Case Name: Roberta KISTNER, widow of Samuel J. CRABTREE v. BETHLEHEM STEEL CORPORATION
Court: Louisiana Supreme Court
Jurisdiction: Louisiana
Decision Date: 1973-03-08
Citations: 284 So. 2d 545
Docket Number: No. 52350
Parties: Roberta KISTNER, widow of Samuel J. CRABTREE v. BETHLEHEM STEEL CORPORATION.
Judges: BARHAM, J., concurs.
Reporter: Southern Reporter, Second Series
Volume: 284
Pages: 545–557

Head Matter:
Roberta KISTNER, widow of Samuel J. CRABTREE v. BETHLEHEM STEEL CORPORATION.
No. 52350.
Supreme Court of Louisiana.
March 8, 1973.
On Rehearing Sept. 24, 1973.
Rehearing Denied Oct. 26, 1973.
Frank S. Bruno, New Orleans, for plaintiff-applicant.
Sessions, Fishman, Rosenson, Snellings & Boisfontaine, Cicero C. Sessions, Robert E. Winn, Suzanne Antippas, New Orleans, for defendant-respondent.

Opinion:
HAMLIN, Chief Justice:
Certiorari was directed to the Court of Appeal, Fourth Circuit, for review of its judgment which dismissed plaintiff's suit and reversed the judgment of the trial court. Art. VII, Sec. 11, La.Const. of 1921; 258 So.2d 199; 261 La. 771, 260 So.2d 700.
The facts of record disclose that plaintiff's husband, Samuel J. Crabtree, a former employee of Bethlehem Steel Corporation, died from injuries suffered during the scope and course of his employment on May 13, 1963. Subsequent to Crabtree's death, the employer paid Workmen's Compensation benefits to the plaintiff at the rate of $35.00 per week until January 10, 1969, at which time it discontinued payment. Total payments of $10,045.00 were made; the maximum which could have been paid was approximately $14,600.00. See LSA-R.S. 23:1202; LSA-R.S. 23:1231.
On January 7, 1969, Mrs. Crabtree and the American Insurance Company executed the following agreement, which was the reason for defendant's cessation of paying Workmen's Compensation:
"BE IT KNOWN BY THESE PRESENTS that Mrs. Roberta Kistner Crabtree, a person of the full age of majority and a resident of New Orleans, Louisiana, for and in consideration of the sum of $15,000.00 cash, to her in hand paid by The American Insurance Company, insurer of Mason-Rust, a Joint Venture comprised of Mason & Hanger-Silas Mason Co., Inc. and The Rust Engineering Company, and of The Ross Corporation, has released, acquitted and discharged and does by these presents forever release, acquit and discharge The American Insurance Company, Mason-Rust, a Joint Venture comprised of Mason & Hanger-Silas Mason Co., Inc. and The Rust Engineering Company, Mason & Hanger-Silas Mason Co., Inc., The Rust Engineering Company, The Ross Corporation, and all of their respective executive officers, directors, stockholders, agents and employees, including, but not limited to, R. B. Jewell, Tom Cobb and Tom Ward, of and from any and all claims, demands, suits, actions and causes of action whatsoever, arising or in any manner growing out of the accident which occurred on or about May 13, 1963 at the Michoud Facility of the National Aeronautics and Space Administration in New Orleans, Louisiana, wherein her late husband, Samuel J. Crabtree, was killed, being the accident referred to and described in the suit entitled 'Mrs. Roberta Kistner, Widow of Samuel J. Crabtree vs. Insurance Company of North America et al', bearing No. 14545 on the Docket of Civil Actions of the United States District Court for the Eastern District of Louisiana, New Orleans Division; the said Mrs. Roberta Kist-ner Crabtree hereby specifically reserving unto herself all of her rights to assert and/or prosecute all claims, demands or suits which she has or may have against all other persons, firms or corporations, other than those heretofore released, including, but not limited to, her claims and/or suits against Carl Jensen, J. E. Little, Newton F. Marsh, Constantino B. Sandino, L. L. Feidler, Jr. and C. W. Lied-lich, all persons of the full age of majority and residents of the Parish of Orleans, State of Louisiana, all corporate officers, directors, and/or agents of Bethlehem Steel Company, together with other officers, directors, and/or agents of Bethlehem Steel Company whose names are presently unknown to the said Mrs. Roberta Kistner Crabtree.
