Pursuant to 5 T H C IR . R. 47.5, the court has determined that thi s opinion should not * be publishe d and is not precedent except under the limited circu mstance s set forth in 5 T H C IR . R. 47.5 .4. 

### INTHE UNI TED S TATESCOU RT OFAPPEALS

FORTHEFIFTH CIRCU IT

N o. 07- 60616
LEVI N GSTON SHI P BUI LDI N G CO ; TEXAS PROPERTY AN D CA SUALTY I NS URA NCE GUA RA NT YA S S OC IAT I ON P et i t i on ers v. M ARY PE LA EZ , wi d o w o f P a u lP e l a e z ; GULF COP PE R & M A N U FA C T U R I N G C O R P ; D I R E C T O R , O F F I C E O F W O R K E R ’S COM PE NSAT I ON PROGRAM S , US DEPA RT M ENT OFLABOR R espon den t s

O n P eti ti on f

or R ev i ew of a n O rd er of the B en efi ts R evi ew B oard, U n i t ed S t ates D epa rt m en tof L abor B R B N o. 06- 0821
B ef ore SM ITH , B A R K S D A L E , an d P R A D O , C i rcui tJu dg es. P E R C U R IA M: * T h e T exas P ropert y an d C asu al t y Insuran ce G u aran t y A ssoc i ati on (T P C IG A) seeks revi ew of an order of t h e B en ef i t s R evi ew B oa rd (B R B ). T P C IG Achal len g es bei n g requ i red t o paydeath ben ef i t s un der t h e L on gsh ore and H arborW or ker s’C om pensa t i on A c t(LH W C A) , 33 U
. S. C
. § 901 e ts e q. , as w e l la s t o pa y pe nal t i es, a t t o r ne y’ s f e e s , a nd i nt e r e s t
. I tc o nt e nds i tha s no United States Court of App eals

Fifth Circuit 

### F I L E D Ma rch 6, 2009 Cha rl es R. F ulb ru g e II I ClerkN o. 07- 60616

2 lia b ilityb e c a u s e it w a s n o t th e la s t m a r itim e e m p lo y e ro f th e d e c e d e n t, a n d , in anye ve nt , i s no tl i ab l e und e rs t at e l aw f o rpe nalt i e s , a t t o r ne y’ s f e e s , a nd i n t e r e s t
. D ENI ED
. I. TPC I G A i s as t at e - c r e at e d a s s o c i at i o n whi c h pa ys c l ai m s f o ri ns o lve nt i n surers. Lev i n gst on Sh i pb u i l di n g C om pa n y’ s i n surer i s i n solven t
. (M oreover, L e v in g s to n n o lo n g e re x is ts .) A c c o r d in g ly , T P C IG Ais L e v in g s to n ’ s in s u r e r . P a u l P e la e z w o r k e dfo rL e v in g s to n a s as h ip fitt e rinth e 1 9 6 0 s a n de a r ly 197 0s, w h ere he w as exp osed t o asbestos
. I n 200 2, he d i ed f rom t h at exposure. H i s w i do w , M ar y Pel ae z , no t i f i e d Le vi ngs t o n o f

he rhus ba nd’ s de at h o n 1 0 June 200 3 an d f

i l ed f or death ben ef

i t s. TP C IG Af

i l ed a n ot i ce of

contr oversi on t o t he
c l ai m on 7 Jul y 2003
. TPC I G A al s o i m pl e ad e d Gul f Cop pe r& M anufac t ur i ng Cor p. , c o nt e ndi ng i t , rat h er th an L evi n gst on , w as P el aez’last m ari t i m e em pl oyer. G u l f C opp er d e n ie d li a b i l i ty
. A lo n gth a t lin e , its co r p o r a te re p r e s e n ta tiv e te s tifie dG u lf Copp e rha d nor e c o r d o f Pel ae z ’ e m pl o ym e nt
. Bas e d o n So c i alSe c ur i t y r e c o r ds provi ded to G u l f

C opp er, the representat ive bel i evedtha t , if P el aez h adw orked f o rG ul f Cop pe r , he di d s o a tafac i l i t y w hi c h ne ve rc o nt ai ne d a s be s t o s - c o nt ai ni ng p r o d u c ts
. The m at t e rw as s ubm i t t e d t o a n Adm i ni s t r at iveLaw J udg e (AL J) o n t he
recor d an d w i t h ou ta for m alh eari n g. T h e A L J concl u ded M rs. P el aez presented
a p rim afa cies ho w i ng t hathe rhus ba nd’ s de at h was c o m pe ns ab l e und e rt he L H W C A
. Th e A L J t h en rej ect ed TP C IG A ’ s contenti on t h at G u lf C opp er, rat h er t ha n Le v i ng s t o n, was t he l a s tr e s p o ns ib l e e m p l o y e r . I n t ha tr e g a r d , t he ALJ
n ot ed T P C IG Aha d p resented no sub st an t i alevi den ce th at Pel aez h adbeen exp osed t o asbest os by G u l f C opp er and tha tn o evi den ce es t abli shed w h at w ork M r . P e la e z d idfo rG u lf C o p p e ro rw h e r e h e d idit.N o. 07- 60616

