Jackson v. American Mut. Liability Ins. Co.

676 So. 2d 716, 95 La.App. 3 Cir. 1359, 1996 La. App. LEXIS 1920, 1996 WL 316397
CourtLouisiana Court of Appeal
DecidedAugust 27, 1996
Docket95-1359
StatusPublished
Cited by3 cases

This text of 676 So. 2d 716 (Jackson v. American Mut. Liability Ins. 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
Jackson v. American Mut. Liability Ins. Co., 676 So. 2d 716, 95 La.App. 3 Cir. 1359, 1996 La. App. LEXIS 1920, 1996 WL 316397 (La. Ct. App. 1996).

Opinion

676 So.2d 716 (1996)

James Ray JACKSON, Plaintiff-Appellant,
v.
AMERICAN MUTUAL LIABILITY INSURANCE COMPANY, et al., Defendants-Appellees.

No. 95-1359.

Court of Appeal of Louisiana, Third Circuit.

June 12, 1996.
Opinion Granting Limited Rehearing August 27, 1996.

*717 Ralph W. Brewer Jr., Baton Rouge, for James Ray Jackson.

Jeffery Paul Robert, Lafayette, for Travelers Ins. & Gen. Well Service.

Philip E. Roberts, Lafayette, for LIGA.

Before THIBODEAUX, SAUNDERS, WOODARD, DECUIR and AMY, JJ.

THIBODEAUX, Judge.

In this workers' compensation case, James Ray Jackson, appeals a trial court judgment in favor of Louisiana Insurance Guaranty Association (LIGA) which determined that he was permanently partially disabled rather than totally and permanently disabled and awarded LIGA a dollar-for-dollar credit against its liability for Longshore and Harbor Workers' Compensation Act (LHWCA) benefits received by Jackson. LIGA sought reimbursement from two third-party defendants, Travelers Insurance and General Well Services, Inc. (GW). These defendants filed an exception of lack of subject matter jurisdiction which was sustained by the trial court. LIGA appeals this judgment.

For the reasons which follow, we grant the relief requested by both Jackson and LIGA. We reverse and remand in part.

ISSUES

We must determine:

(1) whether the September 1979 injury sustained by Jackson created a permanent partial or permanent total disability under La.R.S. 23:1221 (1979);
(2) whether La.R.S. 22:1386(A) entitles LIGA to receive dollar-for-dollar reductions from or credits against its workers' compensation liability; and,
(3) whether La.R.S. 23:1310.3(E) vests the OWC with original and exclusive jurisdiction over defendant's claim that LIGA and Travelers are bound in solido for workers' compensation benefits due Jackson after April 4, 1991.

FACTS

This claim that arose from a September 24, 1979 accident in which Jackson, while working as a painter/sandblaster for Land & Offshore Services, Inc. (L & O), injured his hip, back, and right leg. Soon after the accident, L & O's workers' compensation carrier, American Mutual Liability Insurance Company (American), voluntarily paid compensation benefits to Jackson under the Longshore and Harbor Workers' Compensation Act (LHWCA), 33 U.S.C. §§ 901-950. In addition to receiving LHWCA benefits, Jackson filed a third-party action against Union Oil Company (Union), owners of the fixed production platform upon which Jackson was injured. Jackson eventually settled his claim against Union[1] and, in the meantime, continued to collect LHWCA benefits from American.

On July 25, 1983, American learned of the Jackson-Union compromise and, pursuant to 33 U.S.C. § 933(g), American discontinued Jackson's LHWCA benefits. On October 5, 1983, Jackson responded to American's termination by filing a federal claim for workers' compensation benefits under the LHWCA. That claim was denied. That same day, Jackson also filed a claim for Louisiana workers' compensation benefits in the Fifteenth Judicial District Court of Vermillion Parish.[2]

Jackson's state action is currently before this court for a second adjudication. In a prior decision, we reversed the trial court's grant of American's summary judgment motion, and remanded the cause for further proceedings consistent with our opinion. See Jackson v. American Mut. Liab. Ins. Co., 584 So.2d 348 (La.App. 3 Cir.), writ denied, 589 So.2d 1075 (La.1991).

