Sea-Land Service, Inc. v. Workers' Compensation Appeals Board

925 P.2d 1309, 96 Cal. Daily Op. Serv. 8649, 14 Cal. 4th 76, 61 Cal. Comp. Cases 1360, 58 Cal. Rptr. 2d 190, 1996 Cal. LEXIS 6325, 96 Daily Journal DAR 14399
CourtCalifornia Supreme Court
DecidedDecember 2, 1996
DocketS042327
StatusPublished
Cited by16 cases

This text of 925 P.2d 1309 (Sea-Land Service, Inc. v. Workers' Compensation Appeals Board) is published on Counsel Stack Legal Research, covering California Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Sea-Land Service, Inc. v. Workers' Compensation Appeals Board, 925 P.2d 1309, 96 Cal. Daily Op. Serv. 8649, 14 Cal. 4th 76, 61 Cal. Comp. Cases 1360, 58 Cal. Rptr. 2d 190, 1996 Cal. LEXIS 6325, 96 Daily Journal DAR 14399 (Cal. 1996).

Opinions

Opinion

BAXTER, J.

When a maritime employee suffers an industrial injury that falls within the concurrent jurisdiction of the Longshore and Harbor Workers’ Compensation Act (LHWCA) (33 U.S.C. § 901 et seq.) and the California Workers’ Compensation Act (Lab. Code, § 3200 et seq.),1 must the total amount of disability benefits paid to the employee under the LHWCA be credited against the total amount of disability benefits awarded under the California act, or may credit for LHWCA benefits be determined by comparing the amount paid or awarded in each specific category of benefits under each act?

We conclude that credit for LHWCA disability benefits must be calculated based upon a comparison of the total disability benefit payments and awards under each act, regardless of category. Accordingly, the contrary judgment of the Court of Appeal is reversed and the matter is remanded for further proceedings consistent with this opinion.

I. Factual and Procedural Background

The facts are not disputed. Sea-Land Service, Inc. (Sea-Land) employed Chris A. Lopez (Lopez) as a maritime warehouse worker. On July 15, 1985, Lopez suffered an industrial injury to his shoulder while working for Sea-Land.

The parties stipulated that Lopez’s injury fell within the concurrent jurisdiction of the California Workers’ Compensation Act and the federal LHWCA. Sea-Land, permissibly self-insured, provided all medical care and paid temporary disability indemnity to Lopez under the LHWCA. These temporary disability payments totaled $25,457, which was $9,617 more than the $15,840 in temporary disability indemnity to which Lopez was entitled [81]*81under the California act.2 After a formal hearing and order, a federal administrative law judge awarded unscheduled wage loss permanent disability benefits of $7,041 to Lopez under the LHWCA. Although Sea-Land paid the $7,041 in federal permanent disability benefits to Lopez, this award was later reversed on appeal.

Subsequently, the California Workers’ Compensation Appeals Board (WCAB) awarded Lopez scheduled permanent partial disability indemnity of $9,020. Even though the maximum amount of temporary disability benefits available to Lopez under the LHWCA ($25,457) exceeded the total combined amount of temporary and permanent disability benefits available to him under the California act ($24,860), Lopez claimed that, in addition to the federal temporary disability benefits, he was entitled to state permanent disability benefits because no such benefits were allowed under the LHWCA.

In order to reconcile the state award and the prior federal disability payments, Lopez conceded before the WCAB that Sea-Land was entitled to a credit for all payments made under the LHWCA for benefits of the same category (category-by-category credit). In this regard, Lopez agreed that, because federal temporary disability benefits were higher than California would have allowed, he was not entitled to any additional temporary disability payments under state law. Also, Lopez agreed that Sea-Land was entitled to a credit against his state permanent disability indemnity award for the $7,041 in federal permanent disability payments Sea-Land made before the federal award was reversed. Lopez objected, however, to Sea-Land’s petition for credit of its excess federal temporary disability payments of $9,617 against its remaining liability for $1,979 for state permanent disability benefits.3

A workers’ compensation judge accepted Lopez’s concessions that federal temporary disability should be credited against state temporary disability and that federal permanent disability should be credited against state permanent disability. The judge, however, denied Sea-Land’s petition for credit of the [82]*82excess federal temporary disability against state permanent disability and awarded $1,979 to Lopez. The WCAB denied reconsideration of the judge’s determination, and the Court of Appeal summarily denied Sea-Land’s petition for writ of review. After this court granted Sea-Land’s petition for review and transferred the matter to the Court of Appeal with instructions to vacate the summary denial and grant the writ of review, the Court of Appeal concluded in a split decision that the WCAB properly granted category-by-category credit of Sea-Land’s federal temporary and permanent disability payments. We granted Sea-Land’s petition for review.