3 Th e AL J al soi m pos ed a 10% p en a l ty agai nstTP C I G A , purs uant t o 3 3 U
. S
. C
. § 914, becau se itfailed to p a y com pen sati on or f i l e a noti ce of
c o n t r o v e r s i o n wit h i n 1 4 d a y s o f r e c e iv i n gn o t i c e o f

Mr
. P e l a e z ’ d e a t h
. T P CI GA
w a s a ls o o r d e r e d t o p a y in t e r e s to n th e u n p a ids u m s a n dM r s . P e la e z ’ a t t o r n e y ’s fe e s . (The AL J no t e d noo bj e c t i o n t o t he fee ap pl i c at i o n was r e c e ive d;
n e v e rth e les s, th e A L J re d u ce dth e p ro p o se dh o u rlyra te .) T P C IG Aa pp eal ed t h i s d eci si on t o t h e B R B
. I taf f i rm ed i n an un pu bl i shed
o p in io n . II. I n re vi ew i ng B R B dec i si ons , our“ onl y f unct i on i s t o c or r ec ter r or s of l aw a n d t o d e t e r mi n e i f t h e BR B h a s a d h e r e d t o i t s p r o p e r s c o p e o f r e v i e w– i
. e. , has t h e B oard d eferred t o t h e A L J’ s fact
- f i n di n g or has i tun dertaken de novo revi ew a n ds u b s tit u te dits v ie w s fo rth e A L J ’ s ”. A v o n d a le S h i pya rds, Inc. v. V

i n son , 623 F .2d 1 1 1 7 , 1 1 1 9 n .1 (5 th C ir. 1 9 8 0 ). TPC I G A pr e s e nt s t hr e e i s s ue s . I ta s s e r t s t he BR B er r e d b y upho l di ng t he AL J’ s f i ndi ng Lev i ngs t o n w as t he l as tre s po ns ibl e e m pl o ye r . I ta l s o c o nt e nds t he BR B er r e d b y upho l di ng TPC I G A’ s l i abi l i t y fo rpe nalt i e s , a t t o r ne y’ s f e e s , a nd i n teres t. F i n a l l y, T P C IG Ach a l l en ge s th e j u ri sd i cti on of th e A L J an dB R B to
a dju d ic a te th e s e th r e e ite m s . A. Th e par t i es agr ee M r s. Pel aez es t a b l i sh ed a p rim afa ciecase of
c o m pe ns ab i l i t y. U nde rt he r ul e a nno unc e d in Tra v ele rs In s. Co . v . Ca rd illo , 225 F
. 2d137 , 145 ( 2dC i r. 195 5) , “t h e em pl oyer du ri n g t h e l ast em pl oym en t i n w h i ch th e cla im a n t w a s e x p o s e dto inj u r io u s s tim u li .
. . s h o u ldb e lia b le fo rth e fu ll
am ou n tof

t h e aw ard”. A l t h ou gh M rs. P el aez est ab li sh e d h er p rim afa ciecase a ga i n st L ev i n gs ton , T P C IG An ev e r th e l ess con ten d s, w i th ou t citati on to
au t h orit y, t h at G u l f

C opp er had t h e i n i t i a lb ur de n to p rov e i tw as not t h e l ast
r e s p o n s ib le e m p lo y e r .N o. 07- 60616

4 Th i s c ont ent i on i s f

or ec l os ed byCoo

per /T
. Sm i t h St e ve dor i ng Co. , I nc. v. L i u zza , 2 93 F. 3d7 41 ( 5t h Ci r . 2 00 2)
. “Ther e i s no r e quir e m e ntt hatt he
em pl o ye e pr o vet hatthe e m pl o ye ri n q ue s t i o n was t he l as te m pl o ye r . I ti s t he
em pl oyer’ s burd en t o rebut t h e presum p tion t h at r i ses af t er th e em pl oyee pre se nt s a pri m a f

aci e ca se.” I

d. at 750
. A n em pl oyer rebuts t h i s presum pti on ei t h er by est abli shi n g: ex posu re d u ri n g t h e em pl oym en t“di d n otcau se t h e ha rm or t hatt hee mploy e ew asex po s e d t o i nj ur i o uss t i m ul idur i ng s ubs e que nt
e mp loy m e n tc o v e r e dbyt h eL HWCA ”. I d. a t 7 4 9 (e m p h a s is a d d e d). B. C o n c e r n in gth e B IA ’s a f f i r m i n gth e A L J ’s a w a r do f p e n a lt ie s , a t t o r n e y ’s fees, an d i n t erest , T P C IG Acl ai m s the T exas P ropert y an d C asu al t y Insuran ce G u a r a n tyA c t (G u a r a n tyA c t), T EX . I NS . C ODE A NN . § 4 62. 001 e ts e q. (V ernon 2007) , ex em pt s suc h i t em s f r om “cover ed c l ai m s”TP C I G Ai s r equi r ed t o pay . (T h e G u a r a n tyA c t h a s b e e n a m e n d e d a n dre -c o d ifie dm u ltip le tim e s . T h is cita tion re flect s its c u rr e n t co d ifi ca tion .) As an i ni t i al m at t e r , w e r e TPC I G A a “ c ar r i e r” w i t hi n t he m e ani ng o f t he L H W C A , i t s obl i gati on t o p ay pen al t i es, a t t orney’ s fees, a n d i n t erestw ou l d n ot b e a ti s s u e . S ee33 U
. S
. C
. § 914. TP C IG Aasser t s iti s not a L H W C Acarr i er; t h at it s li abili t y i s c on t rol l ed excl u sivel y b yth e G u aran t y A ct
. Th e U n i t ed S ta te s D e p a r tm e n t o f L a b o r(D O L ) c o n te n d s , in tera lia , t h at TP C IG Aconsented to b e in gtr e a te da s a“c a r r ie r”. B e fo r e th e A L J , T P C I G Ar e p e a t e d lyr e fe r r e dto it s e lf a s L e v in g s t o n ’s
c ar r i er . The A LJ si m i l ar l y r ef er r ed t o TPC I G Ain th atw ay. An d, al t hough T P C IG Aref

