142 So. 3d 60
La. Ct. App.2014Background
- Southern Labor Services, L.L.C. (Roques as sole members) formed in 2006 to provide demolition/remediation labor after Hurricane Katrina.
- Danilo Castillo, an employee contracted through Southern Labor, was injured August 10, 2008; Fund began workers’ compensation payments but Castillo did not file a claim against Southern Labor at that time.
- Southern Labor dissolved by affidavit on May 3, 2010 under La. R.S. 12:1335.1, with Roques stating the company no longer did business and owed no debts.
- Castillo filed a workers’ compensation claim against Southern Labor on August 31, 2012; Gill Industries asserted Southern Labor was Castillo’s lending employer and sought defense/indemnity/contribution.
- December 18, 2012 petition to reinstate Southern Labor was filed by the Roques; Fund intervened (February 15, 2013), arguing dissolution avoided liability and was improper.
- Trial court granted reinstatement retroactive to May 3, 2010, and ordered retroactive reinstatement by the Secretary of State; Appellate Court vacated and remanded for evidentiary hearing.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether retroactive reinstatement without evidence was proper | Fund: requires evidentiary support and lawful purpose; ex parte reinstatement insufficient. | Southern Labor: no explicit statutory requirement for a lawful purpose or evidentiary hearing; facts support reinstatement. | Reversed; evidentiary hearing required, retroactive reinstatement improper. |
Key Cases Cited
- In re Reinstatement of CBG Investment Group, L.L.C., 42 So.3d 429 (La.App. 1 Cir. 2010) (evidentiary hearing required for retroactive reinstatement)
- In Re Islander Shipholding, Inc., 715 So.2d 7 (La.App. 5 Cir. 1998) (ex parte reinstatement not dispositive on procedural/evidentiary requirements)