"The American Insurance Company does by these presents agree to defend and indemnify Mrs. Roberta Kistner Crabtree against any and all liability or loss, up to but not beyond the sum paid to her herewith, that she may hereafter sustain on account of any claim, demand or suit of Bethlehem Steel Company against her for recovery by or reimbursement to Bethlehem Steel Company, solely as a result of the within settlement, of the amount of workmen's compensation payments heretofore or hereafter actually paid to her by Bethlehem Steel Company because of the accidental death of the late Samuel J. Crabtree, it being understood and agreed that the foregoing obligation, herein undertaken by The American Insurance Company, is not and shall not be applicable to any claim, demand, intervention or suit of Bethlehem Steel Company against the said Mrs. Roberta Kistner Crabtree for recovery by or reimbursement to Bethlehem Steel Company of the amount of the aforementioned workmen's compensation payments on account of or out of any compromise settlement entered into by or judgment rendered in favor of Mrs. Roberta Kistner Crabtree in connection with any claims, demands or suits asserted or prosecuted by her against any person, joint venture or corporation, other than those hereby released, because of the death of the said Samuel J. Crabtree.
"It is further understood and agreed that this settlement is made by way of compromise and that the act of The American Insurance Company in effecting such settlement shall not be construed as an admission of liability on the part of any of the parties hereby released.
"IN WITNESS WHEREOF, the said Mrs. Roberta Kistner Crabtree and the said The American Insurance Company have executed these presents in quadruplicate originals, each being of equal dignity and effect, on this 7th day of January, 1969 in the presence of the undersigned competent witnesses."
On January 9, 1969, the following letter was addressed to Gerard M. Dillon, Attorney for American Insurance Company, by Cicero C. Sessions, Attorney for defendant:
"Thank you for your letter of January 7, 1969 with enclosures.
"Pursuant to our prior oral discussions relative to this matter, we confirm that we represent Bethlehem Steel Corporation in respect of the accidental death of Samuel J. Crabtree, fatally injured on or about May 13, 1963. We further confirm that under the Louisiana Workmens Compensation Law Bethlehem Steel Corporation has been paying weekly death benefits to plaintiff Mrs. Roberta Kistner Crabtree.
"The release and stipulation of dismissal of Civil Action No. 14545, Section 'C', United States District Court, Eastern District of Louisiana, New Orleans Division, entitled 'Roberta Kistner, widow of Samuel J. Crabtree vs. Insurance Company of North America, American Insurance Company and Chrysler Corporation' effects dismissal with prejudice as of compromise of that action by the plaintiff, Mrs. Crabtree, with reservations of her rights against other parties not parties to the action. The release to American Insurance Company is to the same effect.
"We are authorized to state hereby for Bethlehem Steel Corporation that it shall not seek indemnification or reimbursement by Mrs. Crabtree of workmens compensation death benefits and/or funeral benefits or other benefits paid by it as the employer of Samuel J. Crabtree, or any part of such benefits, solely from the settlement funds received by Mrs. Crabtree from American Insurance Company, or solely as a result of the settlement referred to in your letter of January 7, 1969.
"This undertaking in behalf of Bethlehem Steel Corporation is entirely without prejudice to and with full reservation of all of Bethlehem Steel Corporation's rights in all other respects, including, without limitation, the right of Bethlehem Steel Corporation to receive credit for and take credit for whatever further benefits are due Mrs. Crabtree under the workmens compensation law of Louisiana because of American Insurance Company's settlement with her, and her receipt of such third-party damage settlements. This includes with out limitation the right of Bethlehem Steel Corporation to terminate the payment of any further benefits whatever to Mrs. Crabtree."
