Opinion ID: 518390
Heading Depth: 1
Heading Rank: 1

Heading: the longshore and harbor workers' compensation act

Text: 3 Before turning to the specific facts of these cases we discuss the relevant statute. The LHWCA provides land-based maritime employees with a workers' compensation scheme similar to that provided by many states for non-maritime workers. See Longmire v. Sea Drilling Corp., 610 F.2d 1342, 1349 (5th Cir.1980). The Act establishes benefits to workers without regard to the employer's fault, but, at the same time, it eliminates common law tort liability and limits the employer's liability to predictable amounts. Congress's purpose in removing workers' benefits claims from common law litigation was to afford expeditious relief to injured workers while distributing their economic losses on to industry and the consuming public. United States v. Bender Welding & Machine Co., 558 F.2d 761, 763-64 (5th Cir.1977). 4 While structured so that an employer's liability typically will be underwritten by an insurance carrier selected by the employer, the LHWCA provides unequivocally that every employer shall be liable for payment of the benefits owed to his employees. Thus section 904(a) provides, 5 (a) Every employer shall be liable for and shall secure the payment to his employees of the compensation payable under [certain sections] of this title. 6 33 U.S.C. Sec. 904(a) (Supp. IV 1986). Except as an employer fails to secure payment of compensation as section 904 requires, the LHWCA limits employer liability for death or injury to the compensation payable under the Act's terms. 1 An employer may secure payment to his employees by either insuring payment with an approved workers' compensation insurer, 33 U.S.C. Sec. 932(a) (Supp. IV 1986), or by satisfying the Secretary of Labor of the employer's own ability to pay any compensation which may potentially be due. 33 U.S.C. Sec. 932(b) (Supp. IV 1986). The requirement to secure compensation ensures that employers who fail to qualify as self-insurers will enlist the resources of an insurance carrier, so as to make augmented provision for the payment of any benefits which may be the employer's responsibility. H.R.Rep. No. 570, 98th Cong., 2d Sess. 19, reprinted in 1984 U.S.Code Cong. & Admin.News 2734, 2752. Since employees' claims will thus commonly be handled by an insurance carrier, the LHWCA facilitates claim administration by allowing the Secretary of Labor to substitute the carrier for the employer for purposes of administrative proceedings and orders. 2 The legislative history indicates, however, that notwithstanding the important role carved out for insurance carriers, Congress had no intention of releasing employers from the basic liability clearly stated in section 904, supra. Id. Rather, the carriers were to be an additional but not the sole source of payment for injured workers and their families. See infra. 7 The LHWCA also established a Special Fund, administered by the Secretary of Labor. The fund is maintained by assessments on employers and insurers who participate in the LHWCA's compensation scheme, amounts collected as fines and penalties under the Act, and death benefit payments by employers where the employee had no survivors. 33 U.S.C. Sec. 944(c) (1982 & Supp. IV 1986). The fund provides certain benefits to employees that otherwise are unavailable from employers. Primarily, the fund pays compensation for second injuries, where it would be unfair to require the employer to absorb the entire cost of a disability which ensued from a previous injury combined with a work-related injury. See 33 U.S.C. Sec. 908(f) (Supp. IV 1986). The Secretary also uses the Special Fund to provide workers with information and legal assistance regarding their rights under the Act. 33 U.S.C. Sec. 939(c)(1) (1982 & Supp. III 1985); id. at Sec. 944 (Supp. IV 1986). 8 The LHWCA also permits the Secretary, in her discretion, to use the Special Fund if an employer's insolvency or other circumstances preclude payment of compensation due an employee. 33 U.S.C. Sec. 918 (1982 & Supp. IV 1986). This relief is available only to employees who first have obtained a federal district court judgment compelling an employer to comply with a compensation order. Further, the LHWCA authorizes the Secretary to award such payment only if money remains after she has paid all the fund's current commitments. Id. at Sec. 918(b). Even if the Secretary opts to grant an employee relief, the employer remains liable to the Special Fund for the amount paid to the employee. Id.