Phillips v. Joseph Management Services, Inc.

861 So. 2d 625, 3 La.App. 5 Cir. 715, 2003 La. App. LEXIS 3142, 2003 WL 22669367
CourtLouisiana Court of Appeal
DecidedNovember 12, 2003
DocketNo. 03-CA-715
StatusPublished
Cited by1 cases

This text of 861 So. 2d 625 (Phillips v. Joseph Management Services, 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
Phillips v. Joseph Management Services, Inc., 861 So. 2d 625, 3 La.App. 5 Cir. 715, 2003 La. App. LEXIS 3142, 2003 WL 22669367 (La. Ct. App. 2003).

Opinion

| .MARION F. EDWARDS, Judge.

In this workers’ compensation suit, the employers appeal the judgment finding a deceased worker’s parents eligible for funeral expenses and benefits under the Louisiana Workers’ Compensation Act. For the following reasons, we amend the workers’ compensation judge’s ruling and affirm as amended.

FACTS AND PROCEDURAL HISTORY

Joseph Phillips, Jr. (“Phillips, Jr.”) was killed when he fell from a tow boat, the “Ms. Pauline,” and drowned in Barataría Channel in Jefferson Parish on October 7, 2002. At the time of his death, Joseph Phillips Jr. was part owner of, and employed by, J.P. & Sons, Inc., a contracting business located in Jefferson Parish. Phillips, Jr. was engaged in the course and scope of his employment with J.P. & Sons, Inc. at the time of his death.

Joseph and Pauline Phillips (“the Phillips”), the parents of Joseph Phillips, Jr., sought funeral expenses and benefits under the Louisiana | ..Workers’ Compensation Act from them workers’ compensation carrier, Gray Insurance Company. Gray denied coverage on the basis that it felt the action was more properly covered by either the Longshore and Harbor Worker’s Compensation Act1 (“LWHCA”), or the Jones Act.2

The Phillips thereafter filed a Disputed Claim with the Office of Worker’s Compensation against appellants, Joseph Management Services, Inc and J.P. & Sons, (“Employers”). Employers filed a peremptory exception of lack of subject matter jurisdiction, which was denied on March 18, 2008.

Trial on the matter began on April 14, 2003. At the conclusion of the trial, the worker’s compensation Hearing Officer ruled in favor of the Phillips, awarding $75,000 each, as well as funeral expenses.

Appellants timely filed the present appeal, and the Phillips, in their answer to the appeal, further petitioned this court to award attorney’s fees, penalties, the cost of the proceedings, and legal interest.

LAW AND ARGUMENT

In their first assignment of error, Phillips, Jr.’s former Employers assert that the trial court erred in finding LWCA jurisdiction and awarding benefits, arguing that the maritime quality of Philips Jr.’s activities should compel a finding that Phillips Jr. was covered by either the LHWCA or Jones Act, which forecloses LWCA jurisdiction and an award of LWCA benefits.

LSA-R.S. 23:1035.2 states:

No compensation shall be payable in respect to the disability or death of any employee covered by the Federal Employer’s Liability Act, the Longshoremen’s and Harbor Worker’s Compensation Act, or any of its extensions, or the Jones Act.

|4We first consider whether Phillips, Jr.’s job duties with his Employers were of such a nature that an injury sustained in the course of performing these duties would have placed him within the jurisdiction of the LHWCA or the Jones Act.

At trial, the following evidence was adduced regarding Phillips, Jr.’s daily work duties.

Gerald Spohrer, Executive Director of the West Jefferson Levee District, testi[629]*629fied that he initially worked with Phillips, Jr. in the process of renewing levee district permits that had been issued to J.P. & Sons, and subsequently worked with him on various levee projects, all of which were land based. Spohrer has the impression that Phillips, Jr., “ran” J.P. & Sons, because he saw Phillips, Jr. “in the field,” in a supervisory capacity, managing crews and equipment.

Max Mega, Vice President of Audit for the Gray Insurance Company testified that Gray had worker’s compensation insurance on J.P. & Sons for a three year policy. An audit was conducted of J.P. & Sons on January 21-23, 2003 in regard to this case, to confirm that there had not been a mis-classification of employees in the prior 12 months, from September 1, 2001 through September 1, 2002. Mega explained that employees would fall into one of five classes: salesman, clerical, land, USL & H, and maritime class. Mega testified that as a result of the audit, in particular information provided to him by Joe Becker from J.P. & Sons, it was determined that one-third of Phillips Jr.’s pay would be classified as sales related, and two-thirds of his pay would be classified as maritime.

On cross examination, Mega said that he did not know if Becker was authorized by J.P. & Sons to agree to audit figures or reclassification of officers salaries by J.P. & Sons, and did not know if the information | .-¡provided to him by Becker to conduct the audit was accurate. Mega stated that on previous audits, Phillips Jr., salary had been classified completely as salesman related. Mega stipulated that the evidence he had with respect to the work of Phillips Jr. and the reclassification was the fact that Phillips Jr. died after falling off of a barge.

Pauline Phillips, Phillips, Jr.’s mother, and co-founder of J.P. & Sons, testified that Phillips Jr. spent most of his time in the field doing construction work, and operated boats like the “Ms. Pauline,” but “not on a steady basis.” Referring to her deposition, she recalled that Phillips, Jr. would use the boat, because it was the only way that one could reach the barges and dredges that were out in the river. She said that Philips, Jr.’s duties in the company were related to construction. Pauline Phillips stated that she never authorized anyone in her company to reclassify Philips, Jr., as a maritime employee.

Craig Breaux, a J.P. & Sons employee in the dredging department, had been with the company for approximately one year at the time of trial. Breaux stated that Phillips, Jr.’s title with the company was President. Breaux stated that Danny Anderson is normally the captain of the dredge and the “Ms. Pauline” when they’re performing routine duties, and that Phillips, Jr. was not a regular member of the crew of the dredge or the “Ms. Pauline.” Breaux said that he had never seen Phillips, Jr. on the dredge.

David Phillips, Phillips, Jr.’s brother, testified that he was one-third owner in the business, in charge of the construction department at the time of Phillips, Jr.’s death. David Phillips said that Phillips, Jr. duties for J.P. & Sons were mainly to run the “sand jobs,” consisting of piling sand that goes under the foundation of a house, as well of all of the “big heavy dirt jobs,” for use in the construction of levees. Both of these duties were strictly land | abased operations. David Phillips said that Phillips, Jr. was the supervisor of these duties, and ran the dirt jobs for approximately the last 1 and a-half years of his life. Phillips, Jr. was also responsible for the entertainment of clients.

Danny Anderson, supervisor of the dredge for J.P. & Sons testified that he had been with J.P. & Sons for four years at the time of trial. Shortly after the [630]*630accident, Anderson told investigators that Phillips, Jr. worked about 20% of time on the “Ms. Pauline” but has no way of knowing if that number is accurate or not. At trial, Anderson specifically refuted the percentage that he told investigators. Anderson said that he recalled three or four times since 1998 that Phillips, Jr. had helped with a dredging operation, and that he saw Phillips, Jr. operate the “Ms. Pauline” on three occasions over four years.

Marion Phillips, Phillips, Jr.’s brother who was active with the dredging department, testified that he called upon Phillips, Jr.

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861 So. 2d 625, 3 La.App. 5 Cir. 715, 2003 La. App. LEXIS 3142, 2003 WL 22669367, Counsel Stack Legal Research, https://law.counselstack.com/opinion/phillips-v-joseph-management-services-inc-lactapp-2003.