Neece v. Louisiana Horsemen's Benevolent & Protective Assoc.

206 So. 3d 213, 16 La.App. 3 Cir. 205, 2016 La. App. LEXIS 1957
CourtLouisiana Court of Appeal
DecidedOctober 26, 2016
Docket16-205
StatusPublished

This text of 206 So. 3d 213 (Neece v. Louisiana Horsemen's Benevolent & Protective Assoc.) 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
Neece v. Louisiana Horsemen's Benevolent & Protective Assoc., 206 So. 3d 213, 16 La.App. 3 Cir. 205, 2016 La. App. LEXIS 1957 (La. Ct. App. 2016).

Opinions

THIBODEAUX, Chief Judge.

1,Scott Gelner and his insurer, the Louisiana Horsemen’s Benevolent and Protective Association (“LHBPA”), (collectively, “Appellants”) appeal a judgment from the Office of Workers’ Compensation (“OWC”) awarding a former employee, Jill Neece, workers’ compensation benefits, medical expenses, penalties, and attorney fees. While exercising horses for Damien Simon, Ms. Neece was thrown from a horse and injured her back. Mr. Simon owned the horses that Ms. Neece was exercising, and housed them in stalls subleased from Scott Gelner at the Evangeline Downs Training Center (“Evangeline Downs”). Scott Gel-ner and the LHBPA dispute the claim and contend that Ms. Neece was never an employee of Scott Gelner or the LHBPA.

Appellants argue that no employment relationship existed between Mr. Gelner and Ms. Neece because the two had never met, Mr. Gelner did not hire Ms. Neece, Mr. Gelner did not pay Ms. Neece, and Mr. Gelner did not have the ability to fire Ms. Neece. Based on the records in evidence and Ms. Neece’s testimony, the workers’ compensation judge (“WCJ”) ruled that Ms. Neece was an employee of Mr. Gelner and, thus, entitled to workers’ compensation benefits, medical expenses, penalties, and attorney fees under the principles of detrimental reliance and agency. From that judgment, Appellants filed a timely appeal. Appellants argue that the trial court abused its discretion when it sua sponte raised the theories of detrimental reliance, estoppel, and agency. Appellants further argue that the trial court erred in awarding penalties and attorney fees to Ms. Neece because Mr. Gelner and the LHBPA did not act arbitrarily and capriciously in denying her workers’ compensation benefits and medical expenses.

12For the following reasons, we affirm the judgment of the trial court awarding Ms. Neece workers’ compensation benefits, medical expenses, penalties, and attorney fees.

I.

ISSUES

. There are three issues before the court:

1. whether the trial court erred in finding that an employment relationship existed between Jill Neece and Damien Simon pursuant to La.R.S. 28:1031;
2. whether the trial court properly raised the issues of detrimental reliance, estoppel, and agency; and
3. whether the trial court erred in awarding penalties and attorney fees.

H.

STANDARD OF REVIEW

An appellate court may not set aside a trial court’s findings of fact in the absence of manifest error or unless it is clearly wrong. Stobart v. State, Through DOTE, 617 So.2d 880 (La.1993); Resell v. ESCO, 549 So.2d 840 (La.1989) The findings of the WCJ is subject to the manifest error-clearly wrong standard of review. Banks v. Indus. Roofing & Sheet Metal Works, Inc., 96-2840 (La. 7/1/97), 696 So.2d 551 (La. 7/1/97). In Banks, the Louisiana Supreme Court elaborated on the application of that standard:

In applying the manifest error-clearly wrong standard, the appellate court must determine not whether the trier of fact was right or wrong, but whether the factfinder’s conclusion was a reasonable one. Freeman [v. Poulan/Weed Eater], 93-1530 at p.5, [ (La. 1/14/94) ] 630 So.2d [733] at 737-38; Stobart v. State, 617 So.2d 880, 882 (La.1993); Mart v. Hill, 505 So.2d 1120, 1127 (La.1987). Where [216]*216there are two permissible views of the evidence, a factfinder’s choice between them can never be manifestly erroneous or clearly wrong. Stobart, 617 So.2d at 882. Thus, “if the [factfinder’s] findings are reasonable in light of the record reviewed in its entirety, the court of appeal may not reverse, even if convinced that had it been sitting as the trier of fact, it would have weighed the evidence differently.” Sistler v. Liberty Mut. Ins. Co., 558 So.2d 1106, 1112 (La. 1990).

