CALVIN ARRANT V. WAYNE ACREE PLS, INC. & LOUISIANA WORKERS’ COMPENSATION CORPORATION
NO. 2015-C-0905
SUPREME COURT OF LOUISIANA
January 27, 2016
172 So. 3d 1095
KNOLL, J.
ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, SECOND CIRCUIT, OFFICE OF WORKERS’ COMPENSATION, DISTRICT 1E
Supreme Court of Louisiana
FROM: CLERK OF SUPREME COURT OF LOUISIANA
NEWS RELEASE #005
The Opinions handed down on the 27th day of January, 2016, are as follows:
BY KNOLL, J.:
2015-C-0905 CALVIN ARRANT V. WAYNE ACREE PLS, INC. & LOUISIANA WORKERS’ COMPENSATION CORPORATION (Office of Workers’ Compensation, District 1E)
Accordingly, we reverse and vacate in part that portion of the judgment sustaining the defendants’ peremptory exception of prescription, and we remand for the OWC to consider the merits of Arrant‘s claim that the medical director failed to appropriately apply the medical treatment guidelines in denying the lumbar spine magnetic resonance imaging requested by his orthopedic surgeon. In all other respects, we affirm the judgment. AFFIRMED IN PART. REVERSED AND VACATED IN PART. REMANDED.
GUIDRY, J., dissents for reasons assigned by Justice Crichton.
CRICHTON, J., dissents and assigns reasons.
SUPREME COURT OF LOUISIANA
NO. 2015-C-0905
CALVIN ARRANT
VERSUS
WAYNE ACREE PLS, INC. & LOUISIANA WORKERS’ COMPENSATION CORPORATION
ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, SECOND CIRCUIT, OFFICE OF WORKERS’ COMPENSATION, DISTRICT 1E
KNOLL, J.
This writ concerns whether a statutory prescriptive period can be shortened by an administrative rule. This issue arises in a workers’ compensation case where the hearing officer refused to consider the worker‘s request to have medically recommended magnetic resonance imaging (“MRI“) of his lumbar spine because the worker failed to appeal the Office of Workers’ Compensation Administration medical director‘s decision denying his request for medical treatment within the 15-day time period required by an administrative rule.1 In so doing, the hearing officer sustained defendants’ peremptory exception of prescription. We find the hearing officer erred as a matter of law. We reverse and vacate in part that portion of the judgment sustaining the defendants’ peremptory exception of prescription, and we remand for the Office of Workers’ Compensation (“OWC“) to consider the merits of the worker‘s claim that the medical director failed to appropriately apply the medical treatment guidelines in denying the lumbar spine MRI requested by the
FACTUAL BACKGROUND AND PROCEDURAL HISTORY
On June 30, 2012, Calvin Arrant3 suffered injuries from an accident when an eighteen-wheeler ran a red light and struck the work vehicle he was driving in the course and scope of his employment with Wayne Acree PLS, Inc. (“Acree, Inc.“).4 After meeting with an attorney, Arrant consulted with Dr. Douglas Brown, an orthopedic surgeon, concerning pain in his back that had begun radiating into his legs. To help diagnose the problem, Dr. Brown recommended a lumbar MRI. Arrant‘s attorney contacted Louisiana Workers’ Compensation Corporation (“LWCC“), the workers’ compensation carrier for Acree, Inc., to ascertain whether LWCC would agree to provide the recommended MRI. According to the trial testimony of Arrant‘s former attorney, LWCC responded that “it would have to be approved by the workers’ comp people.”
