Denial of indemnity to warehouse employee ‘arbitrary and capricious’

A former warehouse technician is entitled to additional earnings for failing to find employment that compensates for her resemblance to the job she was doing at work when she was injured.

In Bell v SGS Petroleum Service Corp. The Louisiana Court of Appeal, First Circuit in Baton Rouge, on Thursday upheld an employee compensation judge’s ruling that the employer’s continued refusal to compensate the injured worker was “arbitrary and capricious.”

Donna Bell worked for SGS Petroleum and its predecessor for 27 years, filling 50-pound bags with plastic pellets. In August 2015, Ms. Bell slipped and fell on packaging pellets in the course of her employment and eventually broke both wrists. She received surgery and physical therapy, but her wrists did not return to their pre-accident state. In July 2016, she was fired because there were no changed service positions available and she was unable to perform her previous job. SGS did not offer vocational rehabilitation and although she made numerous attempts to find work elsewhere, court documents indicated that she did not receive any interviews.

Ms. Bell was receiving temporary total disability benefits until November 2016 when a doctor determined she had achieved maximum medical improvement.

Ms. Bell reached out to the Louisiana Office of Workers Compensation, and an employee representation judge found that she was unable to earn 90% of her previous injury wage and was therefore entitled to additional earnings. The judge also found that her employer’s continued refusal to provide compensation was “arbitrary and capricious” and ordered SGS to provide Ms. Bell with nearly $ 60,000 in compensation and approximately $ 500 per week in penalties of $ 2,000 and legal fees of $ 10,000 to be paid and expenses. SGS appealed, arguing that Ms. Bell had provided no evidence that she had physical limitations.

The appellate court upheld the workers judge’s decision, finding that Ms. Bell presented ample evidence that she was unable to do her job and find other employment prior to the injury. The court also upheld the award of fines and legal fees, noting that SGS “selected the physical therapist’s deposit to try to continue denying compensation to Ms. Bell”.

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