Summary
The Louisiana Court of Appeal considered whether income from the claimant’s ownership interests and involvement in two businesses should be credited against supplemental earnings benefits following termination from a modified-duty position. The court affirmed the workers’ compensation judge’s ruling that the business income constituted post-injury earnings that should have been reported on Form 1020 and used to offset benefits under La. R.S. 23:1221.
Topics
Practice areas
Questions Presented
- Whether income derived from the claimant's ownership interests and activities in two businesses constituted post-injury business earnings that had to be reported and credited against supplemental earnings benefits under Louisiana workers' compensation law.
- Whether the claimant was entitled to additional attorney fees for work performed on the unsuccessful appeal.
Holdings
- Business income generated through Delahoussaye's more-than-minimal involvement in J.L. Hydroseeding, LLC, and Southern Innovative Services, LLC, constituted post-injury business earnings, had to be disclosed on Form 1020, and was properly used to offset supplemental earnings benefits under La. R.S. 23:1221.
- Additional attorney fees were not warranted because Delahoussaye's appeal was unsuccessful.
Key quotations
“We conclude, therefore, that the type of business income generated by Delahoussaye must be treated as any other post-injury business earnings.” (1063)
“It should have been disclosed on a Form 1020. It will be used to offset supplemental earnings benefits as the law provides in La.R.S. 23:1221.” (1063)
Factual background
Delahoussaye, a heavy equipment operator for Live Oak Gardens, was injured on January 3, 2006, received compensation benefits, and returned to a light-duty supervisory position at his pre-injury wages. Live Oak terminated him on November 16, 2006, after management became concerned about morale and his outside business activities. Delahoussaye owned interests in J.L. Hydroseeding, LLC, and Southern Innovative Services, LLC, performed occasional work for those businesses, and received business income that he did not report on the required Form 1020s. The workers' compensation judge treated that income as a credit against supplemental earnings benefits.
Procedural history
After being injured while working for Live Oak Gardens, Delahoussaye received indemnity and medical benefits and later returned to a modified-duty position. Following his termination, he filed a contested claim for benefits. The workers' compensation judge awarded supplemental earnings benefits but credited the employer with business income attributable to Delahoussaye's ownership interests; Delahoussaye appealed only the business-income credit. The employer neither appealed nor answered, and the court affirmed.