Bath Iron Works v. Workers Compensation

CourtCourt of Appeals for the First Circuit
DecidedNovember 10, 1997
Docket96-2162
StatusPublished

This text of Bath Iron Works v. Workers Compensation (Bath Iron Works v. Workers Compensation) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bath Iron Works v. Workers Compensation, (1st Cir. 1997).

Opinion

USCA1 Opinion



UNITED STATES COURT OF APPEALS
FOR THE FIRST CIRCUIT
_________________________

No. 96-2162

DIRECTOR, OFFICE OF WORKERS' COMPENSATION PROGRAMS,
UNITED STATES DEPARTMENT OF LABOR,

Petitioner,

v.

BATH IRON WORKS CORPORATION,
COMMERCIAL UNION INSURANCE COMPANY AND
LIBERTY MUTUAL INSURANCE COMPANY,

Respondents.

_________________________

PETITION FOR REVIEW OF A FINAL ORDER OF

THE BENEFITS REVIEW BOARD

_________________________

Before

Torruella, Chief Judge, ___________

Coffin, Senior Circuit Judge, ____________________

and Boudin, Circuit Judge. _____________

_________________________

Michael S. Hertzig, Attorney, United States Department of ___________________
Labor, with whom J. Davitt McAteer, Acting Solicitor of Labor, _________________
Carol A. De Deo, Associate Solicitor, and Janet R. Dunlop, _________________ _________________
Counsel for Longshore, were on brief for petitioner.
Kevin M. Gillis for respondents. _______________

_________________________

November 6, 1997
________________________

COFFIN, Senior Circuit Judge. This case comes before us on ____________________

a petition for review of a provision of a final order of the

Benefits Review Board ("Board") that awarded Bath Iron Works

("BIW") Section 8(f) relief under the Longshore and Harbor

Workers' Compensation Act, 33 U.S.C. 901-950 (1988) ("LHWCA").

Section 8(f) of the LHWCA provides that an employer obliged to

pay disability benefits to an employee may be relieved from full

liability if the employee's compensable disability was

"materially and substantially greater" as a result of a prior,

non-work-related disability.1 The Director, Office of Workers'

Compensation Programs ("OWCP"), appeals the Section 8(f) award to

BIW on a number of grounds, most of which are unnecessary for us

to reach, because we find that the Administrative Law Judge

("ALJ") failed to determine, and the record contains insufficient

evidence to show, that the required standard of "materially and

substantially greater" was met. We therefore grant the petition

for review and reverse the Section 8(f) award.

Claimant Frank H. Johnson worked as a pipe-fitter at the BIW

shipyard for various periods from 1951 until his retirement in
____________________

1 The issue in this case concerns who should bear the
primary responsibility for paying compensation to the claimant.
Under the LHWCA, the employer pays the full amount unless it
meets the requirements set forth in Section 8(f), in which case
its liability for payment to disabled employees is limited to 104
weeks and any remaining compensation owed is paid by a special
second injury fund. 33 U.S.C. 908(f)(1) & (2)(A). The fund
consists of contributions from carriers and self-insured
employers, and is intended to distribute among all employers the
cost of compensating employees, while ensuring that employees
with disabilities receive full benefits for their work-related
injuries. Bath Iron Works Co. v. Director, OWCP, 950 F.2d 56, 58 ___________________ ______________
n.4 (1st Cir. 1991).

-2-

January 1984. During his employment at BIW, he was exposed to

and inhaled asbestos dust and fibers at the shipyard. Claimant's

exposure ended in 1978 or 1979, when the crumbling asbestos in

his work area was sealed.

In 1986 claimant was diagnosed as suffering from a twenty-

five percent impairment due to asbestosis, and he successfully

filed a claim for workers' compensation benefits under the LHWCA

based on that impairment. The ALJ's award of Section 8(f) relief

to BIW became a final order for the purposes of obtaining

judicial review before us after the Board failed to take action

on the Director's appeal within a year.2

Because the appropriateness of Section 8(f) relief turns on

the source and nature of claimant's pulmonary impairment, we must

examine closely the medical evidence in the record.

THE MEDICAL EVIDENCE

The earliest evidence that claimant suffered from an

asbestos-related lung condition appears to have come in 1982 from

____________________

2 Another ALJ initially awarded BIW Section 8(f) relief
from full liability based on evidence that claimant suffered from
a pre-existing knee injury, as well as "other medical
conditions," all of which were manifest during the period of
claimant's employment at BIW and contributed to his overall
disability. The Director, OWCP, successfully appealed the
Section 8(f) award, and the Board remanded the case, concluding
that claimant's knee condition could not be used as a basis for
relief because it was unrelated to his pulmonary impairment. The
Board directed the ALJ on remand to consider whether the "other
medical conditions" by themselves formed a basis for Section 8(f)
relief. We review the remand decision here.

-3-

a routine chest x-ray performed prior to a knee operation.3

According to Dr. Schall, claimant's treating physician, the x-ray

revealed "interstitial fibrosis and pleural plaques consistent

with asbestosis."6 Multiple pulmonary function tests conducted

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