Standard Companies v. Trahan

918 So. 2d 1167, 2005 La. App. LEXIS 2651, 2005 WL 3588396
CourtLouisiana Court of Appeal
DecidedDecember 30, 2005
DocketNo. 05-593
StatusPublished
Cited by1 cases

This text of 918 So. 2d 1167 (Standard Companies v. Trahan) 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
Standard Companies v. Trahan, 918 So. 2d 1167, 2005 La. App. LEXIS 2651, 2005 WL 3588396 (La. Ct. App. 2005).

Opinion

COOKS, J.

1 .STATEMENT OF THE FACTS

This is a workers’ compensation case. Kirk Trahan was employed by The Standard Companies, Inc. (Standard) as a service coffee representative. He drove a company supply truck, delivering coffee, supplies and equipment to various businesses. The delivery truck was a regular sized van and Mr. Trahan utilized a dolly to unload coffee and other supplies. On July 6, 2001, while taking coffee and materials out of the van, he lost his footing and fell, injuring his back. After the accident, Standard assigned another employee to help Mr. Trahan fulfill his job duties. Despite this, Mr. Trahan stated he was having trouble getting in and out of the van and left his employment. He filed a workers’ compensation claim on August 28, 2001. Five months later, in January 2002, Standard re-hired Mr. Trahan. He worked for a week but could not continue because he found the van ride was too painful for him. At the time of the accident, Mr. Trahan was earning weekly wages of $529.98, entitling him to weekly benefits of $353.32. Standard paid benefits to Mr. Trahan beginning August 28, 2001 and continued payment until December 17, 2002. Thereafter, Standard converted to supplemental earnings benefits (SEB) and continued benefits until March 7, 2003. Standard discontinued all benefits after March 7, 2003. The parties stipulated Standard paid a total of $1.413.28 in SEB when the actual benefits should have been $1,531.05. The incorrect amount was [1169]*1169paid from December 17, 2003 to March 7, 2003. Additionally, the parties stipulated Standard would be subject to a credit for any amounts paid after March 7, 2003.

On April 11, 2003, Standard filed a disputed claim for compensation alleging fraud. Specifically, Standard contends at the time Mr. Trahan was receiving benefits he was employed as a cashier at his wife’s convenience store. Standard also sought 1¡¡reimbursement for SEB paid pri- or to March 7, 2003. Mr. Trahan filed a petition seeking reinstatement of benefits, vocational rehabilitation, penalties and attorney’s fees. Both matters were consolidated before the workers’ compensation judge (WCJ). The WCJ found insufficient evidence to prove Mr. Trahan committed fraud, reinstated SEB through March 8, 2003, awarded penalties and attorney’s fee for failure to accurately calculate SEB and ordered Standard to pay an additional sum of $117.77 a week until March 7, 2003. The WCJ held Standard was entitled to a credit for any SEB payments made to Mr. Trahan after March 8, 2003 and declined to award penalties and attorney’s fees for the termination of benefits, finding Standard was reasonable in questioning Mr. Trahan’s entitlement to further benefits. Standard appeals the decision, asserting two assignments of error:

1. The trial court erred in finding Mr. Trahan did not commit fraud under La. R.S. 23:1208.
2. The trial court erred in finding Mr. Trahan was entitled to SEB under La. R.S. 23:1221(3) prior to March 7, 2003.

Mr. Trahan answered the appeal seeking additional attorney’s fees for work done on appeal. For the reasons assigned below, we affirm the decision of the workers’ compensation judge and award additional attorney’s fees.

STATEMENT OF THE FACTS

Fraud

Standard contends Mr. Trahan committed fraud when he denied working at his wife’s convenience store. Standard contends videotaped surveillance clearly shows Mr. Trahan as the only person behind the counter, operating the cash register and assisting customers in the store. Louisiana Revised Statute 23:1208 provides, in relevant part:

A. It shall be unlawful for any person, for the purpose of obtaining or defeating any benefit or payment under the provisions of this Chapter, either for himself or for any other person, to willfully make |4a false statement or representation.
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E. Any employee violating this Section shall, upon determination by workers’ compensation judge, forfeit any right to compensation benefits under this Chapter.

In order to prevail, Standard must prove the following: (1) a false statement or representation; (2) willfully made by Mr. Trahan; and (3) made for the purpose of obtaining any workers’ compensation benefits or payment. Thomas v. De St. James, 02-729 (La.App. 3 Cir. 1/29/03), 846 So.2d 765; Resweber v. Haroil Construction Company, 94-2708 (La.9/5/95), 660 So.2d 7. Standard contends Mr. Trahan testified in his deposition that he never worked at Roland’s, his wife’s convenience store. Yet, the videotape shows Mr. Tra-han standing behind the counter, taking money and assisting patrons of the store. When questioned at trial regarding the videotape, Mr. Trahan explained he was never employed there. He would often go to the store, on the advice of his doctor, to get out of the house, to drink coffee, and to visit with customers. He testified his doc[1170]*1170tor “said the best thing for me to do is not to stay cooped up in the house, is to stay— you can go stay around the store and meet people.” Mrs. Trahan testified neither she nor Mr. Trahan ever took a salary. The store was not making any profit and has subsequently closed. Mrs. Trahan testified Mr. Trahan would often walk to the store to visit and drink coffee. She testified he would sometimes rest on a cot located in the backroom of the store. The WCJ found insufficient evidence of fraud, stating:

[I]fs not enough. It’s a very brief video. It’s just simply — does it raise questions in my mind? Most definitely. If you had more consistent — over time more — if there was a little bit more, possible. If there was a lot more, definitely. Do I have questions and does it raise suspicions. Definitely. Is it enough to constitute fraud? No, it is not.

We agree with the WCJ that Standard failed to prove Mr. Trahan willfully misrepresented employment at Roland’s for the purpose of obtaining benefits. While | she may have assisted his wife in the store on occasion, Standard failed to show he was regularly employed there and deliberately misrepresented this fact to his employer.

SEB

Standard is seeking reimbursement for SEB paid prior to March 7, 2003. Standard contends Mr. Trahan has not proved by a preponderance of the evidence his inability to earn ninety percent of his pre-employment wages. Louisiana Revised Statutes 23:1221(3) provides supplemental earnings benefits shall be paid:

(a) For injury resulting in the employee’s inability to earn wages equal to ninety percent or more of wages at time of injury, supplemental earnings benefits equal to sixty-six and two thirds percent of the difference between the average monthly wages earned or average monthly wages the employee is able to earn in any month thereafter in any employment or self-employment, whether or not the same or a similar occupation as that in which the employee was customarily engaged when injured and whether or not an occupation for which the employee at the time of the injury was particularly fitted by reason of education, training, and experience, such comparison to be made on a monthly basis.

We disagree with the position of Standard. The medical testimony is consistent. Mr. Trahan suffered a lumbosacral strain superimposed on a L4-5 degenerative disc, arthritis, and obesity.

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Cite This Page — Counsel Stack

Bluebook (online)
918 So. 2d 1167, 2005 La. App. LEXIS 2651, 2005 WL 3588396, Counsel Stack Legal Research, https://law.counselstack.com/opinion/standard-companies-v-trahan-lactapp-2005.