Perilloux v. Howard P. Foley Co.

553 So. 2d 996, 1989 La. App. LEXIS 2190, 1989 WL 138296
CourtLouisiana Court of Appeal
DecidedNovember 16, 1989
DocketNo. 89-CA-0203
StatusPublished
Cited by1 cases

This text of 553 So. 2d 996 (Perilloux v. Howard P. Foley Co.) 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
Perilloux v. Howard P. Foley Co., 553 So. 2d 996, 1989 La. App. LEXIS 2190, 1989 WL 138296 (La. Ct. App. 1989).

Opinion

PLOTKIN, Judge.

The defendant, Travelers Insurance Company, appeals the granting of a motion for summary judgment in favor of Liberty Mutual Insurance Company. Liberty Mutual sought to recover worker’s compensation payments made to the plaintiff, Ralph Per-illoux. We affirm that part of the summary judgment that found Traveler’s Insurance Company liable and allowed Liberty Mutual to recover payments from a third-party defendant. We reverse that part of the summary judgment that determined the amount of damages, since we find that genuine issues of material fact remained. We remand to the trial court for determination of damages.

FACTS

This suspensive appeal arises out of an accident on January 17, 1983, in which plaintiff Perilloux was injured while working on the Intercontinental Hotel job site. Perilloux was employed by Lafayette Plastering Company, a subcontractor. Liberty Mutual, the worker’s compensation insurer for this company, paid the plaintiff compensation benefits.

Howard P. Foley Company was another subcontractor on the same project. Peril-loux filed a tort suit in May, 1983 against this company and its insurer, Travelers, arguing that Foley Company created a hazardous condition on the job site, which caused his injury. Liberty Mutual inter[998]*998vened in the tort action seeking to recover the compensation benefits that it paid.

On March 8, 1985, the morning of the tort trial, Perilloux and Travelers Insurance Company confected a settlement, without the consent of Liberty. The intervention was not compromised causing the trial on this issue to be continued. Liberty, thereafter, continued to pay benefits to Perilloux until the compensation claim was settled in early 1987.

Liberty Mutual subsequently filed a Motion for Summary Judgment to recover the total amount of worker’s compensation benefits paid to the plaintiff, and for enforcement of the penalty provisions of R.S. 23:1102(0) against a third-party defendant. Liberty’s motion for summary judgment was granted against Travelers, awarding it $88,278.76. This amount included $24,-687.54 previously paid at the time of Liberty’s intervention in the tort suit on January 18, 1984. The remaining sum of $63,591.22 included payments made through the date of settlement of the worker’s compensation claim.

Retroactive Application of Amendments to Worker’s Compensation Law

The central issue in the case is whether the July 1, 1983 amendments to the worker's compensation law are to be applied retroactively. LSA-R.S. 23:1102(0), enacted in 1983 and amended again in 1984, provides that an employer or his compensation carrier who intervenes in a third-party tort action which is subsequently compromised without the inter-venor’s written approval may require the third-party defendant or insurer to reimburse the intervenor for compensation and medical benefits paid on behalf of the employer.

In the case at bar, Travelers, the insurer for the third-party defendant, argues that the statute is substantive in nature and must be applied prospectively only. On the other hand, the intervenor, Liberty, contends that the" statute is procedural or remedial in nature and can be retroactively applied to its claim against Travelers.

If the amended worker’s compensation law created substantive rights that had not previously existed for any party, the law should be applied prospectively only. Careful analysis, however, clearly indicates that under the pre-1983 worker’s compensation law, the identical substantive rights of all parties were present. LSA-R.S. 23:1102 mandated that the employee notify the employer if suit had been filed against a third party. LSA-R.S. 23:1103 provided that if the employer intervened in the tort suit and damages were recovered, those damages would be apportioned with the compensation already paid receiving preference. Additionally, LSA-R.S. 23:1103 provided that no compromise would be binding on any party unless it was assented to by that party.

If there was no notice of compromise to an intervening employer, no method of enforcement to collect payments from the third-party defendant was authorized by the pre-1983 worker’s compensation law. However, the 1983 amendments created a manner to implement the intervenor’s existing right of collection.

This court has previously examined the nature of the changes produced by the 1983 amendments and found those changes to be procedural. We held that LSA-R.S. 23:1102(C) was a procedural statute for the settlement of claims and applied the statutory penalty retroactively against third-party defendants who had settled the injured employee’s tort claim without the prior approval of the intervening employer. Wells v. K. & B., Inc., 488 So.2d 222 (La.App. 4th Cir.1986). Applying the same rationale in Riehm v. Kellogg, 520 So.2d 1169 (La.App. 4th Cir.1987), this court found that LSA-R.S. 23:1102(B) was also procedural as it concerned the settling of a tort claim by an injured employee. In Riehm, the court stated that LSA-R.S. 23:1102(B) was simply a procedural law to enforce the employer’s pre-existing right and did not create a new one. Id. at 1172.

The Wells case considered the same statute at issue in the case at bar. In Wells, this court reversed the denial of a motion for summary judgment, holding that the 1983 amendments were procedural and should be applied retroactively. The injury [999]*999and filing of the tort suit occurred prior to July 1983. The compromise occurred after the new law went into effect. This court found that the new law did not affect the plaintiffs cause of action as a worker’s compensation claimant. The court held that the amendments concerned only the procedure for settlement of claims and specifically prescribed penalties against third parties who settled claims without the prior approval of an intervening employer.

Applying Wells to the case at bar, the summary judgment on the issue of liability was correctly granted. In Wells, the time sequence was identical to this case. Although the injury and filing of the suit occurred before July 1983, the compromise occurred over two years later. Since Liberty had intervened in the tort suit and had not been notified or approved of the compromise, the amendments to LSA-R.S. 23:1102 permitted Liberty to make its claim for payments it had paid.

The defendant-appellant argues that Wells was incorrectly decided and should be overturned. The defendants rely on two more recent cases from other circuits which clearly disagree and question Wells. They hold that the 1983 amendments are substantive and merit only prospective application.

In Babin v. Saturn Engineering Corporation, 501 So.2d 857 (La.App. 5th Cir.1987), the court found that the amendment created an obligation on the part of the employee or the insurer to obtain approval of any compromise. Therefore, the court decided that the new law was substantive. The court respectfully disagreed with Wells in footnote 2 of that opinion.

The Third Circuit held that an injured employee and third party were not required to obtain the consent of the employer for settlement arising out of an accident which occurred prior to the enactment of the 1983 amendments. Ramos v. S. W. La. Elec. Membership Corp., 536 So.2d 713 (La.App. 3d Cir.1988).

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Related

Perilloux v. Howard P. Foley Co.
559 So. 2d 120 (Supreme Court of Louisiana, 1990)

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Bluebook (online)
553 So. 2d 996, 1989 La. App. LEXIS 2190, 1989 WL 138296, Counsel Stack Legal Research, https://law.counselstack.com/opinion/perilloux-v-howard-p-foley-co-lactapp-1989.