The Mystery of the Case of Water that Climbed 7 Steps

Can You Solve the Case?

A case involving a P.I. caught in the act and an employee with a back injury illustrates the importance of accurate surveillance reports when using video to establish workers’ compensation fraud. In Part I of this article, learn what happened. See if you can spot the four major clues that steered this case. In Part II, find out how the court decided and see if you identified the clues and guessed the ending.

Part I

The Facts

In a case that largely turned on incidents involving water, the employee worked as a hydro tester for a company that repaired equipment for the petrochemical industry. The employee injured his lower back when he and several co-workers were attempting to lift a blind weighing over 200 pounds.

The employee had surgery for the injury in 2017. At a deposition in 2020, he said that after the surgery he only tried to lift a case of water once, that lifting the case caused him too much pain, and that he never did it again.

He also told his doctors that he had to use a cane for mobility. Further, he testified that he brings his cane everywhere every day and uses it when he walks long distances and is not taking his pain medication. He said he generally does the shopping for his family because his wife, who has a medical condition, suffers from depression.

However, in November 2019, a private investigator had filmed the employee. The resulting video seemed to tell a different tale. Among other things, it showed him:

• Parking in handicapped spots and walking into Walmart without a cane. 
• Lifting two cases of water, one after the other, from a shopping cart and placing them into the rear of his vehicle. 

The investigator also filmed the employee driving home and opening the gate to his driveway, again without using a cane. When the investigator turned around to get into position, he saw the two cases of water were sitting on the front porch.

“[I]it was my logical deduction that there was no one else there helping him," the P.I. later explained. "The water had to be unloaded, and so it was my deduction that he had put the water there.”

Next, the investigator saw the employee walk up the steps but was unable to film him due to the camera delay. At that point, the employee spotted the P.I. and pointed at him. The investigator was “made.” Hey, even Philip Marlow made mistakes.

The P.I. sent notes to the owner of the investigation firm and the owner prepared the surveillance reports.

The company claimed the employee committed workers' compensation fraud in violation of La. R.S. 23:1208 and sought an order requiring him to forfeit his benefits.

It pointed primarily to the surveillance reports. The reports stated, among other things, that the employee carried the two cases of water from his vehicle, took them up the seven stairs of his house, and placed them on his porch. The company noted that this conflicted with his testimony that he never lifted water.

To establish a fraud-forfeiture claim, three requirements must be satisfied:

1. A false statement or false representation; 
2. The misrepresentation is willingly made; and 
3. The misrepresentation is made for the purpose of obtaining or defeating any benefit or payment. 

Did employer establish fraud?

A. Yes. The employee's testimony was contradicted by his activities.

B. No. The surveillance footage contradicted the surveillance report.

Try to crack the case and then check back tomorrow to see if you came to the correct conclusion.

Share This Article: