Mitchell v. Abernathy

815 So. 2d 110, 2000 La.App. 1 Cir. 2375, 2002 La. App. LEXIS 231, 2002 WL 227958
CourtLouisiana Court of Appeal
DecidedFebruary 15, 2002
DocketNo. 2000 CA 2375
StatusPublished
Cited by1 cases

This text of 815 So. 2d 110 (Mitchell v. Abernathy) 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
Mitchell v. Abernathy, 815 So. 2d 110, 2000 La.App. 1 Cir. 2375, 2002 La. App. LEXIS 231, 2002 WL 227958 (La. Ct. App. 2002).

Opinion

| ¡PARRO, J.

The State, through the Department of Public Safety and Corrections (DPSC), appeals the dismissal of its workers’ compensation intervention in the tort suit of its employee. For the following reasons, the judgment of the trial court is reversed, and this matter is remanded for further proceedings.

Factual Background and Procedural History

On December 5, 1997, Jan Mitchell (Mitchell) was in the course and scope of her employment with DPSC, Office of Motor Vehicles, when she was injured while riding as a passenger in a.vehicle driven by the minor daughter of James Abernathy (Abernathy). Mitchell filed a claim for workers’ compensation with DPSC, which paid Mitchell’s medical expenses and weekly indemnity benefits.

On July 29, 1998, Mitchell filed suit against Abernathy and his insurer, State Farm Mutual Automobile Insurance Company (State Farm), for damages sustained in the December 5, 1997 accident. Approximately three-and-a-half months later, Abernathy and State Farm filed an answer to Mitchell’s petition. DPSC sent notice of its hen relative to this accident to Abernathy on September 30, 1998, and to Mitchell on December 18, 1998. On November 2, 1999, Mitchell, Abernathy, and State Farm entered into a settlement agreement for policy limits. DPSC alleged that Mitchell, Abernathy, and State Farm settled Mitchell's claim without obtaining its consent. Furthermore, it contends that at no time prior to settlement was DPSC notified of any settlement negotiations.

On November 17, 1999, DPSC filed a petition of intervention against Abernathy and State Farm, seeking recovery of all workers’ compensation benefits and expenses DPSC had paid to or on behalf of Mitchell. That same day, the trial court granted DPSC leave to intervene in the above proceedings. Relative to DPSC’s intervention, Mitchell filed a peremptory exception raising the objection of no right or cause of action, and Abernathy and State Farm filed exceptions raising the objection of no right of action and res judicata. The prior settlement agreement was asserted as the ground for these | -¡exceptions. Alternatively, Abernathy and State Farm sought summary judgment dismissing the DPSC’s intervention. DPSC responded by filing a cross motion for summary judgment. Following a hearing on these matters, the trial court denied DPSC’s motion for summary judgment and granted summary judgment in favor of Abernathy and State Farm, dismissing DPSC’s intervention. On August 11, 2000, Mitchell filed a motion to dismiss her lawsuit with prejudice, on the basis that a settlement agreement had been reached between Mitchell, Abernathy, and State Farm.

DPSC appeals from the trial court’s dis[112]*112missal of its intervention.2 On appeal, DPSC asserts that the trial court erred in dismissing its intervention based on a finding that the principal demand had settled prior to the filing of its intervention even though the motion for dismissal was filed approximately nine months after DPSC was granted leave to intervene. It further contends that the trial court erred in granting Abernathy and State Farm’s motion for summary judgment, because a genuine issue of material fact existed as to whether DPSC received notice of the employee’s suit as required by the Louisiana Workers’ Compensation Act. It also seeks a grant of summary judgment in its favor based on the lack of a genuine issue of material fact regarding DPSC’s subrogation hen and the settlement agreement between Mitchell, Abernathy, and State Farm.

Discussion

Employee and employer suits against third persons are regulated by the Louisiana Workers’ Compensation law. Louisiana Revised Statute 28:1101 recognizes the right of the employee and the employer to sue the tortfeasor. Houston General Insurance Company v. Commercial Union Insurance Company, 94-0399 (La.App. 1st Cir.12/22/94), 649 So.2d 776, 781. Generally, the statute contemplates the situation where a third person causes injury, and such injury is compensable under the Louisiana Workers’ Compensation law. Houston General Insurance Company v. Commercial Union Insurance Company, 649 So.2d at 781. The statute provides that an injured 1 ¿employee may sue a third person (not excepted by the workers’ compensation law) who is responsible for the damages resulting from his injuries, and the employer or insurer may sue such responsible party for reimbursement for any compensation it may have paid or become obligated to pay the employee. Houston General Insurance Company v. Commercial Union Insurance Company, 649 So.2d at 781. Moreover, the statute permits the employee to proceed against a third party for damages even though he has been awarded or is receiving compensation from his employer for the same injury. Senac v. Sandefer, 418 So.2d 543, 545 (La.1982).

Louisiana Revised Statute 23:1101(B) provides a cause of action for anyone who has paid or becomes obligated to pay workers’ compensation benefits to recover such benefits from a third party tortfeasor. Houston General Insurance Company v. Commercial Union Insurance Company, 649 So.2d at 781. In pertinent part, LSA-R.S. 23:1101(B) provides:

Any person having paid or having become obligated to pay compensation under the provisions of this Chapter may bring suit against such third person to recover any amount which he has paid or becomes obligated to pay as compensation to such employee or his dependents.

Louisiana Revised Statute 23:1102 sets forth the obligation of giving notice by an injured employee or the employer or insurer in the event either files suit against a third person (tortfeasor) as authorized by LSA-R.S. 23:1101. Houston General Insurance Company v. Commercial Union Insurance Company, 649 So.2d at 782. Section 1102 requires that if either the employee or the employer sues the tortfea-sor, he must notify the other, who may then intervene as a party plaintiff in the [113]*113suit. Although the statute provides that the other party may intervene as a party plaintiff if either the employee or the employer brings suit against a third person (tortfeasor), the jurisprudence holds that an employer’s failure to intervene in a suit filed by the employee, after proper notice, bars the employer from bringing a separate suit against a third party tortfeasor.3 Roche v. Big Moose Oil Field Truck Service, 381 So.2d 396, 400 (La.1980). Louisiana Revised Statute 23:1102 also provides certain penalties if the employee fails to notify the employer or insurer of, any suit brought and provides penalties in the event the employee compromises his claim with a third person (tortfeasor) without the written permission of the employer or insurer. Houston General Insurance Company v. Commercial Union Insurance Company, 649 So.2d at 782.

Based on the evidence presented in conjunction with, Abernathy and State Farm’s motion for summary judgment, the trial court determined there was no genuine issue of material fact regarding notice relative to DPSC. Nevertheless, because DPSC intervened approximately nine months prior to the dismissal of Mitchell’s suit, the requirements of LSA-R.S. 23:1102(A)(1) were seemingly satisfied so as to preserve DPSC’s LSA-R.S. 23:1101 cause of action against Abernathy and State Farm for recovery of workers’ compensation benefits paid to Mitchell.

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Bluebook (online)
815 So. 2d 110, 2000 La.App. 1 Cir. 2375, 2002 La. App. LEXIS 231, 2002 WL 227958, Counsel Stack Legal Research, https://law.counselstack.com/opinion/mitchell-v-abernathy-lactapp-2002.