A few weeks ago, I submitted a post about the settlement approval Order in Richardson v. Huntington Ingalls Inc., 2013-LHC-01317 (OALJ 2013). Apparently I wasn’t the only person who thought this Order was interesting. There has been considerable industry-wide discourse about the propriety of the Order and the Director’s arguments concerning the adequacy of settlements under Section 8(i) of the Longshore and Harbor Workers’ Compensation Act. The Director has appealed the Order to the Benefits Review Board. My opinion is that the administrative law judge (“ALJ”) was 100% correct in approving the settlement. But what do others think? I’m not going to steal any thunder from the thoughtful articles posted by some industry experts. Instead, I’m going to refer you to those postings. Check out “The Fog of Adequacy,” by Stephen C. Embry on the LexisNexis Workers’ Compensation Law Community. “The Fog of Adequacy” argues in favor of the ALJ’s decision.Read more
The SSA Can Prorate a Longshore Settlement to Determine the Amount of Monthly Social Security Disability Benefits Owed
After Claimant sustained a work-related injury, he settled his Longshore and Harbor Workers’ Compensation Act claim for a $104,901.54 settlement, which an administrative law judge approved. Four months later, Claimant was awarded Social Security disability benefits. When the Social Security Administration (“SSA”) calculated Claimant’s monthly disability payments it did not account for Claimant’s receipt of workers’ compensation benefits. Accordingly, the SSA advised Claimant in 2008 that his monthly Social Security disability benefits would be reduced. It took the SSA three years to reduce Claimant’s benefits. When the reductions were made, Claimant lost a significant amount of income. His Social Security payments fell from $1,357.00 to $258.50, and then to zero. Part of the reduction was used to pay the overpayment caused by the delay in reducing benefits. Soon thereafter, Claimant filed a Chapter 7 bankruptcy. The SSA was listed as an unsecured creditor for “overpayment of benefits.” The SSA discharged anRead more
Fourth Circuit Reasons that Prior Attorney Fee Awards May Serve as a “Barometer” for the Prevailing Market Rate
The Fourth Circuit issued a new Black Lungs Benefits Act (“BLBA”) decision that is also particularly important for Longshore and Harbor Workers’ Compensation Act (“LHWCA”) and Defense Base Act cases. The majority of the published opinion dealt with the evidence a claimant’s attorney must submit to prove the “prevailing market rate” for BLBA and LHWCA attorneys. This issue arose in the context of a BLBA case because the BLBA incorporates portions of the LHWCA, including the LHWCA’s attorney fee statute, 33 U.S.C. § 928. The law firm representing the injured worker requested $35,953.75 for work related to the Office of Administrative Law Judge proceeding. Included in this sum was a $300 hourly rate for an attorney with over thirty years’ experience; a $250 hourly rate for an attorney with sixteen years’ experience; and a $250 and $175 hourly rate for younger attorneys with several years’ experience. In addition to the AltmanRead more
Ninth Circuit: Intoxicated Longshoreman Not Entitled to Benefits
On July 26, 2013, the Ninth Circuit published a new Longshore and Harbor Workers’ Compensation opinion addressing injuries “occasioned solely by” intoxication. The facts of the opinion are simple. After the claimant drank seven to eight bears and half a pint of whiskey between 8:00 a.m. and 4:30 p.m., he fell over a railing and injured himself. The question was whether the injury suffered by the intoxicated claimant (who had a .25 blood alcohol level) was “occasioned solely by” intoxication. Here is the court’s summary: Longshore and Harbor Workers’ Compensation Act Denying the petition for review, the panel held that the Benefits Review Board did not err when it affirmed the administrative law judge’s denial of petitioner’s claim for compensation under the Longshore and Harbor Workers’ Compensation Act (“LHWCA”) due to intoxication. The [Ninth Circuit] panel held that the Board did not err in interpreting 33 U.S.C. § 903(c) of the Act, which bars compensation ifRead more
Claimant Wrongfully Sued Employer After the Special Fund Reduced Weekly Benefits
In 2005, Claimant injured his back while working for Employer. Between 2005 and 2010, Claimant continued seeking medical treatment for his back. Following a formal hearing, an administrative law judge (“ALJ”) ordered Employer to pay temporary total disability and 104 weeks of permanent partial disability. Beginning at week 105, the Special Fund would begin paying benefits. Employer “was entitled to be reimbursed by the Special Fund for certain overpayments.” Six months later, Claimant received a letter from the Department of Labor (“DOL”) which said that Employer had paid Claimant at a higher rate than that ordered by the ALJ. Claimant was overpaid by roughly $39,000. To reimburse Employer for the overpayment, the DOL deducted a portion of Claimant’s weekly payments. Aggrieved by the deduction, Claimant eventually filed an enforcement action in the District Court of Hawaii, which framed the issue as follows: The crux of the present dispute is whether reimbursementRead more
