Document: 467 U.S. 925 104 S.Ct. 2827 81 L.Ed.2d 768 WASHINGTON METROPOLITAN AREA TRANSIT AUTHORITY, Petitioner,v.Paul D. JOHNSON, et al. No. 83-747. Supreme Court of the United States Argued April 24, 1984. Decided June 26, Rehearing Denied Aug. 16, Syllabus Section 4(a) Longshoremen's and Harbor Workers' Compensation Act (LHWCA or Act) provides that "[e]very employer shall be liable for secure payment to his employees" compensation payable under Act, further "[i]n case an who is a subcontractor, contractor such employees subcontractor unless has secured payment." 5(a) liability "employer" prescribed in § 4 exclusive place all other "such employer" employee, except if fails as required by injured employee may elect claim maintain action at law admiralty damages. Petitioner, general governed responsible construction rapid transit system (Metro) District Columbia surrounding metropolitan area, purchased comprehensive "wrap-up" workers' insurance policy cover subcontractors engaged Metro. Respondents, had not their own insurance, after having obtained awards from petitioner's insurer work-related injuries, each brought tort against petitioner Federal supplement awards. The court awarded summary judgment petitioner, holding purchasing its subcontractors, earned 5(a)'s immunity suits injuries. In consolidated appeal, Appeals reversed, taking view grant applies only secures do so. therefore concluded since unilaterally thus pre-empted it was entitled immunity. Held: 1. extends contractors. While speaks terms does act subcontractor's employees, there ample evidence use term elsewhere LHWCA infer Congress intended include contractors well direct employers. This particularly so with respect inasmuch granting comply consistent quid pro quo underlying statutes whereby return guarantee compensation, surrender common-law remedies employers while employer, reward securing granted suits. Pp. 933-936. 2. A qualifies long fail meet obligations 4(a). simply places on contingent obligation whenever failed most natural reading Moreover, this furthers ensure workers are deprived coverage, saves courts onerous task determining when have defaulted statutory obligations. 936-940. 3. Based above interpretations §§ 5(a), respondents' actions. Far failing LHWCA, acted beyond behalf subcontractors. 940-941. 230 U.S.App.D.C. 297, 717 F.2d 574 (DC1983), reversed remanded. E. Barrett Prettyman, Jr., Washington, D.C., petitioner. William F. Mulroney, respondents. Justice MARSHALL delivered opinion Court. 1 Act), 44 Stat. (part 2) 1426, 33 U.S.C. 904(a), makes obtaining coverage certain circumstances. question presented when, ever, these provided 905(a). 2 * Petitioner Washington Metropolitan Area Transit Authority (WMATA) government agency created 1966 Columbia, State Maryland, Commonwealth Virginia consent Congress.1 WMATA charged operation region. Under interstate compact governs existence, authorized hire work various aspects Metro project.2 Since several hundred turn employed more than thousand sub-subcontractors.3 3 Of multifarious problems faced constructing system, one been ensuring project covered insurance. LHWCA,4 "shall [workers'] 904(a). company "secures" either permission Secretary Labor self-insurer make payments directly workers. 932(a). effect require like WMATA5 obtain compensation. See, infra, 938. During initial phase construction, which ran 1969 1971, relied upon purchase employees. However, second began, abandoned favor centralized program. As financial matter, discovered could reduce cost it, rather numerous arranged Practical considerations also influenced WMATA's decision change Requiring apparently hampered affirmative program, because many minority were unable afford lacked sufficient business experience qualify policies.6 number grew, became increasingly burdensome monitor every tier hierarchy. Periodically, subcontractors' would expire companies go out without being informed. cases, group went uninsured, technically breached duty plans. 5 For reasons, elected assume responsibility Effective July 31, Lumberman's Mutual Casualty Co. policy, paid single premium and, return, agreed any injuries suffered sites compensable relevant regimes.7 After arranging informed potential "for benefit others, procure pay premiums" need no longer included bids submitted jobs. App. 104, 106. Subcontractors, however, advised that, they deemed necessary, "at expense effort" Id., 104. Once contracts, issued certificates confirming policy. On certificates, both listed parties whom issued. 225. 6 Respondents project. Each respondent filed Most claims alleged respiratory caused high levels silica dust industrial pollutants sites. None handled WMATA. five respondents lump-sum complete settlement claims. remaining two received partial Mutual. 