Lee v. Boeing Company Inc

CourtCourt of Appeals for the Fourth Circuit
DecidedSeptember 5, 1997
Docket96-2399
StatusPublished

This text of Lee v. Boeing Company Inc (Lee v. Boeing Company Inc) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lee v. Boeing Company Inc, (4th Cir. 1997).

Opinion

PUBLISHED

UNITED STATES COURT OF APPEALS

FOR THE FOURTH CIRCUIT

RAYMOND LEE, Petitioner,

v.

THE BOEING COMPANY, No. 96-2399 INCORPORATED; DIRECTOR, OFFICE OF WORKERS' COMPENSATION PROGRAMS, UNITED STATES DEPARTMENT OF LABOR, Respondents.

On Petition for Review of an Order of the Benefits Review Board. (94-776)

Argued: June 5, 1997

Decided: September 5, 1997

Before HALL and MURNAGHAN, Circuit Judges, and GARBIS, United States District Judge for the District of Maryland, sitting by designation.

_________________________________________________________________

Dismissed and transferred by published opinion. Judge Murnaghan wrote the majority opinion, in which Judge Garbis joined. Judge Hall wrote a dissenting opinion.

_________________________________________________________________

COUNSEL

ARGUED: Timothy Augustus Dixon, BLUM, YUMKAS, MAIL- MAN, GUTMAN & DENICK, P.A., Baltimore, Maryland, for Peti- tioner. Michael Alan Barcott, FAULKNER, BANFIELD, DOOGAN & HOLMES, Seattle, Washington, for Respondents.

_________________________________________________________________

OPINION

MURNAGHAN, Circuit Judge:

Claimant-Appellant Raymond Lee suffered severe injuries in an automobile accident in the Kingdom of Saudi Arabia ("Saudi Arabia") in the course of his employment with United Support and Services Company ("USAS"), a Saudi Arabian company. USAS was a subcon- tractor for Appellee Boeing Middle East Limited ("Boeing"). Boeing began paying Lee monthly disability benefits pursuant to the Defense Base Act ("DBA"), 42 U.S.C.A. §§ 1651-1654 (West 1994). Lee also began receiving monthly disability benefits pursuant to the Occupa- tional Hazards Branch of the Social Insurance Laws of Saudi Arabia (the "Saudi Arabian Social Insurance Law").

Boeing later discontinued its monthly payments on the ground that it was entitled to a credit pursuant to section 3(e) of the Longshore and Harbor Workers' Compensation Act ("LHWCA"), 33 U.S.C.A. § 903(e) (West 1986), for the benefits that Lee received under the Saudi Arabian Social Insurance Law. A United States Department of Labor administrative law judge ("ALJ") concluded that Boeing was indeed entitled to a credit pursuant to section 3(e) of the LHWCA. The United States Department of Labor Benefits Review Board (the "Board") affirmed the ALJ's decision. Lee then filed a petition to review the Board's decision in the Fourth Circuit. For the reasons stated below, we conclude that we lack jurisdiction to review Lee's appeal, and we transfer the case to the District Court for the District of Maryland.

I.

Boeing was the prime contractor on the Peace Shield Program in Saudi Arabia from 1986 to 1992. The Peace Shield Program was a joint United States/Saudi Arabian defense project administered by the United States Air Force for the United States Department of Defense.

2 USAS was one of Boeing's subcontractors, and Lee worked for USAS.

Pursuant to an agreement with USAS on February 26, 1990, Boe- ing agreed to provide workers' compensation coverage pursuant to the DBA to USAS's American employees working in Saudi Arabia. Since USAS is a Saudi Arabian company, it is not obligated to pro- vide DBA benefits to its employees. The Saudi Arabian Social Insur- ance Law, however, requires USAS to pay premiums to the General Organization for Social Insurance (the "General Organization") for its employees. The General Organization is the Saudi Arabian govern- mental body that administers the Saudi Arabian Social Insurance Law. It ensures that a claimant who has sustained an employment injury receives medical care, disability benefits, and other enumerated benefits.

