the-pig-1189462-1024x807When employees are fired they can often be entitled to benefits upon termination; including money payments to act as a substitute salary while the terminated employee searches for another job. While there is no federal requirement in the United States for an employer to offer severance pay, many do as it can be an attractive benefit to potential employees. Many employers choose to adopt a plan that falls under the Employee Retirement Income Security Act (“ERISA”).  Employers can get tripped up however when they fail to support a denial of severance pay by substantial evidence.   

In this case, Mr. Napoli was denied severance pay because the company he worked for claimed that he was terminated for violating company policies. Mr. Napoli was hired by Scios, Inc. in 2001 which was subsequently acquired in 2003 by Johnson and Johnson. He enrolled in the severance pay plan through Johnson and Johnson. After he was terminated, Mr. Napoli filed for severance pay and was initially told he was eligible. However, Johnson and Johnson later denied his claim asserting that Mr. Napoli committed a “Group 1 Violation” and that he made around $3,000 in wrongful charges to a corporate credit card. Mr. Napoli, in a wise move, hired an attorney who subsequently applied for severance pay again and requested additional information about why the claim was denied. Johnson and Johnson again denied the claim and included the provision of the severance agreement Mr.Napoli allegedly violated. Mr. Napoli appealed through the corporation’s internal procedures in 2012 and the claim was denied again.  

Mr. Napoli filed a lawsuit in state court alleging that the company denied him benefits without just cause and that such an act violated ERISA. Johnson and Johnson responded by removing the case to federal court and counterclaiming for $3,000 in unauthorized credit card charges. The United States District Court for the Middle District of Louisiana agreed with Johnson and Johnson that the denial was based on a reasonable interpretation of the severance pay plan. Mr. Napoli appealed that decision to the United States Court of Appeals for the Fifth Circuit.  

knee-x-ray-2-1562058-768x1024Workers’ compensation laws require companies to set aside a fund to pay their employees for work-related injuries. But what happens when the employer also has long-term disability insurance and the injured employee collects both workers’ compensation benefits as well as the employer-funded long-term disability benefits? Receiving benefits from the correct source of workers’ compensation income can prevent the headache of having to pay back thousands of dollars years later.   

A Parish of Caddo woman, Sheila Hill, was hired by Fresenius Medical Care NA (“FMC”) to work as a dialysis technician at its facility in Bossier City. She later began to experience tingling and numbness in her arms and began to see Dr. Clint McAlister, an orthopedist. Dr. McAlister diagnosed Ms. Hill with severe bilateral carpal tunnel syndrome (“CTS”), which was caused or aggravated by her work duties. Dr. McAlister recommended release surgery. A second orthopedist, Dr. Michelle Ritter, concurred with Dr. McAlister’s diagnosis and treatment plan.

FMC accepted the claim as work-related and began paying Ms. Hill temporary total disability (“TTD”) benefits. Ms. Hill underwent two carpal tunnel release surgeries in 2012, which was performed by Dr. Michael Acurio. Dr. Acurio diagnosed Ms. Hill as suffering the degenerative joint disease of the left basilar joint along with ongoing residual CTS.  

wreck-1459986-1024x686In nearly every case of injury to person or property, there is a time period during which you can bring a lawsuit. When that time period ends is determined by statute. Defendants in cases where the time has past may bring an exception of prescription to have these cases dismissed. But how many times and when the exception of prescription may be raised is an issue that took center stage in an automobile accident case from  Jefferson Parish.

On May 8, 2008, Pauline Herrera filed a lawsuit against Beatrice Gallegos and USAgencies Casualty Insurance Company. Ms. Herrera alleged that her vehicle was struck by Ms. Gallegos’s vehicle on May 8, 2007. In response, Ms. Gallegos filed an exception of prescription and answer, alleging that the accident actually occurred on May 7, 2007, and Ms. Herrera’s lawsuit was filed beyond the one-year prescriptive period.

