Lockhart v. Pargas, Inc.

271 So. 2d 664
CourtLouisiana Court of Appeal
DecidedMarch 15, 1973
Docket9059
StatusPublished
Cited by9 cases

This text of 271 So. 2d 664 (Lockhart v. Pargas, 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
Lockhart v. Pargas, Inc., 271 So. 2d 664 (La. Ct. App. 1973).

Opinion

271 So.2d 664 (1972)

George W. LOCKHART
v.
PARGAS, INC., et al.

No. 9059.

Court of Appeal of Louisiana, First Circuit.

November 30, 1972.
Rehearing Denied January 31, 1973.
Writ Refused March 15, 1973.

*665 Iddo Pittman, Pittman & Matheny, Hammond, for appellant.

Joseph D. Lupo, Independence, for appellees.

Before LANDRY, TUCKER and CUTRER, JJ.

TUCKER, Judge.

This is a suit both in tort and in Workmen's Compensation by the plaintiff, George W. Lockhart, distributor of liquefied petroleum gas, against the defendants, Pargas, Inc., his alleged employer, and Aetna Life & Casualty Insurance Company, its workmen's compensation liability insurance carrier. Plaintiff sued for injuries sustained September 25, 1969, when the valve on a hose he was using to fill the tanks on his truck from the Pargas bulk station at Ponchatoula, Louisiana, opened suddenly, causing the hose to whip around, striking plaintiff and fracturing two bones in his lower right leg three inches above the ankle. Plaintiff alleged that Pargas was negligent in maintaining unsafe working conditions, and specifically in utilizing the straight type pressure valve, which he considered inherently dangerous. He sued for the sum of $230,000, including $120,000 for loss of earnings, $100,000 for pain and suffering, and $10,000 for future medical expense.

*666 Alternatively plaintiff sued under the Louisiana Workmen's Compensation Act for $18,000 for 400 weeks permanent and total disability at the rate of $45.00 per week, together with anticipated medical expenses of $10,000 for remaining operations and/or the amputation of his leg, as might be required.

Additionally petitioner sued for penalties of twelve per cent (12%) and attorney fees of twenty per cent (20%) as provided under the Workmen's Compensation Act, due to the fact that Pargas ceased making compensation payments to plaintiff when it employed him as a district manager in Baton Rouge, although he was employed at a salary less than the amount of his usual former earnings with Pargas.

In the fourth judgment, rendered by the trial court in this proceeding, which was an amended judgment following rehearing, an award was made in favor of plaintiff George W. Lockhart and against defendants Pargas, Inc., and Aetna Life & Casualty Insurance Co., in solido, for permanent and total disability in a sum not to exceed Eighteen Thousand and no/100 ($18,000.00) Dollars, subject to a credit for twenty-six weeks of workmen's compensation already paid, at the rate of Forty-five and no/100 ($45.00) Dollars per week, for a period not to exceed four hundred weeks, beginning September 25, 1969, and for One Hundred Fifty-five and no/100 ($155.00) Dollars for medical expense, examinations and reports, plus five per cent (5%) per annum legal interest from the due date of each payment until paid, and for all costs of the proceedings. The amended judgment specifically voided and canceled the award of penalties on unpaid workmen's compensation payments and attorney fees.

From this judgment defendants appealed on the following specifications of error:

1. That the trial court erred in holding that the plaintiff was an employee within the purview of the Louisiana Workmen's Compensation Act.
2. That the trial court erred in finding that plaintiff was disabled.
3. That the trial court erred in the amount of its award.
4. That the trial court erred in failing to find that plaintiff's claim was barred because of failure to use safety procedures and devices.

Plaintiff-appellee answered urging the affirmation of the judgment in the trial court on an estoppel basis. He also asked for reinstatement of the penalties and the attorney fees. Alternatively he asked for damages in tort.

There can be no doubt that Lockhart was an employee of Pargas, Inc. There is no denial that he was injured while filling his truck tanks at the Pargas bulk loading station pursuant to distributing the petroleum gas to the customers of the defendant Pargas. Suit was correctly brought under the Workmen's Compensation Act instead of in tort under Louisiana Civil Code Article 2315.

It is true that appellee was purchasing his own truck, but this fact alone did not render him an independent contractor. A close examination of the facts surrounding the purchase of the truck show that it was mortgaged to and financed by Pargas, Inc., which deducted the truck payments each month from the commissions paid appellee. Appellee was not at liberty to sell his truck to any company other than Pargas. This arrangement appears to have been a subterfuge of some kind with advantages best known to Pargas, the nature of which we need not determine. Other factors indicative of the employee-employer relationship between the parties herein are the facts that all monies and accounts receivable were owned by and inured to the benefit of Pargas, Inc. Appellee had worked the same route for twenty-three years as a truck driver-salesman, working for the three companies which ante-dated Pargas. His method of operation had always been the same. It had always been that of an *667 employee and not that of an independent contractor. Appellee could sell only Pargas's fuel, which was the same situation as prevailed with the preceding companies. He took the route given him by the company, which was the same route he had always serviced, and he had no freedom to refuse to service anyone on the route. Any complaints made to appellee were passed on to his supervisor with Pargas. By appellee's testimony Pargas controlled and supervised everything, paying him his commission each month by check.

Apparently Pargas considered appellee an employee, also, for it consistently paid a workmen's compensation premium based upon the amount of the "payroll" account out of which Lockhart was paid each month. Furthermore defendant Aetna Life and Casualty Insurance Company voluntarily began payments to plaintiff the second week of his disability, at the rate baesd on an employees' total and permanent disability, and continued to pay him for 26 weeks until he assumed the duties of district manager.

In its answer to plaintiff's original petition defendants added the following paragraph as Article XII:

"Following petitioner's accident which was in the course and scope of his employment, petitioner was paid workmen's compensation benefit at the full amount allowed by law and in addition there was furnished, proper, efficient and capable medical services and that these workmen's compensation benefits continued so long as petitioner was disabled and that there is no other sum due by defendants to petitioner."

At the time of the pre-trial conference the issue of workmen's compensation coverage vel non was not even presented. At the beginning of the trial the trial judge spoke as follows:

"BY THE COURT:

We can stipulate, can we not, that the man was employed and that he did have an injury and that if he is entitled to anything it would be at the rate of $45.00 per week.

. . . . . .

BY THE COURT:

That is what you sued for. So, now, it is a matter of whether or not the man is entitled to any further benefits than those that have been paid and if so, the degree of his disability, is that correct?"

It was not until this case was appealed that it occurred to defendants to argue that plaintiff was not covered by workmen's compensation. We see no merit in this argument.

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Bluebook (online)
271 So. 2d 664, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lockhart-v-pargas-inc-lactapp-1973.