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Gaylord Chemical Corporation v. Short
Citations: 81 So. 3d 34; 2011 La.App. 1 Cir. 0321; 2011 La. App. LEXIS 1335; 2011 WL 5402685Docket: No. 2011 CA 0321
Court: Louisiana Court of Appeal; November 8, 2011; Louisiana; State Appellate Court
The former employer of Jerome Milton Short and its workers’ compensation insurer, Continental Casualty Company, appealed a judgment that denied their request for an independent medical examiner (IME) and imposed sanctions in the form of attorney fees on the insurer. The court reversed the judgment and remanded the case for further proceedings. Short was injured in 1995 while working for Gaylord Chemical Corporation and has since received continuous workers’ compensation benefits for his injuries. In October 2009, he was evaluated by psychiatrist Dr. Rennie Culver, who provided a report on Short's condition in January 2010. In July 2010, Gaylord and Continental submitted a request for an IME, citing disputes regarding Short’s medical treatment and work capacity. However, the workers’ compensation judge (WCJ) did not sign the order for the IME and instead instructed that the request be processed differently, leading to a new docket number. Short contested the request, alleging issues of res judicata concerning prior court rulings and accusing the employer of being arbitrary in seeking further medical evaluations. The WCJ denied the IME request based on jurisdictional grounds, stating that the proper procedural steps had not been followed. The appeal resulted in a reversal of the WCJ's decision, allowing for further proceedings on the matter. The WCJ denied Mr. Short’s request for an Independent Medical Examination (IME), deeming Mr. Short’s exceptions moot. The WCJ took Mr. Short's motion for sanctions under advisement, ultimately signing a judgment on October 29, 2010, that denied the IME request, granted Mr. Short’s motion for sanctions, and awarded him $500.00 in attorney fees against Continental for the defense of the IME motion. The judgment included written reasons stating that Gaylord and Continental improperly used La. R.S. 23:1124.1 to engage the court and imposed undue hardship on Mr. Short, forcing him to hire an attorney. Gaylord and Continental appealed, asserting errors by the WCJ: 1) refusal to appoint an IME under La. R.S. 23:1123, substituting an alternative statute not cited by the parties; and 2) awarding attorney fees without acknowledging the jurisdictional bases cited by the appellants or evidence supporting such an award against the losing party. The discussion emphasized the importance of legislative intent in statutory interpretation, asserting that statutes are presumed to be enacted with full knowledge of existing laws and should be interpreted consistently. Clear and unambiguous laws are to be applied as written, and when two statutes address the same subject, the more specific statute prevails. La. R.S. 23:1123 allows the director of the Office of Workers’ Compensation to appoint an independent medical examiner, establishing that disputes over an employee's condition or treatment warrant such an examination. La. R.S. 23:1124.1 grants the Workers' Compensation Judge (WCJ) the discretionary authority to order claimants to be examined by other physicians for advisory opinions, which is distinct from the appointment of independent medical examiners (IMEs) under La. R.S. 23:1123. Unlike La. R.S. 23:1123, La. R.S. 23:1124.1 lacks mandatory language and is not the focus of the current discussion. La. R.S. 23:1310.8(A)(1) establishes that a WCJ has ongoing jurisdiction over cases and may modify previous findings after a contradictory hearing, including requiring physical examinations as per La. R.S. 23:1123. La. R.S. 23:1317.1(B)(E) outlines the standards for IMEs under La. R.S. 23:1123, while Paragraph F specifies that objections to IMEs must be submitted using Form LWC-WC-1008 and heard within thirty days. The authority to order an IME is typically associated with the "director" of the Office of Workers’ Compensation, but it has been suggested that this authority should now reside with WCJs following amendments in 1995 that imply such power. The statutes can be interpreted to allow requests for IMEs to be directed to WCJs, with the director responsible for selecting the examiner. Forms related to IMEs and disputed claims are specified, highlighting procedural differences. It is emphasized that legal and procedural rules should promote substantive justice and that there is no strict requirement to file new claims for disputes related to ongoing benefits, as established in Romero v. Northrop Grumman Corp. The trial court asserted that the 1015 form for an Independent Medical Examination (IME) should be submitted to the director rather than to her, questioning the appropriateness of filing a Form LWC-WC-1008 without an existing dispute. Although Gaylord and Continental initially filed the Form LWC-WC-1015 with the local district office rather than the central office, they acted correctly under La. R.S. 23:1310.8, which allows the workers’ compensation judge to require physical examinations. It was determined that requests for an IME in cases involving payments under the Louisiana Workers’ Compensation Act, without a pending dispute, could be filed either with the director or the tribunal. The trial court's denial of the IME request was found to be incorrect due to the tribunal's continuing jurisdiction over the original claim, resulting in a reversal of the WCJ’s judgment and a remand for further proceedings. Regarding attorney fees and penalties in workers’ compensation cases, Louisiana law stipulates that these are only recoverable when authorized by statute or contract, and they are intended to deter employer indifference. For penalties and attorney fees to be imposed, there must be a breach of statutory duty. The only authority cited for sanctions by Mr. Short was La. C.C.P. art. 863, which requires a clear violation of pleading standards; however, the WCJ did not reference this or any other authority in her judgment. On appeal, Mr. Short argued that sanctions were imposed under La. C.C.P. art. 863, which allows for sanctions only in exceptional circumstances and not merely for unsuccessful arguments, as even slight justification for a legal claim protects against sanctions. A trial court's decision on sanctions is reviewed under the manifest error or clearly wrong standard. The record lacks evidence to support the WCJ’s assertion that Gaylord and Continental improperly utilized Form LWC-WC-1008 to initiate a court-appointed independent medical examination (IME) without a disputed claim. Any potential misuse of the form by petitioners’ counsel was deemed excusable, stemming from incorrect guidance from the Office of Workers’ Compensation. This alleged error does not meet the threshold for sanctionable conduct outlined in La. C.C.P. art. 863. Furthermore, Mr. Short actively opposed the IME, making the referral to the WCJ inevitable. The WCJ incorrectly concluded that Mr. Short faced unnecessary legal expenses and undue hardship. The record fails to demonstrate any violations of La. C.C.P. art. 863 by the petitioners or their attorney, nor did Mr. Short or the WCJ cite any alternative legal basis for the sanctions. As a result, the WCJ's award of attorney fees is deemed manifestly and legally erroneous, leading to a reversal of the judgment from the Office of Workers’ Compensation, which denied the petitioners' request for an IME and awarded fees to Mr. Short. The case is remanded for further proceedings, instructing the Office of Workers’ Compensation to re-file the original Form LWC-WC-1015 or allow a new submission, and to conduct a new hearing regarding the IME request. All appeal costs are assigned to Mr. Short. Additionally, the excerpt notes statutory amendments related to the employee's capacity to work and medical treatment without altering previous language from 1989. During the hearing, Gaylord and Continental's counsel sought clarification on the basis for sanctions, but the WCJ indicated they should respond to Mr. Short's counsel's statements, which lacked statutory references or evidence of undue hardship.