Document: 505 U.S. 469 112 S.Ct. 2589 120 L.Ed.2d 379 ESTATE OF Floyd COWART, Petitionerv.NICKLOS DRILLING COMPANY et al. No. 91-17. Argued March 25, 1992. Decided June 22, Syllabus * Cowart, whose estate is the petitioner, was injured while working on an oil drilling platform owned by Transco Exploration Company (Transco), in area subject to Longshore and Harbor Workers' Compensation Act (LHWCA or Act). The Department of Labor gave respondent Compass Insurance Co. (Compass), insurer for Cowart's employer, Nicklos Drilling (Nicklos), informal notice that Cowart due permanent disability payments, but none were ever made. In meantime, settled a negligence action with Transco, which funded under indemnification agreement Transco. However, did not secure from formal, prior, written approval settlement. Subsequently, filed claim seeking payments Nicklos. denied liability ground recovery barred § 33(g) Act, provides "person entitled compensation" must obtain prior employer its any settlement third-party claim, 33(g)(1), failure "employee" results forfeiture all rights 33(g)(2). Administrative Law Judge awarded benefits, relying past Benefits Review Board (BRB) decisions: one BRB held earlier version words refer person yet receiving benefits; another it that, since this phrase altered 1984 amendments LHWCA added 33(g)(2), Congress presumed have adopted BRB's interpretation. Court Appeals reversed, holding unambiguously whenever claimant fails meet written-approval requirement. Held: Section 33(g)'s provision applies worker at time settles third party, neither paying compensation nor order pay Act. section's language plain cannot support normal meaning entitlement includes right benefit qualifies, regardless whether has been acknowledged adjudicated. Thus, became "entitled moment his vested. If 33(g)(1) left doubt, ambiguity would be eliminated statute's structure, especially addition subsection (g)(2). This interpretation reinforced fact used elsewhere statute contexts bear meaning, (g)(2) uses term rather than phrase. Contrary argument, gives full (g)(2)'s notification consent requirements. question Nicklos' participation brings case outside 33(g)(1)'s terms addressed, fairly included within certiorari granted. possible harsh effects are recognized, duty courts enforce judgment legislature; authority change statute, courts. Pp. 475-484. 927 F.2d 828, (CA5 1991), affirmed. KENNEDY, J., delivered opinion Court, REHNQUIST, C.J., WHITE, SCALIA, SOUTER, THOMAS, JJ., joined. BLACKMUN, dissenting opinion, STEVENS O'CONNOR, Lloyd N. Frischhertz, New Orleans, La., petitioner. Michael R. Dreeben, Washington, D.C., federal respondent. H. Lee Lewis, Jr., Houston, Tex., private respondents. Justice KENNEDY Court. 1 (LHWCA), 44 Stat. 1424, as amended, 33 U.S.C. 901 seq., creates comprehensive scheme compensate workers killed employed upon navigable waters United States. allows workers, without forgoing pursue claims against parties their injuries. But LHWCA, 933(g), certain circumstances if worker's future benefits including medical forfeited. we decide today 2 now suffered injury hand July 20, 1983, (Transco). located Outer Continental Shelf, 43 1333(b). employee who along (Compass) respondents before us. paid temporary 10 months following injury. At point treating physician released him return work, though he found had 40% partial disability. App. 75. notified owed total amount $35,592.77, plus penalties interest. constitute award. No 3 meanwhile, alleging Transco's caused On 1, 1985, $45,000, received $29,350.60 after attorney's fees expenses. entire amount. made mistake: 4 After settling, administrative grounds 33(g)(2) forfeited failing manner required 33(g)(1). pertinent part: 5 "(g) Compromise obtained 6 "(1) (or person's representative) enters into referred (a) section less chapter, shall liable determined (f) only employer's carrier, executed, representative). form provided Secretary office deputy commissioner thirty days entered into. 7 "(2) no paragraph (1), notify rendered person, chapter terminated, chapter." 933(g). 