Bloomer v. Liberty Mutual Insurance

445 U.S. 74, 100 S. Ct. 925, 63 L. Ed. 2d 215, 1980 U.S. LEXIS 26
CourtSupreme Court of the United States
DecidedMarch 3, 1980
Docket78-1418
StatusPublished
Cited by94 cases

This text of 445 U.S. 74 (Bloomer v. Liberty Mutual Insurance) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bloomer v. Liberty Mutual Insurance, 445 U.S. 74, 100 S. Ct. 925, 63 L. Ed. 2d 215, 1980 U.S. LEXIS 26 (1980).

Opinions

Mr. Justice Marshall

delivered the opinion of the Court.

Under the Longshoremen’s and Harbor Workers’ Compensation Act, 44 Stat. 1424, as amended, 33 U. S. C. § 901 et seq., a longshoreman is entitled to receive compensation payments from his stevedore for disability or death resulting from an injury occurring on the navigable waters of the United States. [75]*75If the longshoreman believes that his injuries warrant a recovery in excess of the compensation provided under the Act, he may also bring a negligence action against the owner of the vessel on which the injury occurred. The longshoreman’s recovery from the shipowner is subject to the stevedore’s lien in the amount of the compensation payment. The question for decision is whether the stevedore’s lien must be reduced by a proportionate share of the longshoreman’s expenses in obtaining recovery from the shipowner, or whether the stevedore is instead entitled to be reimbursed for the full amount of the compensation payment.

I

Petitioner William E. Bloomer, Jr., was injured during the course of his employment on board the vessel S. S. Pacific Breeze. He received $17,152.83 in compensation from respondent Liberty Mutual Insurance Co., the designated carrier of workers’ compensation for petitioner’s employer, Connecticut Terminal Co.1 Thereafter petitioner brought this diversity action against the owner of the vessel. He alleged that the shipowner had negligently created hazardous conditions on board the vessel, that the ship’s deck was slippery and dangerous, and that as a result he had fallen and incurred severe injuries.

During settlement negotiations, petitioner’s counsel gave respondent notice of the pending action and requested it to reduce its lien by a share of the costs of recovery. That share would be computed as an amount bearing the same ratio to the total cost of recovery as the compensation payments bear to the total recovery. Respondent refused petitioner’s request, asserted its right to full reimbursement, and successfully moved to intervene in the action. Soon thereafter petitioner settled with the shipowner for $.60,000. He moved for sum[76]*76mary judgment directing that respondent’s lien on the recovery be reduced by an amount representing its proportionate share of the expenses of the suit against the shipowner. Petitioner claimed that since the recovery from the shipowner would benefit respondent, equity required that respondent bear a portion of. the expenses of obtaining that recovery.

The District Court denied petitioner’s motion,2 and the United States Court of Appeals for the Second Circuit affirmed. Bloomer v. Tong, 586 F. 2d 908 (1978). The Court of Appeals concluded that a stevedore should not be required to pay a share of the longshoreman’s legal expenses in a suit [77]*77brought against the shipowner. We granted certiorari to resolve this recurring question, on which the Courts of Appeals have been divided.3 441 U. S. 942 (1979). We affirm.

II

Petitioner’s argument amounts to an appeal to the equitable principle that when a third person benefits from litigation instituted by another, that person may be required to bear a portion of the expenses of suit. He invokes cases establishing that in certain circumstances, courts should exercise their equitable powers to charge beneficiaries with a share of the expenses of obtaining a “common fund” through litigation. See Boeing Co. v. Van Gemert, 444 U. S. 472 (1980); Alyeska Pipeline Service Co. v. Wilderness Society, 421 U. S. 240, 257-259 (1975); id., at 275-280 (Marshall, J., dissenting); Mills v. Electric Auto-Lite Co., 396 U. S. 375 (1970); Sprague v. Ticonic National Bank, 307 U. S. 161 (1939). When measured against the language, structure,, and history of the Longshoremen’s and Harbor Workers’ Compensation Act. however, petitioner’s argument must fail.

The Act provides a comprehensive scheme governing an injured longshoreman’s rights, against the stevedore and shipowner. The longshoreman is not required to make an election between the receipt of compensation and a damages action against a third person, 33 U. S. C. § 933 (a). After receiving a compensation award from the stevedore, the longshoreman is given six months within which to bring suit against the third [78]*78party. 33 U. S. C. § 933 (b). If he fails to seek relief within that period, the acceptance of the compensation award operates as an assignment to the stevedore of the longshoreman’s rights against the third party. The Act makes explicit provision for the distribution of any amount obtained by the stevedore in a suit brought pursuant to that assignment. The stevedore is entitled to reimbursement of all compensation benefits paid the employee, and its costs, including attorney’s fees. Of the remainder, four-fifths is distributed to the longshoreman, and one-fifth “shall belong to the employer.” 33 U. S. C. § 933 (e).4

The Act does not expressly provide for the distribution of amounts recovered in a suit brought by the longshoreman. The unambiguous provision that the stevedore shall be reimbursed for all of his legal expenses if he obtains the recovery does, however, speak with considerable force against requiring him to bear a part of the longshoreman’s costs when the longshoreman recovers on his own. There is no reason to believe that Congress intended a different distribution of the expenses of suit merely because the longshoreman has brought [79]*79the action. Petitioner asserts, however, that in the absence of an explicit statutory resolution, the recovery against the shipowner represents a common fund for whose creation the stevedore may properly be charged. To evaluate this argument we turn to the history of the relevant provisions of the Act.

Ill

As originally enacted in 1927, the Act required a longshoreman to choose between the receipt of a compensation award from his employer and a damages suit against the third party. Act of Mar. 4, 1927, § 33, 44 Stat. 1440. If the. longshoreman elected to receive compensation, his right of action was automatically assigned, to his employer. In 1938, however. Congress provided that in cases in which compensation was not made pursuant to an award by a deputy commissioner (appointed by the Secretary of Labor, see 33 U. S. C. § 940), the longshoreman would not be required to choose between the compensation award and an action for damages. Under the 1938 amendments, no election was required unless compensation was paid pursuant to such an award.

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Bluebook (online)
445 U.S. 74, 100 S. Ct. 925, 63 L. Ed. 2d 215, 1980 U.S. LEXIS 26, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bloomer-v-liberty-mutual-insurance-scotus-1980.