In Louisiana as in other U.S. states, the doctrine of res judicata – literally “a matter judged” – prevents parties from re-litigating a matter once it has been adjudicated on the merits by a competent tribunal. This prevents prolonged litigation of cases which have been purportedly concluded, thus avoiding an unnecessary waste of time and money. Although for res judicata to apply a judgment must be “final” and adjudged “on the merits,” a settlement agreement in Louisiana is res judicata between the parties and is accorded the same effect as a final judgment. (See Louisiana Workers’ Comp. Corp. v. Betz, 792 So.2d 763, 766 (La. Ct. App. 2001)). In other words, the signing of a settlement agreement can preclude parties from litigating matters specified as settled in the settlement. It goes without saying that parties should be cautious when signing settlement agreements. Illustrative is a case from the Louisiana First Circuit Court of Appeal.
On October 10, 2005, Joseph Brown was injured in a logging accident while in the course and scope of his employment with AM Logging in Tanigipahoa Parish. Mr. Brown filed a disputed claim for compensation on October 19, 2005 against the appellees in this case, AM logging and its claims administrator, Alternative Service Concepts, L.L.C. On July 14, 2006, AM Logging submitted a report to the Office of Workers’ Compensation (“OWC”), listing injuries to Mr. Brown’s collar bone, left ribs, and back. On July 24, 2009 – almost four years after his original disputed claim – Mr. Brown filed a second disputed claim listing injuries to his shoulder, ribs, back, chest, and neck.
After a hearing on Mr. Brown’s first disputed claim for compensation, the OWC held that Brown sustained a compensable work-related injury in the course and scope of his employment with AM Logging. It also found that Mr. Brown was permanently disabled with no reasonable possibility of rehabilitation through training or education, such that he could attain suitable and gainful employment. In its judgment of March 29, 2010, the OWC ordered AM Logging to pay Brown permanent total disability benefits of $121.00 per week, retroactive to December, 7, 2008 and continuing. It also ordered AM Logging to pay Brown $5,000.00 in penalties and attorney fees.