8 rejected argument basis interpretations (Board BRB). first those decisions, O'Leary v. Southeast Stevedoring Co., BRBS 144 (1977), aff'd mem., 622 595 (CA9 1980), employees employers making voluntary pursuant decision compensation," even valid benefits. 9 amended present form, quoted, 1984. year redesignated then (g) what (g)(1) modified somewhat, compensation." also current (g)(2), well other provisions. Following decided Dorsey Cooper 18 25 (1986), app. dism'd 826 1011 (CA11 1987). reaffirmed saying because changed specific language, Board's previous It noted nothing legislative history disclosed intent overrule interpretations. provisions final providing occurs "regardless . benefits," "separate provisio[n] applicable separate situations." BRBS, 29. ALJ reasoning Dorsey, apply award net $29,350.60, $6242.17. addition, interest, fees, last constituting, think, matter great potential consequence. affirmed reliance Dorsey. 23 42 (1989) (per curiam ). 11 review, panel Fifth Circuit reversed. 907 1552 (1990). Without addressing statutory interpretation, contains exceptions Because holding, different case, Petroleum Helicopters, Inc. Barger, 910 276 1990), conflicted unpublished same Circuit, Kahny O.W.C.P., 729 777 1984), granted rehearing en banc. Director Office Programs (OWCP), part Labor, 20 CFR 701.201 (1991), appeared defend Board. 12 per banc confirmed panel's reversing case. 828 1991). Appeals' majority unambiguous get well-established principle requiring judicial deference reasonable agency administers, concluded leaves room Politz, joined Judges King Johnson, dissented OWCP's should deferred. 13 We large number claimants might affected decision. 502 ----, 635, 116 653 (1991). affirm. II 14 construction beginning when speaks clarity issue inquiry most extraordinary circumstance, finished. Demarest Manspeaker, 498 111 599, 603, 608 settlement, LHWCA. concedes comply requirements do they lacked By if, requirement view long interpreted both OWCP, limits reach either already favor entered. Compass, supported States, reading. agree these hold 33(g), further settling 15 controlling basic unexceptional rule give effect clear statutes written. can times come some tension fundamental our law, administering agency. Chevron U.S.A. Natural Resources Defense Council, Inc., 467 837, 104 2778, 81 694 (1984); National Passenger Corp. Boston & Maine Corp., 503 1394, 1401, 118 52 (1992). Of course, reviewing court defer position contrary expressed terms. K mart Cartier, 486 281, 291, 108 1811, 1817, 100 313 (1988); Chevron, supra, U.S., 842-843, S.Ct., 2781, 2782. event, need resolve sort here, OWCP regarding best 33(g). appears us, arguing position. See Brief Federal Respondent 8, n. 6. asked us new difficult formulated during litigation. Bowen Georgetown University Hospital, 488 204, 212-213, 109 468, 473, 102 493 Martin Occupational Safety Health Comm'n, 499 1171, 1179, 113 117 does ask this, however. Instead, argues correct given Appeals, special deference, see Petitioner 25; Potomac Electric Power Director, Worker's Programs, 449 268, 278, 18, 101 509, 514-515, 66 446 (1980); issues lurking circumstances. 16 As preliminary matter, natural reading supports conclusion adjudication favor. Both legal general usage, depend means satisfies prerequisites attached right. generally Regents State Colleges Roth, 408 564, 577, 92 2701, 2709, 548 (1972) (discussing property interests protected Due Process Clause contrasting expectancy); Black's Dictionary 532 (6th ed. 1990) (defining "entitle" "To qualify for; furnish proper claiming"). employer. He vested, admitted liability, event happen. 17 isolation, structure remove ambiguity. First, perhaps important, 1984, explicit features specify read modify entirety discussing (1). find amendment quoted modification strained intended. Subsection little doubt contemplated will occur liability. precludes primary decisions repeated us: That reenacting O'Leary. force reenacted changes, more reenact 33(g); face appear purpose overruling light import erred purported lack showing reject Even relevant, suspect demonstrates, predecessor bills eventual enactment indicate overturn Longshoremen's Amendments 1981: Hearings S. 1182 Subcommittee Senate Committee Human Resources, 97th Cong., 1st Sess. 209, 210-211, 396 (1981). followed congressional reenactment overcome statute. 