a house when the jack bled out and an I-beam fell, smashing his left hand. After releasing his hand, Mr. Harris was transported to Abbeville General Hospital. Subsequently, he was transferred to Our Lady of Lourdes Regional Medical Center where an orthopedic surgeon performed surgery on his hand. For the next five to six months, Mr. Harris received physical therapy on his hand.

A default judgment awarding temporary total disability benefits, medical expenses and penalties and attorney fees against Mr. Olivier was confirmed in the Office of Workers’ Compensation on January 9, 2012. When the judgment was not paid, Mr. Harris filed the present suit pursuant to La.R.S. 23:1032.1 against Mr. Olivier and Terry Engeron on April 2, 2012. After a preliminary default was entered against Mr. Olivier, Mr. Olivier answered the suit. He then filed peremptory exceptions of prescription, no cause of action, and no right of action on December 12, 2013, the day of trial. Ruling on the exceptions was deferred until after trial. The trial court found in favor of Mr. Harris and against Mr. Olivier and [2awarded him $125,000.00 in general damages, $25,947.90 for medical expenses, and $54,600.00 for lost wages. Mr. Olivier then filed the present appeal.

NEGLIGENCE

In his first assignment of error, Mr. Olivier claims that the trial court erred relieving Mr. Harris of the burden of establishing that Mr. Olivier was negligent in causing Mr. Harris’s injuries. Mr. Olivier argues that La.R.S. 23:1032.1 requires that a petitioner prove all of the elements of a tort action, which includes establishing that any injuries were caused by the negligence of the defendant.

Louisiana Revised Statutes 23:1032.1 provides that any employee has a right to sue a “direct employer for all legal damages” when the employer:

fails to secure workers’ compensation insurance or proper certification of self-insured status pursuant to R.S. 23:1168, and fails to pay a final judgment for sixty days after the parties have exhausted their rights of appeal and no other insurance or self-insurance policy or contract of workers’ compensation coverage has paid the benefits due under this Chapter.

There is no reported case law on the application of La.R.S. 23:1032.1 except for two cases from this court that simply refer to La.R.S. 23:1032.1 as permitting an employee to assert a claim in tort but which do not address the application of La.R.S. 23:1032.1. See Hector v. Mo-Dad Env’tal Serv., LLC, 13-1184 (La.App. 3 Cir. 3/5/14), 134 So.3d 133, 139 n. 1; and Eads v. Chartis Specialty Ins. Co., 13-224 (La.App. 3 Cir. 2/26/14), 133 So.3d 722. This case presents a res nova issue.

Interpretation of this statute begins, as it must, with the language of the statute itself. David v. Our Lady of the Lake Hosp., Inc., 02-2675, p. 11 (La.7/2/03), 849 So.2d 38, 46; Touchard v. Williams, 617 So.2d 885, 888 (La.1993). When a law is clear and unambiguous and its application does not lead to absurd consequences, it shall be applied as written, with no further interpretation made in search of the legislative intent. La. C.C. art. 9; La. R.S. 1:4. When the wording of a section of the revised statutes “is clear and free of ambiguity, the letter of it shall not be disregarded under the pretext of pursuing its spirit.” La. R.S. 1:4. In interpreting the Workers’ ^Compensation Act, courts must be mindful of the basic history and policy of the compensation [658]*658movement, which includes the provision of social insurance to compensate victims of industrial accidents. Brown v. Adair, 02-2028, p. 5 (La.4/9/03), 846 So.2d 687, 690; Roberts v. Sewerage & Water Bd. of New Orleans, 92-2048, p. 7 (La.3/21/94), 634 So.2d 341, 345.

Trahan v. Coca Cola Bottling Co. United, Inc., 04-100, pp. 6-7 (La.3/2/05), 894 So.2d 1096, 1102. In reviewing a question of law, the appellate court must simply decide whether the trial court’s decision was legally correct. Harruff v. King, 13-940 (La.App. 3 Cir. 5/14/14), 139 So.3d 1062.

We first observe that the title of La.R.S. 23:1032.1 is “Failure of employer to secure payment; penalties.” We recognize that headings to sections are given for convenient reference and do not constitute part of the law, but it is obvious that the legislature intended that this be a penalty section. La.R.S. 1:13(A). We must keep in mind that under the scheme of the Workers’ Compensation Act, an employee losses his right to full damages for his injury and instead receives compensation measured as a percentage of wages while the employer surrenders the immunity against liability which he would otherwise enjoy when he is not at fault. Gagnard v. Baldridge, 612 So.2d 732 (La.1993). Penalties in workers’ compensation cases “are imposed to deter indifference and undesirable conduct by employers and their insurers toward injured workers.” Trahan, 894 So.2d at 1108.

It is obvious in enacting La.R.S. 23:1032.1, the legislature intended to punish employers who failed to secure workers’ compensation insurance and failed to pay a final judgment after all rights to appeal have been exhausted. Under these circumstances, the employer has failed to secure insurance coverage as required by La.R.S. 23:1168 and failed to pay a final judgment. The legislature has determined that this is the most egregious conduct on the part of the employer. It would be |4ridiculous for an employee to establish the negligence of the employer when the employee has already pursued his workers’ compensation action in the Office of Workers’ Compensation, established his rights to compensation, and obtained a judgment.

Louisiana Revised Statutes 23:1032.1 only requires that the employee prove: (1) the direct employer failed to secure workers’ compensation insurance or proper certification of self-insured status pursuant to La.R.S. 23:1168; and (2) the direct employer failed to pay a final judgment for sixty days after the parties have exhausted their rights of appeal and no other insurance or self-insurance policy or contract of workers’ compensation coverage has paid benefits. At that point all the employee has to establish in the trial court is the amount of any legal damages he would be entitled to under tort law. This is the penalty an employer must face for failure to secure insurance and pay a resulting workers’ compensation judgment. We find no error in the trial court’s determination that Mr. Harris did not need to establish that any negligence had occurred.

DIRECT EMPLOYER

Mr. Olivier argues that Mr. Harris did not prove that he was Mr. Harris’s direct employer. Mr. Olivier argues that before the accident he sold the business to Mr. Engeron. He claims the trial court erred in not granting his exception of no right of action.

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Bluebook (online)
155 So. 3d 652, 14 La.App. 3 Cir. 765, 2014 La. App. LEXIS 2927, 2014 WL 6917235, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harris-v-oliviers-contractors-lactapp-2014.