On March 20, 1990, Lee sustained catastrophic injuries in an auto- mobile accident in Riyadh, Saudi Arabia. The injuries left Lee totally and permanently paralyzed from the neck down. Lee remained hospi- talized in Saudi Arabia for a short period of time after the accident. Around March 30, 1990, however, Lee was transferred to a hospital in the United States. Pursuant to the DBA and section 7(a) of the LHWCA, 33 U.S.C.A. § 907 (West 1986),1 Boeing paid for all of Lee's medical care and treatment.

On November 29, 1991, a district director in the Office of Work- ers' Compensation Programs issued a compensation order in Lee's favor that directed Boeing to pay Lee $660.62 per week, subject to future adjustment, in permanent total disability benefits pursuant to the DBA and the LHWCA. On July 1, 1990, Boeing began making weekly permanent disability payments to Lee.2 _________________________________________________________________ 1 The DBA incorporates the provisions of the LHWCA except to the extent that provisions of the DBA expressly modify the LHWCA. See 42 U.S.C.A. § 1651(a). 2 Boeing paid Lee $660.62 per week from July 1, 1990 to September 30, 1990, $683 per week from October 1, 1990 to September 30, 1991, $701 per week from October 1, 1991 to September 30, 1992, and $722 per week from October 1, 1992 to February 8, 1993.

3 The Saudi Arabian General Organization refused to pay for the medical care that Lee received after he left Saudi Arabia. However, the General Organization does pay Lee $5,330.25 per month in dis- ability benefits. That monthly payment includes $3,135.60 in perma- nent total disability benefits, $1,567.80 as an allowance for the help that Lee needs to carry on his daily activities, and $626.85 as an allowance for his dependent family members.

On November 3, 1992, Boeing requested a conference with a dis- trict director in the Office of Workers' Compensation Programs. Boe- ing sought a credit, pursuant to section 3(e) of the LHWCA, for the benefits that Lee had received under the Saudi Arabian Social Insur- ance Law.3 On February 3, 1993, the district director vacated the prior compensation order in response to Boeing's request. Boeing ceased paying weekly disability benefits to Lee on February 9, 1993.

Lee requested an ALJ hearing. The parties filed cross-motions for summary decision with the ALJ and submitted a joint statement of facts with affidavits and exhibits. On January 24, 1994, the ALJ granted Boeing's motion for summary decision. The ALJ held that the DBA incorporates section 3(e) of the LHWCA and that the Saudi Arabian Social Insurance Law is a "workers' compensation law" within the meaning of section 3(e). The ALJ therefore concluded that Boeing was entitled to a credit pursuant to section 3(e) of the LHWCA for the payments that Lee received under the Saudi Arabian Social Insurance Law.

On February 23, 1994, Lee appealed the ALJ's decision to the Board. On September 12, 1996, the Board notified the parties that it deemed the ALJ's decision affirmed since the appeal had been pend- ing for over one year.4 Lee subsequently filed a petition for review in the Fourth Circuit. _________________________________________________________________ 3 Section 3(e) of the LHWCA provides as follows:

Notwithstanding any other provision of law, any amounts paid to an employee for the same injury, disability, or death for which benefits are claimed under this chapter pursuant to any other workers' compensation law . . . shall be credited against any lia- bility imposed by this chapter.

33 U.S.C.A. § 903(e). 4 The Omnibus Consolidated Rescissions and Appropriations Act of 1996, Pub. L. No. 104-134, 110 Stat. 1321, provides that appeals pending

4 II.

Boeing raises an initial jurisdictional question. It asserts that juris- diction over the instant appeals lies in the United States District Court for the District of Maryland, not in the Fourth Circuit. Boeing there- fore urges us to dismiss the appeal.

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