State Farm Fire & Casualty Insurance Co. v. Young

619 So. 2d 161, 1993 La. App. LEXIS 2082, 1993 WL 188840
CourtLouisiana Court of Appeal
DecidedJune 2, 1993
DocketNo. 92-1192
StatusPublished
Cited by1 cases

This text of 619 So. 2d 161 (State Farm Fire & Casualty Insurance Co. v. Young) 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
State Farm Fire & Casualty Insurance Co. v. Young, 619 So. 2d 161, 1993 La. App. LEXIS 2082, 1993 WL 188840 (La. Ct. App. 1993).

Opinion

GUIDRY, Judge.

Plaintiffs, State Farm Fire and Casualty Insurance Company (State Farm) and Lee-Dee Cigar and Candy Company (Lee-Dee), appeal from the Office of Worker’s Compensation (OWC) hearing officer’s dismissal for lack of subject matter jurisdiction of their petition to modify a worker’s compensation judgment. The judgment sought to be modified was rendered by the district court on January 22, 1986. The hearing officer determined that jurisdiction was proper in the district court in which a separate petition for modification was also filed and a judgment refusing modification was rendered. For the reasons which follow, we affirm.

FACTS

Barbara Young injured her back on December 13, 1984 while in the course and scope of her employment with Lee-Dee. She underwent fusion surgery and, thereafter, was diagnosed with chronic adhesive arachnoiditis. She filed suit against her employer and its compensation carrier, State Farm, on September 12, 1985. On January 22, 1986, the district court rendered judgment finding Young temporarily and totally disabled and entitled to compensation retroactive to the date of her injury.

A petition for modification was initially filed on August 4, 1989 in the district court in which the original judgment of compensation was rendered. State Farm and Lee-Dee sought a ruling that Young was no longer entitled to receive any benefits whatsoever or, alternatively, that she was only entitled to receive supplemental earnings benefits. Their position was based mainly on the results of a medical examination conducted by Dr. William Foster, who concluded that Young was capable of doing sedentary or clerical work. On January 19, 1990, State Farm and Lee-Dee filed a motion to compel a vocational evaluation and answers to interrogatories. A hearing on the motion was scheduled in the district court for March 13, 1990, but, according to plaintiffs’ brief, the trial judge subsequently cancelled the hearing. It is unclear from the record whether a hearing actually took place.

Due to what plaintiffs characterize as the trial judge’s concern- that legislation creating the OWC hearing officer system, which became effective on January 1, 1990, may have divested the district court of subject matter jurisdiction, plaintiffs filed another petition for modification of the trial court’s January 22, 1986 judgment with the OWC on March 26, 1990. Over a year later, on April 5, 1991, the district court issued an order denying plaintiffs’ motion to compel a vocational evaluation. On August 6, 1991, the trial judge rendered judgment dismissing plaintiffs’ petition for modification. The judgment provided, in pertinent part, as follows:

... After a hearing on this matter, this court after reviewing the facts and evidence finds , there is insufficient change in circumstances to justify an independent examination by a vocational rehabilitation expert and on April 5, 1991 denied defendant’s rule.
IT IS ORDERED, ADJUDGED AND DECREED that this Court finds no change in circumstances justifying a modification of this Court’s earlier January 22, 1986 judgment....

On October 16, 1991, the OWC hearing officer conducted a trial on the merits of plaintiff’s petition for modification filed therein. At the close of the evidence, the hearing officer noted his awareness of the district court judgment and requested that the parties, in post trial memoranda, discuss whether the district court judgment affected the OWC proceedings. On March 16, 1992, the hearing officer rendered judgment dismissing the matter for lack of subject matter jurisdiction. In that judgment, the hearing officer reasoned as follows:

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The matter upon which Judge Lyons ruled is the same presently under consideration by this Court. Since the present [163]*163matter was filed in District Court in August of 1989, months prior to January, 1990, when the jurisdiction over workers’ compensation matters switched to the Hearing Officer system, and was still pending in District Court when the same matter was filed with the Office of Workers’ Compensation in 1990, it is clear, therefore, that the Office of Workers’ Compensation does not have jurisdiction over the present matter. Any ruling made by this Court would be void and without effect. Judge Lyons’ August 6, 1991 Judgment properly adjudicates the present matter.
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From this judgment, State Farm and Lee-Dee appeal and assign the following errors:

I. The OWC ruling that it lacked subject matter jurisdiction to hear the petition for modification filed on March 26, 1990;
II. The OWC ruling that it lacked subject matter jurisdiction due to the pen-dency of a separate petition for modification in the district court at the time the OWC petition was filed; and,
III. The OWC ruling that the August 6, 1991 district court judgment properly adjudicates the present matter.

OPINION

Plaintiffs originally sought modification in the district court on August 4, 1989. At that time, the district court clearly had subject matter jurisdiction to hear the modification issue pursuant to La. R.S. 23:1331(C),1 which was repealed by Acts 1988, No. 938, § 3, effective January 1, 1990. On that date, when the OWC hearing officer system became effective, the district court had not rendered judgment on the petition for modification nor had it held a hearing on the merits of the issues raised by the petition. La. R.S. 23:1310.-8(B), which was made effective January 1, 1990, provided that, thereafter, OWC hearing officers would hear modification applications as follows:

Upon the application of any party in interest, on the ground of a change in conditions, the hearing officer may, after a contradictory hearing, review any award, and, on such review, may make an award ending, diminishing, or increasing the compensation previously awarded, subject to the maximum or minimum provided in the Worker’s Compensation Act, and shall state his conclusions of fact and rulings of law, and the director shall immediately send to the parties a copy of the award.

We must decide whether the simultaneous repeal of La. R.S. 23:1331(C) and enactment of La. R.S. 23:1310.8(B) transferred subject matter jurisdiction to the OWC for modification cases pending but not yet heard or ruled upon in the district court.

We note that the hearing officer system was subsequently declared unconstitutional as a violation of La. Const, art. V, § 16(A) in Moore v. Roemer, 567 So.2d 75 (La.1990), which became a final and definitive judgment on October 4, 1990 when rehearing was denied. Two days later, the electorate approved an amendment to Art. V, § 16 which validated the legislation establishing the hearing officer system. This amendment was held effective retroactive to the original effective date of the establishing legislation, January 1, 1990. Long v. Insurance Company of North America, 595 So.2d 636 (La.1992). The court in Long reasoned that “the change in law addresses subject matter jurisdiction and is therefore procedural, not substantive”. Long, supra, at 640.

The precise issue presented concerns whether subject matter jurisdiction [164]

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619 So. 2d 161, 1993 La. App. LEXIS 2082, 1993 WL 188840, Counsel Stack Legal Research, https://law.counselstack.com/opinion/state-farm-fire-casualty-insurance-co-v-young-lactapp-1993.