Opinion ID: 3065154
Heading Depth: 2
Heading Rank: 3

Heading: Benefits Review Board’s Interpretation

Text: Pedroza first argues that the Marino-Sewell doctrine is an unreasonable interpretation of § 902(2), because the Board’s interpretation differs from the majority of states’ workers’ compensation statutes with similar language. Pedroza contends that, since state workers’ compensation allows for compensation for mental or psychological disabilities without inquiry into whether the employer engaged in legitimate personnel decision, the Longshore Act should follow the similar trajectory. Pedroza also notes that several state legislatures have developed special barriers similar to Marino-Sewell, to govern mental or psychological disabilities or injuries.3 There- 3 In California, the legislature enacted Cal. Labor Code § 3208.3(h) in 1993 to “establish a new and higher threshold of compensability for psychiatric injury” See also Cal. Labor Code § 3208.3 (c) (“No compensation . . . shall be paid by an employer for a psychiatric injury if the injury was substantially caused by a lawful, nondiscriminatory, good faith personnel action.”). In New York, the legislature in 1990 enacted a similar provision to redefine injury. It reads “an injury which is solely mental and is based on work-related stress if such mental injury is a direct consequence of a lawful personnel decision involving a disciplinary action, work evaluation, job transfer, demotion or termination taken in good faith by the employer.” See Gamble v. New York State Narcotics Control Comm’n, 400 N.Y.S.2d 599 (N.Y. App. Div. 1977). PEDROZA v. BRB 14095 fore, absent congressional action to take similar steps, the Longshore Act provides compensation for psychological disabilities or injuries without inquiry into legitimate personnel decisions. We disagree. Pedroza’s argument ignores the history of the Longshore Act. Since its inception in 1927 and subsequent amendment in 1972, the Longshore Act was designed to create a uniform policy to provide workers’ compensation for longshoremen and harbor workers. Northeast Marine Terminal Co. Inc., v. Caputo, 432 U.S. 249, 256-59 (1977). The legislative history of the 1972 amendments to the Longshore Act demonstrates that Congress viewed most state workers’ compensation laws as inadequate protection for longshoremen and harbor workers. Id. at 263. Moreover, congressional inaction is not a reliable guide to determine legislative intent. United States v. Craft, 535 U.S. 274, 287 (2002). Pedroza next contends that the Marino-Sewell doctrine violates Longshore Act policy of no fault liability. Section 904(b) states “compensation shall be irrespective of fault as a cause for injury.” Thus, as Pedroza argues, the Marino-Sewell inquiry to whether a personnel action was legitimate or illegitimate is a question of fault. Thus, as Pedroza argues, MarinoSewell is inconsistent with workers’ compensation laws. We disagree. It is true, that the basic premise of the workers’ compensation system is that an employer is protected, from full tort lia- In Oregon, the legislature in 1998 added a provision that barred compensation for mental disorders unless it is a product of “conditions other than generally inherent in every working situation or reasonable disciplinary, corrective or job performance evaluation by the employer or cessation in employment.” Pet. Bri. 29. This is codification of the Marino-Sewell doctrine. Prior to this legislation, Oregon law recognized compensability of psychological injuries as a result of legitimate personnel decisions. See Korter v. EBI Companies, 610 P.2d 312 (Or. Ct. App. 1980). 14096 PEDROZA v. BRB bility for employment related injuries even when it is at fault, in exchange for bearing limited liability for compensation and medical benefits as a cost of the business. However, the Marino-Sewell doctrine does not disrupt this system. The Marino-Sewell doctrine merely refines the type of employment-related activities that could give rise to a workers’ compensation claim. Furthermore, the distinction that the Marino-Sewell doctrine creates between “legitimate” or “illegitimate” personnel actions is not about fault, it is about whether the employer’s actions created an environment of poor working conditions to trigger psychological injuries. [10] The Marino-Sewell modification strikes a balance between the employer and the employee. The Marino prong allows the employer to take personnel actions without fear of a workers’ compensation claim due to a psychological injury from their actions. Meanwhile, the Sewell prong puts a limit on the type of legitimate personnel actions in which the employer may engage without fear of workers’ compensation claims, because some personnel actions can facilitate poor working conditions that could trigger compensable work related psychological injuries such as “harassment by her supervisor,” “verbal accusations,” and “physical harm.” Both of these cases create a balance between employee and employer. Marino supports the employer’s concerns meanwhile the Sewell prong protects the employees. This is an important balance between the needs of employers and employees. See Morrison-Knudsen Constr. Co., 461 U.S. at 635 (explaining that the Longshore Act was designed to strike a balance between the concerns of employers and employees).