Gulf & Western Industries v. Ling

176 F.3d 226, 1999 WL 149851
Court of Appeals for the Fourth Circuit·Decided March 19, 1999·No. 97-2107·Published·Cited by 8 cases

Opinion

Petition for review granted and claim remanded by published opinion. Judge KING wrote the opinion, in which Judge NIEMEYER and Senior Judge MICHAEL joined.

OPINION

KING, Circuit Judge:

Gulf & Western Industries and its workers’ compensation liability insurer, Old Republic Insurance Co., petition for review of the final Decision and Order of the Benefits Review Board (BRB) directing the payment of medical benefits to the respondent, George Ling, Jr., a former coal miner, for the treatment of certain -maladies said to be related to his coal workers’ pneumoconiosis. 1 The BRB subsequently issued an order denying the petitioners’ motion for reconsideration, from which review is also sought.

We conclude that the BRB applied our precedent in a manner inconsistent with prevailing Supreme Court authority. We therefore grant the petition for review and remand the claim for further consideration.

I.

A.

On September 25, 1973, Mr. Ling, then 46, filed a claim with the Department of Labor (DOL) for federal black lung disability benefits. Inasmuch as Mr. Ling had last been employed by a subsidiary of Gulf & Western, the latter was determined to be the operator responsible for any benefit award. 2

The claim was heard before an Administrative Law Judge, who, on April 19, 1983, issued a Decision and Order awarding Mr. Ling disability benefits. In accordance with the eligibility requirements of the Black Lung Benefits Act (BLBA or “Act”), 30 U.S.C. §§ 901 to 945, and the applicable regulations, the ALJ found that: (1) Mr. Ling suffered from pneumoconiosis; (2) the affliction arose from his coal mine employment; (3) he was no longer able to perform his previous work; and (4) his disability was due, at least in part, to the pneumoconiosis. 3

Gulf & Western and Old Republic filed an appeal of the ALJ’s decision with the BRB, but they ultimately opted to forgo administrative review. On December 5, 1983, the BRB granted the petitioners’ motion to dismiss their appeal with prejudice. Old Republic began disbursing disability benefits to Mr. Ling, who continues to receive them today.

*229 B.

In July 1989, Mr. Ling was admitted to the hospital for three days, suffering from shortness of breath, coughing, and wheezing. He was treated with steroids, antibiotics, and bronchodilators by Dr. John J. White, who noted that Mr. Ling’s condition was likely caused by an “acute exacerbation” of chronic obstructive pulmonary disease (COPD), and by pneumoconiosis. The hospital submitted the bill for Mr. Ling’s treatment to Old Republic for payment. 4 Old Republic denied coverage, maintaining that Ling’s pneumoconiosis, standing alone, was not of sufficient severity to have engendered a medical condition requiring such extensive treatment. 5

About five months later, in December 1989, Mr. Ling was hospitalized for a second time. He exhibited many of the same symptoms for which he had been admitted in July, but to a somewhat more pronounced extent. Dr. White again treated Mr. Ling, diagnosing an “acute exacerbation of coalminer’s pneumoconiosis.” The hospital submitted the bill for Mr. Ling’s five-day stay to Old Republic, which again denied coverage.

Mr. Ling asked the DOL to intervene. A claims examiner referred the matter to an independent medical consultant, Dr. Leon Cander, who opined that the petitioners were liable for the hospital bills. The DOL thus directed Old Republic to provide payment. Gulf & Western and Old Republic contested their liability and requested a hearing; they submitted reports from three experts in support of their position.

Dr. Kirk E. Hippensteel examined Mr. Ling and concluded that his poor pulmonary condition was the result of an “obstructive” impairment, ie., COPD, indicating causation by cigarette smoking, rather than clinical pneumoconiosis, which, Hip-pensteel asserted, produces a “restrictive” impairment. 6 Dr. Gregory J. Fino and Dr. Benjamin V. Branscomb reviewed Mr. *230 Ling’s records, and they concurred with Hippensteel. Each stated his belief that Mr. Ling’s condition would have been the same had he never worked in the mines.

Dr. White disagreed. In a letter to the ALJ, he expressed his opinion that the documented level of Mr. Ling’s obstructive impairment could not solely account for the severity of his shortness of breath.

A hearing was conducted before an ALJ, who issued a Decision and Order on January 11, 1995, directing Gulf & Western and Old Republic to pay the outstanding hospital bills and provide future payment for “any and all medical treatment related to [Mr. Ling’s] breathing difficulties.” In so ruling, the ALJ concluded that the regulations were broad enough to encompass COPD as an “ancillary” condition to pneu-moconiosis. 7 The ALJ found the opinions submitted by the petitioners’ experts to be unpersuasive to the extent that they failed to acknowledge that pneumoconiosis and COPD manifest themselves in the same outward symptoms. 8

Gulf & Western and Old Republic filed an administrative appeal of the Decision and Order. On February 21, 1997, the BRB affirmed the ALJ’s ruling on the strength of our opinion in Doris Coal Co. v. Director, OWCP, 938 F.2d 492 (4th Cir.1991). A subsequent motion for reconsideration was denied by the BRB on June 25, 1997. Gulf & Western and Old Republic now petition us for review of the BRB’s dispositive orders.

II.

In accordance with the established principles governing judicial oversight of actions undertaken by federal administrative agencies, our review of this matter is confined to the grounds actually invoked by the DOL in support of its decision. SEC v. Chenery Corp., 318 U.S. 80, 95, 63 S.Ct. 454, 87 L.Ed. 626 (1943) (“an administrative order cannot be upheld unless the grounds upon which the agency acted in exercising its powers were those upon which its action can be sustained”). To ascertain the bases underlying the DOL’s exercise of its power, we look exclusively to the grounds relied upon by the BRB, the highest administrative tribunal. See 33 U.S.C. § 921(c) (jurisdiction of the courts of appeals limited to reviewing final orders of the BRB). 9

*231 We must therefore examine whether the BRB, in affirming the ALJ’s award of medical benefits to Mr.

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