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Durham v. Plum Creek Manufacturing5/10/2000
penalties and attorney fees against the defendant, Plum Creek Manufacturing.
AFFIRMED.
STEWART, J., concurs in part and dissents in part.
Although I agree with the majority's opinion to affirm the award of workers' compensation benefits, I dissent from the majority's failure to reverse the Workers' Compensation Judge's ("WCJ") failure to award penalties and attorney fees.
La. R.S. 23:1201(F) provides that penalties and attorney fees are recoverable if the employer or insurer fails to commence payment of benefits timely, unless the claim is reasonably controverted. Mr. Durham hurt his back on April 23, 1998 while performing his regular duties as a forklift driver. The majority found that he told his supervisors, Edward Wright and Jimmy Atwell, that his back was hurting from straightening stacks of wood with his forklift. These supervisors failed to properly communicate or document his injury . Regardless, on May 6, 1998, the company received a call from the emergency room of the Winn Parish Medical Center informing the company that Mr. Durham was complaining of back pain from an accident at work. On May 18, 1998, Mr. Durham met with Judia Hobdy, the Human Resource Manager, and Paul Williams, the Plant Manager, at which time Mr. Williams acknowledged that Mr. Durham gave a written statement blaming his current back problems on an on-the-job injury. Ms. Hobdy, who had denied the original compensation claim, requested that Mr. Durham file for accident and sickness benefits. Mr. Durham turned in his claim form but still claimed he had been injured on the job . Ms. Hobdy required him to submit a different form stating it was not an on-the-job injury.
Although the company later claimed Mr. Durham's claim was under investigation, no evidence was presented as to what type of investigation occurred. Neither the testimony of the person who ultimately denied the claim nor the results of any investigation was presented into evidence. No worker's compensation benefits were ever paid.
Awards of penalties and attorney fees in workers' compensation cases are essentially penal in nature, being imposed to discourage indifference and undesirable conduct by employers and insurers. Sharbono v. Steve Lang and Son Loggers, 97-0110 (La. 7/1/97), 696 So.2d 1382. The company based the initial denial of benefits on the misconception that there was no immediate report of the accident by the plaintiff; however, even if true, that fact does not justify the denial of benefits. The employer must adequately investigate the claim, and the crucial inquiry is whether the employer had an articulable and objective reason for denying or discontinuing benefits at the time he took the action. Williams v. Rush Masonry, Inc., 98-2271 (La. 6/29/99), 1999 WL 458137 (La.).
The company claims that Mr. Durham decided he was injured because he knew that his portion of the mill was going to be shut down and that he would be laid off. This is not an objective reason for the initial and subsequent denial of benefits to Mr. Durham. Based on this record, the findings of the WCJ concerning penalties and attorney fees should be reversed.
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