Reeves v. Louisiana State Probation & Parole

684 So. 2d 1112, 96 La.App. 4 Cir. 1922, 1996 La. App. LEXIS 2962, 1996 WL 721875
CourtLouisiana Court of Appeal
DecidedDecember 11, 1996
DocketNo. 96-CA-1922
StatusPublished
Cited by1 cases

This text of 684 So. 2d 1112 (Reeves v. Louisiana State Probation & Parole) 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
Reeves v. Louisiana State Probation & Parole, 684 So. 2d 1112, 96 La.App. 4 Cir. 1922, 1996 La. App. LEXIS 2962, 1996 WL 721875 (La. Ct. App. 1996).

Opinions

liBYRNES, Judge.

Linda J. Reeves appeals a judgment of the Office of Worker’s Compensation sustaining an exception of res judicata urged by her employer, State of Louisiana through the [1113]*1113Department of Public Safety and Corrections, New Orleans Probation and Parole (State). We remand for three basic reasons:

1. It is against public policy to permit the injured employee to waive the requirements of LSA-R.S. 23:1271A(3).
2. Fraud and misrepresentation are not the only grounds upon which an approved settlement may be overturned. Smith v. Cajun Insulation, Inc., 392 So.2d 398, 401 (La.1980).
3. Where compliance with the requirements of LSA-R.S. 23:1271 et seq. are not apparent from the face of the settlement documents, the burden is on the State as the party urging the exception of res judi-cata based on a compensation settlement to show that it meets statutory requirements, including LSA-R.S. 23:1271A(3) where applicable.

On July 20, 1993, Ms. Reeves sustained an on the job injury. The State paid her temporary total disability benefits for four weeks, after which she returned to her job as a word processor operator.

In March, 1994, Ms. Reeves filed a report of occupational injury alleging aggravation of the July, 1993, injury and the onset of carpal tunnel syndrome. Shortly thereafter, she filed suit for benefits related to those maladies.

In February, 1995, Ms. Reeves settled her claims against the State for $11,000.00 plus outstanding medical expenses. The settlement was approved in an order signed by hearing officer Gwendolyn F. Thompson. Nine months later, |2Ms. Reeves initiated a pro se claim with the Office of Worker’s Compensation seeking to overturn the settlement and reinstate compensation benefits. Ms. Reeves alleged fraud, misrepresentation, that the settlement was not in her best interest, and that six months had not passed since the end of temporary total disability.

The State countered with exceptions of no cause of action and res judicata, interposing the February, 1995, settlement as a bar to Ms. Reeves demands.

The hearing officer granted the exception of res judicata, recognizing the validity of the February, 1995, settlement and finding that Ms. Reeves was represented by competent counsel at the time of the settlement. Further, the hearing officer concluded that Ms. Reeves failed to prove either fraud or misrepresentation as required by LSA-R.S. 23:1272(B). This appeal followed.

A valid compromise can form the basis of a plea of res judicata. Brown v. Drillers, Inc., 93-1019 (La.1/14/94); 630 So.2d 741. Louisiana law allows, but does not favor, the compromise or settlement of worker’s compensation claims. The relevant statute is LSA-R.S. 23:1271, which states in pertinent part:

A. It is stated policy for the administration of the worker’s compensation system of this state that it is in the best interest of the injured worker to receive benefit payments on a periodic basis. A lump sum payment or compromise settlement in exchange for full and final discharge and release of the employer, his insurer, or both from liability under this Chapter shall be allowed only: [Emphasis added.]
(1) upon agreement between the parties, including the insurer’s duty to obtain the employer’s consent;
(2) when it can be demonstrated that a lump sum payment is clearly in the best interests of the parties; and
|3(3) upon the expiration of six months after termination of temporary total disability.1 [Emphasis added.]

LSA-R.S. 23:1271A(3) emphasized above is the crux of this case.

The settlement consists of the following documents:

1. Joint Petition To Compromise A Worker’s Compensation Claim
2. Affidavit [of plaintiff, Linda J. Reeves]
3. Affidavit [of L. Adrienne Dupont, counsel for Reeves’ employer]
4. Joint Motion and Order to Dismiss
5. Judgment
6. Waiver [of Linda J. Reeves]

[1114]*1114The “Waiver” signed by plaintiff, Linda J. Reeves, in connection with the settlement provides in pertinent part:

5.
That pursuant to the aforementioned compromise settlement agreement, she has read the entire text of R.S. 23:1271, specifically noting Subpart A(3).
6.
That affiant fully understands the meaning and text of R.S. 23:1271, specifically noting Subpart A(3), which deals with waiting until the expiration of six months after termination of temporary total disability, and has had same explained by her attorney.
7.
That she knowingly, intelligently and voluntarily waives her rights to R.S. 23:1271 Subpart A(3) in waiting until the expiration of six months after termination of temporary total disability.

^Paragraph 13 of the “Joint Petition To Compromise A Worker’s Compensation Claim” states:

Claimant is aware of the provisions of La. R.S. 23:1271 A(3) which provides for a six month waiting period after temporary total disability ceases before a compromise settlement is allowed. Whether said provision applies herein or not, claimant hereby waives the six month waiting period provisions.

There is no allegation in the settlement documents that the six month period had in fact elapsed. We note that the State never says on appeal that the six month period had elapsed, only that the plaintiff failed to prove that it had not.

The judgment below maintaining the State’s exception of res judicata makes no mention of the waiver of the six month period, finding only that:

[T]he Compromise Settlement of February 7, 1995 is valid; that claimant, at the time of settlement, was represented by eompe-tent counsel, and has proven neither fraud nor misrepresentation, required under LA R.S. 23:1272 B. See Nelams vs. Allen’s TV Cable, et al. 664 So.2d 563 (La.App. 3rd Cir.1995)

Based upon our review of the entire record and the Nelams case we can only conclude that the trial court wrongly determined that the only material issues to be decided in determining the validity of the settlement were those of fraud and misrepresentation. In Nelams, 95-444 p. 5 (La.App. 3 Cir. 11/2/95); 664 So.2d 563, 566 the court stated that:

In the absence of fraud or misrepresentation, Nelams’ mistaken belief or assumption that all medical bills had been paid is not sufficient grounds for modifying a worker’s compensation compromise that has been approved by a hearing officer. [Emphasis added.]

Nelams never states that fraud and misrepresentation are the only two bases for attacking a worker’s compensation compromise. Nelams

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Bluebook (online)
684 So. 2d 1112, 96 La.App. 4 Cir. 1922, 1996 La. App. LEXIS 2962, 1996 WL 721875, Counsel Stack Legal Research, https://law.counselstack.com/opinion/reeves-v-louisiana-state-probation-parole-lactapp-1996.