Justia Labor & Employment Law Opinion Summaries

Articles Posted in Louisiana Supreme Court
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Plaintiff Gerald Castille worked as a school bus driver for the St. Martin Parish School Board. During his first few years, plaintiff drove two "undesirable" routes, as they "required the assigned bus driver to travel very long distances while trying to maintain a safe and orderly bus populated with children from families that were known to have little or no respect for the bus operators. . . ." In 1980, plaintiff was assigned to the "Highway 31 Route," which was initially considered undesirable, plaintiff asserted it changed over time and became more desirable as the route became less populated. While driving that route for nearly thirty years, plaintiff claimed to have developed relationships with the students and their parents, noting the route gave him "a sense of purpose and dignity." In the spring of 2008, the costs of diesel fuel began to rise, and the School Board was forced to take steps to save money by redrawing and reassigning bus routes. Prior to the start of the 2008-2009 school year, the bus drivers received their new route assignments. The School Board assigned plaintiff a combined "Levee-Portage Route," two of his old routes, with no change in his salary, health benefits, or retirement. Plaintiff objected to this new route, but claimed the bus manager told him to try the route for a few weeks and come back if he was still unhappy. After two weeks, plaintiff requested to be returned to the Highway 31 route, but was told to deal with the current situation. He alerted his supervisors to the problems, but claim they took no action. According to plaintiff, he began experiencing anxiety and depression problems during this time. His problems continued until 2011, when a more desirable vacant route became available. Plaintiff filed the instant suit against the School Board, alleging the School Board violated La. R.S. 17:493.14 in assigning the bus routes in 2008. The Supreme Court granted certiorari in this matter to consider whether the court of appeal erred in awarding plaintiff damages for bad faith breach of contract. The Court found the court of appeal erred in awarding bad faith damages and therefore reversed that portion of the court of appeal's judgment, and affirmed in all other respects. View "Castille v. St. Martin Parish Sch. Bd." on Justia Law

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Both of the injured employees in these cases, Charles Morris and Charles Poole, were treated at the Lafayette Bone & Joint Clinic (“LB&J”); Morris was treated by Dr. Louis Blanda and Poole by Dr. John Cobb. Louisiana United Business SIF (“LUBA”), sent letters to LB&J and its doctors stating that LUBA would no longer pay for prescription medications directly dispensed by LB&J and directing LB&J doctors to issue future prescriptions for the instant injured employees that could be filled at local retail pharmacies. Despite these notices and subsequent denials of requests for reimbursement of dispensed prescription medications, LB&J doctors continued to dispense prescription medications to these injured employee patients throughout 2008 and to submit requests for reimbursement to LUBA. LUBA declined payment for these requests, citing its prior notice. LB&J and the treating physicians thereafter filed disputed claim forms with the Office of Workers’ Compensation (OWC), seeking to recover the cost of the medications dispensed, along with penalties and attorney fees. Following a joint trial in these two cases, the OWC judge ruled that the plaintiff/health care providers’ recovery for medications dispensed after the 2008 notice were nonemergency treatment dispensed without consent of the payor. Further, the OWC judge found that no penalties or attorney fees were warranted because LUBA had clearly advised the plaintiff/health care providers that no further reimbursement would be made for prescription medications dispensed by LB&J doctors after the date of the notice. The plaintiff/health care providers appealed, seeking an increase in the amount awarded and an award of penalties and attorney fees. The Louisiana Supreme Court granted writs to review the appellate court decisions, which awarded unreimbursed prescription medication costs beyond the $750 limitation set forth in LSA-R.S. 23:1142(B) and awarded penalties and attorney fees. The Court reversed the appellate court's modification of the amount awarded by the OWC, and affirmed in part, the decision to award penalties and attorney fees. View "LaFayette Bone & Joint Clinic v. Louisiana United Business SIF" on Justia Law

