Leeward Marine, Inc. v. Director, Office of Workers' Compensation Program
694 F. App'x 627
9th Cir.2017Background
- William Kealoha, a longshore worker, suffered a work-related fall and later attempted suicide; he claimed the accident and its consequences caused his attempt.
- An ALJ awarded benefits under the Longshore and Harbor Workers’ Compensation Act; the Benefits Review Board affirmed on remand.
- Leeward Marine and Hawai’i Employers Mutual (Leeward) appealed, arguing the suicide-attempt was not compensable and challenged causation and application of the statute.
- Expert testimony: Kealoha’s psychiatrist (Dr. Roth) linked chronic pain, litigation stress, PTSD, and worsened impulse control to the suicide attempt; employer expert (Dr. Bussey) acknowledged litigation stress was a contributing factor.
- The ALJ relied on the aggravation rule and general tort causation principles to find a direct and unbroken causal chain from the work injury to the attempted suicide.
- The Ninth Circuit reviewed the Board’s factual findings for substantial evidence and legal conclusions de novo and denied Leeward’s petition.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether a suicide or suicide attempt can be compensable under the Longshore Act when linked to a work injury | Kealoha: compensable if there is a direct and unbroken chain of causation from work injury to suicide attempt | Leeward: suicide/attempt not compensable if preexisting conditions or non-work stressors caused it; §903(c) exclusion applies if self-intoxication or willful intent | Court: suicide attempt compensable where work injury meaningfully contributed and a direct causal chain existed (affirming prior standard) |
| Whether the ALJ could apply tort principles/aggravation rule to causation | Kealoha: aggravation of preexisting mental condition by work injury is compensable | Leeward: ALJ improperly expanded chain-of-causation test; should not rely on non-work factors like litigation stress | Court: ALJ properly relied on aggravation rule and tort principles; aggravation of preexisting condition by work accident is compensable |
| Whether substantial evidence supports that the accident exacerbated Kealoha’s impulse control leading to the attempt | Kealoha: expert and lay testimony show accident-related chronic pain, PTSD, and litigation stress worsened mood and impulse control | Leeward: other stressors (e.g., litigation, substance use) broke causal link and are non-compensable | Court: substantial evidence supported ALJ’s finding that accident-related stressors meaningfully contributed to the attempt |
| Applicability of the Section 920(a) presumption and claimant’s burden to prove compensable injury | Kealoha: even if presumption did not apply, he met burden to show injury and consequences caused loss of judgment culminating in attempt | Leeward: presumption inapplicable and claimant failed to prove compensable injury | Court: assumed without deciding presumption issue but held claimant proved compensable injury and entitlement to benefits |
Key Cases Cited
- Stevedoring Servs. of Am. v. Price, 382 F.3d 878 (9th Cir. 2004) (standard for appellate review of Board/ALJ factual findings and legal conclusions)
- Container Stevedoring Co. v. Director, Office of Workers' Comp. Programs, 935 F.2d 1544 (9th Cir. 1991) (substantial-evidence review of ALJ findings)
- Bumble Bee Seafoods v. Director, Office of Workers' Comp. Programs, 629 F.2d 1327 (9th Cir. 1980) (independent review principles for administrative record)
- Trachsel v. Rogers Terminal & Shipping Corp., 597 F.3d 947 (9th Cir. 2010) (de novo review of Board legal conclusions)
- Kelaita v. Director, Office of Workers' Comp. Programs, 799 F.2d 1308 (9th Cir. 1986) (respecting reasonable Board interpretations reflecting statute policy)
- Kealoha v. Director, Office of Workers' Comp. Programs, 713 F.3d 521 (9th Cir. 2013) (holding suicide/attempt compensable when direct and unbroken chain of causation exists)
- Soileau v. Travelers Ins. Co., 198 So.2d 543 (La. Ct. App.) (aggravation rule: compensable where injury precipitates or aggravates mental derangement causing suicide)
- Brooks v. Industrial Commission, 399 N.E.2d 603 (Ill. 1979) (preexisting conditions do not break causal connection when accident aggravates or accelerates disease)