Lewis v. Teacher's Pet, Inc.

Citations: 621 So. 2d 867; 1993 WL 248764Docket: 92-1112

Court: Louisiana Court of Appeal; August 11, 1993; Louisiana; State Appellate Court

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Clarence B. Lewis appealed a trial court judgment that ruled he was not an employee of Teacher's Pet, Inc. and therefore ineligible for weekly compensation or medical benefits under worker's compensation law. The court found that the trial court had erred in classifying him as an independent contractor rather than an employee. 

Lewis was hired by Teacher's Pet, an office supply store, to assist with a roofing job after he was requested by another worker. Following an accident where he fell and injured himself while performing work for Teacher's Pet, Lewis received initial medical treatment and compensation benefits. However, these benefits were later terminated, prompting him to file a claim to determine his employment status at the time of the injury. 

The Hearing Officer concluded that Lewis was self-employed, which led to his appeal. The case involved an examination of the definition of an independent contractor per La.R.S. 23:1021(6), which indicates that individuals who spend a significant portion of their work time performing manual labor may be considered employees under worker's compensation provisions. The appellate court reversed the lower court's decision and awarded attorney's fees to Lewis.

An independent contractor, as defined in Hickman v. Southern Pacific Transport Company, has the freedom to choose methods of work and bears legal responsibility for fulfilling contractual obligations. The relationship necessitates a contract, specific piece-work assignments, and a set price for the overall undertaking, with the contractor not subject to employer control except regarding the final results. In this case, Mr. Lewis was hired for manual labor, reporting to job sites designated by Mr. Whiting, with materials provided by Teacher's Pet. However, Teacher's Pet exercised daily control over the workers, including the authority to terminate employment, evidenced by Mr. Whiting's completion of employment paperwork and the payment structure. While Teacher's Pet did not withhold taxes from Mr. Lewis' paycheck, this alone does not establish an independent contractor status. The absence of a written contract for a specific undertaking and agreed employment duration further supports employee status. Teacher's Pet's argument referencing La.R.S. 23:1035(B) is countered by established Louisiana law, which holds that an employer can expand the scope of employment through assigned tasks, thereby maintaining compensation coverage, regardless of the nature of the work being performed at the time of injury. Thus, the defendant's position is deemed unsupported.

Evidence indicates that Mr. Lewis was an employee of Teacher's Pet, leading to the reversal of the trial court's finding that he was an independent contractor. Mr. Lewis sustained injuries that resulted in broken wrists, receiving compensation and medical benefits until they were terminated on January 18, 1991. At trial, Mr. Lewis had recovered from his left wrist injury but continued to face significant issues with his right wrist, necessitating surgery due to a medial nerve lesion and resulting in a fifty percent disability. Prior to his accident, Mr. Lewis was capable of performing various manual tasks without difficulty. The court determined he could not return to work until after surgery and ordered the appellees to pay him weekly compensation based on his earnings before the accident and cover his medical expenses for the surgery.

Additionally, Mr. Lewis claimed the trial court erred by not awarding attorney's fees, arguing that the termination of his benefits was arbitrary and capricious. Under Louisiana law, insurers must justify the cessation of benefits, and the evidence did not support the insurer's decision to terminate Mr. Lewis’s benefits in January 1991. The employer testified that he had reported Mr. Lewis as an employee and had not communicated otherwise to the insurer. As the insurer failed to provide a valid reason for stopping the benefits after nearly a year of payments, the court deemed their actions arbitrary. Consequently, the court awarded Mr. Lewis $7,500 in attorney's fees based on his counsel's documented work hours and rate.

The trial court's judgment is reversed, and all appeal costs are assigned to the defendants-appellees, Teacher's Pet, Inc. et al. Following a rehearing, the judgment is amended to include statutory penalties and legal interest on past due compensation awarded to plaintiff-appellant Clarence Lewis. The initial decision granted Mr. Lewis weekly compensation benefits based on his earnings prior to an accident on January 18, 1991, and attorney's fees of $7,500. However, the court initially overlooked awarding him a 12% penalty on all overdue amounts and legal interest. The amended judgment now specifies a 12% penalty on all past due amounts until paid, along with legal interest on all amounts owed. The reversal of the Office of Workers' Compensation's judgment remains intact in all other respects.