erred t o i t sel f

as Lev i n gst on ’ s “i n surer” bef ore th e B R B , i tdi d n ot
c o n te s t it s ca r r ie rd e s ig n a tio n . TPC I G A now c o nt e nds , ho w e ve r , t hati to bj e c t e d t o b e i ng desi gna t e d a carri er. I tcit es no sup port i n t h e record f or th i s assert i on , an d ou r r ecord r evi ew h as l i kew i se r evealed non e. H aving repeatedl y ref erred t o i t sel f

as t h e carr i erN o. 07- 60616

5 and no t c o nt e s t e d t hat de s i gna t i o n be f o r e t he BR B, TPC I G A i s e s t o pped f rom contest i n g t h at desi gn ati on now . A ccor di n gl y, w e hol d T P C IG Ai s li able u n der th e L H W C Afo rp e n a ltie s , a tt o r n e y ’ s fe e s , a n din te r e s t. C. Fi nall y, TPC I G A c l ai m s t hat , und e r“ [t] he LH W CA , . . . j ur i s di c t i o n [ and]
v e n u e [a r e la c k in g] fo r d is p u t e s in v o lv in g T P C I G A ’s o b li g a t io n to p a ya t t o r n e y ’s fe e s , p e n a ltie s a n din te r e s t”
. 1
. T P C IG Aapp ears t o contes tven u e f or anydi spu t e regardi n g pen al t i es, a t t o r n e y ’s fe e s , a n din t e r e s tb e c a u s e t h e G u a r a n t yA c tm a n d a t e s v e n u einT r a v is C ou n t y, T exas, f

or al lact i on s agai n stT P C IG A
. O bviously, f or th e abovepresented reasons, i n cl u di n g T P C IG A ’ s bei n g a L H W C A carri er, t h i s cl ai m fai l s. I n a ny e ve nt , a ny ve nue c hall e ngeha s b e e n waive d bec aus e TPC I G A di d n ot p r e s e n t itto th e B R B
. S ee A et n a Cas. & S u r. Co. v. D i r. , D ep’ tof L ab or , 97 F. 3d 815 , 819 ( 5th C i r. 1 9 9 6 ) (iss u e rai sed f or th e f i rstt i m e i n a petit i on f or r evi ew w a iv e d). 2. In i t s r e ply br i e f, TPC I G A be l at e dly c hall e nge s t he D O L’ s j ur i s di c t i on c o n c e r n i n g p e n a l t i e s , a t t o r n e y ’ s fe e s , a n d i n t e r e s t
. I t i s u n d i s p u t e d t hatt he D O L h a s j u ri sd i cti on to h ea r cl a i m s a ri sing u n d er th e L H W C A
. S ee, e . g. , 33 U .S .C . § 9 1 3
. T P C IG Ad o e s n o t d is p u te t h is , n e c e s s a r ilyc o n c e d in gin it s re p ly bri ef t h at th e D O L ha s j u ri sdi ct i on over c arri ers regardi n g “ qu est i on s of
c o m p e n s a b ilityu n d e rL H W C A”. I n e f fe c t , T P C I G A c o n t e n d s t h e D O L h a s j u r i s d i c t i o n o v e rL HWC Ac l a i ms i nvo lvi ng i t , e xc e ptw he n itdi s ag r e e s w i t h t he D O L’ s l e ga lc o nc l us i o ns o ve rt he
sc ope of i t s j uri sdi c t i on. To t he ext ent TP C I G A ’ s c ont ent i on i s pro per l y r ead a s ach a l l en ge to t h e D O L ’ s j u ri sd i cti on –ra th er th a n m er e lya r e p eti ti on of i tsN o. 07- 60616

6 p r e c l u d e dc h a l l e n g e t o h a v i n gb e e n d e s i g n a t e d a c a r r i e r–we r ej e c t i t
. T h e DO L in d is p u ta b lyh a s ju r is d ic tio n u n d e rth e L H W C A
. III. F o rt h e f

o r e g o i n gr e a s o n s , r e v i e w i s DE NI ED
.