Prolerized New England Co. v. Benefits Review Board

637 F.2d 30, 1981 A.M.C. 2799
CourtCourt of Appeals for the First Circuit
DecidedDecember 23, 1980
DocketNo. 80-1086
StatusPublished
Cited by19 cases

This text of 637 F.2d 30 (Prolerized New England Co. v. Benefits Review Board) is published on Counsel Stack Legal Research, covering Court of Appeals for the First Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prolerized New England Co. v. Benefits Review Board, 637 F.2d 30, 1981 A.M.C. 2799 (1st Cir. 1980).

Opinion

COFFIN, Chief Judge.

Prolerized New England Company and its compensation carrier petition for review of a decision of the Benefits Review Board, awarding claimant Richard F. McNeil disability benefits under the Longshoremen’s and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 901-50 (LHWCA or the Act). McNeil became totally disabled as a result of injuries suffered in a fal1 while employed at Prolerized. The Board based its award on the necessary twin findings that McNeil was engaged in “maritime employment” and that the situs of his injury was an area adjoining navigable waters used in loading vessels. Petitioners contest the award, arguing that McNeil failed to satisfy either branch of the Act’s dual status-situs test of coverage, and object to the Board’s assessment of a penalty against Prolerized under § 14(e) of the Act.

Facts and Prior Proceedings

Prolerized operates a scrap metal business in Everett, Massachusetts alongside the Mystic River. The facility has its own shiploading equipment and dock from which Prolerized workers load the great bulk of the company’s product onto ships. Prolerized buys scrap metal in the form of junked cars, old railroad rails and other items, and processes it in one of two ways, depending upon the type of material. Approximately 60 percent of the scrap is reprocessed in the “Prolo Mill” which separates ferrous metal from other materials such as plastic, glass and non-ferrous metals. This unusual process, named “prolerization” after its inventor, uses a high-speed 55-ton hammer-and-wheel assembly to break up automobiles and large appliances into fist-sized chunks in a few seconds. Magnets extract the ferrous metal while other mill machinery separates and washes non-ferrous metals such as brass, aluminum and copper, and removes the residue. The incoming scrap is fed into the mill by an eight-foot wide conveyor known as the “8-Y” conveyor. The processed steel, called “prolo steel”, is transported by another conveyor to stockpiles in the yard where it awaits shipment.

The other 40 percent of the scrap purchased by the company, consisting of thickness grades No. 1 and 2 steel, is not prolerized, but goes instead to the “Shear”, located on Proleriz'ed’s property several hundred feet away from the Prolo Mill. Like the Prolo Mill, the Shear is a gargantuan piece of machinery, but its more simple function is to cut scrap steel into short lengths, four feet long or less. After being cut, the steel is stockpiled and eventually moved by truck to the dock where it is loaded onto ships. Almost all of the end product of both processes is shipped from the dock at the Prolerized facility.1 Ships arrive on an average of once a month and are ordinarily loaded in two to three days.

The claimant, McNeil, had worked at Prolerized as a maintenance man for two and one half years before he was injured. The Administrative Law Judge (ALJ) found that his duties involved the maintenance and repair of “all company equipment”, and that he had in fact worked on all of the equipment at the facility, including the Shear, Prolo Mill and shiploading equipment. The ALJ also found that McNeil was required “on occasion” to go aboard ship and assist directly in loading or repair loading equipment that had broken down during the loading process. More important in the ALJ’s estimation, however, was his finding that McNeil was not classified [34]*34as a “shiploader”. The shiploader crew was a separate group of Prolerized employees paid at a slightly higher rate than McNeil. Their regular duties were to perform loading operations and, when not loading a ship, to maintain the loading equipment. Thus, the ALJ found that McNeil’s regular duties did not require him to go aboard ship unless the shiploaders were shorthanded or some piece of loading equipment needed repair during a loading operation.

At the time of his injury, McNeil had been assigned to the night shift for “several” months. There was no ship at the Prolerized dock and had been none for at least two months. On the evening of August 21, 1975 McNeil reported for work and was assigned to replace wheels and pins on the 8-Y conveyor leading to the Prolo Mill. While working there he fell 15 feet from the apron of the conveyor to the ground, seriously injuring his shoulder, arm and hand.

Based on these facts the ALJ decided that McNeil was not engaged in “maritime employment” within the meaning of 33 U.S.C. § 902(3). He concluded that McNeil’s employment at the time of his injury was completely unrelated to the loading of any vessel for two reasons. First, he viewed the Prolo Mill as a distinct manufacturing process rather than part of the overall loading operation. Since repair and maintenance of shiploading equipment was the responsibility of the shiploader crew when not loading a ship, and no ships had been loaded for two months, the ALJ determined that McNeil’s maintenance duties had been confined to the manufacturing end of Prolerized’s operation “for a substantial period of time” before the accident. Second, the ALJ rejected McNeil’s “implicit” contention that because he had occasionally worked aboard ship, all of his activities were transformed into maritime employment. The AU distinguished and questioned the continued viability of an earlier Board precedent, Shoemaker v. Schiavone & Sons, Inc., 2 B.R.B.S. 257 (1975), that upheld coverage for an employee injured while operating a shearer machine which, like the Prolerized Shear, cut scrap metal destined for export. The AU suggested that McNeil’s relation to waterborne transportation at the time of his injury was more remote than the claimant’s in Shoemaker and that, in any event, the Board had later retreated from Shoemaker. Finally, without explanation, the AU concluded that McNeil’s injury had not occurred on a covered situs as described in § 3(a) of the Act, 33 U.S.C. § 903(a).

The Board reversed the ALJ’s decision as unsupported by substantial evidence and erroneous as a matter of law. The AU’s major legal error, according to the Board, was in applying a strict “moment of injury” test which looked only to the particular task performed by the claimant at the time of injury. The moment of injury test was rejected by this court in Stockman v. John T. Clark & Son of Boston, Inc., 539 F.2d 264 (1st Cir. 1976), cert. denied, 433 U.S. 908, 97 S.Ct. 2972, 53 L.Ed.2d 1092 (1977); and by the Supreme Court in Northeast Marine Terminal Co. v. Caputo, 432 U.S. 249, 97 S.Ct. 2348, 53 L.Ed.2d 320 (1977). The Board evaluated the AU’s findings with regard to McNeil’s duties and determined that his responsibilities were “an integral part of the loading process”. Crucial to the Board’s conclusion was its finding, based on McNeil’s testimony, that the purpose of cutting scrap to four foot lengths in the Shear was to fit the steel into the holds of the ships. Cumulating all of McNeil’s loading-related activities including actual loading, repair of loading equipment and operation and maintenance of the Shear, the Board concluded that McNeil was engaged in maritime employment when injured.

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Cite This Page — Counsel Stack

Bluebook (online)
637 F.2d 30, 1981 A.M.C. 2799, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prolerized-new-england-co-v-benefits-review-board-ca1-1980.