SAIF Corp./Oregon Ship v. Johnson

908 F.2d 1434, 1990 WL 97563
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 13, 1990
DocketNo. 89-70412
StatusPublished
Cited by29 cases

This text of 908 F.2d 1434 (SAIF Corp./Oregon Ship v. Johnson) is published on Counsel Stack Legal Research, covering Court of Appeals for the Ninth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
SAIF Corp./Oregon Ship v. Johnson, 908 F.2d 1434, 1990 WL 97563 (9th Cir. 1990).

Opinion

SCHROEDER, Circuit Judge:

This is a petition to review a decision of the Benefits Review Board in favor of the claimant in a Longshoremen’s and Harbor Workers’ Compensation Act (“LHWCA”) proceeding. The claimant was unquestionably exposed to asbestos in 1942 while constructing ships for petitioner Oregon Shipbuilding Corporation (“Oregon”). The exposure occurred while he worked on a ship building way. Saif Corporation (“Saif”), also a petitioner here, is Oregon’s workers’ compensation carrier. The asbestosis was manifest in 1980 when it disabled the claimant, and the Board awarded the claimant 40% disability benefits.

We must decide three principal issues. The first is whether the Board correctly held that the law as it existed prior to 1972 covered work done on a building way, which is a structure used to construct new ships. The statute as it read in 1942, provided coverage only if the disability resulted from an injury occurring “upon the navigable waters of the United States (including any dry dock).” LHWCA, ch. 509, § 3, 44 Stat. 1426 (1927) (current version at 33 U.S.C. § 903 (Supp. V 1987)). Because a building way is not located on navigable waters, and is not in the nature of a dry dock, we hold that the Board did err in holding that the pre-1972 law covered work done on a building way. See O’Leary v. Puget Sound Bridge & Dry Dock, 349 F.2d 571 (9th Cir.1965).

The Act was amended in 1976, however, to provide coverage for persons working on building ways, and we therefore consider the claimant’s alternative contention that it is the post-amendment law that applies. We hold that the 1976 amendment does apply under the rationale of Todd Shipyards Corp. v. Black, 717 F.2d 1280 (9th Cir.1983), cert. denied, 466 U.S. 937, 104 S.Ct. 1910, 80 L.Ed.2d 459 (1984), which holds that the “time of injury” in a related section of the same statute must be measured as of the time the asbestosis manifested itself by disabling the claimant and not the time of last exposure to asbestos.

Petitioners also challenge the Board’s invocation of the “aggravation rule” to award damages to Johnson based upon the totality of his disability, even though some was due to his long-term cigarette habit. We affirm the award.

Facts

Grover Johnson, the claimant here, worked as a brick mason helper for his employer, Oregon, from December 8, 1941 through the middle of 1942. Johnson was employed to help construct new ships on [1436]*1436building ways near the Willamette River. There he was exposed to airborne asbestos fibers.

After working for Oregon Shipbuilding Corporation, Johnson worked briefly for another shipbuilder, went into the military, and following his service, worked as a meat cutter until his retirement in October 1979. Johnson’s only exposure to asbestos occurred with Oregon.

Johnson is also a smoker, having begun at the age of 13 in 1933. In April 1979, Johnson contracted pneumonia and was treated by a pulmonary specialist, Dr. Burke. At this time, in 1979, testing revealed a moderate obstructive defect and a mild restrictive defect. The obstructive defect was due to Johnson’s cigarette smoking, and the restrictive defect was diagnosed as due to asbestosis. Sometime after October 13, 1980, Johnson became disabled as a result of the combination of these defects.

Johnson brought this claim which was heard by an AU who rendered an opinion on September 4, 1986. The Board upheld this decision, applying pre-1972 law to conclude that Johnson’s work for Oregon was compensable and that Johnson suffered 40% permanent disability. The Board upheld the ALJ’s award for the entire impairment regardless of the effect of the smoking. This award was based upon the “aggravation rule” which holds that “if the employment-related injury combines with, contributes to or aggravates a pre-existing or underlying condition, the entire disability is compensable and the relative contributions are not weighed.” Wheatley v. Adler, 407 F.2d 307 (D.C.Cir.1968); Independent Stevedore Co. v. O’Leary, 357 F.2d 812 (9th Cir.1966).

Coverage Under Pre-1976 Law

It is undisputed that Johnson’s work for Oregon occurred on building ways. Building ways are permanent shipyard structures which are located entirely on land and are designed and used exclusively for new ship construction. After construction on a ship is completed, blocks holding the ship in place are removed and the ship slides down wooden beams which extend into the water. Once launched, a ship cannot be returned to the building way.

Before the Longshoremen and Harbor Workers Act was amended in 1976, section 3(a) provided coverage “only if the disability ... results from an injury occurring upon the navigable waters of the United States (including any dry dock).... ” LHWCA, ch. 509, § 3, 44 Stat. 1426 (1927). In O’Leary v. Puget Sound Bridge & Dry Dock, 349 F.2d 571 (9th Cir.1965), this court held that injuries arising on building ways were not covered under the Act as it then was written.

In O’Leary, the claimant was injured when a piece of lumber struck him as he was working on a building way. Since he was not injured upon the navigable waters of the United States, he was forced to argue that a building way was a type of dry dock included within the Act. This court disagreed. Building ways, we held, have traditionally been distinguished from the three types of dry docks: floating dry docks, graving docks and marine railways. Id. at 573; see Avondale Marine Ways v. Henderson, 346 U.S. 366, 74 S.Ct. 100, 98 L.Ed. 77 (1953) (marine railway included in definition of dry dock). We pointed out that the distinction between dry docks and building ways was a traditional one and there was “nothing in the legislative history of the Act to indicate that the Congress intended to include a building way on which a new ship was under construction within the meaning of the phrase ‘any dry dock.’ ” Id. at 573-74.

In its decision in this case, the Board followed its own cases holding that work on land-based building ways is work on a “dry dock” pursuant to section 3(a) of the pre-1972 amendment Act. The Board rejected the applicability of O’Leary, holding that it had been overruled sub silentio by the Supreme Court’s opinion in Calbeck v. Travellers’ Insurance Co., 370 U.S. 114, 82 S.Ct. 1196, 8 L.Ed.2d 368 (1962). Saif and the Director of the Office of Workers’ Compensation Programs argue that the Board misread the applicable cases.

The issue is whether the Supreme Court’s decision in Calbeck effectively [1437]*1437overruled our decision in O’Leary. In Calbeck, the two employees who sued under the Act had both indisputably been injured upon navigable waters.

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Cite This Page — Counsel Stack

Bluebook (online)
908 F.2d 1434, 1990 WL 97563, Counsel Stack Legal Research, https://law.counselstack.com/opinion/saif-corporegon-ship-v-johnson-ca9-1990.