Tracy Bowie v. Westside Habilitation Center

STATE OF LOUISIANA
COURT OF APPEAL, THIRD CIRCUIT

14-617

TRACY BOWIE

VERSUS

WESTSIDE HABILITATION CENTER

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FROM THE
OFFICE OF WORKERS’ COMPENSATION, DISTRICT 02
PARISH OF RAPIDES, NO. 14-00992
JAMES BRADDOCK, WORKERS’ COMPENSATION JUDGE

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J. DAVID PAINTER
JUDGE

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Court composed of Sylvia R. Cooks, John D. Saunders, Jimmie C. Peters, Marc T.
Amy, and J. David Painter, Judges.

WRIT GRANTED, REVERSED, AND REMANDED.

Amy, J., dissents and assigns written reasons.

Robert L. Beck, III
Law Offices of Robert L. Beck, Jr., LLC
P. O. Drawer 12850
Alexandria, LA 71315-2850
(318) 445-6581
COUNSEL FOR PLAINTIFF-RELATOR:
Tracy Bowie

Matthew R. Richards
Johnson, Rahman & Thomas
P. O. Box 98001
Baton Rouge, LA 70898-8001
(225) 231-0521
COUNSEL FOR DEFENDANTS-RESPONDENTS:
Westside Habilitation Center, Inc. and Louisiana Workers’
Compensation Corporation

PAINTER, Judge.

Relator, Tracy Bowie (Bowie), seeks supervisory writs from the judgment of

May 15, 2014, from the Office of Workers’ Compensation (OWC), which found

that “Defendants carried their burden of proving that they complied with the

requirements of La. Rev. Stat. 23:1201.1(A) and are therefore entitled to a

Preliminary Determination hearing with respect to the controversion of the

compensability of the alleged left knee injury suffered by the Claimant as a result

of the work accident of May 10, 2013, and with respect to the medical treatment

that has been requested for the alleged left knee injury.” For the following reasons,

we grant the writ and reverse the ruling of the Workers’ Compensation Judge

(WCJ). The matter is remanded to the OWC for further proceedings in accordance

with this opinion.

FACTS AND PROCEDURAL HISTORY

Bowie was employed by Westside Habilitation Center, Inc. (Westside) and

allegedly suffered a work-related accident on May 10, 2013, when she attempted to

restrain a combative patient. Westside was insured by Louisiana Workers’

Compensation Corporation (LWCC).

Bowie allegedly suffered injuries to her knees and lower back, and she

began receiving benefits on May 23, 2013. The weekly checks were mailed to

2120 Memorial Drive, Alexandria, Louisiana, until such time as Bowie became

represented by counsel. Thereafter, the checks were sent to her attorney. LWCC

initially paid for Bowie’s reasonable and necessary medical expenses, including

treatment for her left knee. However, on February 3, 2014, in a letter to Bowie’s

attorney, LWCC advised that they would no longer be paying for any expenses

related to her left knee. LWCC advised Bowie that it considered the left knee

problems to be a pre-existing medical condition that was not compensable. A

“Notice of Payment, Modification, Suspension, Termination of Medical Benefits”

(the Notice) was sent to Bowie through her attorney on February 3, 2014. Bowie

filed a Notice of Disagreement just four days later wherein she noted that she

disagreed with the Notice because the work-related accident of May 10, 2013,

aggravated her pre-existing left knee injury. Then, on February 14, 2014, Bowie

filed a disputed claim for compensation, Form 1008.

Westside and LWCC (hereinafter collectively referred to as “Defendants”)

filed an answer to the 1008 and requested a preliminary determination on the issue

of suspension of benefits with respect to the left knee injury. Bowie then filed a

rule to show cause to determine whether defendants were entitled to a preliminary

determination pursuant to La.R.S. 23:1201.1. Following a hearing on the rule, the

WCJ found that Defendants were entitled to a preliminary determination hearing.

Bowie timely applied for a writ with this court, and proceedings in the court below

were stayed.

In the writ application, Bowie argues that the WCJ committed legal error in

concluding that LWCC did not have to prove its compliance with La.R.S.

23:1201.1(A)-(E) and that the WCJ committed legal and manifest error in

concluding that LWCC was entitled to a preliminary determination under La.R.S.

