92 So. 3d 1018
La. Ct. App.2012Background
- Huertas, an employee of Support Systems, was injured in a July 28, 2009, motor-vehicle collision while in the course and scope of employment; LWCC paid workers’ compensation benefits to Huertas.
- LWCC filed suit on April 5–July 15, 2010, naming Devin Landry, Atlay Stelly, Rodger Shelton, and Farm Bureau (Landry’s insurer) as defendants, seeking reimbursement of benefits paid.
- Farm Bureau asserted a credit under LSA-R.S. 32:866 (“no pay-no play”) because Huertas’s vehicle carried no compulsory liability insurance.
- Farm Bureau moved for summary judgment arguing LWCC could not recover the first $10,000 under 32:866, and LWCC stood in Huertas’s shoes for purposes of subrogation.
- Trial court granted summary judgment in Farm Bureau’s favor, holding LWCC precluded from recovering the first $10,000; LWCC appeals.
- Court reviews summary judgments de novo and applies statutory construction to 32:866 and related workers’ compensation provisions.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether no pay-no play can be asserted against LWCC. | LWCC contends no pay-no play only against uninsured vehicle owners. | Farm Bureau argues 32:866 applies to insurers seeking recovery. | No; 32:866(F) permits insurer subrogation rights, so LWCC is barred from first $10,000. |
| Whether LWCC stands in Huertas's shoes for subrogation. | LWCC acts independently, not as Huertas’s substitute. | LWCC’s rights are conditioned on Huertas’s right to recover against tortfeasor. | LWCC’s recovery limited to what Huertas could recover; first $10,000 barred. |
| Whether the court erred by analogizing 32:866 to comparative negligence. | LWCC argues no genuine issue of material fact remains. | Court properly applied de novo review and statute; no material fact controverts the law. | No error; no genuine issue exists; summary judgment affirmed. |
Key Cases Cited
- Progressive Security Insurance Co. v. Foster, 711 So.2d 675 (La. 1998) (interprets no-pay-no-play; motorist without coverage cannot recover first $10,000)
- Marquette Casualty Co. v. Brown, 103 So.2d 269 (La. 1958) (insurer's right of reimbursement limited to amount tortfeasor pays)
- Gardner v. State, Dep’t of Education, 844 So.2d 311 (La.App.1st Cir. 2003) (statutory interpretation and de novo review guidance for legal questions)