*718 On March 8, 1989, American was ordered into liquidation. Accordingly, the Louisiana Insurance Guaranty Association (LIGA), American's legal successor under the Insurance Guaranty Association Law, La.R.S. 22:1375-1394, was substituted as party defendant. During discovery, LIGA learned that Jackson sustained lower back injuries in at least two separate work-place accidents occurring after the September, 1979 accident. Jackson reinjured his back on December 26, 1986 while performing oil field roughneck duties for the Energy Drilling Company (EDC). From December 26, 1986 to November 24, 1988, EDC paid Jackson $261.00 in weekly workers' compensation benefits totaling $26,100.00. EDC eventually settled with Jackson for an additional $65,000.00. Jackson again injured his back on April 4, 1991 while performing roughneck duties for General Well Services, Inc. (GW). GW has and continues to pay Jackson $193.33 each week in workers' compensation benefits.

LIGA's Supplemental Answer

On October 7, 1992, LIGA filed a supplemental answer asserting a demand for certain credits against all compensation benefits purportedly due Jackson. Specifically, LIGA sought to reduce its workers' compensation exposure in the amount of:

(1) all sums received by Jackson as wages since September 24, 1979;
(2) all sums received by plaintiff under the Jackson-Union compromise;
(3) all LHWCA benefits paid to Jackson by American totaling $49,392.14;[3]
(4) all compensation benefits & medical expenses paid to Jackson by the Home Insurance Company (Home), EDC's workers' compensation carrier, including the lump sum settlement of $65,000.00 and weekly disability benefits totaling $26,100.00; and,
(5) all compensation & medical benefits paid to Jackson by Travelers Insurance Company (Travelers), GW's workers' compensation carrier, totaling $193.33 per week from April 4, 1991 and thereafter so long as said benefits are paid.

LIGA's Third Party Demand

On October 9, 1992, LIGA filed a third party demand against Travelers and GW. LIGA maintained that the April 4, 1991 accident aggravated and/or reinjured Jackson's lower back and prolonged, increased, and/or aggravated any disability Jackson may have sustained in the September 1979 accident. Therefore, according to LIGA, GW, Travelers, and LIGA were solidarily liable to plaintiff for all workers' compensation benefits due Jackson after April 4, 1991.

Pursuant to La.Code Civ.P. art. 925(6), Travelers and GW filed an exception challenging the district court's subject matter jurisdiction over LIGA's reimbursement claim. They argued that La.R.S. 23:1310.3(E) vests hearing officers from Louisiana's Office of Workers' Compensation (OWC) with original and exclusive jurisdiction over all workers' compensation claims or disputes arising after January 1, 1990. Exceptors reasoned that the operative facts giving rise to LIGA's demand, i.e., Jackson's April 4, 1991 work-place accident, occurred after January 1, 1990; therefore, the district court was without subject matter jurisdiction. The trial court agreed with Travelers/GW and granted the exception. LIGA assigns error to the lower court's ruling.

Jackson's Principal Demand

Jackson's principal demand for state workers' compensation benefits came to trial on July 6, 1995. The trial court first determined that Jackson's disability was permanent partial; therefore, under La.R.S. 23:1221(3) (1979), plaintiff was only entitled to $148.00[4] each week for a maximum of 450 weeks.

Insofar as LIGA's demands for credits against its workers' compensation exposure *719

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676 So. 2d 716, 95 La.App. 3 Cir. 1359, 1996 La. App. LEXIS 1920, 1996 WL 316397, Counsel Stack Legal Research, https://law.counselstack.com/opinion/jackson-v-american-mut-liability-ins-co-lactapp-1996.