23:1201.1 after LWCC failed to present competent evidence or elicit testimony

that the Notice of Payment was sent to Bowie as required by La.R.S.

23:1201.1(A)(2). For the reasons that follow, we agree. The writ is granted based

on our finding that Westside and LWCC are not entitled to a preliminary

determination due to the failure to comply with the statutory provisions of La.R.S

23:1201.1. Thus, the WCJ’s ruling is hereby reversed, and the matter is remanded

to the Office of Workers’ Compensation for further proceedings consistent with

this opinion.
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DISCUSSION

Louisiana Revised Statutes 23:1201.1 reads, in pertinent part:
A. Upon the first payment of compensation or upon any
modification, suspension, termination, or controversion of
compensation or medical benefits for any reason, including but not
limited to issues of medical causation, compensability of the claim, or
issues arising out of R.S. 23:1121, 1124, 1208, and 1226, the
employer or payor who has been notified of the claim, shall do all of
the following:

(1) Prepare a “Notice of Modification, Suspension,
Termination, or Controversion of Compensation and/or
Medical Benefits”.

(2) Send the notice of the initial indemnity payment to
the injured employee on the same day as the first
payment of compensation is made by the payor after the
payor has received notice of the claim from the
employer.

(3) Send a copy of the notice of the initial payment of
indemnity to the office within ten days from the date the
original notice was sent to the injured employee or by
facsimile to the injured employee’s representative.

(4) Send the “Notice of Payment, Modification,
Suspension, Termination, or Controversion of
Compensation and/or Medical Benefits” to the injured
employee by certified mail, to the address at which the
employee is receiving payments of compensation, on or
before the effective date of a modification, suspension,
termination, or controversion.

(5) Send a copy of the “Notice of Payment,
Modification, Suspension, Termination, or Controversion
of Compensation and/or Medical Benefits” to the office
on the same business day as sent to the employee or to
his representative.

B. The form of the “Notice of Payment, Modification,
Suspension, Termination, or Controversion of Compensation and/or
Medical Benefits” shall be promulgated by the office.

C. The director shall make the notice available upon request by
the employee and the employee's representative.

D. If the injured employee is represented by an attorney, the
notice shall also be provided to the employee’s representative by
facsimile. Proof that the notice was sent to the employee’s

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representative by facsimile shall be prima facie evidence of
compliance with Subsection A of this Section.

E. The provisions of this Section shall not apply to questions of
medical necessity as provided by R.S. 23:1203.1.

...

I. (1) An employer or payor who has not complied with the
requirements set forth in Subsection A through E of this Section or
has not initially accepted the claim as compensable, subject to further
investigation and subsequent controversion shall not be entitled to a
preliminary determination. An employer or payor who is not entitled
to a preliminary determination or who is so entitled but fails to request
a preliminary determination may be subject to penalties and attorney
fees pursuant to R.S. 23:1201 at a trial on the merits or hearing held
pursuant to Paragraph (K)(8) of this Section.

(2) If disputed by the parties, upon a rule to show cause held
prior to the preliminary determination or any hearing held pursuant to
this Section, the workers’ compensation judge shall determine
whether the employer is in compliance.

This statute was enacted by 2013 La. Acts No. 337 1 , and said act specifically

provided for its retroactive application.

Whether a party has carried his or her burden of proof is a question of fact to

be determined by the trier of fact. Allman v. Washington Parish Police Jury, 04-

600 (La.App. 1 Cir. 3/24/05), 907 So.2d 86. The standard of review is well settled:

A workers’ compensation judge’s findings of fact are reviewed
under the manifest error/clearly wrong standard of review and the
findings will not be set aside unless clearly wrong after reviewing the
record in its entirety. Dean v. Southmark Const., 03-1051 (La.7/6/04),
879 So.2d 112. When there is a conflict in testimony, reasonable
evaluations of credibility and inferences of fact will not be disturbed
upon review even though the appellate court may disagree. Id.
Furthermore, when factual findings are based on determinations
regarding the credibility of witnesses, the manifest error standard
demands great deference to the findings of the trier of fact, “for only
the factfinder can be aware of the variations in demeanor and tone that
bear so heavily on the listener’s understanding and belief in what is
said.” Rosell v. ESCO, 549 So.2d 840, 844 (La.1989).
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A previous statute with the same number, 23:1201.1, existed and related to mailing of
payments at option of employee. It was added by 1956 La. Acts No. 332, § 1, and repealed by
2010 La. Acts No. 3, § 2.

