Stephanie A. Varnado Versus Pennsylvania Manufacturers' Association Insurance Company

CourtLouisiana Court of Appeal
DecidedAugust 14, 2024
Docket23-CA-528
StatusUnknown

This text of Stephanie A. Varnado Versus Pennsylvania Manufacturers' Association Insurance Company (Stephanie A. Varnado Versus Pennsylvania Manufacturers' Association Insurance Company) 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
Stephanie A. Varnado Versus Pennsylvania Manufacturers' Association Insurance Company, (La. Ct. App. 2024).

Opinion

STEPHANIE A. VARNADO NO. 23-CA-528

VERSUS FIFTH CIRCUIT

PENNSYLVANIA MANUFACTURERS' COURT OF APPEAL ASSOCIATION INSURANCE COMPANY STATE OF LOUISIANA

ON APPEAL FROM THE TWENTY-FOURTH JUDICIAL DISTRICT COURT PARISH OF JEFFERSON, STATE OF LOUISIANA NO. 820-903, DIVISION "M" HONORABLE SHAYNA BEEVERS MORVANT, JUDGE PRESIDING

August 14, 2024

STEPHEN J. WINDHORST JUDGE

Panel composed of Judges Fredericka Homberg Wicker, Stephen J. Windhorst, and John J. Molaison, Jr.

AFFIRMED SJW FHW JJM COUNSEL FOR PLAINTIFF/APPELLANT, STEPHANIE A. VARNADO Joseph M. Bruno, Sr. Donald D. Reichert, Jr. Markita Hawkins

COUNSEL FOR DEFENDANT/APPELLEE, PENNSYLVANIA MANUFACTURERS' ASSOCIATION INSURANCE COMPANY John Parker Amy G. Lowe WINDHORST, J.

In this personal injury lawsuit, plaintiff/appellant, Stephanie Varnado, appeals

the trial court’s January 31, 2023 judgment, rendered in accordance with the jury

verdict, awarding her $535,256.74 in total damages and allocating 50% of fault to

her for failing to mitigate her lost wages damages. Plaintiff also appeals the trial

court judgment granting defendant/appellee, Pennsylvania Manufacturer’s

Association Insurance Company, an offset and credit against the jury award in the

amount of $236,646.52 representing the combined total amount of medical and

wage/indemnity benefits her workers’ compensation insurer paid to her. We affirm

these judgments.

BACKGROUND and PROCEDURAL HISTORY

On October 16, 2019, Ms. Varnado suffered multiple injuries in an automobile

accident, in which Irma Estrada rear-ended Ms. Varnado. Ms. Varnado was in the

course and scope of her employment with ForTec Medical, Inc. at the time of the

accident. Ms. Varnado settled her claim with the tortfeasor, Ms. Estrada, and her

insurer for $15,000.00, the underinsured tortfeasor’s liability policy limits. Ms.

Varnado also settled her workers’ compensation claim with ForTec’s workers’

compensation insurer for $236,646.52, including $140,734.52 in medical benefits

($50,000.00 in future medical benefits) and $95,912.00 in indemnity benefits

($45,000.00 in future indemnity benefits).

On September 18, 2021, Ms. Varnado filed suit against Pennsylvania

Manufacturer’s Association Insurance Company (“PMA”), seeking coverage under

the uninsured and/or underinsured (“UM”) provisions of the commercial auto

liability policy issued to ForTec, her employer, at the time accident. Ms. Varnado

asserted that her claim exceeded the tortfeasor’s policy limits, and she sought

recovery of the excess amount from PMA. PMA answered the petition, asserting it

had tendered UM payments to Ms. Varnado in full satisfaction of her damages

23-CA-528 1 arising from the 2019 accident. PMA also asserted that it was entitled to an offset

and credit for any benefits Ms. Varnado received from the workers’ compensation

insurer and any payments she received from the underinsured tortfeasor’s insurer.

Before trial, PMA filed a motion for offset and credit against any jury award

in favor of Ms. Varnado, seeking a credit for the $15,000.00 received from Ms.

