Lytell v. Strickland Transp. Co., Inc.

373 So. 2d 138
CourtSupreme Court of Louisiana
DecidedJune 25, 1979
Docket63795
StatusPublished
Cited by18 cases

This text of 373 So. 2d 138 (Lytell v. Strickland Transp. Co., Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lytell v. Strickland Transp. Co., Inc., 373 So. 2d 138 (La. 1979).

Opinion

373 So.2d 138 (1979)

Joseph LYTELL, Plaintiff-Appellant-Relator,
v.
STRICKLAND TRANSPORTATION COMPANY, INC., Defendant-Appellee-Respondent.

No. 63795.

Supreme Court of Louisiana.

June 25, 1979.
Rehearing Denied July 27, 1979.

*139 Bernard S. Smith, Covington, for plaintiff-appellant-relator.

James L. Donovan, Donovan & Lawler, Metairie, for defendant-appellee-respondent.

TATE, Justice.

The sole issue before us concerns the penalty provided by La.R.S. 23:1333 of our compensation statute. The penalty applies against an employer who, after a judgment awarding workmen's compensation benefits, fails to pay six successive compensation installments as they fall due. The penalty provided is that the installments not yet payable under the judgment shall become due and exigible and that the judgment shall become executory for the whole amount.

In the instant case, although the defendant employer failed after judgment to pay weekly compensation despite repeated demands, the plaintiff's pleadings to invoke the statutory penalty were rejected for the sole reason that the statutory penalty was held to apply only to awards for non-disabling specific schedule-injuries (loss of a thumb, etc.), not to awards for disability. 366 So.2d 1040 (La.App. 1 Cir., 1978). We granted certiorari, 368 So.2d 123 (La.1979), because we entertained doubt that this was the correct interpretation of the statutory intent.

I

The penalty provision at issue (La.R.S. 23:1333) is found in Sub-Part C ("Judgments"; Sections 1331-33) of Part IV ("Judicial Enforcement of Claims"; Sections 1291-1351) of the Louisiana Workmen's Compensation Act, La.R.S. 23:1021 et seq.[1]*140 It is found as the final provision of that Sub-Part; the preceding sections concern modification of a judgment (1331)[2] and the regulation of judgments in favor of minors or interdicts (1333).

In its statutory context (see footnotes 1 and 2), Section 1333 provides for a penalty against any employer who does not have adequate insurance protecting his employees and who, despite judgment being awarded against him, still fails for six successive weeks to pay workmen's compensation benefits so awarded.[3] Under its terms,[4] the penalty applies to any "judgment awarding compensation"—upon non-payment for six successive weeks, the employee is entitled to have the judgment made executory so that all "installments not yet payable under the judgment shall immediately become due and exigible." (Italics ours.)

Under its terms and within its statutory context, the penalty thus applies to unpaid judgments awarding weekly compensation, irrespective of whether the basis for the award is disability (which permits modification after six months, should the disability be diminished) or is instead a non-disabling specific injury (where the judgment provides for a fixed-number of weeks according to a schedule for specific injuries). The circumstance that the judgment might be subject to modification under Section 1331 (i. e., if the disability lessens) is not, under the statutory scheme, relevant to the availability of the penalty provided by the succeeding Section 1333. The latter section complements the statutory scheme of the judicial administration and enforcements of judgments awarding weekly compensation to an injured employee; it provides a penalty against the recalcitrant employer for non-payment of the executory judgment against him awarding weekly compensation to an employee—the employer who, despite definitive judicial determination of his liability, nevertheless still fails to pay weekly compensation due the work-injured employee.

In our view, thus, the plain statutory intent is that, after a judgment awarding weekly compensation, the employer who does not pay same[5] is subject to the penalty of having all weekly compensation payable under the judgment immediately become due and exigible, whether or not the award is based on disability (subject to reopening) or upon a non-disabling specific injury (with *141 a scheduled fixed-number of weeks). Indeed, considering the purpose of the act to protect workers injured or disabled through industrial accidents, it makes no functional sense to exclude only disabled workers (most in need of the compensation income) from the enforcement of their judgments through the penalty, and to ascribe a legislative intent by it to help only non-disabled specific-injury employees enforce their fixed-weekly judgments.

We are re-enforced in this view of the statutory intent of Section 1333 by its specific provision that the penalty also applies when the uninsured employer "becomes insolvent." In that circumstance, as in the case of an employer who fails for six successive weeks to pay compensation awarded by a judgment, all weekly compensation "not yet payable under the judgment" shall nevertheless "immediately become due and exigible." The apparent purpose of this provision was to permit employees awarded compensation benefits (for disability or otherwise) to make claim in the employer's insolvency proceedings for the full amount of weekly compensation awarded by the judgment, whether or not it might have been modified in the future if the employee's disability should diminish.

The early jurisprudence under our compensation statute so interpreted the penalty, in accordance with its literal wording and apparent legislative intent. As stated in Eisel v. Caddo Transfer and Warehouse Co., 11 La.App. 408, 123 So. 496, 498 (2d Cir. 1929) (applying the penalty against an employer who failed to pay judgment-awarded compensation to an employee under circumstances similar to the present, where (as here) no question was raised as to the employee's continued disability):

"Even though forfeitures are not favored in law and courts should not and do not encourage litigants to claim them, yet a litigant should not complain when his adversary calls him to lie down on a couch which he has made for himself. In cases under the compensation laws, when an employer has been condemned by a final judgment to pay an employee weekly compensation and subsequently repudiates the obligation by refusing to pay on demand,[6] the forfeiture must be declared when demanded under the plain letter of the law." (Italics ours.)

II

In the instant case, the intermediate court refused to apply the penalty on authority of Dixon v. King, 178 La. 1, 150 So. 385 (1933). On the isolated occasions on which the issue has subsequently arisen, this decision had been interpreted as holding that the penalty applies only to non-payment of judgments for non-disabling specific injuries (which entail a judgment for a fixed number of weeks) not to judgments for disability (which are normally awarded "during disability," but not to exceed a maximum number of weeks, thus allowing the employer to seek modification of the judgment after six months if the employee's disability diminishes). Broussard v. Dumas Chevrolet Company, 135 So.2d 614 (La.App. 4th Cir. 1961); Marcantel v. Manuel, 134 So.2d 615 (La.App. 3d Cir. 1961).[7] See Malone, Louisiana Workmen's *142 Compensation Law, Section 388 (which also cites Eisel v. Caddo Transfer, etc. Co. with approval) (1951).

Certain broad language in Dixon v. King, indeed justifies this interpretation of its holding.

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373 So. 2d 138, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lytell-v-strickland-transp-co-inc-la-1979.