Document: 445 U.S. 74 100 S.Ct. 925 63 L.Ed.2d 215 William E. BLOOMER, Jr., Petitioner,v.LIBERTY MUTUAL INSURANCE COMPANY, etc. No. 78-1418. Argued Dec. 4, 1979. Decided March 3, 1980. Syllabus Held: A stevedore's lien for the amount of its compensation payment to an injured longshoreman under Longshoremen's and Harbor Workers' Compensation Act against longshoreman's recovery in a negligence action shipowner may not be reduced by representing proportionate share legal expenses obtaining from shipowner. The language, structure, history support this conclusion, rather than application equitable "common fund" doctrine that when third person benefits litigation instituted another, required bear portion suit. Pp. 77-78. 586 F.2d 908, affirmed. Alan C. Rassner, New York City, petitioner. Douglas A. Boeckmann, respondent. Mr. Justice MARSHALL delivered opinion Court. 1 Under Act, 44 Stat. 1424, as amended, 33 U.S.C. § 901 et seq., is entitled receive payments his stevedore disability or death resulting injury occurring on navigable waters United States. If believes injuries warrant excess provided he also bring owner vessel which occurred. subject payment. question decision whether must shipowner, instead reimbursed full 2 * Petitioner Bloomer, was during course employment board S. Pacific Breeze. He received $17,152.83 respondent Liberty Mutual Insurance Co., designated carrier workers' petitioner's employer, Connecticut Terminal Co.1 Thereafter petitioner brought diversity vessel. alleged had negligently created hazardous conditions vessel, ship's deck slippery dangerous, result fallen incurred severe injuries. 3 During settlement negotiations, counsel gave notice pending requested it reduce costs recovery. That would computed bearing same ratio total cost Respondent refused request, asserted right reimbursement, successfully moved intervene action. Soon thereafter settled with $60,000. summary judgment directing respondent's suit claimed since benefit respondent, equity 4 District Court denied motion,2 States Appeals Second Circuit Bloomer v. Tong, 908 (1978). concluded should pay We granted certiorari resolve recurring question, Courts have been divided.3 441 942, 99 2158, 60 1043 (1979). affirm. II 5 Petitioner's argument amounts appeal principle invokes cases establishing certain circumstances, courts exercise their powers charge beneficiaries through litigation. See Boeing Co. Van Gemert, 444 472, 745, 62 676 (1980); Alyeska Pipeline Service Wilderness Society, 421 240, 257-259, 95 1612, 1621-1622, 141 (1975); id., at 275-280, S.Ct., 1630-1633 (MARSHALL, J., dissenting); Mills Electric Auto-Lite 396 375, 90 616, 24 593 (1970); Sprague Ticonic National Bank, 307 161, 59 777, 83 L.Ed. 1184 (1939). When measured however, fail. 6 provides comprehensive scheme governing rights make election between receipt damages person, 933(a). After receiving award stevedore, given six months within party. 933(b). fails seek relief period, acceptance operates assignment makes explicit provision distribution any obtained pursuant assignment. reimbursement all paid employee, costs, including attorney's fees. Of remainder, four-fifths distributed longshoreman, one-fifth "shall belong employer." 933(e).4 7 does expressly provide recovered longshoreman. unambiguous shall if obtains does, speak considerable force requiring him part recovers own. There no reason believe Congress intended different merely because has asserts, absence statutory resolution, represents common fund whose creation properly charged. To evaluate we turn relevant provisions Act. III 8 As originally enacted 1927, choose employer Mar. 33, 1440. elected compensation, automatically assigned employer. In 1938, made deputy commissioner (appointed Secretary Labor, see 940), damages. 1938 amendments, unless such award. June 25, ch. 685, §§ 12, 13, 52 1168. 9 Like present version, amended did party lower courts, interpreted require out sum understood contemplate double part, not, therefore, lose See, e. g., Etna, 138 37 (CA3 1943); Miranda Galveston, 123 F.Supp. 889 (SD Tex.1954); Fontana Pennsylvania R. 106 461 (SDNY 1952) (Weinfeld, J.), aff'd below sub nom. Grace Line, Inc., 205 151 (CA2), cert. denied, 346 886, 137, 98 390 (1953). 