Ross v. Highlands Ins. Co.

590 So. 2d 1177, 1991 WL 255923
CourtSupreme Court of Louisiana
DecidedDecember 2, 1991
Docket91-CC-0980
StatusPublished
Cited by23 cases

This text of 590 So. 2d 1177 (Ross v. Highlands Ins. Co.) is published on Counsel Stack Legal Research, covering Supreme Court of Louisiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ross v. Highlands Ins. Co., 590 So. 2d 1177, 1991 WL 255923 (La. 1991).

Opinion

590 So.2d 1177 (1991)

Lynn Rogers ROSS
v.
HIGHLANDS INSURANCE COMPANY and Louisiana Paving Company.

No. 91-CC-0980.

Supreme Court of Louisiana.

December 2, 1991.
Rehearing Denied January 9, 1992.

*1178 Gerard G. Thomas, Jr., Robert Charles Clayton Thomas, Thomas, Dunahoe & Thomas, for applicant.

Steven D. Crews, Watson, Murchison, Crews & Arthur, Richard J. Serpe, for respondent.

Lorraine A. Dupont, counsel for La. Dept. of Employment & Training, Office of Worker's Compensation, amicus curiae.

COLE, Justice.

The first issue presented by this worker's compensation case is whether the petition *1179 filed in district court by the plaintiff is a "new claim" or a suit for enforcement of a prior judgment. Because we find it is the latter, this Court must next decide whether the 1988 amendments to the Worker's Compensation Act divest a district court of its subject matter jurisdiction to enforce its own judgments.

I.

Plaintiff, Lynn Rogers Ross, received an on-the-job injury in 1986 while employed by Louisiana Paving Company, Inc. Initially, Mr. Ross received weekly compensation benefits, but when a dispute arose over the payment of medical expenses he filed a formal claim with the director of the Office of Worker's Compensation ("OWC"). Subsequently, the director issued a recommendation which Mr. Ross rejected. In February of 1989 Mr. Ross filed suit against his employer and the employer's compensation insurance carrier in the 39th Judicial District Court pursuant to former La.R.S. 23:1311. Before trial the parties reached a settlement and, accordingly, the district court judge signed a consent judgment on April 11, 1989.

The April 1989 judgment holds the defendants liable "for all medical expenses heretofore incurred by the petitioner and hereafter incurred by the petitioner, and for which the said parties are responsible under the provisions of the Louisiana Workmen's Compensation Statute." In addition, because of their arbitrary refusal to pay, the defendants were cast in judgment for statutory penalties and attorneys' fees. La.R.S. 23:1201(E), (F); 23:1201.2 (West 1991).

Soon after the judgment Mr. Ross's physicians recommended hospitalization. The defendants failed to authorize payment for the proposed treatment, causing the plaintiff to bring suit on April 16, 1989 asking the district court to enforce the judgment it rendered only a few days earlier. On July 11, 1989 the district court ordered the defendants to issue a letter guaranteeing payment.

In late 1990 the defendants once more objected to paying Mr. Ross's medical bills. Consequently, on January 16, 1991 Mr. Ross filed another petition with the district court, this time to enforce both the April 1989 judgment and the July 1989 order. In response, the defendants filed the declinatory exception, raising the objection of lack of subject matter jurisdiction. La.C.Civ.P. arts. 922, 925(6). The district court denied the exception, holding "once jurisdiction attaches in District Court, jurisdiction remains." The Court of Appeal, Second Circuit, made the writ peremptory and reversed, holding the district court was divested of its jurisdiction by the 1988 amendments. It is this exception which presents the basic issue we must decide, i.e., whether the 1988 amendments to the Act divested the district court of its subject matter jurisdiction to enforce its own judgment.

II.

The court of appeal apparently was persuaded by the defendants' characterization of the January 16, 1991 petition as a "new claim." If it were a new claim it clearly would be covered by the post-amendment procedure, which requires the OWC to hear claims in the first instance. 1988 Acts, No. 938; La.R.S. 23:1310.3(A)(4). Proper characterization of the petition, thus, lies at the heart of the matter.

The plaintiff argues the January 16, 1991 petition is not a "claim," old or new, but rather a suit to enforce prior judgments of the district court, and thus the district court should have continuing jurisdiction to enforce its own orders. In the alternative, Mr. Ross contends the instant petition is but a continuation of the original claim. Although the district court issued a judgment on April 11, 1989 the claim, according to the plaintiff, is not "resolved" because the matter has not fully come to an end.

This Court granted plaintiff's application and issued a writ of certiorari[1] to the Court of Appeal, Second Circuit, in order to decide two issues: first, whether the petition represents a "new claim" or a suit for *1180 enforcement; and, second, whether the 1988 amendments to the Worker's Compensation Act divest a district court of jurisdiction: (a) to enforce a judgment rendered by it before the effective date of the amendments; and (b) to cast defendants in judgment for attorneys' fees and penalties attendant to the enforcement.

III.

A brief review of the changes wrought over the last decade in the area of worker's compensation is necessary to focus the contentions of the parties. The changes brought about by the legislature in Act 1 of the 1983 Extraordinary Session were in effect when Mr. Ross was injured in 1986. Under these amendments an injured employee was required to file a claim with the OWC if a bona fide dispute arose any time after the office had been notified of the injury. La.R.S. 23:1310. The agency's director would then issue a recommendation which either side could accept or reject. La.R.S. 23:1310.1. If the recommendation were rejected, the employee could bring an action de novo in district court. La.R.S. 23:1311(A). Such a scenario occurred here. The defendants rejected the recommendation and the plaintiff filed suit in district court, ultimately receiving a favorable judgment.

In 1988 the legislature again revamped the worker's compensation procedure. 1988 Acts, No. 938, effective January 1, 1990. Under the new system nine hearing officers handle claims at the administrative level. La.R.S. 23:1310.3(A)(4). More importantly for purposes of this case, the act abolished de novo review in the district court, replacing it with a direct appeal on the record to the court of appeal. District courts are now relegated solely to the role of enforcing orders of the OWC.[2] La.R.S. 23:1310.5 and 23:1310.7.

This Court held the new system unconstitutional in Moore v. Roemer, 567 So.2d 75 (La.1990), because it gave the OWC jurisdiction in the first instance, contravening the constitutionally mandated original jurisdiction of the district courts. This infirmity, however, has been cured by amendment to La. Const., art. V, § 16(A), creating an exception to district courts' original jurisdiction for worker's compensation matters. This amendment was pursuant to Acts 1990, No. 1098, effective November 7, 1990.[3] Thus, the scheme envisioned by the 1988 statutory amendments is now presumably in place.

The legislature also provided for a transition period for the handling of cases straddling old and new law, as defendants argue this case does. In 1989 the legislature, by Act 260, amended Sections 4 and 5 of Act 938 of the 1988 Legislative Session. The defendants contend this act, which reads in part as follows, is dispositive:

Delay of implementation dates for administrative hearing officer provisions. Acts 1989, No. 260, § 1 effective June 26, 1989, amended §§ 4 and 5 of Acts 1988, No. 938 to read:
"Section 4.

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Bluebook (online)
590 So. 2d 1177, 1991 WL 255923, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ross-v-highlands-ins-co-la-1991.