On two occasions, Arrant submitted requests to the medical director seeking approval for the recommended MRI, as required by
Following a trial on the merits, the OWC issued a judgment which, among other things, granted defendants’ exception of prescription because “[c]laimaint failed to timely file his appeal of the Office of Workers’ Compensation Medical Director‘s decision affirming LWCC‘s denial to provide authorization for the lumbar MRI requested by Dr. Brown.” The Court of Appeal for the Second Circuit affirmed, finding:
As stated in
La. R.S. 23:1291(B) andLa. R.S. 23:1203.1(B) , the legislature provided the director of the OWC with the power to promulgate rules and regulations to expedite the process of workers’ compensation claims in order to further its intent of providing services to injured employees in an “efficient and timely manner.”La. R.S. 23:1203.1(L) . The director of the OWC acted within its authority when promulgating the 15-day appeal period set forth in Title 40, Part 1, Chapter 27, Section 2715B(3)(f). The 15-day period comports with the legislature‘s intent. Further, this time period is not unreasonable, notably in light of the fact that a claimant may file subsequent requests for review of the medical director‘s decision. . . . Because Mr. Arrant failed to file a 1008 form challenging the medical director‘s determination within 15 days of the decision, the trial court did not err in granting Defendants’ peremptory exception of prescription.7
We granted certiorari to determine whether the Court of Appeal erred in affirming this judgment granting defendants’ exception of prescription premised on Arrant‘s failure to abide by the time period the director of the Office of Workers’ Compensation Administration set out in Title 40, Part I, Chapter 27, Section 2715(B)(3)(f) of the Louisiana Administrative Code.8
DISCUSSION
when it is demonstrated to the medical director of the office by a preponderance of the scientific medical evidence, that a variance from the medical treatment schedule is reasonably required to cure or relieve the injured worker from the effects of the injury or occupational disease given the circumstances.11
When the employer or its insurer refuses to pay for requested medical care, the injured worker may file an appeal with the medical director. Under
If any dispute arises after January 1, 2011, as to whether the recommended care, services, or treatment is in accordance with the medical treatment schedule, or whether a variance from the medical treatment schedule is reasonably required as contemplated in Subsection I of this Section, any aggrieved party shall file, within fifteen calendar days, an appeal with the office of workers’ compensation administration medical director on a form promulgated by the director. The medical director shall render a decision as soon as is practicable, but in no event, not more than thirty calendar days from the date of filing.12
After the issuance of the decision by the medical director of the office, any party who disagrees with the medical director‘s decision, may then appeal by filing a “Disputed Claim for Compensation“, which is LWC Form 1008. The decision of the medical director may be overturned when it is shown, by clear and convincing evidence, the decision of the medical director was not in accordance with the provisions of this Section.13
By promulgating Title 40, Part I, Chapter 27, Section 2715(B)(3)(f) of the Louisiana Administrative Code, the director of the Office of Workers’ Compensation Administration sought to fill this gap:
In accordance with LAC 40:I.5507.C, any party feeling aggrieved by the R.S. 23:1203.1(J) determination of the medical director shall seek a judicial review by filing a Form LWC-WC-1008 in a workers’ compensation district office within 15 calendar days of the date said determination is mailed to the parties. A party filing such appeal must simultaneously notify the other party that an appeal of the medical director‘s decision has been filed. Upon receipt of the appeal, the workers’ compensation judge shall immediately set the matter for an expedited hearing to be held not less than 15 days nor more than 30 calendar days after the receipt of the appeal by the office. The workers’ compensation judge shall provide notice of the hearing date to the parties at the same time and in the same manner.14
On the basis of Arrant‘s failure to file his appeal with the OWC within this 15-day period, the OWC granted defendant‘s exception of prescription, and the Court of Appeal affirmed this judgment.
Indeed, we cannot stress enough that this case requires us to review a judgment affirming an exception of prescription. Liberative prescription is a mode of barring actions as a result of inaction for a period of time.15 As our Civil Code explicitly recognizes, the Legislature has the authority to set time limitations on legal actions.16 Because prescription triggers the extinction of a claim,17
It is well established that the Legislature, after fixing a primary standard, may confer upon administrative officers in the executive branch the power to “fill up the details” by prescribing administrative rules and regulations.19 As we have recognized, “even when the Legislature has properly delegated to an agency certain administrative or ministerial authority, the regulations promulgated by the agency may not exceed the authorization delegated by the Legislature.”20 Leaving aside whether or not it would be proper for the Legislature to delegate to an administrative agency the power to designate a prescriptive period, we first look to the statute to determine whether the Legislature delegated this power at all or whether the director promulgated the regulations at issue in this case absent legislative empowerment.21 Thus, the straightforward question before us is whether the director exceeded the authority delegated by the Legislature by promulgating Title 40, Part I, Chapter 27, Section 2715(B)(3)(f) of the Louisiana Administrative Code. In order to answer this question, we must determine the scope of the
The director shall have the following powers, duties, and functions:
. . . .
(5) To establish and promulgate in accordance with the Administrative Procedure Act such rules and regulations governing the administration of this Chapter and the operation of the office as may be deemed necessary and which are not inconsistent with the laws of this state.
. . . .
(10) To require the use of appropriate procedures, including a utilization review process that establishes standards of review, for determining the necessity, advisability, and cost of proposed or already performed hospital care or services, medical or surgical treatment, or any nonmedical treatment recognized by the laws of this state as legal, and to resolve disputes over the necessity, advisability, and cost of same.