A hearing on the exception of prescription was held and no exhibits were admitted into evidence. The judge for the Parish Court of the Parish of Jefferson suggested the best way to find out the date of the accident was to call the Kenner Police Department. The judge overruled the exception for lack of sufficient evidence.

When a natural disaster strikes the issue of insurance comes to the forefront. What can a homeowner do when their home is damaged but the insurance company delays and fails to pay? That was the case when a Kenner, Louisiana, couple had their wood floors ruined by Hurricane Isaac. After taking the company to court, the family was finally able to recover claims for the damages as well as sanction the insurance company for the delay.

japanese-porch-tsumago-1228438-1024x768Russell and Tracy Varmall owned a home in Kenner, Louisiana. Their home sustained damages during Hurricane Isaac in 2012. The home was insured by Bankers Specialty Insurance Company (“Bankers”) for wind damage and New Hampshire Insurance Company for flood damage.

The Varmalls initially made claims to Bankers after the hurricane, which included damages to their roof and attic, water damage to their living room ceiling, damages to their fence, and a claim for spoiled food. These claims were adjusted in a timely fashion and were not an issue in the case.

motorcycle-1418201-1024x683Automobile accidents are unavoidable tragedies that happen on our roadways daily. All drivers owe a duty to other drivers to keep each other safe, but how far does that duty extend and to whom does it extend to? That was the case when a Parish of Lafayette man was struck by a distracted driver while taking part in a promotional motorcycle ride sponsored by a local Harley Davidson dealership.

Ralph John Doucet was participating in a motorcycle demonstration ride sponsored by the Harley-Davidson Motorcycle Company and hosted by a local dealer, Cajun Harley. The ride began at Cajun Harley’s showroom in Scott, Louisiana. The ride involved ten to twelve motorcycle riders and was to proceed about eleven miles. The motorcycles were provided to give the riders a means of test-driving them.

Mr. Doucet was killed when Keith Alleman veered off the road, overcorrected, and crashed into Mr. Doucet. The widow and son of Mr. Doucet brought a lawsuit against Cajun Harley alleging that the dealership did not take the necessary safety precautions to ensure the safety of the riders. Cajun Harley filed a motion for summary judgment which was granted by the District Court for the Parish of Lafayette. The Doucet heirs appealed claiming that Cajun Harley breached their duty to conduct the demonstration ride in a reasonable manner by failing to choose a safer demo route.

old-meets-new-1222960-1024x685Owning a business can be a daunting task and often times requires the assistance of outside contractors to complete various maintenance items and to aid in the upkeep of the premises. However, many merchants and customers fail to realize that the merchant may be liable for the actions of a subcontractor.  Just how liable was the subject of a recent lawsuit out of New Iberia.  

In this case, Patricia Ann Thompson filed a lawsuit against a Winn-Dixie grocery store in New Iberia, Louisiana after slipping and falling on a puddle in the freezer section of the store. Winn-Dixie contracted with a cleaning service which in turn contracted with KAP Cleaning Services (“KAP”) to clean the store. KAPS’s employee rolled up a mat to clean the floor in front of the freezer where Ms. Thompson fell.  Moving this mat caused water to be exposed and ultimately led to Ms. Thompson slipping and falling on the grocer’s premise and sustaining injury. The Trial Court held that Winn-Dixie was 30 percent at fault and KAP was 70 percent at fault. Yet, the Louisiana Third Circuit Court of Appeal amended the distribution of fault and held that Winn-Dixie was 100 percent liable for Ms. Thompson’s injuries. The Court of Appeal supported its decision on two grounds.  First, the Court of Appeal found that Winn-Dixie as the merchant was statutorily not permitted to share liability with a subcontractor.  Second, the Court of Appeal found the contractual arrangement between the two parties allowed for operational control by Winn-Dixie over KAP’s employees which would not shield it from liability for a subcontractor’s actions.  Winn-Dixie appealed to the Louisiana Supreme Court.  