10 legislation decided expenses. do so, observed, guarantee third-party Solely virtue then greater possible ordinary At time prevented recovering these results violate legislative purposes manifest express recover own Davis Lines 253 262 1958); Oleszczuk Calmar Corp., 163 370 (D.C.Md.1958); R . supra, F.Supp., 463-464. 11 1959, delete election-of-remedies requirement altogether. Aug. 18, 73 391. Existing law felt "wor[k] hardship employee effect forcing take act risks involved pursuing lawsuit party." S.Rep.No. 428, 86th Cong., 1st Sess., (1959), U.S.Code Cong. & Admin.News, p. 2134. "usually elects simple met immediately, years after won lawsuit." Ibid., 2134, H.R.Rep.No.229, Sess. (1959). 12 Responding inequity, 1959 amendment even commissioner, until date demonstrates intend alter rule allowing An "would compensation," "an net proceeds recovery." S.Rep.No.428, 2; 2135. hearings specifically drawn Congress' attention, one witness suggested abandoned.5 Instead, disturb existing rule.6 Recognizing change contemplated, continued hold Haynes Rederi A/S Aladdin, 362 345 (CA5 1966); Ashcraft Gerel Ins. 120 U.S.App.D.C. 51, 343 333 (1965); Petition Sheffield Tankers 222 (ND Cal.1963). 13 1972 more extensive Amendments Edmonds Compagnie Generale Transatlantique, 443 256, 262, 2753, 2757, 61 521 (1979), that, according petitioner, justify respect Concerned far too low, altered structure so increase both maximum minimum substantially.7 These increases were linked two designed ensure stevedores sufficient funds additional compensation. First, abolished unseaworthiness remedy longshoremen, recognized Seas Shipping Sieracki, 328 85, 66 872, 1099 (1946), limited based negligence. Second, eliminated Ryan Stevedoring Pan-Atlantic S.S. 350 124, 76 232, 133 (1956). case held could obtain showed breached warranty workmanlike service. House Report notes, consequence "a stevedore-employer indirectly liable who utilizes technique suing vessel," "that much financial resources better utilized improved now being spent defray costs." H.R.Rep.No.92-1441, (1972); S.Rep.No.92-1125, (1972), pp. 4698, 4702. Indeed, there testimony actions resulted congested primary lawyers, longshoremen.8 Senate stated "[t]he social suits, delays, crowding court calendars need lawyers' services seldom real actual workers." Id., 4. elimination shipowner's cause litigation, immunize insurers liability actions, assure conservation awards longshoremen. 14 Witnesses attention longstanding rule9 shipowner.10 enact concerning rule. 15 argues equities compel holding observes before adverse interests action: successful suit, frequently attempt due With abolition action, interest concludes common-fund available permit 16 light history, are unable accept argument. It true but follow modified 933(e), providing Moreover, informed of, alter, uniform fees alone. circumstances reluctant steps our U.S., 273, 2763. 17 addition, extent amendments offer guidance, they strongly suggest fees, altered. connection major obstacle funding increased payments. Numerous witnesses testified inured depleting congesting without aiding employee. ironic indeed eliminate give birth entirely new form expenses.11 unwilling attribute intention allow irreconcilable general desire insurers.12 18 Finally, return original basis longshoremen's immediate readily By payment, foreclosed time, recovery, payment.13 reach enables less action,14 immunizes view, ultimately equal and, supplement consisting contribution This represent windfall suffered. possibly substantial fee. contrary allocation suits can fairly read proposed petitioner.15 19 Affirmed. 20 BLACKMUN, dissenting. 21 Court's approach strikes me somewhat crabbed. tilting specter "double recovery," adopts construction relegates welfare secondary status, well behind conserving resources. 22 rule, everything gain nothing lose. takes risk worry gains enough, home free. seem square recent recognition construed beneficent purpose worker protection foremost mind. Northeast Marine Caputo, 432 249, 268, 97 2348, 2359, 53 320 (1977). Nor modern concept industrial accidents borne enterprise workman.1 where due. Since I cannot agree us deviate principles respectfully dissent. 