The Fifth Circuit issued a new decision affirming the denial of benefits under both the Longshore and Harbor Workers’ Compensation Act and the Outer Continental Shelf Lands Act. The decision turned on two issues: whether a particular watercraft was a legal “vessel” and whether Claimant’s job activities had a substantial nexus to operations on the Outer Continental Shelf. Factual Background: Claimant worked as a marine carpenter building housing modules designed for use on a tension leg offshore platform named Big Foot. After an alleged injury, Claimant filed a claim for benefits under the Longshore and Harbor Workers’ Compensation Act as a shipbuilder. He also argued–in the alternative–that his claim was covered by the Outer Continental Shelf Lands Act. (“OCLSA”) Both the Administrative Law Judge and the Benefits Review Board disagreed with Claimant’s assertion. First, Longshore benefits were denied because the Big Foot was not a “vessel,” thus preventing Claimant fromRead more
The Fifth Circuit Explains the Application of Maritime Law to Jack-Up Rigs and Removal of OCSLA Claims
After watching his friend and co-worker die as a result of an accident on a jack-up rig attached to the Outer Continental Shelf (“OCS”), Plaintiff filed suit in a Texas state court. Plaintiff conceded that he did not sustain a physical injury, but he alleged to have suffered severe emotional distress from witnessing his friend’s death. Further, the emotional distress caused physical problems. In response to Plaintiff’s state court lawsuit, Defendants removed the action to the United States District Court for the Southern District of Texas under the federal question jurisdiction of the Outer Continental Shelf Lands Act (“OCSLA”). The federal district court then determined that Plaintiff could not recover under either Texas law or maritime law and granted Defendants’ motion for summary judgment. Plaintiff appealed the district court’s decision and the Fifth Circuit affirmed. The “difficult question” the court had to answer was “whether federal, state, or maritime law provides theRead more
DOL Proposes Revisions to Rules of Practice Before the Office of Administrative Law Judges
The Department of Labor (“DOL”) has proposed to revise the Rules of Practice and Procedure for Administrative Hearings Before the Office of Administrative Law Judges. The Rules were enacted in 1983, but they have not been amended like the Federal Rules of Civil Procedure (“FRCP”). The DOL’s proposed changes are designed to reflect the changes in litigation and discovery over the past 28 years, provide clarity through the use of consistent terminology, and adequately address the expanded roles of Administrative Law Judges (“ALJ”). Congress has tasked ALJs with handling a wider variety of cases than anticipated when the Rules were promulgated in 1983 (including whistleblower and workplace retaliation cases), and the proposed revisions address the “more structured management and oversight” necessary to manage the complexities of these claims. Having thumbed through the changes, it is clear that the DOL wants the Rules to mimic the FRCP, both in form andRead more
SCOTUS Decided Roberts v. Sea-Land Services, Inc.
This morning the Supreme Court decided Roberts v. Sea-Land Services, Inc. In this employer-friendly decision, the Court held that “an employee is ‘newly awarded compensation’ when he first becomes disabled and thereby becomes statutorily entitled to benefits, no matter whether, or when, a compensation order issues on his behalf.” The Court’s syllabus is reprinted below. The Longshore and Harbor Workers’ Compensation Act (LHWCA) creates a comprehensive scheme to pay compensation for an eligible employee’s disability or death resulting from injury occurring upon the navigable waters of the United States. Benefits for most types of disabilities are capped at twice the national average weekly wage for the fiscal year in which an injured employee is “newly awarded compensation.” 33 U. S. C. §906(c). The LHWCA requires employers to pay benefits voluntarily, without formal administrative proceedings. Typically, employers pay benefits without contesting liability, so no compensation orders are issued. However, if an employer controvertsRead more
SCOTUS Decides Pacific Operators Offshore, LLP v. Valladolid
Today, the Supreme Court of the United States issued its opinion in Pacific Operators Offshore, LLP v. Valladolid. The syllabus of the opinion, which was written by Justice Thomas, states: Petitioner Pacific Operators Offshore, LLP (Pacific), operates two drilling platforms on the Outer Continental Shelf (OCS) off the California coast and an onshore oil and gas processing facility. Employee Juan Valladolid spent 98 percent of his time working on an offshore platform, but he was killed in an accident while working at the onshore facility. His widow, a respondent here, sought benefits under the Longshore and Harbor Workers’ Compensation Act (LHWCA), 33 U. S. C. §901 et seq., pursuant to the Outer Continental Shelf Lands Act (OCSLA), which extends LHWCA coverage to injuries “occurring as the result of operations conducted on the [OCS]” for the purpose of extracting natural resources from the shelf, 43 U. S. C. §1333(b). The Administrative Law Judge dismissedRead more