Generally, a merchant owes a duty to those on their premises to exercise reasonable care to keep its floors in a reasonably safe condition and to keep the store free of hazardous conditions under  La. R.S. 9: 2800.6. However, when a merchant hires a subcontractor it can be more difficult for a court to assign fault.  Generally, a principal is not liable for the actions of a subcontractor unless the principal retains the right to supervise or control the subcontractor’s work. See Sys. Contractors Corp. v. Williams & Associates Architects, 769 So. 2d 777 (La. Ct. App. 2000).    La. C.C. art. 2323 and La. C.C. art. 2324 do not eliminate or make any exceptions for a merchant’s liability under La. R.S. 9:2800.6 but rather provide for comparative fault.  Louisiana courts will apportion fault based on parties’ knowledge and control over the condition that created peril.  See Watson v. State Farm Fire and Casualty Insurance Co., 469 So. 2d 967 (La. 1985) Under the Watson factor test, courts assess: (1) whether the conduct resulted from inadvertence or involved an awareness of the danger; (2) how great a risk was created by the conduct; (3) the significance of what was sought by the conduct; (4) the ability of the actor, whether superior or inferior, and (5) any circumstances which might require the actor to proceed in haste without proper thought.

healthcare-upclose-1322372-1024x768Because of the highly technical aspect of seeking relief from the court system, someone unfamiliar with the legal process can be confused and frustrated by the litigation process. This circumstance can be intensified by the harm done and the matter being litigated. Mr. William Matthews, the surviving husband of Mrs. Geranda Matthews, faced this exact problem when filing a medical malpractice claim against two of his wife’s physicians and Louisiana State University Health Systems.

In 2009, Mrs. Matthews went to the hospital complaining of pain. Unbeknownst to the Matthews at the time, the pain was caused by lung cancer. Allegedly, two physicians at Moss Regional Medical Center failed to properly diagnose and treat her cancer until April 2010. The plaintiff also alleged that, because of the physicians’ failure to properly diagnose and treat her, cancer attached to her spinal cord, which caused intense pain, eventually paralysis, and she later passed away.

A claim was submitted to a medical review board, which found that the physician breached the standard of care.  Subsequently, a medical malpractice lawsuit was filed with the Judicial District Court for the Parish of Calcasieu. Mr. Matthews also filed a motion for summary judgment on liability, causation, and damages. Louisiana State University Health Systems, the Defendant, opposed the motion asserting that there was a factual dispute over whether Ms. Matthews pre-existing condition contributed to her damages.  After a hearing, the District Court granted the motion for summary judgment on the issues of liability and causation, leaving calculating damages for another motion for summary judgment or trial. Louisiana State University Health Systems appealed the judgment to the Louisiana Third Circuit Court of Appeal.   

outdoor-1436934-1024x768Workers compensation laws require an employee to be injured within the course of employment to qualify for benefits. However, what happens when an employee is injured without any witnesses present? How can the employee prove that the accident really happened? This case out of Calcasieu Parish demonstrates the burden for a workers’ compensation claimant in Louisiana to prove an unwitnessed accident.

Thomas Gibson was employed by Resin Systems (“Resin”) as a maintenance man and was injured while loading iron beams in December of 2012. On January 28, 2013, Mr. Gibson filed Form 1008, a disputed claim for compensation, against Resin and its insurer LUBA Casualty Insurance Company, claiming that he injured a muscle in his back. Resin filed a general denial and disputed that Mr. Gibson was injured at work. Following a trial, the Workers Compensation Judge (“WCJ”) found that Mr. Gibson suffered a compensable injury and that Resin owed both penalties for failure to pay benefits and also attorneys fees for failure to reasonably controvert the claim. Resin appealed the WCJ’s judgment to the Louisiana Third Circuit Court of Appeal.  