On October 15, 1969, after Mrs. Crabtree had accepted American Insurance Company's draft for $15,000.00 and had endorsed same, she filed suit against Bethlehem Steel . Corporation for alleged unpaid Workmen's Compensation in the sum of $3,955.00, plus penalties and attorney's fees. Defendant Bethlehem answered and averred:
"On January 10, 1969, the plaintiff entered into a settlement with the American Insurance Company whereby plaintiff received the sum of $15,000.00 cash in full settlement of all claims against American Insurance Company, Mason-Rust, Mason & Ranger-Silas Mason Co., Inc., The Rust Engineering Company, The Ross Corporation and all of their respective executive officers, directors, stockholders, agents and employees arising out of the accident of May 13, 1963 being the accident referred to and described in the suit entitled i[; * ‡
"As a consequence of said settlement, the defendant herein became legally entitled to a credit against compensation to which plaintiff would otherwise be entitled to thereafter, of the amount received by plaintiff in said settlement, which amount was in excess of the total amount to which plaintiff would be entitled in compensation as a result of the death of her husband and, accordingly, defendant does not have any further liability to plaintiff as a result of the death of her husband."
Thereafter, plaintiff filed a supplemental and amended petition in which she alleged that the release supra was prepared with the knowledge and consent of defendant, and that defendant viewed and approved said agreement prior to its execution by her. She further alleged that Bethlehem Steel Corporation was bound by the terms and intent of the agreement and was legally obligated to pay her the remaining Workmen's Compensation allegedly due.
The trial court rendered judgment in favor of Mrs. Crabtree for Workmen's Compensation at the rate of $35.00 per week commencing January 10, 1969 and running for a period of 113 weeks, together with legal interest on all past due installments. It did not render written reasons for judgment but stated at the end of trial:
"A quick perusal of the exhibit marked P2 and Dl, which is the release agreement between American Insurance Company and Mrs. Roberta Kistner Crabtree, indicates that the American agreed therein to indemnify Mrs. Crabtree for any amount which Bethlehem might seek to recover in indemnification for payments of workmen's compensation benefits to Mrs. Crabtree.
"The true issue in this case is whether or not this agreement comprehended solely and exclusively the 10,000 odd dollars already paid in compensation or whether in fact the agreement contemplated the indemnification for the total amount of compensation which might be paid to Mrs. Crabtree up to approximately the $14,000 figure for the death of her husband.
o "Now, a quick reference to the language wherein American agreed to indemnify Mrs. Crabtree, in the event that Bethlehem should proceed against American for indemnification of their payments of workmen's compensation benefits, says, 'Regarding the amount' and I'm quoting, 'Demand or suit of Bethlehem Steel Company against her for recovery by/or reimbursement to Bethlehem Steel Company solely as a result of the within settlement of the amount of workmen's compensation heretofore or hereafter' and I emphasize 'or hereafter', 'actually paid to her by Bethlehem Steel Company, because of the accidental death of the late Samuel J. Crab-tree,' et cetera.
"Now, construing all of the language embodied in that release, it would appear to me that there was not only contemplated the amounts paid in workmen's compensation before the date of the passage of the release as contemplated in the use of the word 'heretofore', but also the payments which might have been due after the effective date of the release under workmen's compensation allowed, to quote the alternative 'hereafter' as embodied within that agreement.
"For this reason, I am inclined to believe that this release contemplated a continuation of payment of workmen's compensation to the full extent of liability imposed by law upon the comp carrier or the employer, and subject to that right of indemnification provided in the Comp Statute in favor of Bethlehem Company, and predicated upon the indemnification right which Mrs. Crabtree obtained by virtue of the release agreement which was entered into between herself and the American Insurance Company."
