DOWCP v. Newport News Shipbld

Court of Appeals for the Fourth Circuit·Decided March 9, 1998·No. 96-2654·Published

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

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

v.

NEWPORT NEWS SHIPBUILDING AND No. 96-2654 DRY DOCK COMPANY, Respondent,

and

CALLIS CARMINES, Claimant.

On Petition for Review of an Order of the Benefits Review Board. (95-0440)

Argued: December 4, 1997

Decided: March 9, 1998

Before MURNAGHAN and MOTZ, Circuit Judges, and BUTZNER, Senior Circuit Judge.

_________________________________________________________________

Reversed by published opinion. Judge Murnaghan wrote the opinion, in which Judge Motz and Senior Judge Butzner joined.

_________________________________________________________________

COUNSEL

ARGUED: Joshua Thomas Gillelan, II, Senior Attorney, Office of the Solicitor, UNITED STATES DEPARTMENT OF LABOR, Washington, D.C., for Petitioner. Jonathan Henry Walker, MASON & MASON, P.C., Newport News, Virginia, for Respondent. ON BRIEF: J. Davitt McAteer, Acting Solicitor of Labor, Carol A. De Deo, Associate Solicitor, Office of the Solicitor, UNITED STATES DEPARTMENT OF LABOR, Washington, D.C., for Peti- tioner.

_________________________________________________________________

OPINION

MURNAGHAN, Circuit Judge:

A maritime worker exposed to asbestos during 30 years of employ- ment filed a claim for disability benefits under the Longshore and Harbor Workers' Compensation Act ("LHWCA"), 33 U.S.C. §§ 901- 950. His employer did not contest the right to benefits for his asbesto- sis. However, the employer argued that it should be relieved from shouldering the full amount of the benefits, pursuant to the special fund provision of § 908(f) of the LHWCA, because the worker's dis- ability was due in part to pre-existing conditions.

An administrative law judge found that the employer merited § 908(f) relief because the worker's disability was materially and sub- stantially greater than that which would have resulted from the asbes- tosis alone, but for the pre-existing conditions of hypertensive cardiovascular disease and pleurisy-related interstitial fibrosis. The Director of the Office of Workers' Compensation Programs, United States Department of Labor, ("Director") appealed the award of § 908(f) relief. Because there was not substantial evidence to support the ALJ's award, we reverse.

I. BACKGROUND

A. The Claim under the LHWCA

Callis Carmines ("Claimant") was employed as a mechanic and electrical supervisor at Newport News Shipbuilding and Dry Dock Company from 1936 until his retirement in 1981. Newport News is in the business of constructing and repairing ocean-going vessels.

2 Throughout his employment, the Claimant performed work related to ship repair or construction on the navigable waters of the James River and its adjacent piers and dry docks.

For over thirty years during this employment, from 1936 until 1968, the Claimant was daily exposed to large quantities of asbestos. Sometimes he worked in environments where asbestos filled the air so thickly as to form a white cloud of dust. Often he would nap in a pile of asbestos during his lunch break.

In 1990, the Claimant's attending physician, Dr. Frank Robert, arranged for him to be seen by a specialist, Dr. Laurie Moore, Jr. On October 25, 1990, Dr. Moore diagnosed that the Claimant suffered from pulmonary asbestosis. Based upon her examination of the Claimant and her review of his chart, Dr. Moore opined that the Claimant suffered a 25-30% permanent impairment of the whole per- son due to his pulmonary asbestosis. This estimate was made pursuant to the AMA Guidelines to the Evaluation of Permanent Impairment, third edition.

The Claimant filed a claim for compensation benefits pursuant to the LHWCA. The Claimant and Newport News stipulated that com- pensation benefits should be paid to him for a work-related 28% per- manent impairment pursuant to 33 U.S.C. § 908(c)(23). The parties also agreed that the Claimant was entitled to compensation of $63.37 per week, payable from the time of diagnosis forward. Neither the fact of compensation nor its amount are at issue here.

B. Section 908(f) Relief

The Longshore and Harbor Workers' Compensation Act estab- lishes a statutory workers' compensation program for employees injured in maritime work. See 33 U.S.C.§§ 901-950. Under the LHWCA's "aggravation rule," if an injury at work aggravates an employee's pre-existing disability, the employer is liable for the employee's entire resulting disability, not only the disability that would have been due to the work-related injury alone. See Newport News Shipbuilding and Dry Dock Co. v. Fishel, 694 F.2d 327, 329 (4th Cir. 1982). "If this rule stood alone, it`would create a strong dis- incentive for an employer to hire handicapped workers'" for fear of

3 having to pay for the entirety of their injuries if their pre-existing dis- abilities were to be aggravated at work. Director, OWCP v. Luccitelli, 964 F.2d 1303, 1304 (2d Cir. 1992) (quoting Director, OWCP v. Gen- eral Dynamics Corp. (Krotsis), 900 F.2d 506, 508 (2d Cir. 1990), overruled in part on other grounds by Director, OWCP v. General Dynamics Corp. (Bergeron), 982 F.2d 790, 793-95 (2d Cir. 1992)). In order to relieve employers of this disincentive, Congress enacted the special fund provision of 33 U.S.C. § 908(f).1 See Director, OWCP v. Newport News Shipbuilding and Dry Dock Co. (Langley), 676 F.2d 110, 112 (4th Cir. 1982).

Section 908(f) still requires employers to pay the entire amount of the weekly benefits to employees who are injured on the job, even if the ultimate disability is due in part to a pre-existing disability. How- ever, if the ultimate disability is "materially and substantially greater" than that which would have resulted from the work-related injury without the pre-existing condition, then the employer need only pay _________________________________________________________________ 1 Section 908(f) provides, in pertinent part:

(f) Injury increasing disability:

(1) In any case in which an employee having an existing per- manent partial disability suffers injury, the employer shall pro- vide compensation for such disability as is found to be attributable to that injury based upon the average weekly wages of the employee at the time of the injury.

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Related

Richardson v. Perales
402 U.S. 389 (Supreme Court, 1971)
Newport News Shipbuilding & Dry Dock Co. v. Fishel
694 F.2d 327 (Fourth Circuit, 1982)