McCoy v. KMB Transport, Inc.

734 So. 2d 886, 1999 WL 322808
CourtLouisiana Court of Appeal
DecidedMay 14, 1999
Docket98 CA 1018
StatusPublished
Cited by12 cases

This text of 734 So. 2d 886 (McCoy v. KMB Transport, 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
McCoy v. KMB Transport, Inc., 734 So. 2d 886, 1999 WL 322808 (La. Ct. App. 1999).

Opinion

734 So.2d 886 (1999)

Nelson L. McCOY, Sr.
v.
KMB TRANSPORT, INC.

No. 98 CA 1018.

Court of Appeal of Louisiana, First Circuit.

May 14, 1999.
Rehearing Denied June 29, 1999.

*887 Lawrence D. Ward, Houma, Counsel for Plaintiff/Appellee Nelson McCoy, Sr.

Michael L. Hyman, Baton Rouge, Counsel for Defendant/ Appellant KMB Transport, Inc.

Before: CARTER, C.J., SHORTESS, J. and EDWARD A. de la HOUSSAYE, J. Pro Tem.[1]

EDWARD A. de la HOUSSAYE, Judge Pro Tem.

This is an appeal from a judgment awarding penalties and attorney fees, pursuant to LSA-R.S. 23:1201(G) for the late payment of an award in a prior consent judgment. For the following reasons, we affirm.

FACTS AND PROCEDURAL BACKGROUND

On February 21, 1995, plaintiff, Nelson McCoy, Sr., was injured while in the course and scope of his employment with defendant, KMB Transport, Inc. On May 9, 1996, plaintiff, McCoy, filed a disputed claim with the Office of Workers' Compensation claiming that defendant had failed to pay the medical bills resulting from his injury. After discovery and pre-trial proceedings, the matter was set for trial, but prior to trial, plaintiff's medical bills were paid by the insurance, and all issues disputed became moot, except the amount of attorney fees to be awarded and any award for arbitrary and capricious failure to pay medical bills timely. Therefore, all parties agreed to settle the matter, and a consent judgment was entered.

The consent judgment, dated and signed on June 19, 1997, found in favor of plaintiff, ordered KMB to pay plaintiff's attorney, Lawrence D. Ward, Jr., $500.00 attorney *888 fees by June 30, 1997, declared that all issues before the court were moot, ordered the matter to be dismissed without prejudice and further decreed that the parties reserved any and all rights they may have to litigate this matter in the future. The consent judgment was not appealed and is now final.

Apparently, KMB failed to pay the amount ordered in the consent judgment. On December 4, 1997, plaintiff, through his counsel, Lawrence Ward, filed a rule to show cause why the consent judgment should not be enforced and why penalties and attorney fees should not be awarded, pursuant to LSA-R.S. 23:1201(G). At the hearing on the rule on January 8, 1998, KMB tendered the $500.00 as ordered in the consent judgment; however, the workers compensation judge ordered KMB to pay the $500.00 attorney fees pursuant to the consent judgment, and also ordered that KMB pay $3000.00 in penalties and an additional $500.00 in attorney fees for the cost of the enforcement proceedings. From this judgment, KMB appeals and contends that it does not owe the penalty and attorney fees for late payment of a judgment since LSA-R.S. 23:1201(G) was not in effect on the date of McCoy's accident.

DISCUSSION

FIRST ASSIGNMENT OF ERROR

In the appellant's first assignment of error, KMB contends that the trial court committed legal error by retroactively applying the amended version of the penalty statute at issue, LSA-R.S. 23:1201(G), rather than the version of the statute in effect on the date of the plaintiff's injury in February 1995. Thus, appellant's first assignment of error presents a question of law: whether the amended version of LSA-R.S. 23:1201(G) applies to KMB's untimely payment of the award of attorney fees, which award was granted by a consent judgment signed on June 19, 1997, nearly two years after the effective date of the amendment to LSA-R.S. 23:1201(G), where McCoy's injury was in February 1995, prior to the effective date of the amendment.[2]

By La. Acts 1995, No. 1137, § 1, the Legislature amended former LSA-R.S. 23:1201(F) and redesignated it as section 1201(G). Act 1137 of 1995 became effective on June 29, 1995. Prior to the 1995 amendment, Section 1201(F) provided:

If any compensation or medical benefits payable under the terms of a final, nonappealable judgment is not paid within thirty days after it becomes due, there shall be added to such unpaid compensation an amount equal to twenty-four percent thereof or one hundred dollars per day, for each calendar day after thirty days, it remains unpaid, whichever is greater, which shall be paid at the same time as, and in addition to, such compensation, unless the order is appealed as provided by law or unless such nonpayment results from conditions over which the employer had no control. No amount paid as a penalty under this Subsection shall be included in any formula utilized to establish premium rates for worker's compensation insurance. The total one hundred dollar per calendar day penalty provided for in this Subsection shall not exceed three thousand dollars in the aggregate.

(emphasis added). The 1995 amendment redesignated Section 1201(F) as 1201(G), which now provides:

If any award payable under the terms of a final, nonappealable judgment is not paid within thirty days after it becomes due, there shall be added to such award an amount equal to twenty-four percent *889 thereof or one hundred dollars per day together with reasonable attorney fees, for each calendar day after thirty days it remains unpaid, whichever is greater, which shall be paid at the same time as, and in addition to, such award, unless such nonpayment results from conditions over which the employer had no control. No amount paid as a penalty under this Subsection shall be included in any formula utilized to establish premium rates for workers' compensation insurance. The total one hundred dollar per calendar day penalty provided for in this Subsection shall not exceed three thousand dollars in the aggregate.

(emphasis added). Thus, the 1995 amendment changed the words "any compensation and medical benefits" to "any award" and added a provision for attorney fees.[3]

If former section 1201(F) applies to this case, then no penalty may be assessed against KMB because the June 1997 judgment in favor of McCoy awarded neither "compensation" nor "medical benefits," as provided by section 1201(F). Additionally under former section 1201(F), no attorney fees could be assessed against KMB, for there was no provision for attorney fees, prior to the 1995 amendment, for failure to pay timely a judgment, and because as a general rule, attorney fees are not allowed in Louisiana except where authorized by statute or provided for by contract. Sharbono v. Steve Lang & Son Loggers, 97-0110, p. 7 (La.7/1/97); 696 So.2d 1382, 1386.

THE APPLICABILITY OF ACTS 1995, NO. 1137

In numerous decision, the jurisprudence has held that in the area of workers' compensation the law in effect at the time of the plaintiff's injuries is the applicable law. Adams v. Cajun Disposal, Inc., 96-1304, p. 2 (La.App. 1st Cir.3/27/97); 691 So.2d 296, 297, writ denied, 97-1106 (La.6/20/97); 695 So.2d 1365; Strange v. Combustion Engineering, 94-0215, pp. 3-4 (La.App. 1st Cir.12/22/94); 649 So.2d 69, 70-71; Bruno v. Harbert International, Inc., 593 So.2d 357, 360 (La. 1992); Nelson v. Roadway Express, Inc., 588 So.2d 350, 353 (La.1991); Leon v. Crowell & Spencer Lumber Co., 151 La. 932, 933-934, 92 So. 389, 390 (1922). Although the recent cases cite this rule without explanation, the Louisiana Supreme Court explained the reasoning behind the rule in Leon, 151 La. at 933-934, 92 So. at 390, in deciding that a June 1918 amendment to the Workers' Compensation laws did not apply to plaintiff's action where plaintiff was injured in February 1918. The Court stated:

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734 So. 2d 886, 1999 WL 322808, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mccoy-v-kmb-transport-inc-lactapp-1999.