Russell Moody v. Huntington Ingalls Inc., 879 F.3d 96

Russell L. Moody worked for Huntington Ingalls for 45 years and gave 90 days' notice of retirement effective Oct. 31, 2011.
While in his notice period (Sept. 19, 2011) Moody injured his right shoulder at work (rotator cuff tear) but continued working until his planned retirement.
Moody underwent shoulder surgery on Dec. 13, 2011 and his physician restricted him from work through Feb. 16, 2012; Huntington paid surgery costs but refused temporary total disability (TTD) benefits for Dec. 13–Feb. 16.
The ALJ awarded TTD benefits, finding Moody was incapacitated by the injury during recovery; the Benefits Review Board (BRB) reversed, holding voluntary retirement before the debilitating effects bars "disability" under the LHWCA.
The Fourth Circuit reviewed legal questions de novo, held the BRB misinterpreted 33 U.S.C. § 902(10), and reversed and remanded, concluding voluntary retirement does not defeat an injury-caused incapacity to earn wages.

Issue	Plaintiff's Argument	Defendant's Argument	Held
Whether voluntary retirement before the onset of an injury’s debilitating effects precludes a "disability" under 33 U.S.C. § 902(10)	Moody: "Disability" means incapacity to earn wages caused by injury; retirement does not render a claimant incapable, only unwilling, and does not negate injury-caused incapacity	Huntington: Voluntary retirement produces total loss of ability to earn wages, so no further incapacity from injury exists; LHWCA compensates actual wage loss	Court held retirement does not categorically preclude "disability"; incapacity (ability to earn) is distinct from voluntary cessation of work (actual earnings) and statutory text controls

Metropolitan Stevedore Co. v. Rambo, 521 U.S. 121 (1997) (LHWCA disability focuses on lost capacity to earn, not strictly post-injury wages)
Norfolk Shipbuilding & Drydock Corp. v. Hord, 193 F.3d 797 (4th Cir. 1999) (LHWCA compensates economic harm from decreased earning capacity)
Potomac Elec. Power Co. v. Dir., Office of Workers' Comp. Programs, 449 U.S. 268 (1980) (LHWCA as a compromise scheme providing certainty of compensation)
Sebelius v. Cloer, 569 U.S. 369 (2013) (statutory interpretation begins with text and ordinary meaning)
Sidwell v. Express Container Servs., Inc., 71 F.3d 1134 (4th Cir. 1995) (interpretation of LHWCA should effectuate its broad remedial purpose)
Newport News Shipbuilding & Dry Dock Co. v. Riley, 262 F.3d 227 (4th Cir. 2001) (no deference owed to BRB legal conclusions)
Washington Metro. Area Transit Auth. v. [case reference], 36 F.3d 375 (4th Cir. 1994) (ALJ factual findings reviewed for substantial evidence)
Friends of the Earth, Inc. v. Laidlaw Envtl. Servs., 528 U.S. 167 (2000) (mootness and recurrence doctrine)