Fourth Circuit: Defendant’s Promise to Remedy an Icy Deck Made it Liable to Injured Longshoreman
Defendant, Oldendorff Carriers GmbH & Co. KG, appealed a judgment entered on a jury verdict in a longshoreman’s Section 905(b) claim. See 33 U.S.C. § 905(b). The longshoreman was injured on a vessel when he slipped and fell on ice. Although the fact was disputed, the trial court and the jury came to the conclusion that the vessel’s chief officer told the longshoreman’s shift supervisor that the ship’s crew would take care of the ice. They would salt and sand between the vessel holds. When the longshoremen slipped and fell, his shift supervisor notified the officer that “the ship was icy forward,” to which the officer replied that “he only had a limited supply of ice.” The jury found Defendant negligent and awarded a large sum. Defendant appealed to the Fourth Circuit, which affirmed. At trial and on appeal, Defendant argued that it could not be held liable because ofRead more
Solicitor’s Arguments Rejected in Settlement Approval Order
This post addresses a really interesting settlement order. Two represented parties attempted to enter into a settlement. The District Director disapproved the settlement on the grounds that the amount was not reasonable. The parties then referred the case to the Office of Administrative Law Judges. Through their attorneys, they agreed to increase the settlement amount by $500. A dispute arose between the parties and the Solicitor as to whether this increase was appropriate. To help resolve the dispute, the administrative law judge scheduled a conference call where each party could explain their positions. The claimant and the employer wanted the settlement approved. The Solicitor took a different position, arguing that “neither the District Director nor the ALJ was allowed to consider litigation risk or the claimant’s personal circumstances in assessing adequacy.” The Solicitor also “insisted that the District Director or ALJ must . . . simply apply the acturarial tables andRead more
Supreme Court of Alabama Addressed Longshore Exclusivity and Preemption
The Supreme Court of Alabama issued an interesting decision recently. An injured worker filed a state lawsuit against his employer. The injured worker alleged, among other things, fraud and retaliatory discharge pursuant to Alabama Code § 25-5-11.1. The court ended up splitting the baby. It concluded that the worker’s fraud complaint was barred by the exclusivity provisions of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”) and the Alabama Workers’ Compensation Act. His state-based retaliatory discharge complaint, however, was not preempted by the LHWCA. On fraud, the court reasoned: Rodriguez-Flores alleged that U.S. Coatings, through its employee, fraudulently represented to him that “he would be fired if he continued to seek treatment for his injury,” “that he was not entitled to be paid for time missed from work due to his injury,” and “that he was not entitled to be paid for time missed from work because of the injury and that [he] was onlyRead more
In a Longshore or DBA Case, What Should Be the Geographic Boundaries for the Relevant Labor Market in Alaska?
Alaska is the largest state in the United States, over twice the size of Texas. It is larger than the combined area of the twenty-two smallest states. At the same time, the total estimated population is a little over 730,000, which is the 47th smallest population in the U.S., trailed only by North Dakota, Vermont and Wyoming. Considering these variables, what should be the geographic boundaries for the relevant labor market in Alaska? I contend that the relevant labor market in Alaska should be defined by Alaska statute instead of Longshore or Defense Base Act caselaw. After a claimant establishes a prima facie case of total disability, the burden shifts to the employer to establish suitable alternative employment. The employer must then demonstrate the existence of realistically available job opportunities within the geographic area where the employee resides which he is capable of performing, considering his age, education, work experience, andRead more
The DSM-5’s New PTSD Diagnostic Criteria
The American Psychiatric Association finally published the Fifth Edition of the Diagnostic and Statistical Manual of Mental Disorders, commonly known as the DSM-5. Changes have been made to some of the important diagnoses commonly used in Longshore and Defense Base Act claims. And while there is no requirement in the Longshore and Harbor Workers’ Compensation Act that administrative law judges (“ALJ”) strictly adhere to the DSM-5’s diagnostic criteria, the failure of a diagnosing psychiatrist or psychologist to adhere to the criteria could affect the weight that an ALJ gives that evidence. Many are noticing that the DSM-5 makes it easier to get a PTSD diagnosis. For instance, check out TIME magazine’s article, “An Easier PTSD Diagnosis.” Whether this will have an effect on LHWCA/DBA claims remains to be seen. Without further ado, here are the DSM-5’s new PTSD Diagnostic Criteria: A. Exposure to actual or threatened death, serious injury, or sexualRead more
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