Steven Richardson v. Continental Grain Company Director, Office of Workers Compensation Programs

336 F.3d 1103, 2003 Cal. Daily Op. Serv. 6475, 2003 A.M.C. 1929, 2003 Daily Journal DAR 8148, 2003 U.S. App. LEXIS 14669, 2003 WL 21697956
CourtCourt of Appeals for the Ninth Circuit
DecidedJuly 23, 2003
Docket01-71860
StatusPublished
Cited by16 cases

This text of 336 F.3d 1103 (Steven Richardson v. Continental Grain Company Director, Office of Workers Compensation Programs) 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.

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Steven Richardson v. Continental Grain Company Director, Office of Workers Compensation Programs, 336 F.3d 1103, 2003 Cal. Daily Op. Serv. 6475, 2003 A.M.C. 1929, 2003 Daily Journal DAR 8148, 2003 U.S. App. LEXIS 14669, 2003 WL 21697956 (9th Cir. 2003).

Opinion

OPINION

WALLACE, Senior Circuit Judge.

Richardson petitions for review of the Benefits Review Board’s (Board) denial of attorney fees under the Longshore and Harbor Workers’ Compensation Act (Act). The Board refused to award fees under 33 U.S.C. § 928(a) for Richardson’s back injury claim because he did not “successfully” prosecute the claim, and it refused to award fees under section 928(b) for his knee injury claim because the amount tendered by his employer was greater than the compensation awarded. The Board had jurisdiction under 33 U.S.C. § 921(b)(3). We have jurisdiction over this timely petition pursuant to 33 U.S.C. § 921(c). We deny the petition.

I.

On May 24, 1996, Richardson injured his knee while working as a grain elevator operator. Continental Grain Company, his employer, voluntarily paid compensation for temporary total disability for the knee injury from October 22, 1997, to January 31, 1998. In September and November of 1996, Richardson injured his back. The *1105 Company voluntarily paid compensation for temporary total disability for the back injury from December 10, 1996, to May 5, 1997. The Company stopped paying in May, contending that Richardson was fabricating his back injury. On May 21, 1997, the Company received Richardson’s claim for compensation for his back injury. Almost two years later, the Company offered to settle both claims for $5,000, but Richardson refused.

Richardson’s back and knee claims were consolidated for hearing. The Board concluded that Richardson was entitled to recover $932 for his knee injury. It also found that although Richardson did not fabricate his back injury, this injury ended March 1997. Because the Company stopped paying for the back injury in May 1997, Richardson was not entitled to additional money on his back claim.

Richardson sought attorney fees under 33 U.S.C. § 928 for both his back and knee claims. The Board denied his request for fees. We do not defer to the Board’s interpretation of the Act because it is not a policymaking agency. Potomac Elec. Power Co. v. Dir., Office of Workers’ Comp. Programs, 449 U.S. 268, 279 n. 18, 101 S.Ct. 509, 66 L.Ed.2d 446 (1980); Port of Portland v. Dir., Office of Workers’ Comp. Programs, 932 F.2d 836, 838 (9th Cir.1991). Unlike other fee shifting statutes, 33 U.S.C. § 928 states that attorney fees “shall” be awarded, and we review the Board’s denial of attorney’s fees for errors of law and substantial evidence. See E.P. Paup Co. v. Dir. Office of Workers’ Comp. Programs, 999 F.2d 1341, 1347, 1354 (9th Cir.1993).

II.

For his back injury claim, Richardson argues that he is entitled to fees under 33 U.S.C. § 928(a), which states:

If the employer ... declines to pay any compensation on or before the thirtieth day after receiving written notice of a claim for compensation ... on the ground that there is no liability ... and the person seeking benefits shall thereafter have utilized the services of an attorney at law in the successful prosecution of his claim, there shall be awarded ... a reasonable attorney’s fee....

This subsection applies to Richardson’s claim because the Company “declinefd] to pay any compensation on or before the thirtieth day after receiving written notice of a claim for compensation.” Id. Although the Company voluntarily paid temporary total disability compensation for Richardson’s back injury, it stopped paying in May, 1997. Later that month, Richardson brought a claim for additional compensation, but the Company offered nothing until almost two years later, well beyond the thirty day limit.

Fees under subsection (a) are available even though the Company voluntarily paid compensation before receiving notice of the claim. The relevant time period we look to for determining whether the employer “decline[d ] to pay any compensation” begins with receiving notice of the claim, and ends thirty days after. Pool Co. v. Cooper, 274 F.3d 173, 186-87 (5th Cir.2001). Because the Company did not offer to pay within thirty days after receiving notice of the claim for additional benefits, subsection (a) fees might be available.

The problem here is that the Company did not decline to pay; it did nothing. We must decide whether fees under subsection (a) are available even though the Company did not formally refuse to pay during that relevant time period. We hold they are. Otherwise, employers could easily evade fee liability by failing to decline payment formally. Congress must have meant a broader meaning to “declines.” See OXFORD ENGLISH DICTIONARY *1106 (2d ed.1989) (defining “decline” as “[n]ot to consent or agree to doing, ... hence, practically refuse: but without the notion of active repulse or rejection conveyed by the latter word, and therefore a milder and more courteous expression”).

Although Richardson satisfied these requirements, he is ineligible for fees under subsection (a) because he failed to show that he successfully prosecuted his claim. Richardson argues that the finding that his back injury was not fabricated makes his prosecution successful since now the Company must pay any future medical care if his back injury resurfaces.

We are unaware of case law thoroughly discussing the “successful prosecution” requirement of section 928(a) and none was cited to us. We therefore look for guidance to similar fee-shifting statutes that require a party to “prevail,” such as 42 U.S.C. § 1988(b). While a party need not obtain monetary relief to prevail for purposes of such fee-shifting statutes, Fischer v. SJB-P.D., Inc., 214 F.3d 1115, 1118 (9th Cir.2000), he must obtain some actual relief that “materially alters the legal relationship between the parties by modifying the defendant’s behavior in a way that directly benefits the plaintiff.” Farrar v. Hobby, 506 U.S. 103, 111-12, 113 S.Ct. 566, 121 L.Ed.2d 494 (1992). Succeeding on an issue alone is insufficient; even obtaining declaratory judgment will not result in the award of fees, unless it causes the defendant’s behavior to change for the benefit of the plaintiff. Rhodes v. Stewart, 488 U.S. 1, 4, 109 S.Ct.

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336 F.3d 1103, 2003 Cal. Daily Op. Serv. 6475, 2003 A.M.C. 1929, 2003 Daily Journal DAR 8148, 2003 U.S. App. LEXIS 14669, 2003 WL 21697956, Counsel Stack Legal Research, https://law.counselstack.com/opinion/steven-richardson-v-continental-grain-company-director-office-of-workers-ca9-2003.