603. And plain. 19 Our placed Cowart. For example, 14(h) 914(h), requires official conduct investigation request when, inter alia, controverted being provision, championed nonsensical. Another difficulty presented preceding 33(f). mandates reduced recovers party. Under reading, reduction available begun payment recovery. result makes sense structure. Indeed, litigant it, acknowledging so doing differing identical sections 33(f) Force Kaiser Aluminum Chemical 4-5 (1989). canon meaning. Sullivan Stroop, 496 478, 484, 110 2499, 438 (1990); Sorenson Treasury, 475 851, 860, 106 1600, 1606, 89 855 (1986). willingness adopt such forced unconventional approach convince same. owe BRB, ----. Yet reason why convinced altogether consistent; may precise respects. said refers "employer actually voluntarily party settlement." 28; (case below). times, sometimes spoken O'Leary, 147-149; 29; re Wilson, 471, 480 (ALJ 1985). hand, include distinction important response Reply 8. gap between positions explained inconsistency; itself weakens weight. 21 believe Congress' use word undercuts somewhat purport speak approval. 22 strongest favors Director's construction, concede appropriate. Respondents 7. said, faced views certiorari. Supra, seems apparent quite inappropriate abandoned policymaking itself. noteworthy, moreover, consistent. true twice, albeit equivocal manner, endorsed rulings 1986 circular subordinate stated: "While totally consistent think rational advised Associate Solicitor position." States Dept. Circular 86-3, p. (May 30, 1986). Next, Manual published 1989 again compensation; statement ends qualifying comment, "[t]he complex matter. Judicial necessary issue. (See CIRCULAR 86-03, 5-30-86)." (LHWCA) Procedure Manual, ch. 3-600, ¶ (Sept. 1989). issued regulations (effective 1986) carrier [sic] Act." 702.281(b) So speaking voice diminishes persuasive power endorse questionable reconsidered. regulation goes far toward confirming significance amendments. original 702.281, proposed 1976 enacted 1977, judgment. 41 Fed.Reg. 34297 (1976); 45303 (1977). sole reference closing parenthetical: "Caution: 933(g)." amendments, amend 702.281 replacing parenthetical (b), stating settlements amounts lead 50 400 (1985). comments, rulemaking clarify applied compensation. 51 4284-4285 Thus evolution suggests least elements decisions. 24 An provide approval, two instances: (1) Where obtains judgment, party; (2) greater equal inapplicable instances, remains force. "any comports purposes 33. damages recovered injuries sustained reduces real interest respect reduce extinguish "protects employee's accepting too cause party." Banks Chicago Grain Trimmers, 390 459, 467, 88 1140, 1145, 30 (1968). cases where entered, however, determine recovery, somehow feasible, serve purpose. wiped out. Notification protection situations ensures fraudulent double employee. 26 line defense, attorney suggested oral brought Tr. Oral Arg. 4-7. Relying recent Fourth I.T.O. Corporation Baltimore Sellman, 954 239, 242-243 (1992), counsel argued "settlement[s] person," meant person. indicating merits contention, address Court's Rule 14.1(a). 27 retroactive decision, relevance res judicata principles beneficiaries Compare Pittston Coal Group Sebben, 105, 121-123, 414, 423-425, (1988). recognize stark troubling possibility significant numbers families stripped penalty trap unwary. powerful tool resist Counsel stated avoiding 23-26. These exacerbated inconsistent course over years agencies charged enforcing raised Legislature, however much wisdom fairness. Often urged clarity, done so. law alleviated, province Legislature. 28 reasons stated, 29 Affirmed. whom O'CONNOR join, dissenting. 31 years, seq. Act), very way petitioner urges. advocated 32 granted, opening brief filed, informed Court: "In reexamined issue." assures advanced defended "plain meaning." accepts improbable rules thousands death I Government's newly discovered still compelled meaning" needlessly inflicts additional families. dissent. Ever 1927, considered isolation broader context 33, indeed, whole, background 33's essential. A. 34 compensation, "irrespective fault," deaths arising out covered workers' employment. §§ 3(a) 4(b), 903(a) 904(b). proof negligence, grants immunity tort how serious fault been. 5(a) 33(i). strictly limited, expenses two-thirds lost earnings, set detailed schedules contained 7-9. A assumption "promptly," "directly," "without award" having issued. 