23 recognizes, ante, 79, although detailed initiated never fixed statute details brings Court, nonetheless, discovers espouses judicial division transforms into mandate pronouncing presume what thinks Congress, inaction, apparently left force. Ante, 85-86. feel oversimplified variegated "rule," overdrawn clarity congressional approval it, failed estimate degree rationale exonerating undermined earliest mentioned 1943), 1952), mem. (1953), chiefly concerned broad issue here, recoupment established recoupment, thus recovery" plus law. No one, juncture, doubts validity Congress. 933(f); presently face narrower dislike resolve. 25 sure, Fontana, 1958), held, today, entirety drew conclusion view "expense securing is, be, first itself." 464. review subsequent demonstrates, reasoning achieved implies. Fourth Fifth Circuits, perhaps Circuit, alternative approaches problem advocated applied. 26 Ballwanz Jarka 382 433 (1967), adopted rationale. (1956), permitted shipowners indemnity stevedores, produced "rotary situation" effectively aligned F.2d, 434. result, "no transfer [insurer's] loss carrier." 435. contrariety lack arguments advanced Davis, led refuse proration 27 proper recoveries longshoremen continuing debate. Strachan Melvin, 327 (1964), applied "first charge" small provoked vigorous dissent, reading priority over 87-89. appears 345, 351 1966), 385 1020, 87 731, 557 albeit ground represented counsel. Eventually, readings Fontana-Davis "rule" displaced "pay proportion recoveries." Chouest P Boat Rentals, 472 1026, 1035-1036, Travelers Chouest, 412 949, 93 3012, 1002 (1973). 28 uniformly followed. Landon Lief Hoegh 756, 761 (1975), Arcadia Gulf 423 1053, 96 783, 46 642 (1976), treated "express trust employer" trustee. Courts, moreover, "conflict" theory developed dissent gained some currency. Spano N. V. Stoomvaart Maatschappij "Nederland," 340 1194 1971); Russo Flota Mercante Grancolombiana, 303 1404, 1407 1969). subsequently disapproved Valentino Rickners Rhederei, G. M. B. H., Etha, 552 466 (CA2 1977), reinstated 29 mention variations counterpoints theme challenge assertion prior generally exonerated longshoreman-initiated errs implies presented approve. situation complicated brief exposition illustrates, various rationales employed them disarray handling insufficient satisfy entirety. 417 176, 177-179 (EDNY 1976), other grounds, 1977). relied upon 80-81, 84, show delved intricacies debate, barely scratch surface consideration fee allocations most gleaned interfere developments sphere. 30 think informs inaction wrong meaning, draws analogy stevedore-initiated none, fact, exists. Had rote 933(e) specification task, expected say so. despite obvious prevalence suits,2 matter process. Although precarious find significance omission, clear signal regarded fluid free balance commanding adherence strict "arithmetic ranking" liens. Mitchell Scheepvaart Trans-Ocean, 579 1274, 1279 1978). 31 Adaptation framework, course, might desirable result. But not. itself flawed. lawsuit, comes paid; nonparticipating beneficiary, receives only remainder. contrast, ruling, wait line satisfied full. statute, then, treatment. apparent symmetry formula produces, asymmetrical Considerations surely approach. 32 weigh equities, persuasive heretofore contingent liability, (1979); 261-262, 2356. Thus, outset each efforts serve those successful, paid, risk, jeopardy customer relations arise insurer adjustment possibility partly responsible injury. ordinarily depends directly lawyer's skill proving direct pecuniary outcome justifies, my bringing fund. 166-167, 779-780, Without allocation, benefit. addition eliminating sound refusing clearly concern primarily workman chief excessive conserve resources, much, incidental purpose. When, example, merry-go-round 82-83, naked solicitude layering produce quoted, 84. Yet advances reduction retained benefit; "real increase" avoid suspicion intent stood head. 34 putative "windfall" prevailed. 