New Orleans Stevedor v. Ibos

Court of Appeals for the Fifth Circuit·Decided May 20, 2003·No. 01-60480·Published

Opinion

UNITED STATES COURT OF APPEALS FIFTH CIRCUIT

No. 01-60480

NEW ORLEANS STEVEDORES; SIGNAL MUTUAL ADMINISTRATION, LTD.,

Petitioners-Cross-Respondents, versus

PEGGY IBOS, Surviving spouse of Bertrand Ibos, Jr.;

Respondent-Cross-Petitioner,

DIRECTOR, OFFICE OF WORKERS’ COMPENSATION PROGRAMS, US DEPARTMENT OF LABOR,

Respondent.

Petition for Review of an Order of the Benefits Review Board

January 16, 2003

Before KING, Chief Judge, and JONES and EMILIO M. GARZA, Circuit Judges. EMILIO M. GARZA, Circuit Judge:

This case is on review of a judgment of the United States Department of Labor’s Benefits Review Board (the “BRB”), affirming a decision of an administrative law judge (the “ALJ”). The ALJ held that New Orleans Stevedores (“NOS”) is liable for compensation owed to Bertrand and Peggy Ibos (respectively, “Decedent” and “Claimant”) under the Longshore and Harbor Workers’

Compensation Act (the “LHWCA”),1 but is entitled to a credit against its total liability for the net amounts Claimant received by way of settlements with two of Decedent’s earlier longshore employers and their insurers.

Decedent worked for various steamship and stevedoring companies for a period spanning nearly fifty years. During the Decedent’s last three periods of employment, he worked for Valor Stevedoring Company (“Valor”), Anchor Stevedoring Company (“Anchor”), and, most recently, NOS. When Decedent experienced respiratory problems which were subsequently diagnosed as symptoms of mesothelioma caused by occupational exposure to asbestos, he stopped working and filed a claim for disability benefits under the LHWCA. Decedent died due to metastatic mesothelioma and Claimant, his widow, continued his disability claim and her own claim for survivor’s benefits, naming Valor, Anchor, and NOS as the potentially responsible employers. Following referral of the claim to the Office of Administrative Law Judges, Claimant entered into approved settlement agreements with Valor and Anchor pursuant to § 8 (I), 33 U.S.C. § 908 (I), of the LHWCA. Accordingly, Valor and Anchor, and their respective carriers, were dismissed from the present claim. Claimant did not enter into settlement agreements with NOS.

In the case against NOS, the ALJ held that, because Decedent’s last period of injurious exposure to asbestos occurred during his employment with NOS, NOS is the responsible employer under the LHWCA. The ALJ then awarded Claimant temporary total disability benefits for Decedent’s period of disability, to be followed by death benefits. Additionally, the ALJ held that NOS is entitled to a credit for the net settlement proceeds paid to Claimant by Valor and Anchor for

1 Longshore and Harbor Workers’ Compensation Act of Mar. 4, 1927, ch. 509, 44 Stat. 1424, as amended, 33 U.S.C. §§ 901-950.

the same occupational injury that is the subject of this claim.

On appeal to the BRB, NOS and its insurance carrier, Signal Mutual Administration, Ltd.

(“Signal”), challenged the ALJ’s determination that NOS is the responsible employer. In a cross- appeal, Claimant challenged the ALJ’s award of a credit to NOS for the settlement monies paid by Valor and Anchor. The BRB affirmed both the ALJ’s determination that NOS is the responsible employer and the ALJ’s decision to award a credit to NOS.

NOS and Signal now appeal the BRB’s judgment affirming the ALJ’s determination that NOS is the responsible employer. Claimant and the Director of the Office of Workers’ Compensation Programs, United States Department of Labor (the “Director”), urge affirmance of the BRB’s responsible employer determination. On cross-appeal, Claimant challenges the BRB’s judgment affirming the ALJ’s decision to grant NOS a credit for the settlements Claimant received from Valor and Anchor. NOS and Signal respond that the credit was properly awarded.

We must review two aspects of the BRB’s judgment: (1) whether the BRB misapplied the “last exposure rule,” in light of the medical-opinion testimony of record regarding the “latency period” of mesothelioma; and (2) whether, in affirming the ALJ’s decision to award NOS a credit, the BRB misapplied the general credit doctrine adopted in Strachan Shipping Co. v. Nash, 782 F.2d 513 (5th Cir. 1986) (en banc).

The BRB’s final order is subject to review in the United States Court of Appeals for the circuit in which the injury occurred. 33 U.S.C. § 921 (c). We examine the BRB’s decisions for errors of law to determine whether the BRB adhered to its scope of review. Presley v. Tinsley Maint. Serv., 529 F.2d 433, 436 (5th Cir. 1976). Our review of the BRB’s factual findings is limited to determining whether those findings are supported by substantial evidence on the record as a whole.

Tampa Ship Repair & Dry Dock Co. v. Dir., OWCP, 535 F.2d 936, 938 (5th Cir. 1976). With respect to issues of law, our review of the BRB’s rulings is de novo. Pool Co. v. Cooper, 274 F.3d 173, 177 (5th Cir. 2001).

The BRB’s views are not entitled to deference because it is not a policy-making agency.

Cooper, 274 F.3d at 177. We do, however, give deference to the Director's interpretations of the LHWCA. Id. The exact amount of deference that we owe to any given interpretation by the Director “‘will depend upon the thoroughness evident in its considerat ion, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade, if lacking power to control.’” Id. (quoting United States v. Mead Corp., 533 U.S. 218, 219, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001) (quoting Skidmore v. Swift & Co., 323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124 (1944))).

I

NOS and Signal argue that the BRB misapplied the Cardillo “last exposure rule” because it failed to conduct a proper rebuttal inquiry into the question of whether Decedent’s exposure to asbestos while employed with NOS actually caused or contributed to Decedent’s mesothelioma.2

2 In occupational disease claims involving conditions caused by the cumulative effects of exposure over long periods of time, the “last exposure rule” identifies the liable party. The Department of Labor initiated this rule administratively, and it was first accepted for LHWCA claims by the Second Circuit in Travelers Ins. Co. v. Cardillo, 225 F.2d 137, 144 (2nd Cir.1955) (involving claims for hearing loss suffered by employees exposed to injurious stimuli in their last employment), cert. denied, 350 U.S. 913, 76 S.Ct. 196, 100 L.Ed. 800 (1955). Pursuant to the Cardillo “last exposure rule”, the employer “during the last employment in which the claimant was exposed to injurious stimuli, prior to the date upo n which the claimant became aware of the fact that he was suffering from an occupational disease arising naturally out of his employment, should be liable for the full amount of the award.” Id. at 145. The rationale cited by the Second Circuit in adopting the rule was that, in light of the “present [poor] state of medical knowledge relating to these diseases,” it is an administratively superior method that avoids the complexities of apportionment. Id. at 144.

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Related

Pool Company v. Otis L Cooper
274 F.3d 173 (Fifth Circuit, 2001)
Skidmore v. Swift & Co.
323 U.S. 134 (Supreme Court, 1944)
Pope & Talbot, Inc. v. Hawn
346 U.S. 406 (Supreme Court, 1953)
United States v. Mead Corp.
533 U.S. 218 (Supreme Court, 2001)
Raymond D. Louviere v. Shell Oil Company
509 F.2d 278 (Fifth Circuit, 1975)
Brasier v. United States
350 U.S. 913 (Supreme Court, 1955)
Strachan Shipping Co. v. Nash
782 F.2d 513 (Fifth Circuit, 1986)