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The Louisiana Supreme Court granted certiorari in this case to determine whether the Alexandria Municipal Fire and Police Civil Service Board properly excluded a firefighter’s alleged failed breath alcohol test results, resulting in the firefighter’s reinstatement to employment after the City of Alexandria had terminated him. The trial court reversed the Board’s decision, finding the Board should have considered the breath alcohol test results. The court of appeal overturned the trial court, reinstating the firefighter’s employment. After its review, the Supreme Court found the Board’s exclusion of the breath test results was incorrect and further, the court of appeal was in error in reversing the trial court’s ruling that the breath alcohol test results were admissible. Therefore, the trial court’s judgment reversing the Board’s decision was reinstated, and the case was remanded back to the Board for proper consideration of the breath alcohol test results. View "City of Alexandria v. Dixon" on Justia Law

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This case stemmed from a dispute between the City of Kenner and Kenner’s firefighters concerning the computation of retirement benefits under La. R.S. 11:233 and 11:2252. The dispute centered around four types of compensation: educational incentive pay, seniority incentive pay, holiday pay, and acting pay. The primary question presented to the Supreme Court was whether these types of compensation should be considered “earnable compensation” for purposes of calculating the firefighters’ pension contributions. After review, the Court affirmed the court of appeal's holding that no genuine issues of material fact remained as to whether each of the four types of pay constituted “earnable compensation” under the requirements of the statutes. View "Dunn v. City of Kenner" on Justia Law

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The issue in this appeal centered on whether a statutory prescriptive period could be shortened by an administrative rule. This issue arose in a workers’ compensation case where the hearing officer refused to consider the worker’s request to have medically recommended magnetic resonance imaging (MRI) of his lumbar spine because the worker failed to appeal the Office of Workers’ Compensation Administration medical director’s decision denying his request for medical treatment within the 15-day time period required by an administrative rule. In so doing, the hearing officer sustained defendants’ peremptory exception of prescription. After review, the Supreme Court found the hearing officer erred as a matter of law. The Court therefore reversed and vacated in part that portion of the judgment sustaining the defendants’ peremptory exception of prescription, and the case was remanded for the Office of Workers’ Compensation (OWC) to consider the merits of the worker’s claim that the medical director failed to appropriately apply the medical treatment guidelines in denying the lumbar spine MRI requested by the worker’s orthopedic surgeon. The Court affirmed in all other respects. View "Arrant v. Wayne Acree PLS, Inc." on Justia Law

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In 2009, plaintiff Dr. Ralph Slaughter retired as president of Southern University System (“Southern”) after thirty-five years of service. Upon retirement, the Louisiana State Employees’ Retirement System (“LASERS”) began paying plaintiff retirement benefits. Plaintiff filed suit against Southern for past due wages. The district court ruled that Southern had miscalculated plaintiff’s income base by including supplemental pay plaintiff had received from the Southern University Foundation, and determined plaintiff’s terminal pay (500 hours of unused leave) and retirement should have been calculated only on his annual base salary due from Southern. The court of appeal affirmed on appeal, noting plaintiff “manipulated the system and used his position for his own benefit.” Southern sent a letter to LASERS advising it had committed an error in including supplemental funds in plaintiff’s earnings. Because plaintiff's lawsuit was ongoing at the time, LASERS filed a concursus proceeding seeking to deposit the disputed amount of plaintiff’s benefit in the registry of court pending resolution of the litigation. Plaintiff filed an exception of no cause of action. The district court granted the exception and dismissed the second suit with prejudice. LASERS did not appeal this judgment. After the first suit became final, LASERS sent correspondence to plaintiff advising it intended to retroactively reduce his retirement benefit starting June 1, 2012 “due to an error made by Southern University in the reporting of your earnings.” Relying on La. R.S. 11:192, LASERS maintained it could adjust benefits and further reduce the corrected benefit to recover overpayment within a reasonable number of months. Plaintiff then filed the instant suit against LASERS, seeking a writ of mandamus, injunctive relief, and a declaratory judgment confirming LASERS had no authority or ability to reduce his retirement benefits. The petition alleged plaintiff’s retirement benefits should have been calculated based on the entirety of his earnings over thirty-five years of employment, including salary supplements. The Supreme Court was called on to determine whether the lower courts erred in finding the defendant retirement system failed to prove that it followed the proper procedure before initiating action to reduce and recoup plaintiff’s retirement benefits. The Court found the lower courts did not apply the proper statutory analysis and reached an erroneous result. The case was remanded for further proceedings. View "Slaughter v. Louisiana State Employees' Retirement System" on Justia Law

