A footnote in Roberts v. Sea-Land Services, the Supreme Court’s recent Longshore and Harbor Workers’ Compensation Act decision, is leading to a reevaluation of each claimant’s compensation rate. Footnote 7 states: Roberts accurately notes that in some cases, the time of injury and the time of onset of disability differ. We have observed that “the LHWCA does not compensate physical injury alone but the disability produced by that injury.” Metropolitan Stevedore Co. v. Rambo, 515 U.S. 291, 297 (1995). From that principle, lower courts have rightly concluded that when dates of injury and onset of disability diverge, the latter is the relevant date for determining the applicable national average weekly wage. See, e.g., Service Employees International, Inc. v. Director, OWCP, 595 F.3d 447, 456 (CA2 2010); Kubin v. Pro-Football Inc., 29 BRBS 117 (1995) (per curiam). What does this mean? It means that the date of an injured worker’s injury controlsRead more
Ninth Circuit: No More Chevron Deference for the Director’s Litigating Position
On September 4, 2012, the Ninth Circuit issued a rare en banc Longshore decision. In Price v. Stevedoring Services of America, the court determined that it would no longer give Chevron deference to the Director of the Office of Workers’ Compensation Program’s litigating positions, and that employers and carriers must pay compound interest (instead of simple interest) if interest is owed pursuant to Section 14 of the Longshore and Harbor Workers’ Compensation Act. Agency deference is an important consideration in every case—but there are different levels of deference to consider. “Chevron deference” comes from Chevron, U.S.A., Inc. v. National Resources Defense Council, Inc., 467 U.S. 837, 843-44 (1984). There, the Supreme Court stated that when Congress has “explicitly left a gap for the agency to fill, there is an express delegation of authority to the agency to elucidate a specific provision of the statute by regulation;” and “[s]uch legislative regulationsRead more
Lack of Evidence Prevented “Direct” Negligence Claim Against Labor Personnel Contractor
In an unpublished opinion stemming from a Longshore and Harbor Workers’ Compensation Act claim, the Fifth Circuit affirmed a district court’s grant of summary judgment dismissing a “direct” negligence suit against a labor personnel contractor. A horrific explosion occurred when an unskilled worker allegedly failed to properly ventilate the area or use “explosion proof” safety lighting. The unskilled worker died, as did another worker. Five were injured, including the plaintiff-worker. The plaintiff-worker and his spouse then filed a suit against the labor personnel contractor that supplied the unskilled worker to a borrowing employer. The argument was that the labor personnel contractor was negligent in its hiring, retention and training of the unskilled worker, and that led to the explosion. To establish their negligence claim, the plaintiffs had to show that: (1) the defendant owed the plaintiff a duty of care; (2) the defendant breached the duty; (3) the plaintiff suffered damages; and (4) theRead more
Child Support and Longshore/DBA Benefits
An oft-asked question is whether child support payments can be garnished from Longshore and Harbor Workers’ Compensation Act (“LHWCA”) or Defense Base Act (“DBA”) workers’ compensation benefits. More likely than not, the answer is, “No.” Section 16 of the LHWCA, which applies to the DBA, provides: No assignment, release or commutation of compensation or benefits due or payable under this Act, except as provided by the Act, shall be valid, and such compensation and benefit shall be exempt from all claims of creditors from levy, execution, and attachment or other remedy for recovery or collection of a debt, which exemption may not be waived. This provision, which is known as the anti-assignment or anti-alienation provision, prevents child support judgments from attaching to a disability award. It has been state courts and not federal courts which have commented on the child support issue. The Louisiana Supreme Court expressly stated that a wife could not garnishRead more
Section 33(g)’s “Trap for the Unwary”
A surefire way to forfeit future benefits is to fail to follow Section 33(g). In our practice, we come across Section 33(g) cases now and again, and it is worthwhile reviewing Section 33(g) here. Section 33(g) of the Longshore and Harbor Workers’ Compensation Act, as amended in 1984, states: (g)(1) If the person entitled to compensation (or the person’s representative) enters into a settlement with a third person…for an amount less than the compensation to which the person (or the person’s representative) would be entitled under this Act, the employer shall be liable for compensation as determined under subsection (f) only if written approval of the settlement is obtained from the employer and the employer’s carrier, before the settlement is executed, and by the person entitled to compensation (or the person’s representative). The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputyRead more
A Facility 3.2 Miles Away From Port Was Not a Longshore Situs
