Kalaris v. Donovan

697 F.2d 376, 225 U.S. App. D.C. 134
CourtCourt of Appeals for the D.C. Circuit
DecidedJanuary 4, 1983
DocketNos. 82-1631, 82-1633, 82-1707 and 82-1694
StatusPublished
Cited by74 cases

This text of 697 F.2d 376 (Kalaris v. Donovan) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kalaris v. Donovan, 697 F.2d 376, 225 U.S. App. D.C. 134 (D.C. Cir. 1983).

Opinion

Opinion for the court filed by Circuit Judge J. SKELLY WRIGHT.

J. SKELLY WRIGHT, Circuit Judge:

The Department of Labor’s Benefits Review Board hears appeals from decisions of Administrative Law Judges (ALJs) concerning claims for federal workers’ compensa-^ tion brought pursuant to the Longshoremen’s and Harbor Workers’ Compensation Act of 1927, 44 Stat. 1424, as amended, 33 U.S.C. § 901 et seq. (1976 & Supp. IV 1980). The Act expressly authorizes the Secretary of Labor to appoint the three members of the Board, 33 U.S.C. § 921(b)(1) (1976), but is silent concerning the members’ tenure and the terms of their removal. Contemporaneously with creation of the Board, the Secretary promulgated regulations providing that Board members would serve indefinite terms at his discretion. 20 C.F.R. § 801.201(d) (1982). This regulation remained unchallenged for almost a decade.

In May of 1982 the Secretary attempted to remove two members of the Board without specifying his reasons or providing them with a hearing.1 The removed members brought suit in the District Court to enjoin the Secretary from removing them. The District Court awarded the re[139]*139quested injunctions. Although it found that the Board was not an Article III court and therefore that the Board members were not entitled to Article Ill’s guarantee of life tenure, the District Court held that Board members could not be removed without a showing of cause because Congress intended for the Board to have an independent and quasi-judicial status. We agree that the Board is not an Article III court. But because we find that Congress did not intend to make the Board independent of the Secretary, we reverse the District Court’s judgment enjoining the Board members’ removal. We hold to the longstanding rule that in the face of congressional silence all inferior officers of the United States serve at the discretion of their appointing officer.

I.Background

The Longshoremen’s and Harbor Workers’ Compensation Act provides workers’ compensation for certain workers not covered by state workers’ compensation schemes.2 The Act makes employers liable up to a statutory maximum for job-related injuries and deaths without regard to fault. 33 U.S.C. § 904 (1976). If a dispute regarding a claim arises, a deputy commissioner of the Department of Labor will seek to resolve it through informal means.3 20 C.F.R. § 701.311-701.319 (1982). If informal resolution is not possible, the deputy commissioner will transfer the dispute to an ALJ. 33 U.S.C. § 919(d) (1976 & Supp. IV 1980). The ALJ will conduct a formal hearing according to the Administrative Procedure Act, 5 U.S.C. §§ 500-576 (1976 & Supp. V 1981),4 and has the power to approve settlements of disability,5 to approve withdrawal of claims,6 and to issue compensation orders.7 Interested parties may file appeals from the ALJ’s decision with the Board,8 and from the Board with the appropriate Court of Appeals.9 33 U.S.C. §§ 921(b) & (c) (1976 & Supp. IV 1980).

Prior to the Act’s amendment in 1972, deputy commissioners adjudicated disputed claims—conducting hearings and receiving [140]*140evidence, 44 Stat. 1435, as well as administering the Act. Their initial decisions were then reviewable by the District Courts, with further resort, if desired, to the Courts of Appeals.10 The 1972 amendments completely overhauled the procedures necessary to obtain benefits under the Act.11 The amendments left the initial informal resolution of claims to the deputy commissioners,12 but transferred the formal adjudication of claims to the ALJs and the Board.13 The amendments thus completely eliminated the role of the District Courts in the claims process, though, of course, resort to the Courts of Appeals was maintained.

Under the new procedural scheme, the ALJs make formal findings of fact and draw conclusions of law.14 The Board, acting as a “quasi-judicial” internal appellate review mechanism,15 then considers the record developed before the ALJs and determines if their decisions are supported by substantial evidence and are in accordance with law.16 33 U.S.C. § 921(b)(3) (1976); see 20 C.F.R. § 802.301 (1982). The Board thus performs a review function identical to that which the District Courts performed prior to the 1972 amendments.17 The claims decisions, once considered by the Board, can be reviewed again by the Courts of Appeals, on petition, to determine if they are supported by substantial evidence and if they are in accordance with law.18 33 U.S.C. § 921(c) (1976). See Nat’I Steel & [141]*141Shipbuilding Co. v. Bonner, 600 F.2d 1288, 1292 (9th Cir.1979); Presley v. Tinsley Maintenance Serv., 529 F.2d 433, 436 (5th Cir.1976). Thus the Board screens cases, administers Department policy, and apparently reduces the number of cases that will be taken to the Courts of Appeals; its review function, a replacement for the District Court’s review, is duplicated in those cases that actually do advance to the Courts of Appeals.19

The Board’s members are appointed by the Secretary under the specific mandate of the Act. 33 U.S.C. § 921(b)(1) (1976).20 Julius Miller was appointed to the Board in 1974, and Ismene Kalaris was appointed in 1978. They served on the Board until April 30,1982, when the Under Secretary of Labor informed them that they were to be removed from their positions on the Board, effective May 31,1982. No reasons were given for the removals.21 No member of the Board had ever previously been involuntarily removed from office.22

In May 1982 Miller and Kalaris brought these actions for declaratory and injunctive relief.23 They argued that the Board was an Article III court and that they, as judges on an Article III court, were entitled to life tenure and could not be removed during good behavior.

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Bluebook (online)
697 F.2d 376, 225 U.S. App. D.C. 134, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kalaris-v-donovan-cadc-1983.