Newport News Shipbuilding and Dry Dock Company v. Larry D. Ward Director, Office of Workers' Compensation Programs, United States Department of Labor

326 F.3d 434, 2003 WL 1871049
CourtCourt of Appeals for the Fourth Circuit
DecidedApril 10, 2003
Docket00-1978
StatusPublished
Cited by5 cases

This text of 326 F.3d 434 (Newport News Shipbuilding and Dry Dock Company v. Larry D. Ward Director, Office of Workers' Compensation Programs, United States Department of Labor) 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
Newport News Shipbuilding and Dry Dock Company v. Larry D. Ward Director, Office of Workers' Compensation Programs, United States Department of Labor, 326 F.3d 434, 2003 WL 1871049 (4th Cir. 2003).

Opinions

[436]*436Petition for review denied by published opinion. Judge KING wrote the opinion, in which Chief Judge FABER joined. Judge WIDENER wrote a dissenting opinion.

OPINION

KING, Circuit Judge:

Larry Ward twice injured his back while at work, once in 1987 and again in 1989. He receives “permanent partial disability” benefits from his employer, Newport News Shipbuilding & Dry Dock Company (“Newport News”), pursuant to §§ 4 and 8(c)(21) of the Longshore and Harbor Workers’ Compensation Act (the “Act” or “LHWCA”).1 In 1997, Newport News filed a claim for relief under § 8(f) of the Act with the Director of the Office of Workers’ Compensation Programs (the “Director”). Pursuant to § 8(f), an employer’s duty to pay benefits is limited to a two-year period, if the employer can establish that an employee’s work-related injury was made “materially and substantially greater” by a pre-existing disability. 33 U.S.C. § 908(f).

On July 1, 1999, an Administrative Law Judge of the Department of Labor (the “ALJ”) denied Newport News’s request for § 8(f) relief. Ward v. Newport News Skipbldg. & Dry Dock Co., 97-LHC-2140, Decision and Order Awarding Benefits and Denying 8(f) Relief (July 1, 1999) (the “ALJ Decision”). On July 11, 2000, the Department of Labor’s Benefits Review Board (the “BRB”) affirmed the ALJ Decision. Ward v. Newport News Skipbldg. & Dry Dock Co., 99-1054, Decision and Order (July 11, 2000) (the “BRB Decision”). Newport News has now petitioned for our review, pursuant to § 21(c) of the Act, asserting that the BRB Decision is in error. As explained below, we deny the petition for review.

I.

A.

On December 11, 1987, Ward, a welder employed by Newport News in the shipyards of eastern Virginia, herniated the L4-L5 disc in his back (the “1987 Injury”). On March 31, 1988, Ward underwent back surgery to repair the 1987 Injury. In September of that year, Ward returned to work at Newport News with work restrictions, and he performed light duty work for approximately two months. Ward was again unable to work from November 23, 1988, until May 15, 1989, at which point he again returned to light duty work at the ship-yards.

While at work a month later, however, on June 16, 1989, Ward again injured his back while pulling on heavy welding lines (the “1989 Injury”). On this occasion, Ward herniated an entirely different disc in his back, the L5-S1 disc. The 1989 Injury required Ward to undergo, on August 8, 1989, another surgical procedure. Although Ward was only partially disabled after his second back surgery, he was unable to find work with Newport News that he could adequately perform. Consequently, he sought disability benefits under the Act. Newport News initially agreed to pay benefits to Ward, but it later sought § 8(f) relief from its obligation to compensate Ward for his disability.2

[437]*437After Newport News filed its claim for § 8(f) relief on May 1,1997, the claim was referred to the ALJ for disposition. During proceedings before the ALJ, the parties agreed to stipulate certain relevant facts, and neither Ward nor the Director presented any evidence. As explained below, Newport News presented evidence to the ALJ from two physicians, Dr. Reid and Dr. Garner, both of whom had treated Ward’s back injuries.

B.

Before seeking § 8(f) relief, Newport News requested a report from Dr. Reid, the Newport News company physician who had treated both of Ward’s back injuries. On May 1, 1997, the day Newport News filed for § 8(f) relief, Dr. Reid detailed his views regarding Ward’s disability in a two-page letter to Newport News, to which he attached six supporting exhibits (collectively, the “1997 Reid Report”). Newport News then submitted the 1997 Reid Report to the ALJ in support of its claim for § 8(f) relief.

In the 1997 Reid Report, Dr. Reid asserted, inter alia, that:

• “Mr. Ward’s disability is not caused by his December 11, 1987 back injury alone, but rather his disability is materially contributed to, and made materially and substantially worse by his aggravation injury on June 16, 1989”;
• “Neither the 1987 injury, nor the 1989 injury, alone would have disabled Mr. Ward from performing light duty Shipyard work”;
• “[If Ward had] a normal back when he suffered the 1989 injury, he ... would have been able to return to light duty Shipyard work”; and
• “[T]he combination of the two injuries and two surgeries, and their cumulative effect, have disabled Mr. Ward from even light duty Shipyard work.”

Within the exhibits in the 1997 Reid Report were three work restriction reports of Dr. Reid, plus a letter and two office mem-oranda of Dr. Garner. These materials had been prepared during the course of Ward’s treatment and surgeries.

Newport News thereafter submitted additional evidence to the ALJ from Dr. Garner, who had performed the 1988 and 1989 back surgeries. On January 7, 1999, Newport News forwarded the 1997 Reid Report to Dr. Garner, accompanied by a transmittal letter (the “Transmittal Letter”). The Transmittal Letter provided Dr. Garner the option of indicating whether he “agree[d] with Dr. Reid’s opinion as expressed in his May 1, 1997 Report concerning Mr. Ward.” Dr. Garner indicated his agreement with the 1997 Reid Report by signing and dating the Transmittal Letter on March 22, 1999, without further explanation, and then returning it to Newport News. In further support of its § 8(f) claim, Newport News submitted to the ALJ a November 7, 1990, memorandum of Dr. Garner, relating to Ward’s 1989 Injury.

C.

After analyzing the available evidence, particularly the 1997 Reid Report and the Transmittal Letter, the ALJ determined that Newport News was not entitled to § 8(f) relief. Specifically, the ALJ concluded that Newport News had failed to [438]*438quantify the portion of Ward’s disability that was due to his 1989 Injury alone. In reaching this conclusion, the ALJ decided that the opinions of Drs. Reid and Garner failed to justify an award of § 8(f) relief to Newport News because they lacked sufficient credibility and failed to provide the ALJ with an opportunity to “examine the logic” and “evaluate the evidence” upon which the opinions were based. ALJ Decision at 6. In fact, the ALJ found that “with the limited evidence provided by the Employer,” it was “impossible” to make an appropriate determination under the controlling standard enunciated in Director; OWCP v. Newport News Shipbuilding & Dry Dock Co. (Carmines), 138 F.3d 134, 140 (4th Cir.1998). ALJ Decision at 7. Consequently, the ALJ denied § 8(f) relief.

Newport News appealed the ALJ Decision to the BRB. On July 11, 2000, the BRB ruled that substantial evidence supported the ALJ’s conclusion that Newport News had failed to prove its entitlement to § 8(f) relief. The BRB agreed that Newport News “did not quantify [the] disability due to the June 1989 injury alone.” BRB Decision at 4. In so ruling, the BRB concluded, as had the ALJ, that the evidence offered by Newport News failed to enable the ALJ to “examine the logic” and “evaluate the evidence” of the 1997 Reid Report.

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