As stated supra, the Court of Appeal reversed the judgment of the trial court. The appellate court was convinced that when plaintiff settled her claim with American Insurance Company, defendant was entitled to stop further compensation payments and claim a credit for the amount left due. After an analysis of LSA-R.S. 23:1103, the Court concluded that the compromise agreement supra had no effect against defendant's right to assert and receive a credit for benefits not paid. It found no merit in plaintiff's claim that defendant was estopped to assert a credit due; the Court found no basis in equity or law precluding defendant's credit claim.
We granted Mrs. Crabtree's application for Certiorari. Herein, she assigns the following errors to the judgment of the Court of Appeal:
1.The Court was in error in holding that the indemnity agreement entered into between employee's widow and third party had no affect against defendant's right to assert and receive a credit for the benefits not paid, even though employer had knowledge and later acquiesced in said agreement.
2. The Court was in error when it held that LSA-R.S. 23:1101-1103 conferred upon the employer the right to proceeds obtained by employee's widow in settlement agreement with third party, without third party first being first adjudged to be a tort-feasor.
3. Court was in error in holding that LSA-R.S. 23:1101-1103 conferred rights upon employer directly against employee.
4. The Court was in error in failing to grant a re-hearing in light of the Supreme Court's decision of Vidrine v. Michigan Millers Mutual Insurance Company, 263 La. 300, 268 So.2d 233 (1972).
In the case of American Bank & T. Co. v. Trinity Universal Ins. Co., 251 La. 445, 205 So.2d 35 (1967) we said: "Equitable estoppel may be defined as the effect of the voluntary conduct of a party whereby he is precluded from asserting rights against another who has justifiably relied upon such conduct and changed his position so that he will suffer injury if the former is allowed to repudiate the conduct. Founded upon good faith, the doctrine is designed to prevent injustice by barring a party, under special circumstances, from taking a position contrary to his prior acts, admissions, representations, or silence.
"Since estoppel bars the normal assertion of rights, courts apply the doctrine cautiously. "
In American Security Bank of Ville Platte v. Vidrine, 255 So.2d 140, 146 (1971), we held: "The general rule is that estoppels are not favored in our courts. Whenever estoppel is pleaded as an element of a cause of action, it must be pleaded specifically, and the burden of establishing the facts upon which the plea is predicated, as well as affirmatively showing that the pleader was misled and forced to act in his prejudice, rests upon the party invoking the doctrine. "
The testimony of record indicates that the great concern of American Insurance Company at the time it executed the release supra was that it did not want to be confronted with a suit for reimbursement of the approximately $10,000.00 previously paid to Mrs. Crabtree by Bethlehem Steel Corporation.
Mrs. Crabtree testified that when she signed the release she inquired whether her Workmen's Compensation would continue. She said that she relied on it for her rent and testified: "Both Mr. Dillon and Mr. Bruno. Both of them said 'no', that 'that won't have any bearing at all on your workmen's compensation.' "
Frank S. Bruno, attorney for Mrs. Crab-tree, testified that he assured Mrs. Crab-tree that her Workmen's Compensation would in no way be affected by the execution of the release supra; such assurance was given prior to the signing of the release. He said that he had never been in contact with anyone from Bethlehem Steel Corporation prior to the execution of the release. Gerard Dillon, attorney for American Insurance Company, prepared the release which was signed by an official of the company and Mrs. Crabtree; Bruno said that he was unaware of any plan to stop the payment of compensation.
The record reflects that Bethlehem Steel Corporation was not a signatory to the release supra. Its intention at all times, as reflected by the letter supra from its attorney to Mr. Dillon, was to discontinue payment of Workmen's Compensation to Mrs. Crabtree after she received her settlement of $15,000.00. It carried out its intention on January 10, 1969, a few days after the release's execution.
