Jackson v. AMERICAN MUT. LIABILITY INS.

584 So. 2d 348, 1991 La. App. LEXIS 2087, 1991 WL 130159
CourtLouisiana Court of Appeal
DecidedJuly 16, 1991
Docket90-224
StatusPublished
Cited by5 cases

This text of 584 So. 2d 348 (Jackson v. AMERICAN MUT. LIABILITY INS.) 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., 584 So. 2d 348, 1991 La. App. LEXIS 2087, 1991 WL 130159 (La. Ct. App. 1991).

Opinion

584 So.2d 348 (1991)

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

No. 90-224.

Court of Appeal of Louisiana, Third Circuit.

July 16, 1991.
Rehearing Denied September 13, 1991.
Writ Denied November 22, 1991.

*349 Ralph Brewer, Baton Rouge, for plaintiff-appellant.

Mouton & Roy, Phillip Roberts, Lafayette, for defendants-appellees.

Before DOMENGEAUX, C.J., and GUIDRY and FORET, JJ.

FORET, Judge.

This is an appeal from a grant of summary judgment in favor of Land & Offshore Service, Inc. and American Mutual Liability Insurance Company, defendantsappellees herein, and against James Ray Jackson, plaintiff-appellant herein. This is a suit for Louisiana workers' compensation benefits, arising out of the "old" workers' compensation law prior to its amendment in 1983.

FACTS

The trial court succinctly stated the facts as follows:

"Plaintiff, James Ray Jackson, was injured on September 24, 1979, while employed by Land & Offshore Services, Inc., hereinafter referred to as L & O. Following this accident, American Mutual Liability Insurance Company began paying Jackson worker's compensation benefits under the Longshore and Harbor Workers' Compensation Act, 33 U.S.C.A. § 933. Mr. Jackson continued to receive LHWCA benefits until July 25, 1983, when defendants learned that Jackson has settled his tort suit against Union Oil Company, the tortfeasor, providing Mr. Jackson with an initial settlement of ONE HUNDRED THOUSAND AND NO/100 ($100,000.00) DOLLARS, as well as periodic future payments totalling THREE HUNDRED TWENTY-FIVE THOUSAND AND NO/100 ($325,000.00) DOLLARS. According to the provision of 33 U.S.C. 933, a worker who is receiving benefits under the LHWCA who enters into a settlement without first obtaining the written approval of his employer, terminates any rights the worker may have to future benefits under the LHWCA.
"Following termination of his benefits, Jackson filed a claim for workers compensation benefits under the LHWCA. This claim was denied. A hearing was then held before an administrative law judge, appeals were taken to the Benefits Review Road and finally to the U.S. Court of Appeals for the Fifth Circuit, all denying plaintiff further benefits under the LHWCA. Thereafter, plaintiff filed suit seeking to recover benefits under the Louisiana Workers Compensation law."

Pursuant to motion for summary judgment filed by defendants herein, the trial court dismissed plaintiff's suit with prejudice. Plaintiff now appeals from that grant of summary judgment.[1]

*350 ISSUE

The sole issue before us is whether or not the trial court erred in determining that Jackson had elected a federal remedy under Longshoremen's and Harbor Workers' Compensation Act (LHWCA) and was thereby precluded from pursuing a remedy under Louisiana's workers' Compensation Act. We find that the law, at the time of plaintiff's injury in 1979, did not bar his action for state compensation benefits and thus, we reverse the judgment of the trial court.[2]

DISCUSSION

It is well settled that the mere receipt of federal benefits will not foreclose a future action for benefits under state workers' compensation. See Batiste v. Hopeman Brothers, Inc., 508 So.2d 922 (La.App. 4 Cir.1987), writ denied, 512 So.2d 1178 (La. 1987); Biondolillo v. Geosource, Inc., 359 So.2d 286 (La.App. 4 Cir.1978), writ denied, 362 So.2d 580 (La.1978); Jenkins v. Archer-Daniels-Midland Co., 347 So.2d 314 (La.App. 4 Cir.1977); Calbeck v. Travelers Insurance Co., 370 U.S. 114, 82 S.Ct. 1196, 8 L.Ed.2d 368 (1962).

The courts have also held that in order to constitute a binding election to receive federal benefits rather than state benefits, the choice must be the employee's and not the employer's. In Palmer v. Keeney, 357 So.2d 1339 (La.App. 4 Cir.1978), writ denied, 359 So.2d 629 (La.1978), the plaintiff filed for both LHWCA and state workers' compensation benefits. He was sent benefits under state law and refused federal benefits. The insurer then changed positions and sent federal benefits, which Palmer refused to accept. Palmer attempted to withdraw his federal claim, which was denied by the Deputy Commissioner. He then appealed this denial to the Benefits' Review Board. Upon remand, an administrative law judge affirmed the denial of his request to withdraw his federal claim. Subsequently, Palmer began accepting federal benefits. Nevertheless, the court found that these undisputed facts did not show an election to accept the federal benefits to the exclusion of the Louisiana benefits and the grant of summary judgment against Palmer was reversed.

Although the issue has been phrased as an "election of benefits," in 1979, plaintiff was not put to an election of remedies in its true sense. A true election must consist of two or more inconsistent remedies, wherein the election of one would preclude or bar the exercise of another option. See Brown v. Lancaster, 218 La. 1036, 51 So.2d 617 (1951); Finn v. Employers' Liability Assurance Corp., 141 So.2d 852 (La.App. 2 Cir.1962). While it is true that double recovery under both federal and state compensation schemes is not allowed,[3] the two systems are not exclusive or inconsistent but instead, provide concurrent jurisdiction for certain workers.[4]

As stated by the United States Supreme Court in Sun Ship, Inc. v. Pennsylvania, supra, 100 S.Ct. at pages 2438, 2439:

"When laborers file claims under the LHWCA, they are compensated under federal standards. And workers who commence their actions under state law will generally be able to make up the difference between state and federal benefit levels by seeking relief under the Longshoremen's Act, if the latter applies.
To be sure, if state remedial schemes are more generous than federal law, concurrent jurisdiction could result in more favorable awards for workers' injuries than under an exclusively federal compensation system. But we find no evidence that Congress was concerned about a disparity between adequate federal *351 benefits and superior state benefits."

With Sun Ship in mind, we view the issue as one of whether or not Jackson retains his right to pursue state workers' compensation, as a matter of law, after a final judgment in federal court which resulted in the termination of LHWCA benefits.

This lack of inconsistency between remedies was noted by Judge (now Justice) Lemmon of the Fourth Circuit in Valdez v. Equitable Equipment Company, Inc., 383 So.2d 1371 (La.App. 4 Cir.1980). In Valdez, the Fourth Circuit was faced with the same issue, i.e., whether the plaintiff had made a binding election to accept benefits under LHWCA so as to preclude a suit for recovery under the Louisiana Workers' Compensation Act. As in this case, the plaintiff first received voluntary periodic compensation payments in addition to a voluntary lump sum payment, all calculated under the LHWCA. Subsequently, the plaintiff filed suit for state compensation benefits. Judge Lemmon, in reversing the trial court's dismissal of plaintiff's suit, stated at page 1373, as follows:

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