Louisiana’s Supreme Court has outlined the burden of proof for a workers’ compensation claimant to prove an unwitnessed accident. An employee may prove by testimony alone that an unwitnessed accident has occurred when: (1) no other evidence discredits or casts serious doubt upon the worker’s version of the incident; and (2) the worker’s testimony is corroborated by the circumstances following the alleged incident. See Bruno v. Harbert International, Inc., 593 So.2d 357 (La. 1992). The fact-finder’s determinations as to whether the worker’s testimony is credible and whether the burden of proof has been met are factual determinations that are not be disturbed on appeal without a showing of manifest error.

pancakes-2-1319096-717x1024Sexual harassment in the workplace is unfortunately all too common.  While a victim of such harassment might feel entirely justified in filing a lawsuit against his or her employer, the harassing conduct might not be bad enough to survive a motion for summary judgment.  Just how bad does a work environment have to be for a harassment victim to have a potentially successful claim?  This was the issue in a recent case out of the United States Fifth Circuit Court of Appeal.   

In this case, Ruba Management (“Ruba”) operated an IHOP restaurant in Boutte, Louisiana.  Kelly Matherne worked at IHOP as a server and Sharetha Tart as a cook.  Both worked there for about a month.  Shortly after being hired, Ms. Matherne reported suffering physical and verbal sexual harassment from four co-workers:  three cooks and her weekend manager.   She complained on several occasions to various members of Ruba’s management team about the cooks’ actions however neglected to report the manager’s actions.  Ms.Tart made similar claims and made reports to management.  The harassment allegations were recorded in an IHOP record book kept for such allegations. The weekday manager reviewed video footage from cameras in the restaurant but no actionable conduct could be seen.  Lisa Garrison, the store manager, heard of the sexual harassment claims and reviewed the video footage as well and did not see any evidence of sexual harassment. Nevertheless, the alleged harassers were assigned to different shifts so they would not interact with Ms. Matherne or Ms. Tart.  Ms. Matherne and Ms.Tart soon after quit and filed a lawsuit against Ruba alleging hostile work environment due to sexual harassment and constructive discharge under Title VII of the Civil Rights Act of 1964. The  United States District Court for the Eastern District of Louisiana granted Ruba’s motion for summary judgment.  Mr. Matherne and Ms. Tart then filed an appeal with Fifth Circuit.  

To establish a hostile work environment claim, a plaintiff must prove five elements of which only two were at issue in this case: 1) the harassment complained of affected employment and  2) the employer knew or should have known of the harassment in question and failed to take prompt remedial action.  See Royal v. CCC & R Tres Arboles, L.L.C., 736 F.3d 396, 401 (5th Cir. 2013).  For harassment to be actionable, it has to be sufficiently severe or pervasive to change the plaintiff’s employment atmosphere thus creating an abusive environment.  Offensive conduct that includes teasing, comments, or mild isolated incidents will not withstand a motion for summary judgment.   

drywall-mess-1506462-1024x683Do you know someone who owns a condo or a home? In some instances, the drywall used to construct the condo complex or home is built from Chinese-Manufactured Drywall.  From 2005-2008 Chinese Drywall was imported into the U.S. and used in the construction of thousands of buildings. Strangely, residents who lived in those buildings began to notice corrosion of metal building components, failure of electrical wiring and in some cases, even physical ailments that ranged from skin irritation to respiratory problems. Ralph Mangiarelli was one the residents who suffered injuries but of a rather different kind.

Mr. Mangiarelli owned a condo unit at Lauderdale One Condominium complex in Fort Lauderdale, Florida. Sixty-Fifth and One, L.L.C. (“Sixty-Fifth”) developed the complex and Banner Supply Company Pompano, L.L.C. (“Banner”) supplied the drywall used to construct the complex. The Lauderdale One Complex had two buildings called “Building 1” and “Building 2.” Only Building 1 was built using Chinese Drywall.  Mr. Mangiarelli owned a condo unit in Building 2.   

Mr. Mangiarelli and other Building 2 residents filed a class action lawsuit in Florida asserting that Building 2 residents suffered a loss in market value for their condos because of the association with Building 1’s Chinese drywall.  All federal actions alleging damages resulting from Chinese Drywall were transferred in 2009 to the United States District Court for the Eastern District of Louisiana.  

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