Ingalls Shipbuilding, Inc. v. Director, Office of Workers' Compensation Programs

117 S. Ct. 796, 10 Fla. L. Weekly Fed. S 272, 136 L. Ed. 2d 736, 519 U.S. 248, 1997 A.M.C. 913, 36 Fed. R. Serv. 3d 799, 65 U.S.L.W. 4077, 1997 U.S. LEXIS 693, 97 Daily Journal DAR 1580, 97 Cal. Daily Op. Serv. 1077
CourtSupreme Court of the United States
DecidedFebruary 18, 1997
Docket95-1081
StatusPublished
Cited by87 cases

This text of 117 S. Ct. 796 (Ingalls Shipbuilding, Inc. v. Director, Office of Workers' Compensation Programs) is published on Counsel Stack Legal Research, covering Supreme Court of the United States primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ingalls Shipbuilding, Inc. v. Director, Office of Workers' Compensation Programs, 117 S. Ct. 796, 10 Fla. L. Weekly Fed. S 272, 136 L. Ed. 2d 736, 519 U.S. 248, 1997 A.M.C. 913, 36 Fed. R. Serv. 3d 799, 65 U.S.L.W. 4077, 1997 U.S. LEXIS 693, 97 Daily Journal DAR 1580, 97 Cal. Daily Op. Serv. 1077 (U.S. 1997).

Opinions

Justice O’Connor

delivered the opinion of the Court.

Section 33 of the Longshore and Harbor Workers’ Compensation Act (LHWCA or Act), 44 Stat. 1424, as amended, 33 U. S. C. § 933, gives the “person entitled to compensation” two avenues of recovery: Such a person may seek to recover damages from the third parties ultimately at fault for any injuries and still recover compensation under the Act from the covered worker’s employer as long as the worker’s employer gives its approval before the person settles with any of the third party tortfeasors. The question we decide today is whether an injured worker’s spouse, who may be eligible to receive death benefits under the Act after the worker dies, is a “person entitled to compensation” when the spouse enters into a settlement agreement with a third party before the worker’s death. We also consider whether the Director of the Office of Workers’ Compensation Programs (OWCP) is a proper respondent in proceedings before the courts of appeals.

I

Jefferson Yates worked for Ingalls as a shipfitter at its Pascagoula shipyards in Mississippi between 1953 and 1967 and was exposed to asbestos in his workplace during this time. In March 1981, Mr. Yates was diagnosed as suffering from asbestosis, chronic bronchitis, and possible malignancy in his lungs. Less than a month later, he filed a claim for disability benefits under § 8 of the LHWCA, 33 U. S. C. § 908, asserting that his present condition resulted from his expo[252]*252sure to asbestos while employed by Ingalls. Ingalls admitted the compensability of this claim and eventually entered into a formal settlement with Mr. Yates in satisfaction of its liability under the Act. Dis-

Mr. Yates, in the trict Court against the 23 manufacturers and suppliers of asbestos whose products were allegedly present at the Pas-cagoula shipyards during the period in which Mr. Yates contracted asbestosis. Before his death in 1986, Mr. Yates entered into settlement agreements with 8 of the 23 defendants (predeath settlements). Each defendant required Maggie Yates, Mr. Yates’ wife, to join in the settlement and to release her present right to sue for loss of consortium, even though she was not a party to the litigation. Six of the eight defendants also required Mrs. Yates to release any cause of action for wrongful death that might accrue to her after her husband died. None of the third party settlements was approved by Ingalls.

After her husband’s lated resulted from asbestos exposure that occurred “in the course and scope of [his] employment,” App. to Pet. for Cert. A-59, Mrs. Yates filed a claim for death benefits as Mr. Yates’ widow under § 9 of the Act, 33 U. S. C. § 909. Ingalls contested the claim on the ground that Mrs. Yates had been a “person entitled to compensation” under the Act when she entered into the predeath settlements. Ingalls argued that by failing to obtain its approval of those settlements she forfeited, under § 33(g)(1), her eligibility for death benefits. In response, Mrs. Yates argued that she was not a “person entitled to compensation” when she entered into those settlement agreements because her husband was still alive at that time. The deputy commissioner referred the matter to an Administrative Law Judge (ALJ).

