Gulf Tide Stevedores, Inc. v. Voris

119 F. Supp. 708, 1953 U.S. Dist. LEXIS 4162
CourtDistrict Court, S.D. Texas
DecidedJune 18, 1953
DocketCiv. A. No. 6831
StatusPublished

This text of 119 F. Supp. 708 (Gulf Tide Stevedores, Inc. v. Voris) is published on Counsel Stack Legal Research, covering District Court, S.D. Texas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Gulf Tide Stevedores, Inc. v. Voris, 119 F. Supp. 708, 1953 U.S. Dist. LEXIS 4162 (S.D. Tex. 1953).

Opinion

CONNALLY, District Judge.

This action is one by the employer-compensation carrier (“employer” hereafter) to restrain the enforcement of a compensation award made under date of April 29, 1952, by the defendant Deputy Commissioner under the Longshoremen’s and Harbor Workers’ Act, 33 U.S.C.A. § 901 et seq. The facts are undisputed and are completely covered by a stipulation of the parties, to which I refer. The only question presented is one of interpreting certain statutory phraseology. Counsel advise me that it is a case of first impression, although it presents a situation which seemingly would have arisen many times. It well may be that the language of the statute is sufficiently clear that heretofore its interpretation has not been questioned in the courts.

On October 10,1948, M. L. Williamson died as result of a compensable injury which he received while in the employ of the plaintiff employer. He was survived by a widow and four minor children. Compensation was promptly paid to the beneficiaries by employer in the amount and to the extent provided by law.

In due course, the beneficiaries of the deceased elected to assert an action against Waterman Steamship Company as a negligent third party, and such libel was instituted in this Court. While awaiting trial, a settlement was arrived at between the parties and an agreed judgment entered here, under terms of which the minor plaintiffs recovered $13,500, which was promptly paid by the defendant Waterman. In the course of the judgment, this Court approved an attorney’s fee in the amount of $3,900 to counsel for plaintiffs, and directed that the amount of $1,742.58 be paid to the intervening compensation carrier, and that the balance be paid to the guardian of the four minor plaintiffs for their use and benefit in equal shares. No recovery was allowed the widow.

Section 933(f) of Title 33 U.S.C.A., in providing for the compensation to be paid in the event beneficiaries seek recovery against a third person, provides in part as follows:

“* * * the employer shall be required to pay as compensation under this chapter a sum equal to the excess of the amount which the Secretary determines is payable on account of such injury or death over the amount recovered against such third person.”

In making the award which is in issue here, the Deputy Commissioner has interpreted the language “the amount recovered against such third person” as though it read “the net amount recovered” or “the amount recovered less attorneys’ fees”, and has allowed the employer credit only for $9,600, rather than for $13,500.

Employer, in my opinion, is clearly right in its contention that it is entitled to credit in the amount of $13,-500, as “the amount recovered against such third person.” This is true for several reasons, as hereinafter set out.

The phraseology chosen by the Congress is singularly clear and unambiguous. The term “amount recovered” in a particular action normally means the total amount of the judgment which is awarded by the Court to the successful litigant. When to the term “amount recovered” is added “against such third person”, there could be no doubt that the amount thus referred to is that sum with which such third person was charged. I see no suggestion or inference in the statutory language that the plaintiffs’ attorney’s fee or other expense of litigation should be deducted.

In providing for the disposition of the proceeds in the event such third-party action is instituted by the em[710]*710ployer, Section 933(e) provides in substance that the employer, from “Any amount recovered by such employer” (emphasis added), shall deduct his expenses, including a reasonable attorney’s fee, etc., and shall pay the balance into a trust fund to be used as the statute thereafter provides. The fact that specific reference is made to attorneys’ fees and other expenses of litigation where the action is instituted by the employer, and omitted a few lines later in providing for action by the employee or his beneficiaries, indicates clearly that the Congress was fully cognizant of these expenses of litigation, and negatives any inference that their omission from the later section of the same Act was inadvertent or accidental. Where “amount recovered” so clearly was intended to mean “total amount recovered” in Paragraph (e) of Section 933, it cannot be construed to mean “net amount recovered” in Paragraph (f) of the same section.

