Howard v. Georgia Pacific Corp.

583 So. 2d 55, 1991 La. App. LEXIS 1850, 1991 WL 108421
CourtLouisiana Court of Appeal
DecidedJune 19, 1991
DocketNo. 22432-CA
StatusPublished
Cited by3 cases

This text of 583 So. 2d 55 (Howard v. Georgia Pacific Corp.) 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
Howard v. Georgia Pacific Corp., 583 So. 2d 55, 1991 La. App. LEXIS 1850, 1991 WL 108421 (La. Ct. App. 1991).

Opinion

BROWN, Judge.

Plaintiff, Charlie Howard, Jr., appeals from a judgment denying workers’ compensation benefits. The issue presented requires a determination of whether Georgia Pacific Corporation (Georgia Pacific) was his statutory employer. For the reasons expressed herein, we reverse and remand.

Louisiana’s workers’ compensation law subjects certain principal contractors to liability for compensation claims of the employees of their independent contractors or subcontractors. LSA-R.S. 23:1061. These principal contractors are commonly called statutory employers. The purpose of the statute is to prevent the avoidance of compensation responsibility by an employer who interposes an uninsured and impecunious contractor between himself and his employee. 13 W. Malone and H.A. Johnson, Louisiana Civil Law Treatise, “Workers’ Compensation” § 121 (1980). In the present case the contractor, James Miller d/b/a James Miller Logging Contractor (Miller Logging), had no compensation insurance and was apparently insolvent. Under these circumstances, if found to be a statutory employer, the principal, Georgia Pacific, would be extending its solvency to plaintiff’s claim.

Since the intent of Section 1061 was to prevent the evasion of liability by a principal, its provisions come into play only when the principal contracts out work that was part of its regular business. Lewis v. Exxon Corporation, 441 So.2d 192 (La.1983). Although the aim of Section 1061 was to protect an injured worker who otherwise might be without a remedy, much of the jurisprudence evolved from principals who desired this statutory employer status to escape tort liability. The jurisprudence first developed tort immunity for statutory employers. Thibodaux v. Sun Oil Co., 49 So.2d 852 (La.1950). The Legislature codified this jurisprudence in 1976 by including statutory employers in the section provid[57]*57ing that workers’ compensation was an exclusive remedy. LSA-R.S. 23:1032.

The question of burden of proof reflects this dichotomy. If a principal is seeking a shield against tort liability then claiming to be a statutory employer is an affirmative defense as to which the principal has the burden of proof. If, however, an employee is seeking to recover workers’ compensation benefits he has the burden of showing the requirements of Section 1061 are satisfied. Berry v. Holston Well Service, Inc., 488 So.2d 934 (La.1986), W. Malone and H.A. Johnson, supra, § 126.

The question of whether the work performed by the contractor is part of the principal’s business is one of fact. The facts presented in the present case are analyzed in accordance with the intent and purpose of the statutory employer provisions.

Plaintiff was a 69 year old retiree who unquestionably suffered injuries and substantial medical expenses in a work-related accident. Plaintiff was directly employed as a driver and logrunner by Miller Logging. The trial court found and the. record supports that Miller Logging was cutting timber owned by defendant, Georgia Pacific, on Cat Island near St. Francisville, Louisiana. Miller Logging was exclusively working for Georgia Pacific cutting and hauling pulpwood to its Port Hudson mill. Plaintiff was paid $75 per day regardless of the amount of hours worked and often worked six days per week.

On November 25, 1988 plaintiff was delivering a load of pulpwood from Cat Island to Georgia Pacific’s plant when his truck’s brakes failed as he was negotiating a curve. Plaintiff hit the railing on a bridge causing the truck to overturn and spill its load into the creek below. Plaintiff was seriously injured in the accident.

On November 9, 1989, plaintiff instituted this action for workers’ compensation benefits naming as defendants, Georgia Pacific and Miller Logging. Plaintiff alleged that Miller Logging was his direct employer and Georgia Pacific his statutory employer. However, the trial court found that Miller Logging had not received proper service of process and thus was not properly before the court.

Phil Gordy was called on cross-examination by plaintiff and testified that as Procurement Manager for Georgia Pacific at Port Hudson, he conducted an investigation of the accident. He determined that Miller Logging was cutting and hauling wood for Georgia Pacific. He verified to his satisfaction that there had been an accident involving plaintiff while hauling Georgia Pacific timber to a place designated by that company. Mr. Gordy stated that Georgia Pacific foresters directed Miller and his employees as to which timber to cut and where it would be hauled. While Mr. Gor-dy initially testified that the Cat Island property and timber was owned by Georgia Pacific, he corrected his statements on direct examination and said that the property and timber was actually owned by Rex Timber, Inc., a subsidiary of Georgia Pacific. He also corrected his testimony to state that on the date of the accident, he was employed by Rex Timber and it was this company that had actually contracted with Miller Logging. Mr. Gordy explained that in 1988 all timber lands of Georgia Pacific were under the name Rex Timber and in January 1989 the property went back to Georgia Pacific. He testified that Georgia Pacific paid Miller Logging for all the timber hauled.

James Miller testified that in November 1988 he exclusively cut and hauled wood for Georgia Pacific at Cat Island to its Port Hudson plant. Mr. Miller believed the timber and land belonged to Georgia Pacific. Mr. Miller stated that everything he hauled was at the direction of Georgia Pacific. He testified that Georgia Pacific’s foresters specifically directed the cutting and that he and his crew would work six or seven day weeks according to the needs of Georgia Pacific.

Mr. Miller testified that he was producing wood for Georgia Pacific and that Georgia Pacific directed the cutting and the working times on the basis of their need. He testified that he went to Mississippi after “he quit Georgia Pacific.” He stated [58]*58that his contract was with Georgia Pacific and Rex Timber and that he furnished a certificate of insurance to both Georgia Pacific and Rex Timber. He specifically testified that both Rex Timber and Georgia Pacific had the same employees and worked out of the same office.

Mr. Miller did not observe plaintiffs accident but found his truck sitting on a bridge with the trailer overturned. While Mr. Miller testified he believed he had workers’ compensation insurance, the record established that such insurance had been can-celled for nonpayment of premiums.

Plaintiff testified that he had worked at Cat Island for approximately two months before he was injured and that all workers were closely supervised by employees of Georgia Pacific. On the date of the accident, he had already hauled one load and received a load slip marked Georgia Pacific. He was hauling his second load when the accident occurred. Initially he experienced difficulty in obtaining medical treatment as he could not verify compensation coverage by either Georgia Pacific or Miller Logging and had been unable to return to any work following the accident.

Georgia Pacific did not file into evidence the contract between Miller Logging and Rex Timber. Its only exhibits were the 1099 tax form from Miller Logging to plaintiff and Miller Logging’s Certificate of Insurance. Except for these two exhibits and its direct examination of Phil Gordy it offered no evidence but chose to rely on the belief that plaintiff failed to carry his burden of proof.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Garcia v. Lewis
197 So. 3d 738 (Louisiana Court of Appeal, 2016)
Moore v. Crystal Oil Co.
626 So. 2d 792 (Louisiana Court of Appeal, 1993)
Savant v. James River Paper Co., Inc.
780 F. Supp. 393 (M.D. Louisiana, 1992)

Cite This Page — Counsel Stack

Bluebook (online)
583 So. 2d 55, 1991 La. App. LEXIS 1850, 1991 WL 108421, Counsel Stack Legal Research, https://law.counselstack.com/opinion/howard-v-georgia-pacific-corp-lactapp-1991.