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Braithwaite Construction v. Manton2/15/2002
Judge William F. Kline, Jr., Retired, serving Pro Tempore by special appointment of the Louisiana Supreme Court.
An employer, Braithwaite Construction, appeals a judgment reinstating temporary total disability benefits to claimant, Nicholas Manton, in this workers' compensation case. The judgment further awarded penalties and attorney's fees based on the employer's arbitrary and capricious termination of benefits. For the reasons that follow, we affirm the reinstatement of benefits, but reverse the award of penalties.
FACTS
This case involves a dispute over the entitlement of Nicholas Manton to workers' compensation benefits. Manton, an employee of Norcan Builders, alleges that he sustained a neck injury on August 2, 1999, while lifting a metal saw. Norcan, who did not have workers ' compensation insurance, agreed to pay Manton a specified sum on a weekly basis for indemnity and medical benefits until Manton could return to work. However, Manton never returned to work, and Norcan stopped paying benefits.
Braithwaite Construction was the general contractor for the project on which Manton was allegedly injured. Braithwaite had subcontracted with Norcan to assist it in completing a portion of the work required for the project. When Norcan stopped paying benefits, Manton asserted a claim for benefits against Braithwaite and its compensation carrier, the Louisiana United Businesses Association Self Insurers Fund (LUBA). LUBA began paying benefits to Manton, and subsequently paid for cervical surgery and physical therapy. LUBA later suspended benefits when it discovered that Manton had allegedly sustained the exact same injury eight months before the accident involved in this case. According to LUBA, Manton failed to reveal this prior work accident in a recorded statement provided to one of its representatives. Braithwaite/LUBA filed its own petition, claiming that Manton forfeited benefits under La. R.S. 23:1208. It also sought reimbursement from Norcan for all indemnity and medical benefits paid.
Following a hearing, the workers' compensation judge, Robert W. Varnado, Jr., found that Manton, who suffers from a learning disability, did not make deliberate misrepresentations for the purpose of obtaining benefits. The WCJ further found that Manton sustained his burden of proving that his present disability stems from a work-related accident that occurred on August 2, 1999. As such, the WCJ reinstated Manton's temporary total disability benefits. The WCJ further found that the termination of benefits was arbitrary and capricious and imposed a penalty of $2,000.00, plus he awarded attorney's fees in the amount of $5,000.00. This appeal by Braithwaite followed.
DISCUSSION
On appeal, Braithwaite claims that the WCJ committed manifest error in finding that Manton is learning disabled, which resulted in "difficulty recalling past injury experiences." It argues that Manton repeatedly violated La. R.S. 23:1208, resulting in a forfeiture of benefits.
In workers' compensation cases, as in other civil cases, the manifest error or clearly wrong standard governs the appellate court's review of facts. Bass v. National Maintenance Corporation, 95-0367, p. 3 (La. App. 1 Cir. 12/15/95), 665 So.2d 782, 783. In order to reverse a factual finding of the WCJ, we must find from the record that a reasonable factual basis does not exist for the finding and that the record establishes the finding is clearly wrong. Stobart v. State, Department of Transportation and Development, 617 So.2d 880, 882 (La. 1993).
In written reasons for judgment, the WCJ stated that, after observing the demeanor of the witnesses, particularly Manton
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