Matthews v. VIP International, Inc.

Citations: 762 So. 2d 1152; 2000 La. App. LEXIS 1827; 2000 WL 830712Docket: No. 99 CA 1632

Court: Louisiana Court of Appeal; June 23, 2000; Louisiana; State Appellate Court

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Calvin Matthews appeals the workers’ compensation judge's (WCJ) decision denying penalties, attorney’s fees, and legal interest in his workers’ compensation case against VIP International, Inc. (VIP) and its insurer, Louisiana Workers’ Compensation Corporation (LWCC). Matthews sustained an on-the-job injury in November 1997 while working in Virginia and subsequently sought treatment from Dr. Richard Rathbone in Louisiana. After being authorized for light duty, Matthews was terminated twice by VIP for alleged misconduct related to refusing suitable work. He filed a disputed claim in May 1998, citing failures by appellees to provide medical records and suitable work, and seeking benefits and penalties.

The trial on the merits concluded on February 8, 1999, with a judgment in favor of Matthews, which included a ruling that his daily per diem should be factored into his average weekly wage, allowing for greater compensation benefits. He was awarded temporary total disability benefits from April 15, 1998, to September 1, 1998. However, the WCJ denied Matthews' claims for penalties regarding the failure to provide medical records, determining that the actions of VIP and LWCC were not arbitrary or capricious and that there was probable cause to dispute the claim.

Appellant has filed a devolutive appeal challenging the judgment of the workers' compensation judge (WCJ), asserting multiple errors. Specifically, appellant contends that the WCJ incorrectly denied penalties and attorney's fees due to appellees' failure to accurately calculate his compensation rate, to pay weekly benefits after April 15, 1998, and to timely provide medical records from the treating physician. Additionally, appellant claims the WCJ erred by not awarding legal interest on the judgment.

In relation to penalties and attorney's fees, appellant argues entitlement under Louisiana Revised Statutes (La. R.S.) 23:1125.2 for the late provision of a medical examination report and under La. R.S. 23:1201.3 and La. R.S. 23:1201.24 for improper payment calculations and discontinuation of benefits. The determination of penalties and attorney's fees by the WCJ is primarily a factual one, subject to review only for manifest error. The appellate court found that the WCJ had conflicting evidence and opted to credit the evidence favoring the appellees, concluding that the WCJ's findings were not manifestly erroneous.

Regarding legal interest, La. R.S. 23:1201.3(A) mandates that any awarded compensation incurs judicial interest from the due date until satisfaction, with the interest rate fixed at the time the claim was filed. The award of legal interest is not discretionary and attaches automatically to the judgment, irrespective of specific requests in the petition.

Silence in the Workers' Compensation Judge (WCJ) decision does not equate to a rejection of the appellant's entitlement to legal interest, as established in Gregory v. Interim Personnel of North Louisiana. The appellant is entitled to legal interest, which was mistakenly omitted from the judgment, calculated from the date each payment was due until it is paid. Consequently, the judgment is amended to include legal interest on all unpaid benefits from their due dates until satisfaction. The judgment is affirmed in all other respects, and appeal costs are assigned to the appellees.

In terms of employee classification by VIP, a "part-time" designation does not correspond to weekly hours worked but applies during a ninety-day probationary period. Once an employee meets specific criteria, such as D.O.T. certification and turning twenty-one, they can be classified as "full-time."

Prior to the 1999 amendment, La. R.S. 23:1125 mandated that employees receive a medical examination report at no cost within thirty days of a written request, with penalties for non-compliance. La. R.S. 23:1201(F) stipulates penalties for failure to provide timely compensation, including a twelve percent penalty on unpaid amounts or a daily penalty of fifty dollars, subject to a maximum of two thousand dollars. Penalties and attorney fees can be assessed against either the employer or insurer, depending on fault, and are not applicable if the claim is reasonably contested or due to uncontrollable conditions. La. R.S. 23:1201.2 states that employers or insurers who arbitrarily stop payments may be liable for reasonable attorney fees without the limitations on attorney fees found in R.S. 23:1141. Claims under this chapter are also subject to the provisions of R.S. 22:658(C).