Mrs. Crabtree and her attorney thought that compensation would continue after the execution of the release, but they made no effort to secure a statement in the document to that effect. The trial judge supra interpreted the agreement's terms to provide Mrs. Crabtree with future compensation, but a reading of the release discloses that its provisions are void of a recital to this effect. Under such circumstances, we do not find that Bethlehem Steel Corporation is estopped from claiming a credit in the instant suit. It is making a normal assertion of a right and should not be precluded from doing so. Mrs. Crabtree, despite'her beliefs, has not borne the burden of establishing facts herein which show that estoppel is justified. Since Bethlehem was not a party to the release, Mrs. Crab-tree has not shown that by signing the release she was forced to act to her prejudice.
LSA-R.S. 1101-1103 provide:
"When an injury for which compensation is payable under this Chapter has been sustained under circumstances creating in some person (in this Section referred to as third person) other than the employer a le gal liability to pay damages in respect thereto, the injured employee or his dependent may claim compensation under this Chapter and the payment or award of compensation hereunder shall not affect the claim or right of action of the injured employee or his dependent against such third person, nor be regarded as establishing a measure of damages for the injury; and such injured employee or his dependent may obtain damages from or proceed at law against such third person to recover damages for the injury.
"Any employer having paid or having become obligated to pay compensation under the provisions of this Chapter may bring suit against such third person to recover any amount which he has paid or become obligated to pay as compensation to any injured employee or his dependent." LSA-R.S. 23:1101.
"If either the employee or his dependent, or the employer, brings suit against a third person as provided in R.S. 23:1101, he shall forthwith notify the other in writing of such fact and of the name of the court in which the suit is filed, and such other may intervene as party plaintiff in the suit." LSA-R.S. 23:1102.
"In the event that the employer or the employee or his dependent becomes party plaintiff in a suit against a third person, as provided in R.S. 23:1102, and damages are recovered, such damages shall be so apportioned in the judgment that the claim of the employer for the compensation actually paid shall take precedence over that of the injured employee or his dependent; and if the damages are not sufficient or are sufficient only to reimburse the employer for the compensation which he has actually paid, such damages shall be assessed solely in his favor; but if the damages are more than sufficient to so reimburse the employer, the excess shall be assessed in favor of the injured employee or his dependent, and upon payment thereof to the employee or his dependent, the liability of the employer for compensation shall cease for such part of the compensation due, computed at six per cent per annum, and shall be satisfied by such payment.
"No compromise with such third person by either the employer or the injured employee or his dependent shall be binding upon or affect the rights of the others unless assented to by him." LSA-R.S. 23:1103.
In the very recent case of Vidrine v. Michigan Millers Mutual Insurance Co., 263 La. 300, 268 So.2d 233 (1972), we held on rehearing with respect to LSA-R.S. 23:1103 that:
"These provisions clearly permit recovery by any employer of the compensation payments made or due by him, and evidence an intent that in no case shall the employee be permitted dual recovery for his injuries, that is, recovery both from the tortfeasor in full and, in addition, from his employer in compensation. Indeed, in the original statute, if an employee availed himself of his right to compensation, only the employer had the right to bring action against the tortfeasor both for the payments made by him, and for any additional amounts due to the employee. An amendment in 1920 permitted either to bring the action, and allowed the other to join to urge his claim. As shown, in Chauvin v. Louisiana Power & Light Co., 177 La. 193, 148 So. 23, 'The only material difference between the old law and the new is that under the old law the right to collect the damage had to be exercised through the employer, ' the subrogee of the claim, whereas, under the law as amended, the right may be exercised by the injured employee personally.' (Emphasis added.)
"In neither of the above quoted sections is there any suggestion that the right to recover compensation actually paid or due is limited to those employers who are blameless, or innocent of any action which might have caused the injury. Furthermore, nothing in the sections creates a classification of employers into those who are at fault and those who are not. Any attempt by this Court to create such a classification would amount to judicial statutory amendment."
Herein, the Court of Appeal, 258 So.2d at p. 202, stated that it is well settled that where a surviving spouse settles a tort suit against a tortfeasor or third party who caused the employee's death and that settlement is in excess of workmen's compensation sought, an employer or his insurer is entitled to recover compensation payments made out of the amount of the tort recovery. We agree with this statement and extended it in Vidrine supra to hold that the employer is entitled to recover' compensation whether he is negligent or blameless.
