In Re Claim for Compensation Under Longshore

61 F. Supp. 2d 1144
CourtDistrict Court, D. Oregon
DecidedAugust 25, 1999
Docket3-99-13-MISC-CV
StatusPublished

This text of 61 F. Supp. 2d 1144 (In Re Claim for Compensation Under Longshore) is published on Counsel Stack Legal Research, covering District Court, D. Oregon primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
In Re Claim for Compensation Under Longshore, 61 F. Supp. 2d 1144 (D. Or. 1999).

Opinion

61 F.Supp.2d 1144 (1999)

In the Matter of the Claim for COMPENSATION UNDER the LONGSHORE AND HARBOR WORKERS' COMPENSATION ACT.
John L. Zea, Claimant,
v.
West State, Inc., Cascade General & Northwest Marine Iron Works, Employers,
and
Eagle Pacific Insurance Inc., SAIF Corporation, Fireman's Fund Company & Legion Insurance Co., Carriers.

No. 3-99-13-MISC-CV.

United States District Court, D. Oregon.

August 25, 1999.

*1145 Delbert J. Brenneman, Hoffman, Hart & Wagner, Portland, OR, Karen O'Kasey, Schwabe Williamson & Wyatt, Portland, OR, for West State Inc., Eagle Pacific Ins. Inc. and Fireman's Fund Co. & Legion Ins. Co.

Floyd H. Shebley, Oregon City, OR, for John L. Zea.

OPINION AND ORDER

ROBERT E. JONES, District Judge.

John Zea, an injured employee, initiated this action under the Longshore and Harbor Workers' Compensation Act ("LHWCA"), 33 U.S.C. § 901 et seq, by filing an injury claim against Fireman's Fund Company ("FF"), the Longshore and Harborworkers' insurer for Zea's former employer West State, Inc. ("WSI"), and other employers and their insurers. Zea's claim proceeded administratively until June 1998, when an Administrative Law Judge ("ALJ") approved a settlement, which, as relevant here, awarded Zea lump sum payments of $69,250 and $5,000 against FF/WSI and Eagle Pacific Insurance Company ("EPI")/WSI, respectively.

The case is before this court on FF/WSI's and EPI/WSI's appeal from a Supplementary Order Declaring Default Pursuant to Section 14(f), entered by the District Director of the Office of Workers' Compensation Programs ("OWCP") on March 10, 1999. For the reasons stated below, I conclude that the order appealed is in accordance with law and should be enforced. Accordingly, the appeal is denied.

JURISDICTION

FF/WSI and EPI/WSI cite 33 U.S.C. § 918(a) as granting this court jurisdiction to hear the appeal. The plain language of section 918(a), however, seems to permit only the employee (i.e., the "applicant") to seek district court enforcement of a supplemental order entered pursuant to section 914(f); the statute is silent with respect *1146 to the employer's or carrier's right to initiate an appeal in district court.

On the other hand, in Providence Washington Ins. Co. v. Director, 765 F.2d 1381 (9th Cir.1985), the Ninth Circuit held that the Benefits Review Board does not have jurisdiction under section 921(b)(3) to review section 914(f) penalty orders, rather, "[r]eview of such orders is available only in an enforcement proceeding in the district court [under section 918]." 765 F.2d at 1384. Taken literally, the court's ruling effectively would preclude an employer or carrier from obtaining review of section 914(f) penalty orders in either administrative or district court proceedings.

I need not, however, resolve this procedural conundrum. In his response to the employer/carriers' appeal, claimant argues that the court should enforce the supplemental order. To the extent jurisdiction is in doubt, I will construe claimant's enforcement request as sufficient to invoke this court's jurisdiction under section 918(a). Accordingly, I turn to the merits of the parties' arguments.

FACTUAL BACKGROUND

The historical facts relevant to this appeal begin with the ALJ's approval of the settlement on June 3, 1998. On June 8, 1998, OWCP mailed the Order Approving Settlement to the parties. The certificate of filing attached to the Order listed an old and incorrect address for claimant Zea. FF received the Order on June 10, 1998, and immediately issued and mailed a check to claimant at the erroneous address. Evidently, it was not until June 24, 1998,[1] that claimant's counsel notified FF's counsel that claimant had not received the settlement check and provided claimant's current address. FF then canceled the first check and on June 26, 1998, mailed a second check to claimant at the correct address.

The correspondence between the OWCP and the parties (Exhibits B-D to Fireman's Fund's Brief on the Merits), reveals that on June 27, 1998, claimant wrote to the OWCP District Director and requested issuance of an order requiring FF/WSI and EPI/WSI to pay claimant a 20 percent penalty on the amounts owed. FF responded, explaining that it had relied on the incorrect address given by OWCP and that once FF discovered the mistake, it immediately mailed a check to the correct address.

On August 4, 1998, claimant's counsel again wrote the District Director. Among other things, counsel explained that:

Claimant admits that he did not provide his "new" address to WSI/Firemans['] Fund. However, noone [sic] from WSI/Firemans' Fund verified his address with claimant or with me prior to mailing his check to an address he had not lived at in over a year.
It was no secret he had moved; Mr. Zea was deposed by the three attorneys for the other parties to this litigation on November 24, 1997, and advised them of his new address at that time. Similarly, claimant submitted a Pretrial Statement on January 23, 1998, and this, too, advised the other three parties of his correct address.

Fireman's Fund's Brief on the Merits, Exhibit D.

On March 10, 1999, OWCP issued a Supplementary Order Declaring Default Pursuant to Section 14(f). In the order, the District Director found (in essence) that (1) pursuant to the June 8, 1998, compensation order, WSI/FF owed $69,250 and WSI/EPI owed $5,000, and (2) claimant received WSI/EPI's payment on June 26, 1998, and WSI/FF's payment on July 1, 1998. Based on those findings, the District Director made the following determination of law and declaration of default:

The Employer and Carrier's [sic] failed to pay the amount due to the claimant within ten days, and additional compensation therefore fell due under the *1147 award by operation of law pursuant to Section 14(f). Payment had to be made "within ten days" of the date the award was filed in this office * * *. Payment was not effected until that time had expired. Upon such expiration, the additional amount referred to in 14(f) became payable * * *. Although the principal amount was thereafter paid, the additional amount was not paid at the same time, and is in default.

Employer/Carrier's Notice of Appeal, Attachment.[2] Based upon that legal determination, the District Director declared statutory 20 percent penalties of $13,850 against WSI/FF, and $1,000 against WSI/EPI.[3]

STANDARD OF REVIEW

The district court's limited role in an enforcement proceeding under section 918(a) is to determine whether the challenged order was "issued in accordance with law." Providence Washington, supra, 765 F.2d at 1384; 33 U.S.C. § 918(a); see also Schmit v. ITT Federal Elec. Intern., 986 F.2d 1103, 1106 (7th Cir.1993)(confirming limited scope of district court review). This court may not consider the procedural or substantive validity of the underlying compensation order. Schmit, 986 F.2d at 1106.

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