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David v. Vermilion Shell & Limestone Co., Inc., 13-863, p. 2 (La.App. 3 Cir.

2/12/14), ___ So.3d ___, ___.

There is a two-part test for the reversal of a fact finder’s determinations: (1)

the record shows that a reasonable factual basis does not exist for the finding of the

trial court, and (2) the record establishes that the finding is clearly wrong

(manifestly erroneous). Cole v. Allstate Ins. Co., 07-1046 (La.App. 3 Cir. 6/05/08),

987 So.2d 310, writ denied, 08-1463 (La. 10/31/08), 994 So.2d 535 (citing Earls v.

McDowell, 07-17 (La.App. 5 Cir. 5/15/07), 960 So.2d 242).

Bowie alleges that the WCJ committed legal error in finding that it was

irrelevant whether LWCC proved its compliance with La.R.S. 1201.1(A)-(E) at the

hearing on Bowie’s rule. A question of law is reviewed by determining if the

WCJ’s ruling is legally correct or incorrect. Magbee v. Fed. Express, 12-77

(La.App. 3 Cir. 12/12/12), 105 So.3d 1048.

Ravena Budwine, the claims adjuster for LWCC who handled Bowie’s claim,

testified that the initial weekly indemnity payments to Bowie began on May 23,

2013, that the payments were mailed to her at 2120 Memorial Drive in Alexandria,

and that she believed this to be Bowie’s home address. She was unable to explain

why the Notice of Payment dated May 23, 2013, was sent to a Cheneyville address.

There was no proof that the initial Notice of Payment was sent to Bowie as

required by La.R.S. 23:1201.1(A)(2). The WCJ, however, opined that “that’s all

irrelevant, because the issue in dispute is a knee replacement. No dispute about her

compensation, receipt of benefits, the amount of her benefits.” The WCJ further

reasoned that:

[t]his disputed claim was filed on February 13th of 2014, and the issue
in dispute is a left knee replacement recommended by Dr. Hope. The
evidence reflecting the controversion of the medical entitlement to the
left knee replacement was all timely. There may be instances on
different issues where an employer cannot have the safe harbor
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because they didn’t follow, precisely, for that particular issue, and
there may be other issues, which I believe is true of this case here,
where they followed this Act, and they don’t have the safe harbor, yet.
There’s no such thing as a safe harbor until we have the preliminary
determination hearing, and the Court makes a preliminary
determination. The Court may decide that this is cause [sic] related[,]
and they should provide the surgery or the procedure. Then, they
have to do that to get to the safe harbor. We’re not even close.

The WCJ ruled that, with respect to the knee replacement issue, Defendants

complied with the statute.

We find that the WCJ’s interpretation of the statute is incorrect. Louisiana

Revised Statutes 23:1201.1(A) specifically provides that “[u]pon the first payment

of compensation or upon any modification, suspension, termination, or

controversion of compensation or medical benefits for any reason,” the five

enumerated things must be done by the employee or payor. (Emphasis added.)

Thus, it would appear that Defendants may not be required to comply with the

subsections both when the initial payment is made and when there is a

modification, etc. It is an “either/or” provision. In this instance, the controversy is

over the payment for treatment to Bowie’s left knee. However, Defendants must

still comply with the requirements of La.R.S. 23:1201.1(A)(2) and (3). These

provisions deal with the notice of initial payment. The evidence and testimony

clearly showed that Defendants could not prove that the notice of initial payment

was properly sent to Bowie.

“It is presumed that every word, sentence, or provision in a law was

intended to serve some useful purpose.” City of New Orleans v. Louisiana

Assessors’ Retirement and Relief Fund, 05-2548, p. 20 (La.10/1/07), 986 So.2d 1,

17 (citations omitted). “[C]ourts are bound, if possible, to give effect to all parts of

a statute and to construe no sentence, clause, or word as meaningless and

surplusage if a construction giving force to, and preserving, all words can

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legitimately be found.” Id. In statutory interpretation, we are also mindful that

“courts must endeavor to give an interpretation that will give them effectiveness

and purpose, rather than one which makes them meaningless.” State v.

