FEBRUARY 2011 LEGAL UPDATE

Workers’ Compensation – In Rougeau v. Gottson Const. Co., 2010-1082 (La. App. 3 Cir. 2/9/11), — So. 3d —, the Third Circuit Court of Appeals ruled that a sincerely held but unjustified belief that an employee’s injury did not result from an accident does not excuse the failure to pay workers’ compensation benefits. As such, it was unreasonable for an employer to deny benefits. Attorney fees were awarded against the employer.

Insurance – In La Louisiane Bakery Co. Ltd. v. Lafayette Ins. Co., 09-825 (La. App. 5 Cir. 2/8/11), — So.3d —, the Fifth Circuit Court of Appeals approved plaintiff’s use of profit and loss statements and tax returns for a twelve month period to define the business interruption claim. The insurance policy did not specify how the business interruption claim was to be calculated. Because the plaintiff’s sales figures varied each month, the plaintiff was allowed to introduce documents covering twelve months of business even though the business was only interrupted for six weeks.

Workers’ Compensation – In Ardoin v. Firestone Polymers, L.L.C., 2010-0245 (La. 1/19/11), — So.3d —, the Louisiana Supreme Court held that an employee did not meet his burden of proving an unwitnessed accident. In its analysis, the Court confirmed that an unwitnessed accident may be proven under Worker’s Compensation by the employee’s testimony alone only if (1) no other evidence discredits or casts serious doubt upon his version of the accident and (2) the worker’s testimony is corroborated by the circumstances following the accident.