The Benefits Review Board recently published a new decision addressing “compensation” under the Longshore and Harbor Workers’ Compensation Act (“LHWCA”): Wheeler v. Newport News Shipbuilding & Dry Dock Co. In Wheeler, the BRB determined that, for purposes of modification under Section 22 of the LHWCA, the term “compensation” did not include the payment of medical benefits. The term “compensation” has been defined differently by different courts. The Supreme Court of the United States previously stated that “compensation” did not include the payment of medical care for purposes of Section 13(a) of the LHWCA. Marshall v. Pletz, 317 U.S. 383 (1943). In the Court’s opinion, Sections 2(12), 6, 8, 10, and 14 of the LHWCA used the term “compensation” to refer to periodic money payments, but not an employer’s expense of medical care. Later courts and administrative bodies have interpreted “compensation” broadly. See, e.g., Lazarus v. Chevron USA, Inc., 958 F.2dRead more
What is the War Hazards Compensation Act?
In modern warfare, military contractors play a large and vital role in support of the United States military. Based upon the greater presence of contractors, the War Hazards Compensation Act (“WHCA”) has become an important vehicle for insurance companies to secure reimbursement of amounts paid on account of “war-risk hazard” injuries. Since 1942, the WHCA has provided a compensation and reimbursement system whereby the United States government essentially self-insures the losses occasioned to employees working abroad, under contracts entered into by the United States. The WHCA applies to foreign local nationals (e.g., Iraqi or Afghanis), third country nationals (e.g., South Africans or Fijians), as well as citizens of the United States. The main requirement of the WHCA is that a “war-risk hazard,” as defined by the United States Code, caused the employee’s injury. A war-risk hazard includes any hazard arising from (1) the discharge of any missile, or the useRead more
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