Opinion ID: 1953891
Heading Depth: 1
Heading Rank: 5

Heading: Modification of an Agreed Award

Text: If the parties have accepted the director's recommendation either expressly or tacitly, either party may apply for a recommended modification of the agreed award at any time after six months from the date of the acceptance. [1] La.R.S. 23:1331(C). Disotell v. Wadsworth Golf Construction, supra, at 373; Bailey v. Pacific Marine Insurance Co., supra, at 511-12; Moody v. K & B Equipment Co., supra at 928; Brignac v. Liberty Mutual Insurance Co., supra, at 1308; Rich v. Geosource Wireline Services, Inc., supra, at 1172; Arthur v. Union Underwear Co., Inc., 492 So.2d 873, 876 (La.App. 3rd Cir. 1986). See W. Malone & A. Johnson, Worker's Compensation Law & Practice § 284 (2nd ed. 1980; supp. 1987). Thereupon, the director is required to review the application and issue a new recommendation. Id. The timely rejection of the new recommendation by any party permits the employee or his dependent to litigate the claim in court by filing a timely suit. La.R. S. 23:1311. The parties' acceptance of a recommendation by the director does not limit their rights to seek a modification of any or all aspects of that resolution in the future. The act refers to the proceeding before the director as an informal dispute resolution and does not provide that an accepted recommendation shall have any permanent res judicata or preclusive effect. See La.R.S. 23:1310.1 et seq. In fact, the 1983 amendments to La.R.S. 23:1331 deleted a requirement that a party seeking review allege that the incapacity of the employee has been subsequently diminished or increased, or that the judgment was obtained through error, fraud or misrepresentation. This omission impliedly recognizes a party's right for any reason to seek a recommendation for modification of any aspect of a previously agreed upon award. [2] See Disotell v. Wadsworth Golf Const. Co., 500 So.2d 371 (La.1987); cf. Bordelon v. Vulcan Materials Co., 472 So.2d 5, 10 (La. 1985) (res judicata effect of judicial decree; right to modify such decree). W. Malone & A. Johnson, supra at § 381.5 (1987 supp.). See Suttle v. Roadway Express, Inc., 511 So.2d 1262, 1267 (La.App. 2d Cir.1987); Bailey v. Pacific Marine Insurance Co., supra, at 511-12; Watson v. Amite Milling Co., Inc., supra; Brignac v. Liberty Mutual Insurance Co., supra; Rich v. Geosource Wireline Services, Inc., supra; see also Sewell v. Argonaut Southwest Ins. Co., 362 So.2d 758, 760 (La.1978) ([I]n the field of worker's compensation, courts must exercise greater vigilance against the perpetuation of an erroneous decision and less concern for the other conflicting interests served by devices for precluding litigation.) Schulin v. Service Painting Co. of Louisiana, 479 So.2d 939 (La.App. 1st Cir. 1985), cert. den. 481 So.2d 634 (La.1986) and Henry v. Simmons Family Investments, Inc., 486 So.2d 319 (La.App. 3d Cir. 1986) are overruled to the extent that they are inconsistent with this holding. Furthermore, courts in general hesitate to apply res judicata to enforce the repose of administrative agency actions unless the agency has acted in a judicial capacity to resolve disputed issues of facts properly before it which the parties have had an adequate opportunity to litigate. See United States v. Utah Construction Mining Co., 384 U.S. 394, 421-22, 86 S.Ct. 1545, 1559-60, 16 L.Ed.2d 642, 661 (1966); Restatement of Judgments 2nd § 83; K. Davis, Administrative Law Treatise § 21.1 et seq. None of these safeguards are provided for in the informal dispute resolution proceedings before the director. The director, who must evaluate each claim and issue a purely advisory recommendation within 30 days, with or without evidence, is authorized to act in a mediatory role rather than in a judicial capacity. Moreover, the statute does not provide in the informal dispute resolution stage for a party's right to present evidence and legal argument or a fair opportunity to rebut evidence and argument by opposing parties. Hence, in the absence of a procedure having some resemblance to court procedure, permanent res judicata or preclusive effect should not be given to the director's recommendation or the parties' acceptance thereof.