The facts of the case of Smith v. McDonough, La.App., 29 So.2d 818, Certiorari denied, are almost identical to those herein presented. Therein, the Court held that where an employee was injured under circumstances creating liability against a third party and compromised his claim against such third party without the knowledge of his employer, the employer was entitled to credit the amount of the compromise upon the larger amount awarded the employee in a subsequent suit against the employer by the employee for workmen's compensation. (Here, the employer has paid $10,000.00 and only claims a credit for approximately $4,000.00.) See Meyers v. Southwest Conference Ass'n of Seventh Day Adventist, La.App., 91 So.2d 106, Cer-tiorari denied.
In Booth v. Travelers Insurance Co., La.App., 217 So.2d 483, Certiorari denied, 253 La. 869, 220 So.2d 456, the Court held that the Workmen's Compensation Law does not contemplate full double recovery by an injured employee in both tort and workmen's compensation, and the fact that the employer did not intervene in claimant's wrongful death, suit against a third-party tortfeasor did not entitle claimant to recover workmen's compensation benefits from the employer. (Plaintiff in Booth received $37,500.00 in the tort suit; she prayed for Workmen's Compensation in the sum of $14,000.00) See Geter v. Travelers Insurance Company of Hartford, La.App., 79 So.2d 120.
Under the above jurisprudence and statutory law, we conclude that the defendant employer Bethlehem Steel • Corporation is entitled to the credit which it herein seeks. Viewing this matter as a whole, it is clear that American Insurance Company would have never executed the present settlement unless it was assured that Bethlehem Steel Corporation would not proceed against it for compensation paid by Bethlehem.
Bethlehem, out of a spirit of friendship and compassion towards plaintiff, agreed that it would not stand in the way of plaintiff's receiving her settlement from American. To permit plaintif to recover the amount she herein seeks would be to allow her double recovery — such is against the intendment of the Workmen's Compensation Law as shown supra.
A rehearing was granted in Vidrine supra, and our original decree was reversed. Assignment of Error No. 4 is therefore without merit.
For the reasons assigned, the judgment of the Court of Appeal, Fourth Circuit, is affirmed. All costs to be paid by plaintiff-applicant.
BARHAM, J., concurs.
TATE, J., dissents and assigns reasons.
DIXON, J., dissents.
. Pertinent testimony of Gerard Dillon, attorney for American Insurance Company is as follows:
"There was absolutely no conversation with Mr. Bruno relative to termination of compensation. What Mr. Bruno was concerned about was that there would be a claim by Bethlehem for reimbursement out of the proceeds of any settlement of the compensation that had theretofore had been made by Bethlehem to Crabtree.
"There was only one letter from Mr. Sessions, and there is a note in there relative to a telephone conversation that I had with Mr. Sessions which was the' preliminary to the letter which he addressed to me. And I might add that you will find that the only thing that Mr. Bruno was interested in was indemnity against a claim by Bethlehem for reimbursement of the proceeds of the settlement of the compensation that had theretofore actually been paid to Mrs. Crabtree and which might thereafter actually be paid to Mrs. Crabtree solely because of the fact that as of the time of the settlement Mrs. Crab-tree was still being paid compensation. And I might also further add that with respect to the release, you will find in the file a letter addressed to Mr. Bruno on January 3rd, as I recall, 1869, in which the release, four days prior to its execution, was delivered to Mr. Bruno and Mr. Bruno was asked to carefully cheek it and to determine whether he wanted any changes in it. Mr. Bruno requested no changes in the release."
. Article 8078 of LSA-C.C. provides that transactions have, between the interested parties, a force equal to the authority of things adjudged. They cannot be attacked on account of any error in law or any lesion. It could be said that the instant compromise has the authority of a thing adjudged and that plaintiff is in the same position as if she had received a judgment.