Estrada’s insurer and the $236,646.52 Ms. Varnado was paid in workers’

compensation benefits. PMA stated it had tendered two unconditional payments

totaling $115,000.00 to Ms. Varnado. PMA asserted that because Ms. Varnado had

received $366,646.52 in payments for which PMA was entitled to an offset and

credit, PMA should only be responsible for a jury award exceeding $366,646.52 to

the extent of PMA’s remaining $885,000 policy limit. Ms. Varnado opposed the

motion, arguing that PMA could not meet its burden of proving that PMA and the

workers’ compensation insurer are solidary obligors, as required to establish

entitlement to an offset and credit.

By judgment dated November 17, 2022, the trial court granted PMA’s motion

for offset and credit, in part, ruling that PMA (1) had no obligation to pay the first

$15,000.00 of Ms. Varnado’s damages because this amount represented the

underinsured underlying liability policy limits applicable to this case; and (2) was

entitled to an offset and credit against any damage award to plaintiff for the amounts

PMA already tendered to Ms. Varnado, which totaled $115,000.00. The trial court,

however, found it was premature to consider the issue of offset and credit relative to

the amounts Ms. Varnado received from the workers’ compensation insurer.

The parties proceeded to a jury trial from December 12 to 15, 2022. After

trial, the jury rendered a verdict in favor of Ms. Varnado, awarding the following

damages: (1) $95,440.11 in past medical expenses; (2) $100,000.00 in future

medical expenses; (3) $122,833.26 in past lost wages; (4) $62,400.00 in future lost

wages; (5) $66,000.00 in past physical pain, suffering mental anguish, and emotional

23-CA-528 2 distress; (6) $100,000.00 in permanent physical impairment; and (7) $50,000.00 in

past impairment of enjoyment of life. The jury found Ms. Varnado failed to mitigate

her past lost wages and allocated 50% of the fault to her, thereby reducing her past

lost wages award to $61,416.63.

After trial, by judgment dated May 16, 2023, the trial court reconsidered

PMA’s motion for offset and credit based on the jury award and granted an

additional offset and credit as follows: (1) $112,850.52 for medical expenses; (2)

$112,000.00 future medical expenses; and (3) $61,416.63 for past lost wages.

Ms. Varnado has appealed the judgment on the jury verdict and the trial

court’s judgment granting the offset and credit.

TRIAL EVIDENCE

Before trial, the parties stipulated that Ms. Estrada was 100 percent at fault for

the 2019 accident, and that PMA was entitled to an offset and credit against any

money judgment awarded to Ms. Varnado for the $15,000.00 she received from Ms.

Estrada’s insurer and the $115,000.00 PMA had already unconditionally tendered to

her. The trial focused on the extent of Ms. Varnado’s damages in order to determine

the amount of PMA’s liability under the UM coverage it issued to ForTec.

At trial, Ms. Varnado relied on testimony from: (1) herself; (2) Dr. Samer

Shamieh, Ms. Varnado’s surgeon; (3) Dr. Chad Domangue, her treating physician;

and (4) Elizabeth Martina, Ms. Varnado’s vocational rehabilitation counselor and

life care planner. PMA presented testimony from Dr. Najeeb Thomas as its expert

medical witness, and Stacie Nunez as PMA’s vocational rehabilitation counselor and

life care planner.

Ms. Varnado testified about her extensive work history, revealing a broad

range of employment, from Coast Guard service to office management,

administrative work, and surgical technician. In the Coast Guard, she completed

23-CA-528 3 four years of active duty working as a diesel mechanic and assisting in search and

rescue and drug enforcement.

Ms. Varnado began her employment with ForTec, a surgical equipment

vendor, as a surgical technician in October 2011. As a technician, she worked in a

multi-state region, including Tennessee, Mississippi, Alabama and Florida, and

consequently, often drove up to six hours a day. At the time of the accident, she was

earning $67,644.58 per year with ForTec.

Ms. Varnado testified that the initial impact from the 2019 accident was

significant and caused an instant heat radiation feeling in her back. Immediately

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