Pekinto v. Olsten Corp.

587 So. 2d 68, 1991 WL 182228
CourtLouisiana Court of Appeal
DecidedSeptember 12, 1991
Docket91-CA-0470
StatusPublished
Cited by7 cases

This text of 587 So. 2d 68 (Pekinto v. Olsten Corp.) 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
Pekinto v. Olsten Corp., 587 So. 2d 68, 1991 WL 182228 (La. Ct. App. 1991).

Opinion

587 So.2d 68 (1991)

Kathleen PEKINTO
v.
The OLSTEN CORPORATION and Hartford Fire Insurance Company.

No. 91-CA-0470.

Court of Appeal of Louisiana, Fourth Circuit.

September 12, 1991.

*69 James C. Cockfield, Frederick A. Miller & Associates, Metairie, for appellants.

C. David Schumacher, Carl J. Schumacher, Jr., Schumacher Law Corp., Ltd., New Orleans, for appellee.

Before SCHOTT, C.J., and BARRY and CIACCIO, JJ.

CIACCIO, Judge.

Defendants in this worker's compensation suit, The Olsten Corporation and its worker's compensation insurer, Hartford Fire Insurance Company, appeal a judgment rendered by the Louisiana Office of Workers' Compensation finding plaintiff, Kathleen Pekinto totally, temporarily disabled and awarding her additional worker's compensation benefits, medical expenses, statutory penalties, attorney fees, expert witness fees and litigation costs after the hearing officer concluded defendant acted arbitrarily and capriciously in terminating plaintiff's worker's compensation benefits. We affirm.

The hearing officer in rendering judgment made the following findings of fact and conclusions of law:

Facts

Claimant, Kathleen Pekinto, was employed by Olsten Temporary Services, a division of The Olsten Corporation, as a secretary in 1986, and was assigned secretarial duties at Allstate Insurance, 770 *70 Gause Blvd., Slidell, Louisiana. While in the course and scope of her employment, on May 30, 1989 the heel of plaintiff's right shoe got caught in a crack in the plastic floor mat at the AllState office, and plaintiff fell injuring her knee and ankle.
Plaintiff was seen by James Butler, M.D. on the day of her injury, and thereafter was treated conservatively without satisfactory results and plaintiff thus underwent right knee orthoscopy on August 8, 1989 which demonstrated an osteochondral defect of the medial femoral condyle of the right knee.
Despite continued medical attention plaintiff was unable to stand or work for any period of time. On December 11, 1989 defendant, The Hartford Insurance Group, the Workers Compensation insurer of the Olsten Corporation, through its claims processor, Phyllis Schaefer, wrote to Dr. Butler stating that the plaintiff's" job duties do not require standing or walking as she is a secretary for an insurance company. Could she go back to work as a secretary? If she is sitting behind a desk, I see no reason why she cannot return to work at this time." [P-3]
Dr. Butler responded by letter of December 15, 1989 to Ms. Schaefer indicating that he saw no contraindications for plaintiff returning to work inasmuch as her job duties do not require standing or walking. [P-4]
On December 20, 1989 defendant, Hartford Fire Insurance Company, filed a "Notice that compensation payments have stopped." [P-2]
By letter dated January 8, 1990 plaintiff informed defendant, The Hartford Insurance Group, that Ms. Pekinto's job was misrepresented to her doctor as one that did not require standing or walking [P-5] and enclosed a letter of January 4, 1990 from the AllState insurance agents for whom Ms. Pekinto worked, which detailed her job description and stated that her job entails quite a bit of walking and bending. [P-5(1)]
The evidence adduced at trial clearly and convincingly demonstrates that Kathleen Pekinto's condition has not improved, and she remains temporarily totally disabled, physically unable to engage in any employment. It further demonstrates that she is in need of additional surgery and continued medical treatment.
Defendants' consistent pattern of bad faith was first conspicuous when Ms. Schaefer arbitrarily and capriciously misrepresented Ms. Pekinto's job duties. The statement that her employment required neither standing nor walking was made pursuant to a conference with her boss, the Hartford's claim Supervisor, Frank Nania. Significantly, however, Ms. Pekinto's bosses, the witnesses Ray Cavignac and Ken Gibbs, were not interviewed. Incredibly, defendants maintain that "the duties of the employee were never misrepresented to anyone." Defendants To The Pre-Hearing Questionnaire, (V).
The misrepresentation had its intended effect when Dr. Butler responded with a letter that was then used to issue a Notice That Compensation Payments Have Stopped the week before Christmas, 1989.
The wrongfulness of this action was brought to defendants' attention by claimant's counsel's letter of January 8, 1990, which included a description of her real duties by the Allstate agents. Even though Dr. Butler recommended that plaintiff not return to work until March 5, defendants did not reinstate compensation benefits at that time.
Instead, defendants placed Ms. Pekinto under surveillance. The D & D Investigative Services report of March 6, 1990 confirmed that "the claimant walked with a distinct limp, and used a cane to aid her movement." [P-8] Defendants knew Kathleen Pekinto was a wife and mother who was disabled and thus dependent on these benefits for her family's support. Defendants' investigation showed that Kathleen Pekinto was not a malingerer. Nonetheless, they did not restore her benefits.
Defendants could not reasonably rely on Dr. Butler's opinion since they had misrepresented *71 her job duties and since they had independent reliable evidence that Mrs. Pekinto remained disabled. See photographs, P.8.
On April 27, 1990 Ms. Pekinto advised defendants that, following examinations, Dr. Robert Ruel, Jr. determined that further surgery is warranted and she formally requested authorization for Dr. Ruel's treatment. [P-7]
On May 9, 1990 Hartford arbitrarily and capriciously refused consent to a change of physician or payment for treatment. [P-9] Further proof of defendants' arbitrariness is the May 21, 1990 check they issued for $1,807.74 for BACK COMP 10% 12/18/89-03/04/90". [P-6]
Law
Claimant was entitled to sixty-six and two-thirds percent (66.66%) of wages during the disability period and payment of all medical expenses. Defendants' arbitrary and capricious actions make them liable for penalties, attorney's fees and interest, in addition to resumption of the benefits which should not have been discontinued.
Under La.R.S. 23:1201.2 payment of all reasonable attorney fees is due by defendants because of their arbitrary discontinuance of payment of this claim.
Further, the arbitrary withholding of consent to Ms. Pekinto's request to change physicians makes defendants liable for attorney's fees and; medical expenses under La.R.S. 23:1123(C).
Taking into account the degree of skill and ability exercised, the amount of the claim, the amount recovered for the plaintiff, and the amount of time devoted to the case, a reasonable amount of attorney fees for claimant's counsel is ten thousand dollars ($10,000.00).
Under La.R.S. 23:1201(E), penalties of 12% should be added to all compensation which was arbitrarily unpaid (or was belatedly paid) from December 18, 1989 until the date of payment, with credit for payments made.

After reviewing the testimony and the evidence in the record, we find that the hearing officer's factual findings are supported by the evidence.

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587 So. 2d 68, 1991 WL 182228, Counsel Stack Legal Research, https://law.counselstack.com/opinion/pekinto-v-olsten-corp-lactapp-1991.