14(a). 35 liable, require elect 33(a). accepted formal award, then, specified time, file civil 33(b). action, limited excess, any, thus operates set-off allowing nets owes 36 addresses situation claimant-plaintiff 33(f), alone, always able collect remainder To protect excessive "lowball" conditions circumstances, 37 Before LHWCA's duly proved issue, pre-1984 and—as demonstrates—in Act's form. B 38 apparently Ben.Rev.Bd.Serv. aff'd, 1980). claimant's husband, contending decedent arise Ben.Rev.Bd.Serv., 145. persisted denying ("BRB").1 id., 146-147. Eventually, her husband's accident, suit $37,500. About month thereafter, (ALJ), remand claimant. value awarded, assuming live life expectancy remarrying, amounted $150,000. (ALJ) (1976). point, contested 39 position, pointed "underlying concept" "the begin 147 (citing 14(a)). Further, observed, "liable" 33(f); "liability," reasoned, "contemplat[es] ha[s] determination." Id., 148. Moreover, continued, 33(b) premise concluded, "making award." Ibid. observed but, instead, consistently could hardly she ultimately represented argue reason, emphasized place severe bind: 40 "If through coverage sue offer, refuse reasons, e.g., wish approve jurisdiction inferred. afraid make waive Ultimately, going income enough money. ." 149. thereby forfeit Surely, "Congress result." Ninth 113, stating: "The ruling furthers underlying 117. upheld similar finding "fully history, rationale of" (table) 96, 108. occasion examine next amended. C 98 1639, revisited 1652. former carried over, minor changes relevant added. reads follows: 45 46 appeal sub nom. 1987), clause understood overturning arises until begins (g)(1), O'Leary; subsection, intended situations—where notice, required. 29-30. (g)(2)—language echoes —to requirement, described limitation incorporated (g)(1). 47 reinforced, considerations. although instances indicates intention override "indicates O'Leary." 30. Second, "should construed compensating longshoremen harbor 'and avoids incongruous results.' " 31, quoting Voris Eikel, 346 328, 333, 74 88, 91, L.Ed. (1953), citing Northeast Marine Terminal Caputo, 432 249, 97 2348, 2359, 53 320 clear, escape withholding refusing acknowledge thought encouraging prompt, D 48 Such considered. proceedings, relied offered Company, therefore 42, held, indisputably settlement—indeed, three consummated—the ruled eligible 49 petition ("OWCP")—head Act—defended Circuit. First court, divided vote sitting banc, (1990) (panel), (1991) (en banc). told certiorari, brief, "reexamined" maintained agrees post-certiorari "clear "as written." Ante, 476. According plainly requires, language" deemed Although identify plausible whatsoever although—to credit—it acknowledges "harsh effects" ante, 483, concludes compels my view, deny claim. fact, language," 475, selective: discussed below, analysis shows leaving aside literal thoroughgoing approach, receive just excess commit unwilling take. draw purely instead recognize, today, policies serve. Once remarks "stark troubling" implications follows recognition fully Were truly interpret written," conclude relies, "liable files establish binding "persons subset persons settle condition (f)." (f)," 54 turn situation. (f), terms, "[i]f institutes proceedings period prescribed (b)." "period (b)" begins, "[a]cceptance commissioner, judge, Board." clearly instituted period: offered) and, accordingly, above, bound follow bar 55 larger sought. authorize otherwise unavailable; limit, literally, 56 literally. assumed where, began See, 240, 243-245 (CA4 1992); Shellman Lines, 528 675, 678-679, 1975), cert. denied, 425 936, 96 1668, 177 (1976) (referring availability lien, "judicially created" statutory). eminently sensible penalize commence reward who, good faith bad, contest Shellman, F.2d, 679, ("The frustrated reached merely pays entry award."). 