Court Opinion

ID: 9451692
Source: CourtListenerOpinion
Date Created: 2023-08-04 17:21:45.751486+00
Date Added: 2024-06-11T17:32:50.829988
License: Public Domain

ON PETITION FOR REHEARING
The petition for rehearing is denied. However, the Court has amended its original opinion in this case to correct several clerical errors and to clarify its description of the workmen’s compensation claims involved.
The Court has also considered the question of pre-judgment interest even though the appellant raised it for the first time in the petition for rehearing. The diversity statute limits federal jurisdiction to matters in controversy exceeding $10,000, “exclusive of interest and costs.” 28 U.S.C. § 1332. Texas provides for 4 per cent “interest” on accrued installments in workmen’s compensation cases. Vernon’s Ann.Tex.Civ.Stat. Art. 8306a. The appellant contends that the interest would push Keeling’s counterclaim over $10,000; and that this Court has construed an analogous Louisiana insurance statute as in reality providing for the payment of a “penalty” that must be included in the jurisdictional amount. Buras v. Birmingham Fire Ins. Co. of Pennsylvania, 5 Cir. 1964, 327 F.2d 238 (per curiam). We find the Buras case distinguishable. The Louisiana statute *92provides for 6 per cent “interest” for all death claims under insurance policies unpaid 60 days after proof of death. LSA-R.S. 22:656. We interpreted this as a “penalty” for jurisdictional purposes because Louisiana has a regular statutory interest rate of only 5 per cent; and the 6 per cent is not due at all if the insurance contracts are settled within 60 days. In contrast, Texas has a higher regular statutory interest rate — six per cent— than for workmen’s compensation installments, Vernon’s Ann.Tex.Civ.Stat. Art. 5072, and interest is recoverable in Texas for all accrued workmen’s compensation weekly installments. Furthermore, the Workmen’s Compensation Act contains a separate, specific provision for 12 per cent “penalty” or “damages” for nonpayment of benefits prescribed by an Accident Board ruling. Vernon’s Ann. Tex.Civ.Stat. Art. 8307, § 5a.
The opinion is reissued as amended according to the corrected copy attached hereto r the petition for rehearing is
Denied.