Eleventh Circuit’s Borrowed-Employment Standard for Longshore Cases
Section 905(a) of the Longshore and Harbor Workers’ Compensation Act (“LHWCA”) provides that an employer’s liability for workers’ compensation benefits to an employee “shall be exclusive and in place of all other liability of such employer to the employee.” 33 U.S.C. § 905. This statute reflects the “industrial bargain” between employers and employees on which the LHWCA and all workers’ compensation laws are based. The bargain is simple: “The covered employee has surrendered the right to sue the employer for negligence, and thus has eschewed the possibility of a more significant damages award from the employer; the employer, similarly, has relinquished its common law defenses available in employee negligence actions. In consideration, the employee receives more certain compensation for injuries arising from the employment, regardless of fault; the employer, in turn, eludes litigation expenses and pays only scheduled LHWCA benefits.” In a new published decision, the United States Court of Appeals, EleventhRead more
“Earnings” under Section 8(j) Includes Income Obtained from Illegal Activities
Claimant was hired as a chipper in 1983. He hurt each of his knees on separate dates in 1983 while working for Employer. In 1992, the Benefits Review Board affirmed an Administrative Law Judge’s award of permanent total disability benefits because Employer failed to establish suitable alternative employment. Employer sought modification of benefits in 1997. A hearing was scheduled; however, because Claimant became incarcerated, an ALJ judge issued a stay of compensation until Claimant’s 2004 release. A formal hearing on the reinstatement of benefits was held on October 14, 2009. At the hearing, Employer asserted that Claimant’s illegal activity prior to his incarceration, as well as maintenance work he performed while in prison and the singing he performed at funerals constituted suitable alternative employment. The ALJ judge rejected these positions as suitable alternative employment, but found that ten other jobs identified by Employer were sufficient. Therefore, the ALJ judge awarded theRead more
BRB: A Claimant Cannot Be More than Totally Disabled
Claimant sustained a work-related back injury on October 10, 1990, which rendered him temporarily totally disabled for a period of nearly one year, and permanently totally disabled thereafter. Over seventeen years later, Claimant underwent an audiogram demonstrating a 24.4 percent binaural hearing loss which was attributed to employment-related noise exposure that last occurred on October 10, 1990, when Claimant stopped working for Employer. Claimant argued that he was entitled to receive a scheduled award for his hearing loss concurrently with the temporary total disability award for his back injury. The Administrative Law Judge determined, however, that the scheduled hearing loss claim for PPD benefits was subsumed in Claimant’s total disability award. Claimant appealed, but the Benefits Review Board (“BRB”) affirmed the ALJ’s decision. A claimant may not receive concurrently a scheduled permanent partial disability award for one injury and a total disability award for another injury, as a claimant cannotRead more
LexisNexis: Update From the Benefits Review Board
An article about the state of the Benefits Review Board has been published at LexisNexis’ Workers’ Compensation Law Community page. Karen Koenig, Associate General Counsel of the Longshore Benefits Review Board, wrote the article, which is entitled Update from the Benefits Review Board. Among other things, it discusses the applicable law for DBA claims, as well as the Supreme Court’s grant of certiorari in Pacific Operators Offshore, LLP v. Valladolid. It is certainly an article worth reading. (Note: I originally published this post on Navigable Waters: A Maritime, Longshore and Defense Base Act Blog.)
Highlights of Proposed Longshore Amendments – Part Two
The second entry addressing the proposed Longshore and Harbor Workers’ Compensation Act Amendments of 2011 (Senate Bill 669) highlights the changes proposed to Sections 12, 13, 14, 16, 20, 21, 22, 31, and 44 of the LHWCA. The proposed Amendments would: 1. Cap the late notice of an injury at one year after the event or knowledge that the trauma resulted in injury or disability. Notice of an occupational disease shall not be given more than one year after the diagnosis of an occupational injury or death resulting from the injury. 2. Shorten the time to file a claim from one year to ninety days after notice or ninety days after the date of last payment. 3. Replace the ten day time limit in section 14(f) (33 U.S.C. § 914) with a time limit based on either physical delivery or a postmark date. 4. Allow assignment for Section 206 of ERISA. 5. Amend Section 20 (33 U.S.C.Read more