Director, Office of Workers' Compensation Programs, United States Department of Labor v. Elizabeth O'Keefe

545 F.2d 337
CourtCourt of Appeals for the Third Circuit
DecidedNovember 2, 1976
Docket75-2297
StatusPublished
Cited by47 cases

This text of 545 F.2d 337 (Director, Office of Workers' Compensation Programs, United States Department of Labor v. Elizabeth O'Keefe) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Director, Office of Workers' Compensation Programs, United States Department of Labor v. Elizabeth O'Keefe, 545 F.2d 337 (3d Cir. 1976).

Opinions

OPINION OF THE COURT

GARTH, Circuit Judge.

On this petition for review of a final order of the Benefits Review Board we are again asked to resolve problems arising under the 1972 amendments to the Longshoremen’s and Harbor Workers’ Compensation Act (LHWCA),1 33 U.S.C. § 901 et seq. (Supp.1976).2 Specifically, this petition presents the question of whether weekly death benefits payable under § 9 of the LHWCA as amended, 33 U.S.C. § 909 (Supp.1976), are subject to the limitations prescribed by § 6(b)(1) as amended, 33 U.S.C. § 906(b)(1) (Supp.1976), or whether such benefits are unlimited in amount. We conclude, contrary to the Benefits Review Board, that § 6(b)(1) does impose a ceiling upon weekly death benefits and accordingly grant the petition for review.

I.

On March 30, 1974 respondent Elizabeth O’Keefe’s husband, Joseph O’Keefe, during the course and scope of his maritime employment was struck by a jitney and immediately killed. His average weekly wage at the time of death was $571.84, and the respondent was his only survivor. The decedent’s employer, Morris Boney, Inc., and its insurance carrier, Liberty Mutual Insurance Co., stipulated that the respondent was entitled to the maximum benefits payable under the LHWCA. However, the parties were unable to reach agreement as to what constituted the maximum weekly death benefit payable to the respondent under the statute. 33 U.S.C. § 909 (Supp. 1976). The respondent contended that under the 1972 amendments she was entitled to death benefits equal to 50 per cent of the deceased’s average weekly wage or $285.92 subject to no limitations. 33 U.S.C. § 909(b).3 In response the employer and insurance carrier urged that although respondent was entitled to death benefits based upon the formula of 50 per cent of [339]*339the deceased’s average weekly wage that sum was nevertheless subject to the limitations of § 6(b)(1), 33 U.S.C. § 906(b)(1)4 which would result in a weekly benefit less than $285.92.

Their dispute as to the amount of the death benefit payable was referred to an administrative law judge for hearing and decision. See 33 U.S.C. § 919 (Supp.1976). The administrative law judge, relying upon the Benefits Review Board’s decision in Rasmussen v. Geo Control Inc., 1 BRBS 378, BRB 74-204 (April 3, 1975)5 rejected the employer’s and the carrier’s contention that death benefits were limited by the amended § 6(b)(1). Accordingly, the respondent was awarded 50 per cent of the average weekly wage of the decedent or $285.92 from March 30, 1974 and continuing during her widowhood. 33 U.S.C. § 909(b) (Supp.1976).

The employer, insurance carrier, and the Director of the Office of Workers’ Compensation Programs (Director), appealed to the Benefits Review Board urging that the Rasmussen case had been erroneously decided.6 However, the Board declined to reverse its earlier holding and therefore affirmed the decision and order of the administrative law judge. O’Keefe v. Morris Boney, Inc., 2 BRBS 363, BRB Nos. 75-179, 75-179A (October 16, 1975).

This petition for review was filed by the Director from the final decision of the Benefits Review Board. Our jurisdiction is predicated upon 33 U.S.C. § 921(c) (Supp. 1976).7

II.

The 1972 amendments to the LHWCA constituted a major restructuring of the rights of longshoremen and harbor workers with respect to total disability and death benefits. Prior to 1972 an employee covered by this statute who suffered permanent total disability was entitled to compensation equal to 66% per cent of his average weekly wage. 33 U.S.C. § 908(a). However, former § 6(b) provided that “[cjompensation for disability shall not exceed $70 per week.” 33 U.S.C. § 906. Regardless of an employee’s average weekly earnings, in the event of permanent total disability his benefits were limited to a maximum of $70 per week.

Where injury resulted in death, former § 9 specified the amount of the death benefit payable to the employee’s survivors. Under that section the surviving wife was entitled to 35 per cent of the average wages of the deceased. An additional 15 per cent of the wages of the deceased was allowed for each surviving child, subject to the limitation that the total amount payable under former § 9(b) “shall in no case exceed 66% per centum of such wages.” 33 U.S.C. § 909(b). Furthermore, like the total disability benefit, the death benefit was limited by a maximum monetary sum. Former section 9(e) stated that “[i]n computing death benefits the average weekly wages of the deceased shall be considered to have been not more than $105 . . . .” 33 U.S.C. § 909(e). Therefore, despite the actual wages of a deceased employee, if his [340]*340family qualified for the maximum death benefit of 66% per cent of the decedent’s average weekly wage, that family would be entitled to a maximum benefit of $70 per week (66% per cent of $105).

Therefore, prior to the enactment of the 1972 amendments, both total disability and death benefits were limited by a fixed dollar maximum of $70 per week irrespective of the actual average weekly earnings of an employee.

In the years following 1961, when the fixed weekly maximum of $70 was established for both total disability and death benefits,8 it became increasingly evident that this level of compensation was grossly inadequate. By 1972 congressional reports indicated that the average weekly wage for private, nonagricultural employees was $135 a week and that longshoremen averaged over $200 per week in some ports. H.R.Rep.No.92-1441, 92d Cong.2d Sess. (1972), 1972 U.S.Code Cong. & Admin.News, pp. 4698, 4699; S.Rep.No.92-1125, 92d Cong.2d Sess. 4 (1972). The $70 limitation precluded most employees or their survivors from receiving 66% per cent of their average weekly wages, and in some cases the $70 maximum constituted as little as 30 per cent of an employee’s average weekly wage. S.Rep.No.92-1125, 92d Cong.2d Sess. 5 (1972). Congress recognized that in order to provide an adequate income replacement for the families of disabled and deceased workers, a “substantial increase in benefits” was urgently required.9

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Bluebook (online)
545 F.2d 337, Counsel Stack Legal Research, https://law.counselstack.com/opinion/director-office-of-workers-compensation-programs-united-states-ca3-1976.