II. Discussion

“A basic premise of compensation law is that there shall be but a single recovery of benefits on account of a single injury or disability; to permit a double recovery would be to place a double burden on industry and encourage malingering; the right to recovery of compensation from more than one source is subject to the rule that a credit shall be allowed against an award for any payment to the extent that it permits a double recovery.” (Raischell & Cottrell, Inc. v. Workmen’s Comp. App. Bd. (1967) 249 Cal.App.2d 991, 997 [58 Cal.Rptr. 159].)

In this case, the parties agree on the general proposition that, when an injury falls within the concurrent jurisdiction of the LHWCA and the California Workers’ Compensation Act, the injured worker may not obtain a “double recovery” of disability benefits. They also agree it is appropriate to credit benefit payments made by an employer pursuant to the LHWCA against an award for the same injury under the California act to prevent such double recovery.

Notwithstanding their evident accord on the above points, the parties are in sharp disagreement over what method of crediting must be applied to LHWCA disability payments where benefits are later sought under the California act. As indicated above, Sea-Land argues it should be given dollar-for-dollar or full economic credit of its excess federal temporary disability payments against its remaining liability for state permanent disability indemnity. (See fn. 3, ante.) As the former amount exceeds the latter in this case, Sea-Land reasons it should not have to pay additional amounts for state permanent disability indemnity. Conversely, Lopez argues that credit for payments under the LHWCA should be determined on a category-by-category basis rather than by comparing the total payments or awards made under each act. Lopez claims that since permanent disability benefits are not available under the LHWCA in his case, no credit is applicable under [83]*83the California act and, therefore, he is entitled to receive state permanent disability benefits in addition to the temporary disability benefits he received under the LHWCA.

The difference in the two crediting systems essentially boils down to this: Under the category-by-category credit system advanced by Lopez, an employee’s final recovery of state and federal disability benefits for an injury could exceed that available under either the LHWCA or the California act alone. Under the dollar-for-dollar credit system supported by Sea-Land, an injured employee’s final recovery would be limited to the higher available recovery under one act or the other. Mindful of this difference, we begin our analysis.

The LHWCA “establishes a comprehensive federal workers’ compensation program that provides longshoremen and their families with medical, disability, and survivor benefits for work-related injuries and death.” (Howlett v. Birkdale Shipping Co.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Shirvanyan v. Los Angeles Community College etc.
California Court of Appeal, 2020
Hopkins v. Kedzierski
225 Cal. App. 4th 736 (California Court of Appeal, 2014)
Minish v. Hanuman Fellowship
214 Cal. App. 4th 437 (California Court of Appeal, 2013)
Brooks v. Workers' Compensation Appeals Board
75 Cal. Rptr. 3d 277 (California Court of Appeal, 2008)
Gamble v. Workers' Compensation Appeals Board
49 Cal. Rptr. 3d 36 (California Court of Appeal, 2006)
Ermocida v. Destination Resorts Hawaii, Inc.
126 P.3d 415 (Hawaii Intermediate Court of Appeals, 2005)
Farmer Brothers Coffee v. Workers' Compensation Appeals Board
35 Cal. Rptr. 3d 23 (California Court of Appeal, 2005)
Hughes v. Argonaut Insurance Company
105 Cal. Rptr. 2d 877 (California Court of Appeal, 2001)
Del Taco v. Worker's Compensation Appeals Bd.
94 Cal. Rptr. 2d 825 (California Court of Appeal, 2000)
Gapusan v. Jay
78 Cal. Rptr. 2d 250 (California Court of Appeal, 1998)
Christian v. Workers' Compensation Appeals Board
936 P.2d 115 (California Supreme Court, 1997)
Sea-Land Service, Inc. v. Workers' Compensation Appeals Board
925 P.2d 1309 (California Supreme Court, 1996)

Cite This Page — Counsel Stack

Bluebook (online)
925 P.2d 1309, 96 Cal. Daily Op. Serv. 8649, 14 Cal. 4th 76, 61 Cal. Comp. Cases 1360, 58 Cal. Rptr. 2d 190, 1996 Cal. LEXIS 6325, 96 Daily Journal DAR 14399, Counsel Stack Legal Research, https://law.counselstack.com/opinion/sea-land-service-inc-v-workers-compensation-appeals-board-cal-1996.