Cunningham, 04-2200, pp. 8-9 (La.6/13/05), 903 So.2d 1110, 1116.

The statute is clear that compliance with the five subsections to Section (A)

is mandatory in that “shall” is used. The employer’s compliance therewith cannot

be irrelevant, or that section of the statute would be meaningless. Thus, we find

that the WCJ committed legal error in his interpretation of the statute and that it

was manifest error for the trial court to find that Defendants had complied with the

statute when the evidence and testimony clearly did not support such a finding.

The issue then becomes whether Defendants are entitled to a preliminary

determination hearing when they have not complied with the requirements of the

La.R.S. 23:1201.1(A). Subsection I of La.R.S. 23:1201.1 provides that an

employer or payor who has not complied with the requirements of subsection A or

has not accepted the claim as compensable “shall” not be entitled to a preliminary

determination. To read this as an “either/or” provision would render subsection A

useless. The statute cannot be interpreted to mean that an employer or payor can

be non-compliant with the mandatory provisions of one subsection of the statute

statute but not be subject to the consequence provided in a later subsection. Under

the aforementioned rules of statutory interpretation, we are compelled to conclude

that Defendants are not entitled to a preliminary determination hearing in this case.

Accordingly, the ruling of the WCJ is reversed.

DECREE

Bowie’s writ application is hereby granted, and the ruling of the WCJ is

reversed based upon our opinion that the record does not reflect a reasonable basis

for the WCJ’s findings that Defendants carried their burden of proving compliance
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with La.R.S. 23:1201.1. Since Defendants did not strictly comply with the statute,

the WCJ erred in finding that Defendants were entitled to a Preliminary

Determination hearing. The matter is remanded to the OWC for further

proceedings in accordance with this opinion.

WRIT GRANTED, REVERSED, AND REMANDED.

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NUMBER 14-617

COURT OF APPEAL, THIRD CIRCUIT

STATE OF LOUISIANA

TRACY BOWIE

VERSUS

WESTSIDE HABILITATION CENTER

AMY, J., dissenting.

I agree that the employer did not comply with the notice requirements of

La.R.S. 23:1201.1(A), as retroactively applied. However, I would deny the writ

application as I find no error in the workers’ compensation judge’s determination

that the employer was entitled to a preliminary determination.

Among other things, La.R.S. 23:1201.1 sets forth the procedure for the

preliminary determination mechanism. Significantly, Subparagraph (I) indicates

that an employer who has not complied with the requirements of Subsections (A)

through (E) or who “has not initially accepted the claim as compensable, subject to

further investigation and subsequent controversion shall not be entitled to a

preliminary determination.” In my opinion, as Subsection (I) speaks in terms

“entitlement” to a preliminary determination and by its use of “or,” the Subsection

provides distinct circumstances that will disqualify an employer from use of that

preliminary mechanism.

In this case, the employer did, in fact, accept the claim as compensable and

only subsequently controverted that claim. While the majority opinion suggests

that to interpret Subsection (I) in an either/or fashion renders Subsection A useless,

I respectfully disagree. In my view, the interpretation urged by this writ

application effectively requires that both conditions be present, turning “or” into

“and.”

Notably, and although the claimant’s argument collapses the concept of the

availability of the preliminary determination with the concept of the safe harbor

from penalties and attorney fees, I conclude that Subsection L demonstrates

otherwise.

Notwithstanding any provision in this Section to the contrary,
the failure to comply with any provision of this Section shall not itself
be considered a failure to reasonably controvert benefits; however,
failure of the employer or payor to comply shall result in loss of
penalty and attorney fee protections provided in this Section.”

La.R.S. 23:1201.1(L)(emphasis added). The statute, itself, does not indicate that

the employer’s choice to use the expedited process of the preliminary

determination otherwise relieves it from having to demonstrate the availability of

any safe harbor provision.

For this reason, I respectfully dissent.

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