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Creole Steel, Inc. v. Stewart

Citations: 86 So. 3d 757; 11 La.App. 3 Cir. 1285; 2012 La. App. LEXIS 282; 2012 WL 717458Docket: No. WCA 11-1285

Court: Louisiana Court of Appeal; March 6, 2012; Louisiana; State Appellate Court

Narrative Opinion Summary

The case involves an appeal by Ricky Stewart against a judgment from the Office of Workers’ Compensation (OWC) concerning his employer, Creole Steele, Inc. The primary legal issue pertains to the denial of penalties and attorney fees for the employer's failure to authorize Marinol, a medication prescribed for Stewart's cervical spine injury sustained in 2000. Stewart's physician prescribed Marinol in 2009, but the employer contested its necessity. The Workers' Compensation Judge (WCJ) ordered an independent medical examination and allowed the prescription, though without penalties or fees, citing discretion and reasonable contestation of the claim. Stewart, however, sought reimbursement for out-of-pocket expenses for Marinol. The WCJ initially denied this, but on appeal, the judgment was amended to require the employer to reimburse Stewart. The legal proceedings highlighted the application of Louisiana Revised Statutes 23:1201(E) regarding timely payment of medical benefits, the broad discretion afforded to the WCJ, and the concept of reasonably controverted claims. The final decision mandated Creole Steele, Inc. to cover all appeal costs, affirming the WCJ's ruling except for the reimbursement issue.

Legal Issues Addressed

Discretion of Workers' Compensation Judge in Awarding Penalties

Application: The Workers' Compensation Judge (WCJ) has broad discretion in deciding whether to award penalties and attorney fees, subject to review for abuse of discretion.

Reasoning: The WCJ's discretion in awarding penalties and fees is broad and only reviewed for abuse.

Medical Benefits under Louisiana Revised Statutes 23:1201(E)

Application: The statute requires medical benefits to be paid within sixty days of notice, with penalties applicable unless the claim is reasonably controverted or nonpayment is beyond the employer's control.

Reasoning: Mr. Stewart argues that the WCJ erred by not awarding penalties and attorney fees, citing Louisiana Revised Statutes 23:1201(E), which mandates medical benefits be paid within sixty days of notice.

Reasonably Controverted Claims

Application: A claim is considered reasonably controverted if the employer presents factual or medical evidence that counters the claimant’s case.

Reasoning: A claim is reasonably controverted if the employer presents factual or medical evidence countering the claimant’s case.

Reimbursement for Necessary Medical Expenses under La.R.S. 23:1203

Application: The WCJ determined that Marinol was a necessary medical expense and initially erred by not ordering reimbursement, which was subsequently corrected on appeal.

Reasoning: The WCJ found Marinol to be a necessary medical expense under La.R.S. 23:1203, and it was concluded that the WCJ erred by refusing reimbursement.