Opinion ID: 1674502
Heading Depth: 1
Heading Rank: 2

Heading: recovery in worker's compensation and tort

Text: La.R.S. 23:1031(A) provides in pertinent part: If an employee ... receives personal injury by accident arising out of and in the course of his employment, his employer shall pay compensation in the amounts, on the conditions, and to the person or persons hereinafter designated. La.R.S. 23:1032 provides in pertinent part: A. (1)(a) The rights and remedies herein granted to an employee or his dependent on account of an injury, or compensable sickness or disease for which he is entitled to compensation under this Chapter, shall be exclusive of all other rights and remedies of such employee, ... against his employer, ... for said injury, or compensable sickness or disease. B. Nothing in this Chapter shall affect the liability of the employer, or any officer, director, stockholder, partner, or employee of such employer or principal to a fine or penalty under any other statute or the liability, civil or criminal, resulting from an intentional act. Baldridge contends that the courts below erred in allowing plaintiff recovery of both damages in tort and worker's compensation benefits. He argues that if an employee pursues an action in tort for the employer's intentional act under La.R.S. 23:1032(B), he or she is not entitled to pursue benefits under the Worker's Compensation Act. We disagree. The principle underlying the Worker's Compensation Act is a compromise in which the employer surrenders the immunity against liability which he would otherwise enjoy in all cases in which he was without fault, and, in return, the employee loses his right to full damages for his injury and accepts instead compensation measured as a percentage of his wages. Malone & Johnson, 14 La. Civil Law Treatise: Workers' Compensation, § 361 at pp. 132-33 (1980). The benefits under the compensation act include both medical expenses (La.R.S. 23:1203) and disability benefits (La.R.S. 23:1221). Disability benefits provide generally for payment of sixty-six and two-thirds per cent of wages during the period of disability. La.R.S. 23:1221. In 1976, the legislature amended Section 1032 of the Worker's Compensation Act to make the exclusive nature of the compensation remedy inapplicable to intentional acts. [7] In Bazley v. Tortorich, 397 So.2d 475 (La.1981), this court discussed the legislative intent for adding what is now La.R.S. 23:1032(B): After considering broader penalties that would have provided double benefits for an employer's violation of a safety rule, failure to provide a safety device required by law, or gross negligence on the part of a supervisory employee, which caused injury, death or disease, Official Journal of the House of Representatives, June 4, 1976, H.B. 354, p. 20, our legislature chose to impose a sanction for intentional wrongs by making the exclusive remedy rule inapplicable to such acts. Id. at 480. While some states have opted for built-in increases in compensation benefits when an employer commits an intentional act, our legislature opted to provide the injured employee with an opportunity to pursue an action in tort. [8] We think the intent of the legislature in making the exclusive remedy rule inapplicable to intentional acts was to impose a sanction upon an employer for the commission of an intentional wrong such as the battery in this case. However, we do not think that an employee injured by his employer's intentional tort must forego the guaranteed benefits afforded under the compensation act in order to risk the possibility that he will prevail in an action in tort against his employer. The legislative intent was obviously to increase the potential recovery available to the employee, not to limit it. Thus, we think the purpose of excepting from the exclusivity provision of the compensation act injuries caused by the intentional conduct of an employer was to provide an employee the right to pursue an action in tort while at the same time allowing recovery of compensation benefits. This approach is not intended, however, to allow an employee to be compensated doubly for the same elements of his damages. A wrongdoer should not be required to pay twice for the same elements of damages. Double recovery would be in the nature of exemplary or punitive damages which are not allowable under Louisiana law unless expressly provided for by statute. International Harvester Credit v. Seale, 518 So.2d 1039 (La.1988). The employer in his capacity as tortfeasor owes his employee damages. He also owes his employee benefits under the Worker's Compensation Act. Benefits under the compensation act include disability benefits and medical expenses. In Brooks v. Chicola, 514 So.2d 7 (La.1987), in discussing the elements of loss for which compensation benefits are paid, this court determined that weekly benefits are intended to replace lost wages and to compensate for the lost capacity to earn wages, but not to compensate for pain and suffering. In contrast, in an action in tort, recoverable damages can include those same elements recoverable under the compensation act (past and future lost wages and medical expenses) as well as pain and suffering. [9] We must now decide who should receive a credit or set-off for those items (past and future wages and medical expenses) that are the same under both obligations in order to avoid double recovery. Of course, if the employer is uninsured, it is of no moment. It is only significant when he has insurance in either one or both capacities. We find it more appropriate to give a credit or set-off to him in his capacity as a tortfeasor. We reach this conclusion because compensation benefits are paid in lieu of wages and are statutorily mandated regardless of the fault of the employer. Therefore, the employer in his capacity as tortfeasor should get a credit or set-off to wages (past and future) and medical expenses (past and future) to the extent that disability benefits and medical expenses have been paid or are to be paid under the Worker's Compensation Act but in no event more than the amount of wages and medical expenses owed or awarded under tort liability. [10] This will insure that the employee will get the maximum recovery for each element of damages and at the same time not allow double recovery. In the instant case, in the tort claim, the jury award was set forth accordingly: Special damages (medical bills, etc.) $16,381.88 General damages (pain, suffering and disability, physical and mental, past and future) $ 7,177.50 On the worker's compensation claim, the trial judge found plaintiff to be temporarily and totally disabled and awarded her compensation benefits at the rate of $67.00 per week from June 28, 1988, and to continue through her disability. The trial judge awarded medical expenses of $2,864.73. The court of appeal affirmed the award of disability benefits; however, it increased the award of medical expenses to $9,121.86. No compensation benefits have been paid to plaintiff. Our review of the record supports the conclusion that the $16,381.88 jury award for special damages includes both medical expenses and loss of wages. The award, however, does not specify the amount of damages awarded for each element. In regard to the award of worker's compensation benefits, the court of appeal concluded that plaintiff was entitled to $9,121.86 in medical expenses. We find that the record fully supports this award. Therefore, it is reasonable to conclude that $9,121.86 of the jury award for special damages was awarded for medical expenses. The remaining $7,260.02 is an award for loss of wages. While ordinarily, State Farm as the liability insurer of Baldridge, would be entitled to a credit or set-off of $16,381.88 (medical expenses and loss of wages), State Farm paid the judgment rendered against it and did not appeal. That judgment is now final and any claim for a credit or set-off is moot. In order to avoid double recovery by plaintiff of any of the elements of damages awarded, the judgment in favor of plaintiff on the worker's compensation claim should be subject to a credit of $9,121.86 for medical expenses and $7,260.02 in disability benefits.