(11) To engage the services of qualified experts in the appropriate health-care fields to assist him in the discharge of his responsibilities in Paragraph (10) of this Subsection, and to establish fees and promulgate rules and procedures in furtherance of his performance of these duties.
Moreover,
All claims for medical benefits payable pursuant to R.S. 23:1203 shall be forever barred unless within one year after the accident or death the parties have agreed upon the payments to be made under this Chapter, or unless within one year after the accident a formal claim has been filed with the office as provided in this Chapter. Where such payments have been made in any case, this limitation shall not take effect until the expiration of three years from the time of making the last payment of medical benefits.
It is a fundamental rule of administrative law that if the Legislature has directly spoken on a specific question at issue, the court as well as the agency must give effect to the Legislature‘s unambiguously expressed intent.22 Here, the Legislature explicitly provided a prescriptive period for “all claims for medical benefits.” Therefore, any attempt to alter the prescriptive period laid out in this statute is ultra vires. Because all of the director‘s power comes from the enabling statute and no statute explicitly or implicitly delegates to the director the power to alter the prescriptive period plainly provided in
The suggestion by the Court of Appeal that the worker could simply re-file
Accordingly, we reverse and vacate in part that portion of the judgment sustaining the defendants’ peremptory exception of prescription, and we remand for the OWC to consider the merits of Arrant‘s claim that the medical director
AFFIRMED IN PART. REVERSED AND VACATED IN PART. REMANDED.
SUPREME COURT OF LOUISIANA
NO. 2015-C-0905
CALVIN ARRANT
VERSUS
WAYNE ACREE PLS, INC. & LOUISIANA WORKERS’ COMPENSATION CORPORATION
ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, SECOND CIRCUIT, OFFICE OF WORKERS’ COMPENSATION, DISTRICT 1E
GUIDRY, J., dissents for the reasons assigned by Crichton, J.
SUPREME COURT OF LOUISIANA
NO. 2015-C-0905
CALVIN ARRANT
VERSUS
WAYNE ACREE PLS, INC. & LOUISIANA WORKERS’ COMPENSATION CORPORATION
ON WRIT OF CERTIORARI TO THE COURT OF APPEAL, SECOND CIRCUIT, OFFICE OF WORKERS’ COMPENSATION, DISTRICT 1E
CRICHTON, J., dissents and assigns reasons:
I respectfully dissent from the majority opinion, and would affirm the hearing officer‘s ruling sustaining defendants’ peremptory exception of prescription. In my view, for the reasons set forth below, I find the lower courts correctly found that plaintiff‘s appeal of the denial of his requested medical treatment (an MRI) was untimely filed, as it was filed outside of the appeal delays found in
The general prescriptive periods in the Louisiana Workers Compensation Act are set forth in
It is well settled that historically, in line with the general intent of the Workers’ Compensation Act and related jurisprudence, courts have utilized a generally lenient view of prescriptive periods.1 Thus, prescription statutes, including
In my view, however, the time periods set forth in the subject statute,
Enacted by the legislature in 2009,
La. R.S. 23:1203.1 is the product of a combined endeavor by employers, insurers, labor, and medical providers to establish meaningful guidelines for the treatment of injured workers. 1 DENIS PAUL JUGE, LOUISIANA WORKERS’ COMPENSATION, § 13:6 (2d ed.2013). Dissatisfied with a process for obtaining needed medical treatment that was cumbersome, uncertain and often fraught with expense, employers and their insurers perceived a need for guidelines that would assure them that the treatment recommended by a medical provider was generally recognized by the medical community as proper and necessary. Id. In a similar vein, labor and their medical providers were concerned about the unreasonable delays regularly encountered in obtaining approval for treatment when disputes arose as to the necessity for the treatment and with having a procedure for obtaining approval for treatment that might vary from established guidelines. Id.2
J. (1) After a medical provider has submitted to the payor the request for authorization and the information required by the Louisiana Administrative Code, Title 40, Chapter 27, the payor shall notify the medical provider of their action on the request within five business days of receipt of the request. If any dispute arises after January 1, 2011, as to whether the recommended care, services, or treatment is in accordance with the medical treatment schedule, or whether a variance from the medical treatment schedule is reasonably required as contemplated in Subsection I of this Section, any aggrieved party shall file, within fifteen calendar days, an appeal with the office of workers’ compensation administration medical director or associate medical director on a form promulgated by the director. The medical director or associate medical director shall render a decision as soon as is practicable, but in no event, not more than thirty calendar days from the date of filing.