87. windfall. Any adjudicated deficit alleviated, exceeded, charged off depend either long ago necessity electing remedy, accomplished resort methods redress fully consistent scheme. So remains damages, 35 use adjective, "ironic" will receive, today's $2,779.57 $19,932.40. acts remain, Amendments, playground others method realistically hope losses covered interested adheres logic virtually Where 86-87, n. hoped disgorge disgorgement inconsistent gloss priorities imposes today. For convenience term "stevedore" refer insurer. follows: Recovery $60,000.00 __(202.80) 59,797.20 one-third _(19,932.40) 39,864.80 (17,152.83) 22,711.97 scheme, $39,864.80 equivalent $60,000 minus sought following manner: (202.80) (19,932.40) 17,152.83 (.3355866 X $17,152.83) (5,756.26) 11,396.57 (11,396.57) 28,468.23 distribution, $45,621.06, $5,756.26 above Ninth Circuits expenses, Bachtel Mammoth Bulk Carriers, Ltd., 605 438 (CA9 1979); Swift Bolten, 517 368 (CA4 1975). First like disallowed apportionment, Cella Partenreederei MS Ravenna, 529 425 975, 2175, 48 799 (1976). calling individualized inquiry apportionment fair particular case, 1274 section provides: "Any account assignment, compromise, "(1) retain to— "(A) proceedings compromise (including reasonable determined Board); "(B) actually furnished 907 title; "(C) compensation; "(D) value payable title ; "(2) representative, Hearings Bills Relating Special Subcommittee Committee Education 84th 2d 51-58 (1956) (discussing difference law, allowed workmen's Jersey expenses); 38. bill largely modeled provisions, Kussack Ring Constr. App.Div.2d 634, 153 N.Y.S.2d 646 aff'd, N.Y.2d 1011, 177 522, 152 N.E.2d 540 (1958); Hobbs Dairymen's League Co-op. Assn., 258 App.Div. 836, 694 (1939), dism'd, 282 N.Y. 710, 823 (1940). approved floor Senate: "Mr. BUTLER: understand amends forfeiting act. further understanding consistently gives employee's "Is Senator's understanding, passage measure way affect employer's employer? BARTLETT. distinguished Senator Maryland correct. "In explanation point, ask unanimous consent printed point RECORD statement Labor Public Welfare : " 'There giving inasmuch lien. section, deduct proceedings,' 105 Cong.Rec. 12674 (1959) (emphasis added). plain indication stevedore. Cf. infra. version provided: "[T]he [a] judgment, settlement, otherwise, deduction necessary expenditures, effecting awarded under, provided, estimated, ." passed amendment, 5561-5562 later concurred evidence assumption practice. 15343. Before weekly $70; 200% national average wage, annually Labor. $18; lesser wage 50% wage. ways material here. 906-910. 2318 al. Welfare, 92d 38-39, 244, 258, 263, 271, 290, 304, 416, 431, 621-623, 632, 642, 661, 725, 730 H.R. 247 Select 47-48, 60, 85-86, 176 (1972). Contrary BLACKMUN's suggestion, post, 92, divergent demonstrate single none cited dissenting opinion, contrary, 1959. 6, supra. al., supra 8, 160, 371, 720; 119, 157-158, 295. suggests "chief" approve disserve favor "incidental" Post, 94-95. attempted separation unpersuasive. found precisely order vastly determine proportional past. 82-84. aid encouraging making likely contains special incentives encourage 461, 463-464 (1959); remainder reimburse today address situation, implication 2, illustrating explicitly allows declines 928, reinforce sharing done expressly. contributing explained text, persuades lien, regardless Nothing power creating Dawson, Lawyers Involuntary Clients: Attorney Fees From Funds, Harv.L.Rev. 1597 (1974). exercised setting ambiguous subject. disparate state compare Burt Hartford Acc. Ind—. 252 Ark. 1236, 483 S.W.2d 218 Mut. Western Cas. Sur. 111 Ariz. 259, 527 P.2d 1091 (1974); Commercial Union Scott, 116 Ga.App. 633, 158 S.E.2d 295 (1967); Tucker Nason, 249 Iowa 496, N.W.2d 547 (1958), Quinn State, Cal.3d 162, 124 Cal.Rptr. 1, 539 Security Norris, 439 68 (Ky.1969); Broussard, Broussard Moresi, Ltd. State Auto Underwriters 287 So.2d 544 (La.App.1973), 290 (La.1974); Carter Wooley, 793 (Okl.1974). 2A Larson, Workmen's 74.32 (1976 1979 Supp.). number statute. Idaho Code 72-223 (1973); Ill.Rev.Stat., 48, 138.5 (1977); Mich.Comp.Laws Ann. 418.827 (Supp.1978); N.Y.Work.Comp.Law (McKinney Supp.1979); Pa.Stat.Ann., Tit. 77, 671 (Purdon Va.Code 65.1-43 Wash.Rev.Code 51.24.010 (Supp.1978). Atleson, Compensation: Third Party Actions Apportionment Attorney's Fees, Buffalo L.Rev. 515 (1970). route, J. Boyd, Law Injuries Workmen (1913); H. Somers Somers, (1954). 466, 469 took "stevedores practical matter, pursue lawsuits presumably fear antagonizing customers."

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