Debra Jackson v. Conagra Poultry Company

STATE OF LOUISIANA
COURT OF APPEAL, THIRD CIRCUIT

WCA 07-465

DEBRA JACKSON

VERSUS

CONAGRA POULTRY COMPANY

**********

APPEAL FROM THE
OFFICE OF WORKERS’ COMPENSATION - # 2
PARISH OF RAPIDES, NO. 05-08189
JAMES L. BRADDOCK, WORKERS’ COMPENSATION JUDGE

**********

BILLY HOWARD EZELL
JUDGE

**********

Court composed of Sylvia R. Cooks, Oswald A. Decuir, and Billy Howard Ezell,
Judges.

Cooks, J., dissents and assigns written reasons.

AFFIRMED.

Maurice Blake Monrose
Hurlburt, Privat & Monrose
P. O. Drawer 4407
Lafayette, LA 70502-4407
(337) 237-0261
Counsel for Defendant/Appellee:
ConAgra Poultry Company

George Arthur Flournoy
Flournoy, Doggett & Losavio
P. O. Box 1270
Alexandria, LA 71309-1270
(318) 487-9858
Counsel for Plaintiff/Appellant:
Debra Jackson

EZELL, JUDGE.

Debra Jackson appeals the decision of the workers’ compensation judge that

Pilgrim’s Pride did not owe penalties and attorney fees for incorrect or untimely

payment of supplemental earnings benefits (SEB). For the following reasons, we

affirm the decision of the workers’ compensation judge.

This case has its roots in a previous decision of the court, Jackson v. ConAgra

Poultry, 02-492 (La. App. 3 Cir. 3/5/03), 839 So.2d 1079, writ denied, 03-986 (La.

5/30/03), 845 So.2d 1054, wherein we awarded Ms. Jackson SEB of $783.96 per

month based upon a zero wage earning capacity. The ConAgra facility where Ms.

Jackson worked was purchased by Pilgrim’s Pride, who now takes the place of

ConAgra in this suit. Back due benefits were paid in a lump sum through June 30,

2003. Pilgrim’s Pride then began making monthly payments to Ms. Jackson in the

amount of $723.64, based on a faulty calculation using the appropriate weekly wage.1

Pilgrim’s Pride began paying this amount in July 2003. In September of that year,

Ms. Jackson began work at Evergreen Presbyterian Ministries, although she failed to

report her wages to Pilgrim’s Pride. Pilgrim’s Pride continued to pay Ms. Jackson

$723.64 monthly to the end of November, 2003. Then, after three months without

payment, a lump sum of $2,170.92 was paid to Ms. Jackson for the months of

January, February, and March.

Ms. Jackson filed this suit, seeking penalties and attorney fees for alleged

incorrect and untimely payments. Pilgrim’s Pride filed a reconventional demand for

the recovery of overpayments of SEB to Ms. Jackson. After careful consideration and

analysis of the facts of this case, the workers’ compensation judge ruled that because

1
In our previous decision, this court ordered ConAgra to pay a weekly wage of $180.91.
Pilgrim’s Pride incorrectly multiplied this number by four to get a $723.64 monthly rate, rather than
using the correct calculation - multiplying the weekly rate by fifty-two weeks and dividing that
number by twelve months.

1

Pilgrim’s Pride had been essentially prepaying benefits to Ms. Jackson, there never

became a situation wherein she did not have the correct amount of benefits at the time

payment was due. In fact, the prepayments resulted in $2,148.26 in overpayments of

SEB to Ms. Jackson. The workers’ compensation judge awarded no penalties and

attorney fees to Ms. Jackson and awarded Pilgrim’s Pride $2,148.26 for the

overpayment. From this decision, Ms. Jackson appeals, claiming as her sole

assignment of error that the workers’ compensation judge erred in refusing to award

her penalties and attorney fees for incorrect and untimely payments. We disagree.

Louisiana Revised Statutes 23:1201(C) states: “Installment benefits payable

pursuant to R.S. 23:1221(3) shall become due on the fourteenth day after the

employer or insurer has knowledge of the compensable supplemental earnings

benefits on which date all such compensation then due shall be paid.” Failure to pay

timely subjects the liable party to a penalty together with reasonable attorney fees,

unless the claim is reasonably controverted or if such nonpayment results from

conditions beyond the defendant’s control. La.R.S. 23:1201(F)(2).

Ms. Jackson claims that the payments for July and August of 2003 were

incorrect - that she was paid $723.64, rather than the $783.96 she was owed -so she

should be awarded penalties and attorney fees. However, after an examination of the

law and facts, this argument is disingenuous at best. As SEB in this matter were to

be paid monthly, under La.R.S. 23:1201(C), $783.96 in SEB for July were due on

August 14, 2003. The same amount for August was due September 14, 2003.

Pilgrim’s Pride, however, made a payment of $723.64 on July 1, August 1, and

August 29, 2003. Thus, as of the August 14, 2003 due date for July’s benefits,

Pilgrim’s Pride had already overpaid SEB by $663.32 ($723.64 x 2 payments -

$783.96 due). After making another payment on August 29, Pilgrim’s Pride had

2

overpaid by $603 ($663.32 credit + $723.64 payment - $783.96 due). Therefore, Ms.

Jackson was never owed any unpaid benefits at the times payment was due. Instead,

as noted above, she had in fact received more than she was entitled to for the months

of July and August. Ms. Jackson is clearly not entitled to penalties and attorney fees

for being paid more than she was owed, before it was due.

Similarly, Ms. Jackson claims that she is owed penalties and attorney fees for

untimely benefits for January, February, and March of 2004. She claims she was

owed $207.73 for January, $116.68 for February, and $93.92 for March. However,

Pilgrim’s Pride made additional payments of $723.64 on October 1 and November

3 and 20, 2003, despite the fact that it had already overpaid SEB, and the fact that Ms.

Jackson was earning wages at Evergreen. Ms. Jackson admits that by December 31,

2003, all SEB obligations had been met and that Pilgrim’s Pride had overpaid by

$1,718.26. Therefore, Ms. Jackson again was not owed any unpaid benefits when the

credit awarded to Pilgrim’s Pride is taken into account. In fact, Pilgrim’s Pride had

still overpaid Ms. Jackson $1,299.93 after those three months of SEB are taken out

of the original credit. Ms. Jackson can not claim late payment for these months, as

Pilgrim’s Pride had overpaid its obligation months in advance. See Bossier Elec. v.

Cubley, 35,852, 35,853 (La.App. 2 Cir. 6/14/02), 821 So.2d 685.

The workers’ compensation judge correctly ruled that Pilgrim’s Pride was not

arbitrary or capricious in paying benefits to Ms. Jackson. Therefore, she is owed no

penalties and attorney fees. The decision of the workers’ compensation judge is,

accordingly, affirmed. Costs of this appeal are assessed against Ms. Jackson.

AFFIRMED.

3