The ALJ ruled in favor of Mrs. Yates. Yates v. Ingalls Shipbuilding, Inc., 26 BRBS 174 (1992). The ALJ recognized that Mrs. Yates was no more than a “potential widow” [253]*253when she entered into the settlement agreements. App. to Pet. for Cert. A-67. Reasoning that the prerequisites for the recovery of death benefits could not be established prior to the worker’s death, he found that the “spouse of an injured employee has no cause of action [under the Act] until the injured employee dies from his work-related injury.” Id., at A-68. Because Mrs. Yates had no cause of action for death benefits prior to her husband’s death, the ALJ concluded that she was not a “person entitled to compensation” obligated to seek the employer’s approval of any settlements signed at that time.

Ingalls appealed to the Benefits Review Board. Yates v. Ingalls Shipbuilding, Inc., 28 BRBS 137 (1994). The Director, OWCP, appeared as a respondent in support of Mrs. Yates. The Board affirmed, largely in reliance upon our decision in Estate of Cowart v. Nicklos Drilling Co., 505 U. S. 469 (1992), in which we held that an injured worker was a “person entitled to compensation” for the purpose of disability benefits under § 8 of the Act at “the moment his right to recovery vested,” id., at 477, which in that case was when the worker suffered his permanent injury. The Board reasoned that Cowart’s “vesting” rationale applied to death as well as disability benefits, and observed that Mrs. Yates’ “right to death benefits under the Act could not have vested before she became a widow.” App. to Pet. for Cert. A-35 (emphasis in original). Although it might appear at the time of settlement that Mrs. Yates would likely become a “person entitled to compensation” under the Act, before her husband’s death any one of several events might occur that would prevent her from recovering any death benefits under the Act — she might predecease her husband, she might divorce her husband, or her husband might die from causes independent of his work-related injury. For these reasons, the Board held that Mrs. Yates was not a “person entitled to compensation” at the time she entered into the predeath settlements, but acknowledged that its ruling was at odds [254]*254with the decision of the Court of Appeals for the Ninth Circuit in Cretan v. Bethlehem Steel Corp., 1 F. 3d 843 (1993), cert, denied, 512 U. S. 1219 (1994).

cert, Ingalls again appealed, this time to the Court of Appeals for the Fifth Circuit. 65 F. 3d 460 (1995). Although Ingalls renewed its § 33(g) argument, the Court of Appeals rejected it for the reasons advanced by the Board. Ingalls also moved to strike the brief of the Director and to disallow the Director’s further participation in the appeal on the ground that the Director lacked standing. The Court of Appeals dismissed this argument in a footnote, citing its prior decision in Ingalls Shipbuilding Div., Litton Systems, Inc. v. White, 681 F. 2d 275, 280-284 (CA5 1982), overruled on other grounds, Newpark Shipbuilding & Repair, Inc. v. Roundtree, 723 F. 2d 399, 406-407 (CA5) (en banc), cert. denied, 469 U. S. 818 (1984), in which the court held that “the Director has standing to participate as a respondent in the appeal of a [Benefits Review Board] decision [before the Court of Appeals].” 65 F. 3d, at 463, n. 2. The court distinguished our decision in Director, Office of Workers’ Compensation Programs v. Newport News Shipbuilding & Dry Dock Co., 514 U. S. 122 (1995), as relevant- only to the question of the Director’s standing as a petitioner to the Court of Appeals, and not as a respondent. both

The Courts of Appeals are in disagreement over both questions addressed.

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117 S. Ct. 796, 10 Fla. L. Weekly Fed. S 272, 136 L. Ed. 2d 736, 519 U.S. 248, 1997 A.M.C. 913, 36 Fed. R. Serv. 3d 799, 65 U.S.L.W. 4077, 1997 U.S. LEXIS 693, 97 Daily Journal DAR 1580, 97 Cal. Daily Op. Serv. 1077, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ingalls-shipbuilding-inc-v-director-office-of-workers-compensation-scotus-1997.