7 instant litigation arose attempted bringing actions These suits, before different judges 545 F.Supp. 783, involved same incidents given rise actions, moved ground immune motions granted, judge agreeing 8 Circuit reversed. Johnson v. Bechtel Associates Professional Corp., (1983). reasoned grants satisfaction duty. According Appeals, case. Had actually refused worker's then what considered never gave opportunity default compensation; through unilateral covering pre-empting voluntarily, We petition writ certiorari, 464 1068, 972, 79 210 (1984), we now reverse. II 9 statutes, "provide stead liability, class employees." S.Rep. 973, 69th Cong., 1st Sess., 16 (1926). reflect legislated compromise between interests concerns sides, quo. See Morrison-Knudsen Construction Director, OWCP, 461 624, 636, 103 2045, 2052, 76 194 (1983); Potomac Electric Power 449 268, 282, n. 101 509, 516, 66 446 (1980); see 2A A. Larson, Law Workmen's 72.31(c) (1982). 10 4(a)(b) codify heart portions provisions read follows: 11 "SEC. 4. (a) Every sections 7, 8, 9. payment. 12 "(b) irrespective fault cause injury." (b). 13 5. section . ., ." 86 1263, 14 current stems ambiguity wording sections. It unclear how mentioned interpretative divides into distinct inquiries. First, ever extend contractors? And second, can contractors, must immunity? will consider questions turn. 15 language effortlessly embrace "an least far concerned, employer. few accepted literal analogous state provisions. instance, Fiore Royal Painting Co., 398 So.2d 863, 865 (1981), Florida appellate concluded: "Only actual get umbrella [33 U.S.C.] 905." Similarly, interpreting almost identical provision New York law,8 should apply " '[t]he word "employee" denotes contractual relationship' contractually bound subcontractor. Sweezey Arc Electrical 295 N.Y. 306, 310-311, 67 N.E.2d 369, 370-371 (1946) (quoting Passarelli Engineering Contracting 270 68, 75, 200 N.E. 583, 585 (1936)). 17 widely held view, used definition somewhat broader word's ordinary meaning. majority considering issue, including case, fulfilled responsibilities accordance requirements e.g., supra, U.S.App.D.C., 302, F.2d, 581; Thomas George Hyman 173 381, 383 (D.C.1959); DiNicola 407 A.2d 670, 674 (D.C.1979).9 18 choosing conflicting predisposed position presumptively better LHWCA. assuming strict worker-related traditionally liability. 931-932. "Since [by LHWCA], effect, made purposes statute, obvious he enjoy regular third-party suit facts compensation." 72.31(a), 14-112. 19 Our difficulty adopting requires slightly strained "employer." repeatedly admonished technical arising "the wisest course adhere closely written." Rodriguez Compass Shipping 451 596, 617, 1945, 1957, 68 472 (1981); OWCP Rasmussen, 440 29, 47, 99 903, 913, 59 122 (1979). Absent convincing contrary congressional intent, reluctant depart sound canon construction. reviewing find 20 sentence "unless [worker's] compensation," clearly assumes capacity Securing art area law. procedures outlined 32(a) supra 928. Because circumstances, encompass 21 4(a), "compensation 9." three refer exclusively employers' making payments; contain references 907(a), 908(f). well, appear 22 Further found 33(b), assignment right recover damages third 933(b); supra. difficult believe did intend receive assignments 33(b) wanted run Accordingly, seems highly probable covers 23 Finally, enforcement 38 generally assumed 38's criminal penalties. 263-265, 299. assumption reasonable, for, 38, contains apparent mechanism enforcing But, once again, refers "[a]ny Act." If truly 24 From foregoing examples, clear meant contractors.10 reasonable broad meaning 5(a). statutes. adopt embraced B 25 Having conditions took immunity, "WMATA first providing obtains employer." 303, 582 (emphasis original). view—that defaults—is opinions federal courts. Probst Southern Stevedoring 379 763, 767 (CA5 1967); Construction, F.Supp., 383. 26 Appeals' interpretation rests notion statutorily essence, withhold until legally provide Though plausible logic statutes,11 square 27 say Act. just obverse—that "fails Immunity cast rather, loss levied penalty those neglect 28 already determined offer [compensation] Contrary suggestion demand forestall affirmatively defaulted. Rather, Taken together, neglected 29 Besides faithful plain coverage. benefits insurance—that is, immunity—did accrue default, incur considerable absolutely convinced default. Inevitably, rule create gaps coverage—a result avoid. reason passing bring last groups uninsured compensation.12 30 argument accepting contractor's part time sued recovering forced establish chance itself respond opportunity. Nothing legislative history suggests unleash set factual unlikely silently impose barrier immunity.13 31 comports policies "adhere U.S., S.Ct., 1957. conclude, therefore, render honor So back-up III 32 Applying our conclude "fail[ing] [the LHWCA]," 905(a), order prevent going effort Rather waiting secure, guaranteed satisfy keep satisfied primary coverage.14 Due comprehensiveness "wrapup" triggered established remains remanded proceedings opinion. 