Price v. Stevedoring Services of America, Inc.
627 F.3d 1145
9th Cir.2010Background
- Price was injured October 2, 1991, while employed by Stevedoring; he underwent surgery and returned to work in late 1992, then stopped in 1998 on physician advice.
- Stevedoring paid temporary total disability benefits beginning at injury; it also reimbursed Price’s disability insurer for benefits through 1992.
- Disputes over the proper disability benefits persisted, prompting referral to an ALJ who applied different wage/maximum rate considerations on remand.
- ALJ set Price’s average weekly wage and used the 1991 fiscal year maximum rate; simple interest on past-due disability payments at 28 U.S.C. § 1961(a) was awarded.
- Board affirmed the ALJ’s wage determination and the simple-interest award; Price appealed, challenging the interest rate and the maximum-rate timing.
- Court held that the applicable maximum rate is the rate in effect for the year of injury (1991) and that simple interest at 28 U.S.C. § 1961(a) is reasonable for past-due LHWCA payments.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What maximum compensation rate applies | Price argues for the current fiscal year rate (2000). | Director/Board applied the 1991 maximum; Roberts requires injury-year rate. | Injury-year rate (1991) controls. |
| What interest rate should apply to past-due payments | Price seeks 26 U.S.C. § 6621 rate or alternative compound interest. | Simple interest at 28 U.S.C. § 1961(a) is reasonable. | Simple interest at § 1961(a) rate is reasonable and proper. |
| Should interest be compounded under § 1961 | Price argues for compound interest under § 1961(b). | § 1961(a) governs pre-judgment-like post-due period; no compounding required. | § 1961(a) simple interest is not required to be compounded. |
Key Cases Cited
- Found. Constructors, Inc. v. Director, OWCP, 950 F.2d 625 (9th Cir. 1991) (interest on past due compensation may be appropriate to compensate a disabled worker)
- Matulic v. Director, OWCP, 154 F.3d 1052 (9th Cir. 1998) (interest on past due payments mandatory, but rate not fixed by statute)
- Roberts v. Director, OWCP, 625 F.3d 1204 (9th Cir. 2010) (injury-year maximum rate applies; controls rate selection)
- Transbay Container Terminal v. U.S. Dep’t of Labor, 141 F.3d 907 (9th Cir. 1998) (deference to Director litigating positions discussed in Chevron context)
- Force v. Director, OWCP, 938 F.2d 981 (9th Cir. 1991) (deference to the Director’s construction of the LHWCA limits; framework for deference)
- Martin v. Occupational Safety & Health Review Comm., 499 U.S. 144 (1991) (agency interpretation of its regulations entitled to deference; predicates Chevron/Mead framework)