Of further persuasive effect is the fact, pointed out by counsel for employer, that the Workmen’s Compensation Law of the State of New York, McKinney’s Consol. Laws, c. 67, upon which the Longshoremen’s and Harbor Workers’ Compensation Act was modeled, was given a similar interpretation upon this point by the courts of that State. In providing that, where the employee pursued and recovered from the third person, the employer was to contribute the difference between “the amount of the recovery against such other person actually collected, and the compensation provided or estimated by this chapter” (emphasis added), N.Y. Workmen’s Comp. Law, Sec. 29, Subdiv. 4, the emphasized language was construed by the New York courts to mean the gross amount of recovery actually collected, rather than the amount collected less attorneys’ fees, Curtin v. City of New York, 287 N.Y. 338, 39 N.E.2d 903, 142 A.L.R. 166, and cases there cited. Similar language in compensation acts in other states has been afforded a similar construction by local courts; in Alabama (Georgia Casualty Co. v. Haygood, 210 Ala. 56, 97 So. 87); Georgia (Keating v. Periodical Pub. Ser. Bureau, Inc., 56 Ga.App. 62, 192 S. E. 80); Iowa (Roessler v. Chain Groc. & Meat Co., Iowa, 196 N.W. 1020); Massachusetts (Meehan’s Case, 316 Mass. 522, 56 N.E.2d 23); New Jersey (Deuchar v. Standard Acc. Ins. Co., 117 N.J.L. 375, 189 A. 61); Washington (Lowry v. Department of Labor, 21 Wash.2d 538, 151 P.2d 822). In a number of these states (including New York), it is noted that the statute has been amended to provide for the exclusion of attorneys’ fees in making the calculation after the statute was so construed.

To the contrary, the Deputy Commissioner cites Southern Quarries & Contracting Co. v. Hensley, 313 Ky. 640, 232 S.W.2d 999, interpreting the Kentucky statute, and Hardware Mutual Casualty Co. v. Butler, 116 Mont. 73, 148 P.2d 563, interpreting the Montana statute. The latter authority in particular, by reason of the peculiar circumstances which prevailed at the time of its submission, is considered of little weight.

Dealing with the Longshoremen’s and Harbor Workers’ Act, the authority most analogous in point of fact is Jarka Corp. of Boston v. Monahan, D.C., 48 F.2d 283; Jarka Corp. v. Monahan 1 Cir., 62 F.2d 588. There, a surviving widow was held entitled to the maximum compensation benefits of $7,500 for the death of her husband. She elected to institute a third-party action and recovered the sum of $5,500 by compromise.

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Related

Pillsbury v. United Engineering Co.
342 U.S. 197 (Supreme Court, 1952)
Voris v. Eikel
200 F.2d 724 (Fifth Circuit, 1952)
Southern Quarries & Contracting Co. v. Hensley
232 S.W.2d 999 (Court of Appeals of Kentucky (pre-1976), 1950)
Georgia Casualty Co. v. Haygood
97 So. 87 (Supreme Court of Alabama, 1923)
Hardware Mutual Casualty Co. v. Butler
148 P.2d 563 (Montana Supreme Court, 1944)
Deuchar v. Standard Accident Insurance Co.
189 A. 61 (Supreme Court of New Jersey, 1937)
Matter of Curtin v. City of New York
39 N.E.2d 903 (New York Court of Appeals, 1942)
Lowry v. Department of Labor & Industries
151 P.2d 822 (Washington Supreme Court, 1944)
Keating v. Periodical Publishers Service Bureau Inc.
192 S.E. 80 (Court of Appeals of Georgia, 1937)
Meehan's Case
56 N.E.2d 23 (Massachusetts Supreme Judicial Court, 1944)
Jarka Corp. v. Monahan
48 F.2d 283 (D. Massachusetts, 1931)
Jarka Corp. v. Monahan
62 F.2d 588 (First Circuit, 1932)
Southern Quarries & Contracting Co. v. Hensley
232 S.W.2d 999 (Court of Appeals of Kentucky, 1950)

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Bluebook (online)
119 F. Supp. 708, 1953 U.S. Dist. LEXIS 4162, Counsel Stack Legal Research, https://law.counselstack.com/opinion/gulf-tide-stevedores-inc-v-voris-txsd-1953.