The claimant was employed as a dual mechanic for the employer, at the employer’s Alta Drive facility. That facility was located three miles away from a deep water port. While performing his duties as a mechanic at the Alta Drive facility, the claimant was injured. He filed a Longshore and Harbor Workers’ Compensation Act claim. The administrative law judge determined that the claimant was maritime employee and that he was injured on a covered maritime status, but the Benefits Review Board (“BRB”) disagreed. The BRB determined that the claimant was not injured on a covered situs. To satisfy the “situs” requirement, a claimant must demonstrate that their injury occurred “upon the navigable waters of the United States (including any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or other adjoining area customarily used by an employer in loading, unloading, repairing dismantling or building a vessel.” The claimant could not demonstrateRead more
Ninth Circuit: “Permanent” is Not Forever
Claimant suffered a neck and back injury while working for employer. This new injury overlaid pre-existing back and neck injuries. Once Claimant reached maximum medical improvement, the parties stipulated that she could not return to her previous position and that she was permanently partially disabled. Based on the preexisting disability, permanent partial disability payments were made by the Second Injury Fund pursuant to Section 8(f) of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”). Years later, Claimant’s medical condition deteriorated to the point that she needed surgery. She could not return to work after the surgery, and was rendered totally disabled. The issue that arose was whether Claimant was permanently or temporarily disabled in the “period of recuperation or healing” following Claimant’s surgery. If she was temporarily disabled, then Employer had to pay benefits during the recuperation period; but if Claimant was permanently disabled, then the Second Injury Fund hadRead more
Kentucky Does Not Have Concurrent Longshore Jurisdiction
Claimant was employed at a soybean and grain processing refinery located on the Ohio River in Kentucky. Two docks sat next to the refinery, and barges delivered raw materials via the docks. Barges also took away finished products from the refinery. Claimant estimated that he spent sixty percent of his time “maintaining and monitoring the computerized machinery which makes the pellet feed,” but the other forty percent was spent performing deckhand duties, like maneuvering the barges at the docks. Claimant was injured when he slipped and fell while climbing from a dock onto a platform. Claimant sought state workers’ compensation benefits but an administrative law judge determined that Claimant’s injury fell within the exclusivity provisions of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”). Ultimately, Claimant appealed this decision to the Court of Appeals of Kentucky, which affirmed. Kentucky’s state workers’ compensation laws do not share concurrent jurisdiction with the LHWCA. Read more
Another Tort Suit Dismissed Because of DBA Exclusivity
The United States District Court for the District of Maryland recently issued a Memorandum Opinion in Vance v. CHF International, wherein it held that the Defense Base Act (“DBA”) was the exclusive remedy for the plaintiffs’ tort claims. The plaintiffs in Vance were the personal representatives of an employee killed while driving to work in Peshawar, Pakistan. DBA benefits were paid following the employee’s death, but the plaintiffs sought tort damages in federal court. The DBA is a uniform, federal compensation scheme for civilian contractors. It is the exclusive remedy for injured workers. See Fisher v. Halliburton, 667 F.3d 602, 610 (5th Cir. 2012). The decedent’s contract fell under the public works provision of the DBA. See 42 U.S.C. § 1651(a)(4). As explained by the court: The work appears to constitute work performed under a service contract connected with a government-related construction project and work done in connection with the national defense. TheRead more
Proposed Amendment to the Defense Base Act
Representative Elijah Cummings recently proposed H.R. 5891, known as the “Defense Base Act Insurance Improvement Act of 2012.” The purpose of H.R. 5891 is to “amend the Defense Base Act to require the provision of insurance under that Act under a Government self-insurance program, and to require an implementation strategy for such self-insurance program.” The bill would require the government to create a self-insurance program that excludes private carriers, and it essentially relieves employers (i.e. contractors) of paying compensation. Instead, benefits would be funded by the government agency whose contract was “affected.” Beyond that, the bill requires the development and execution of an implementation strategy to for the self-insurance program, including the development of a strategy for transferring Defense Base Act (“DBA”) and War Hazards Compensation Act (“WHCA”) claims to the program. More likely than not, this bill is destined to fail. And for good reason. H.R. 5891 leaves too muchRead more
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