Articles Posted in Negligence

We often hear that insurance companies are stingy and heartless. Though some descriptions of insurance companies are exaggerated, it is nevertheless true that insurance companies are judicious in paying out claims. In some cases, an insurance company will attempt to avoid payment at almost any cost.  

Shawn Verges, a special education teacher at Fannie C. Williams Charter School in New Orleans, Louisiana, suffered injuries when she was repeatedly slapped and pushed to the floor by one of her students during class. Following the incident, Verges sent a text message to the school principal’s administrative assistant describing the attack and requesting an accident report. Verges made several more requests for an accident report, but the school never created one. Within a week, Verges began to experience back, head, and neck pain, at which point she sought compensation from her employer’s workers’ compensation insurance carrier, AmTrust North America. AmTrust denied her claim on the basis that the school did not file an accident report or report the incident to AmTrust.

Verges then filed a disputed claim form against AmTrust. The trial court determined that Verges was entitled to workers’ compensation benefits because the evidence showed that she suffered an injury while in the course and scope of her employment. AmTrust appealed, arguing that Verges fabricated the incident, pointing to the fact that that Verges returned to work after the alleged injury to bolster their argument. 

The Louisiana statutory employer defense grants statutory employers the exclusive remedy protections of the Louisiana Workers’ Compensation Act. La. R.S. 23:1061. To become a statutory employer, a principal must enter into a written contract with a contractor for work to be performed in furtherance of the principal’s “trade, business, or occupation.” La. R.S. 23:1061 Moreover, where the principal pays compensation, it is entitled to indemnification from the contractor. La. R.S. 9:2780.1. Once an employer shows that they are a statutory employer under the law, they are entitled to immunity for tort liability that occurred in the course of the agreement with a contractor. The Louisiana Court of Appeal addressed the issue of whether a statute enacted in 2010 negates the statutory employer defense when a construction contract contains an indemnification clause or a hold harmless clause without paying for any of the cost of insurance. La. R.S. 9:2780.1.

In 2013, Christopher Michael Blanks (“Mr. Blanks”), was an employee of Wastewater Specialties, Inc. (“Wastewater”), the contractor, when he and some co-workers were assigned to perform repairs to a broiler at Entergy Gulf States Louisiana, LLC (“Entergy”), the statutory employer. Entergy issued a permit indicating the work area was safe for entry; however, they allegedly failed to inform Mr. Blanks and his co-workers of an unprotected open hole in a confined space where Mr. Blanks was working. Unfortunately, Mr. Blanks unknowingly stepped into the hole, causing him to fall approximately thirty (30) feet to the ground. He sustained serious injuries, and subsequently sued Entergy and its insurance.

Prior to the commencement of work at the Entergy facility, Wastewater and Entergy entered into an agreement that Entergy would be indemnified for personal injury claims brought by Wastewater employees. The trial court granted summary judgment on the grounds that the contract between Wastewater and Entergy was invalid and unenforceable because it provided an indemnity clause irrespective of fault. Additionally, the court noted Wastewater did not recover the cost of any insurance required under the contract.