34 ordered. 35 REHNQUIST, BRENNAN STEVENS join, dissenting. 36 today takes 1927 statute reads "modern view" somebody subcontractor.1 practical terms, undoubtedly good industry congested district even overall economic sense. 72.31(b) But hardly pretend "adhere[s] (1981). fixed believes patched together rationale best could. Believing Congress, Court, decide whether updated thinking, I dissent. 37 admits, must, "secured" Ante, 940-941, 14. fact sign check beside point. benefit, bore names insured parties, form reduced bids. 106, 113. subscribing scheme, An alternative exalt over substance; subject 355 2,765 sub-subcontractors working prosecution 38(a) merely additional, wholly superfluous admits within secondary, obligation. explains, secondary matured. Therefore, "liable for" "secure" "acted obligations" ante, 940, thus, point.2 met obligations, "and [or satisfy] obligations." 941. 39 Despite concessions, still concludes Contractors are, role backup quarterbacks sitting bench. They nothing; starting perform, backups equal benefits. 40 reaches conclusion means clumsy sleight hand. Part II-A, argues capable embracing Otherwise, duty, way sense duties imposed flesh section, speak II-B, arise defaults, Thus, receives "failed" 41 problem but II-B. That seen steps subcontractor—the employer—defaults. treats full-fledged filling regardless defaults not. 42 Even LHWCA,3 fills contingently. certainly times statute. continue previous metaphor, field times. Both directed 9, simultaneously 33(b). Everything done duplicate. 43 Court's analysis follows becomes stepped alternately contracting expanding "employer," internally inconsistent.4 runs counter settled principle limiting rights "must strictly construed, '[n]o construed altering common-law, farther words import. innovation common fairly express.' Shaw Railroad 557, 565 [25 L.Ed. 892]." Herd & Krawill Machinery 359 304-305, 766, 770-771, 820 (1959). negligence eliminated me less fair Interstate Compact, Pub.L. 89-774, 80 1324; D.C.Code 1-2431 1965 Md.Laws, ch. 869; Va.Acts, 1329. remainder opinion, "subcontractor" sub-subcontractors. Code 36-501 (1973) incorporates 901 seq., "carrying employment Columbia." jurisdictions operates, similar Md.Ann.Code, Art. seq. (1979 Supp.1983): Va.Code 65.1-30 (1980). findings Courts persist arguing Whether serves entire turns inquiry supervising lower courts' support record, see, 163-184, 276-280, accept Rogers Lodge, 458 613, 102 3272, 73 1012 funding, enterprises full participate Urban Mass Transportation 1964, 12, 49 1608(f); CFR 23.1 qualified 32(a)(1) 932(a)(1). 1922 N.Y.Laws, 615, 56; H.R.Rep. 1190, (1926) ("The [LHWCA] main ."). discussed below, differed (1967), Fifth characterized "secondary, guaranty-like liability." 305, 574, characterization apt extent subcontractor" description diminishes attaches, 8(f), 32(a), onus falls instance immediate prematurely relieve might tried discourage Indeed, adopted phased Neb.Rev.Stat. 48-116 (1978); Ind.Code 22-3-2-14 regimes, endorsing House Judiciary Committee recommended "this humanitarian legislation speedily enacted workers, practically workmen's afforded protection, come universally recognized necessary interest social justice employee." (1926); accord, absence discussion telling objections original called firms. employing stevedoring firm, owner certificate proving firm compliance 1442. administrative ramifications sparked debate during hearings. Employees Certain Maritime Employments: Hearings S.3170 Subcommittee Senate Committee, 48, 98, Although left open, uncontested bought of" 929-930. Respondents' contributed reducing Upon jobs, naming them parties. By participating "in substance form" 67.22, pp. 12-83 (1982); Edwards 466 436 (DC), cert. denied, 995, 489, 78 684 "employers" appears respect. implies strip contractor, Aside precisely another portion 939, says intended, paradoxical. greater protection though, "a 'employer' all. reading, anyone suit. or, here, indirectly. played states "§§ 939-940. words, raise finger gain persuasive some circumstances conclusive. 2(4) hint reading. contrast "contractor." Also, specifically directs incorporated reference, not, claims, give content hand, Those Fortunately, my unnecessary resolve "plain language" claim, offers additional arguments Neither worth much. inevitable occur "contractors default." reluctance present scope "considerable expense" sure money thrown away gratuitously. tortured extra incentive Furthermore, standard includes backup, show National Council Insurance, Basic Manual Employers' Liability Rule IX-C, R-20-21 (3d reprint 1983). likely occur. Second, opportunity." 939. noted, 1, very deny defaulting

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