(2) If either party, the medical director, or associate medical director believes that a potential conflict of interest exists, he shall communicate in writing such information to the director, who shall make a determination as to whether a conflict exists within two business days. The director shall notify in writing the patient, the physician, and, if applicable, the attorney of his decision within two business days.
K. After the issuance of the decision by the medical director or associate medical director of the office, any party who disagrees with the decision, may then appeal by filing a “Disputed Claim for Compensation“, which is LWC Form 1008. The decision may be overturned when it is shown, by clear and convincing evidence, the decision of the medical director or associate medical director was not in accordance with the provisions of this Section. (Emphasis added)
* * *
Under the plain terms of the aforementioned provisions, an appeal from a dispute concerning requested medical treatment requires a multi-step process. After an initial request for authorization for treatment is submitted, the “payor” must notify the medical provider of their decision within five (5) business days. If a dispute thereafter arises as to whether the treatment is in accordance with the
(B)(3)(e) Disputes shall be filed by any aggrieved party on a LWC-WC-1009 within 15 calendar days of receipt of the denial or approval with modification of a request for authorization. The medical director shall render a decision as soon as practicable, but in no event later than 30 calendar days from the date of filing. The decision shall determine whether:
i. the recommended care, services, or treatment is in accordance with the medical treatment schedule; or
ii. a variance from the medical treatment schedule is reasonably required; or
iii. the recommended care, services, or treatment that is not covered by the medical treatment schedule is in accordance with another state‘s adopted guideline pursuant to Subsection D of R.S. 23:1203.1.
(B)(3)(f) In accordance with LAC 40:I.5507.C, any party feeling aggrieved by the R.S. 23:1203.1(J) determination of the medical director shall seek a judicial review by filing a Form LWC-WC-1008 in a workers’ compensation district office within 15 calendar days of the date said determination is mailed to the parties. A party filing such appeal must simultaneously notify the other party that an appeal of the medical director‘s decision has been filed. Upon receipt of the appeal, the workers’ compensation judge shall immediately set the matter for an expedited hearing to be held not less than 15 days nor more than 30 calendar days after the receipt of the appeal by the office. The workers’ compensation judge shall provide notice of the hearing date to the parties at the same time and in the same manner.3
In this case, the Office of Workers’ Compensation judge found that the plaintiff‘s Form 1008, filed May 1, 2013, disputing the Medical Director‘s denial of his requested MRI on September 18, 2012, and October 19, 2012, was untimely and granted the defendants’ exception of prescription. Although I specifically question the use of an exception of prescription as the proper vehicle to enforce this particular appeal period (the statute as written does not presently provide a mechanism), nevertheless, I conclude that the rulings that plaintiff‘s appeal was untimely were correct. Further, while the appeal of the denial of this particular request in this instance may be untimely in that it was filed outside of the appeal period listed in the statute, as the court of appeal noted as well, the plaintiff is not prevented from filing a new request for this medical treatment.
As the statute specifically states, and the Church Mut. Ins. Co. court explained, the purpose of this statute was an attempt to avoid battles over the “choice of physician” and to provide medical treatment in a “timely and efficient” manner. In order to satisfy the legislative intent, the short timeframe of fifteen (15) days was established. Moreover, it is likely the legislature viewed this particular
Notes
Dispute Resolution Process
Any party feeling aggrieved by the R.S. 23:1203.1(J) determination of the medical director shall seek a judicial review by filing Form LWC-WC-1008 Disputed Claim for Compensation with the appropriate hearing office within 15 days of the date said determination is made to the parties. . . . .
While unnecessary to a proper resolution of the issues presented, for the sake of thoroughness, we have examined the legislative history of Act 254 of 2009 and find nothing remarkable in its genesis or progression through the legislative process. The bill originated in the Senate as SB 303 and was passed by unanimous vote. The final vote in the House was 69 to 35 in favor of passage, with the floor debate centered almost entirely on a controversial amendment unrelated to the contents of the bill that was ultimately removed from the final Act. The Bill passed through the Senate and House Committees on Labor and Industrial Relations with favorable reports, and testimony substantiating the notion that the bill was a collaborative endeavor on the part of employers, insurers, labor and the medical community.
Dardar, supra, at n. 4.