Id. at 556.

m.

FACTS AND PROCEDURAL HISTORY

These proceedings arise out of an injury suffered by claimant, Jill Neece, that occurred while she was exercising horses at Evangeline Downs Training Center. Ms. Neece filed an action for workers’ compensation benefits, medical treatment, medical expenses, penalties, and attorney fees against Damien Simon, Scott Gelner, and the Louisiana Horsemen’s Benevolent and Protective Association. She sought a declaration that both Mr. Simon and Mr. Gelner were her employers, and, consequently she was owed workers’ compensation benefits, medical expenses, penalties, and attorney fees.

Ms. Neece has been licensed as an exercise rider by the. Louisiana Racing Commission since 2011. In late 2012, Ms. Neece began working as an exercise rider at Evangeline Downs, and in early January 2013, she began galloping horses for Damien Simon. On the morning of January 14, 2013, Ms. Neece was thrown from a two-year old colt that she was galloping for Mr. Simon and suffered a back injury.

Evangeline Downs is licensed as a training center by the Louisiana Racing Commission. Damien Simon, however, is not a licensed trainer. His Lhorses were stalled at Evangeline Downs through a sublease agreement with Scott Gelner.

As a licensed trainer, Scott Gelner leased ten stalls from Evangeline Downs. In violation of the Stall Lease Agreement, Mr. Gelner subleased the stalls to Mr. Simon. Section 16.1 of the Stall Lease Agreement states:

Lessee will at all times during the term of this Lease carry and maintain, at Lessee’s sole cost and expense, adequate workmen’s compensation insurance, issued by the Louisiana Horsemen’s Benevolent Protection Association, to cover employees engaged in the capacity of training and caring for horses in accordance with the laws of the State of Louisiana and the Rules of the Louisiana Racing Commission.

Ms. Neece was hired by Mr. Simon to exercise horses stalled under Mr. Gelner’s trainer number. She was listed under Mr. Gelner’s employee list and further testified at trial that she would not have agreed to exercise Mr. Simon’s horses if she had known that she was not covered by workers’ compensation insurance.

IV.

LAW AND DISCUSSION

Appellants first argue that the trial court improperly raised issues of detrimental reliance, estoppel, and agency in determining that an employment relationship existed between Jill Neece and Scott Gelner. Appellants contend that Mr. Gel-ner was not Ms. Neece’s employer when she was injured and Appellants are, therefore, not liable to her workers’ compensation benefits, medical treatment and expenses, penalties and/or attorney fees. Louisiana Revised Statutes 23:1031 states, in part:

[217]*217If an employee not otherwise eliminated from the benefits of his Chapter receives personal injury by accident arising out of and in the course of his | ¿employment, his employer shall pay compensation in the amounts, on the conditions, and to the person or persons hereinafter designated.

La.R.S. 23:1031.

Here, the WCJ found liability on behalf of Mr. Gelner and the LHBPA. The record on appeal shows that Ms. Neece believed that she worked for the licensed trainer of the horses and those horses were housed at Evangeline Downs. As per the lease agreement, the stalls can only be leased by licensed trainers, who are required to carry LHBPA workers’ compensation insurance. Ms.

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Bluebook (online)
206 So. 3d 213, 16 La.App. 3 Cir. 205, 2016 La. App. LEXIS 1957, Counsel Stack Legal Research, https://law.counselstack.com/opinion/neece-v-louisiana-horsemens-benevolent-protective-assoc-lactapp-2016.