57 obvious, seek shelter (and extension, 33(g)(1)). professes defends: simply insensible implicitly policy considerations bring setoff absolving $29,000 Only invoke insist "literal" selective insistence deprives $6,242.77 pay. 58 textual justify holding. consider parts 33—in relation 59 Looking aspect bears impress subsection's applicability, tracks recognized —a unanimously approved panels Courts Appeals. question, sought incorporate repudiate 60 critical "employee," connection marked contrast clauses securing provides, redundantly, forfeits mentioned obtained. "if benefits" (emphasis added). 61 strongly mentioned, chose aware restrictive retained broad term, unlike expressly defined 2(3).2 explain chosen extension. denotes valid. exactly denotation requirements—using, knew narrowly interpreted, using, broadly itself—surely meanings. Had attributes contexts.3 62 inference strengthened consideration factual designed apply. presumes employers, rule, promptly obligations immediately, situation, knows received, accurately compare figure offer. strong costs covered, operation allowed retain proceeds. recovering reducing eliminating committed vitally important: dollar 63 Given parties' incentives giving threaten interests, since, above threshold claimant-plaintiff's below promised 64 Matters different, (as case) refused enforceable estimate certainty let alone much. Accordingly, calculation 33(g)—a comparison amount—will difficult. negotiating favorable possible. claimant, counterpart incentive independent requirements—to Finally, disabled longshore employees, longshoreman job, likely highly vulnerable financial pressure them overvalue lump-sum undervalue periodic eventually 65 refuses pay, contrast, taken settles. noted, imposed. many ensure never practice, recalcitrant exempt themselves settlements, hoping employees' funds bet later, vindicate benefits—particularly asserted adequately independently recognizes patent unfairness admits 483. Nevertheless, holds categories claimants—those 2595. implies, accomplishing them. 478-479. 67 setting doubts, about rule's application am persuaded contention. strain ordinary describe withhold description particularly so, figures—the entitled, other. latter denies part? Doubtless, hazard guess consulting jurisdictional concerning kind doctor disabled. nature indeed compensation"—that all, subsequent proceedings. commenced me language. 68 true, observes, take meanings contexts. 478. inflexibly purposes. Barnhill 393, 401-402, 1386, 1391-1392, (1992) 496, 1393 (STEVENS, dissenting) (noting maxim "not inexorable," "nothing [statute's] purpose" counsels otherwise, it). recognized: 69 "Most shades consequently variously construed, statutes, once section. 70 "It unusual act, there legislature each instance." Atlantic Cleaners Dyers, 286 427, 433, 607, 609, 76 1204 (1932). 71 contextually, necessarily susceptible interpretations—a "formalist" according anyone "positivist" "legal realist" decisionmaker declared. Which senses "correct" context. sense, suggested, appropriate disputed called predict proceedings—not And, text "realist" 72 failed apply, mention, specifically '[t]his liberally conformance purpose, Perini North River Associates, 459 297, 315-316, 103 634, 646, 465 (1983), 91. consults end reader 33(g)(2)—as opposed 33(g)(1)—is 482. underscoring refusal liberal "creates unwary." part, imagine applied. 73 resolution clear. undisputed satisfied eligibility III statute." attempts faithful agent legislature, case." answer suggests, "with clarity." responsibility today's unfortunate rests Congress, 75 syllabus constitutes prepared Reporter Decisions convenience reader. Detroit Lumber 200 321, 337, 282, 287, 499. consists appointed empowered "hear appeals raising substantial fact" claims. 21(b)(3), 921(b)(3). Subject defines engaged maritime employment, longshoring operations, harborworker ship repairman, shipbuilder, ship-breaker." Two arguments deserve mention. passing O'Leary," snippets testimony submitted lengthy 1981 hearings. Needless say, statements buried hearings conducted bill's passage fall short demonstrating intent. places "at Labor" post-1984 differently OWCP. administers 480, "elements," recently

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