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The question before the Supreme Court was whether La. R.S. 23:1203.1 applied to requests for medical treatment and/or disputes arising out of requests for medical treatment in cases in which the compensable accident or injury occurred prior to the effective date of the medical treatment schedule. The Office of Workers’ Compensation (OWC) ruled that the medical treatment schedule applied to all requests for medical treatment submitted after its effective date, regardless of the date of injury or accident. The court of appeal reversed, holding that La. R.S. 23:1203.1 was substantive in nature and could not be applied retroactively to rights acquired by a claimant whose work-related accident antedated the promulgation of the medical treatment schedule. The Supreme Court disagreed with the conclusion of the court of appeal and found that La. R.S. 23:1203.1 was a procedural statute and, thus, did not operate retroactively to divest a claimant of vested rights. As a result, the statute applied to all requests for medical treatment and/or all disputes emanating from requests for medical treatment after the effective date of the medical treatment schedule, regardless of the date of the work-related injury or accident. View "Church Mutual Insurance Co. v. Dardar" on Justia Law

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The Supreme Court granted certiorari in this case to consider whether La. R.S. 23:1203.1 applied to a dispute arising out of a request for medical treatment where the request for treatment was submitted after the effective date of the statute and the medical treatment schedule, but the compensable accident and injury that necessitated the request occurred prior to that date. Both the Office of Workers’ Compensation (OWC) and the court of appeal ruled that La. R.S. 23:1203.1 applied to all requests for medical treatment submitted after the statute’s effective date, regardless of the date of accident and injury. Finding no reversible error, the Supreme Court affirmed. View "Cook v. Family Care Services, Inc." on Justia Law

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In 2005, Patrick Richard sustained a work-related injury at the State Department of Transportation and Development ("DOTD"). After Mr. Richard's injury, DOTD began paying him workers' compensation benefits. Mr. Richard took disability retirement in 2007. Upon retiring, Mr. Richard spoke with a DOTD employee about the effect his receipt of workers' compensation benefits would have on his disability retirement benefits. Thereafter, Mr. Richard began simultaneously receiving disability retirement benefits through the Louisiana State Employees Retirement System ("LASERs"), and workers' compensation benefits through DOTD. In August 2007, DOTD informed Mr. Richard it had been overpaying him for workers' compensation benefits. In early 2011, DOTD filed a disputed claim for compensation, seeking an offset. In response, Mr. Richard filed an exception of prescription, arguing DOTD's claim for reimbursement was subject to a three-year prescriptive period. The matter proceeded to a trial before the Office of Workers' Compensation ("OWC"). The OWC denied Mr. Richard's exception of prescription. The OWC further held DOTD is entitled to an offset of $224.05 per week as of April 21, 2007, until Mr. Richard converted to regular retirement benefits at age 60. Mr. Richard appealed. The court of appeal affirmed in part and reversed in part. The court of appeal affirmed the OWC's denial of Mr. Richard's exception of prescription. However, the court found the OWC erred in holding DOTD was entitled to an offset of workers' compensation benefits. Upon review, the Supreme Court concluded the court of appeal incorrectly applied the law. Accordingly, the Court reinstated the OWC's judgment granting the employer an offset. View "Louisiana v. Richard" on Justia Law

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A pharmaceutical distributor/repackager sought review of an appellate court decision that reversed a decision of the Louisiana Office of Workers' Compensation Administration. The Office awarded certain unpaid invoices for physician-dispensed medications (subject to a statutory limit) in favor of the distributor/repackager. The appellate court reversed based on a finding that the distributor/repackager did not have a right of action. After considering the applicable law, the Supreme Court found the anti-assignment language of La. R.S. 23:1205(A) did not prohibit the assignment of a health care provider's claims to a third party, an express contractual novation was effective, and an agent could statutorily be considered a health care provider based on the definition contained in La. R.S. 23:1021(6). Accordingly, the Court reversed the court of appeal's decision and remanded the case back to that court for further proceedings. View "Rebel Distributors Corp., Inc. v. Luba Workers' Comp." on Justia Law