Delaware River Stevedores Liberty Mutual Ins. Co. v. Edward Difidelto Director, Office of Workers' Compensation ProgramsDelaware River Stevedores Liberty Mutual Ins. Co. v. Edward Difidelto Director, Office of Workers' Compensation Programs
Lead Opinion
OPINION OF THE COURT
I. INTRODUCTION
This matter comes on before this court on a petition for review of a disposition of the Benefits Review Board (“Board”) awarding benefits to Edward DiFidelto under the Longshore and Harbor Workers’ Compensation Act (“LHWCA”),
II. FACTUAL AND PROCEDURAL HISTORY
The material facts and procedural history with regard to these proceedings are not in dispute. On January 7, 2000, DiFi-delto suffered a work-related injury in the course and scope of his employment with DRS entitling him to receive benefits from DRS under the LHWCA. Initially, DRS voluntarily made the payments without an adjudication or order, but on November 19, 2001, it discontinued them as it controverted its obligation to do so on the basis of a medical opinion that DiFidelto had recovered fully from his injuries. When DRS controverted DiFidelto’s claim, it requestеd the District Director of the Office of Workers’ Compensation Programs to refer the case to the Office of Administrative Law Judges. Not surprisingly, DiFi-delto rejected DRS’s position, and thus he prosecuted a claim for benefits under the LHWCA.
After DRS requested a hearing in the case, and at a time that it no longer was making payments to DiFidelto, it sent three Forms LS-200 to his attorney, pursuant to
An administrative law judge (“ALJ”) held a hearing in this case on July 18, 2002, following which on June 2, 2003, he issued his “Decision and Order” awarding DiFidelto benefits. In his June 2, 2003 Decisiоn and Order, the ALJ found, inter alia, that even though DiFidelto was entitled to reinstatement of his compensation payments,' he had “forfeited” his right to compensation for the period between January 8, 2000, and April 22, 2002, because he failed to report his earnings as DRS requested.
In reaching this result, the ALJ indicated that forfeiture penalties apply if an employee fails to respond or responds inaccurately to a Form LS-200 request. In considering the applicability of the
DiFidelto then filed a timely request with the ALJ to reconsider the June 2, 2003 Decision and Order. In support for his argument against forfeiture, DiFidelto relied on the regulation implementing
On June 30, 2003, the ALJ issued a “Decision and Order Granting Claimant’s Request for Reconsideration.” In the June 30, 2003 Decision and Order, the ALJ corrected technical deficiencies in the June 2, 2003 Decision and Order with respect to the time pеriods during which DiFidelto was entitled to total versus partial compensation.
On July 17, 2003, DiFidelto filed a timely appeal to the Board. DiFidelto argued again that a “disabled employee” must be receiving compensation when the employer asks for his earnings information pursuant to
On July 27, 2004, the Director filed a “Motion for Reconsideration and a Motion to Hold [the DiFidelto] Appeal in Abeyance” with the Board to await its decision in Briskie v. Weeks Marine, Inc., 38 Ben. Rev. Bd. Serv. 61 (2004), another appeal then pending before it concerning the same issue involved here. DiFidelto and DRS joined in the Director’s request. Before the Board ruled on the July 27, 2004 motion, it decided Briskie on August 25, 2004. In Briskie the Board concluded that
In light of Briskie, DRS’s resort to forfeiture was foreclosed in this case, and thus the Board panel upheld DiFidelto’s entitlement to the entire compensation award. On October 8, 2004, the Board issued its final order in this case, styled as an “Order oh Motion for Reconsideration,” in which, relying on Briskie, it reversed
III. JURISDICTION AND STANDARD OF REVIEW
The Board had jurisdiction over DiFidelto’s appeal because he timely filed his petition for review of the ALJ’s decision. See
Our review of a Board’s decision for an error of law is plenary. Dir., OWCP v. E. Associated Coal Corp.,
We look to see whether the regulation harmonizes with the plain meaning of the statute, its origins, and its purpose .... So long as the regulation bears a fair relationship to the language of the statute, reflects the views of those who sought its enactment, and matches the purpose they articulated, it will merit deference.
E. Associated Coal Corp.,
IV. DISCUSSION
It is evident from Chevron that in these proceedings dealing with statutory construction, we must make an initial determination, and, depending upon our first determination, possibly make a second determination. As might be expected, each side argues that
This division of views is understandable inasmuch as neither
This case involves an application of
As we have indicated, the Director and DiFidelto make an argument that a disabled employee “must mean an individual to whom ‘compensation for disability’ is being paid pursuant to
Yet there is a limitation on an employer’s need to know the amount of an employee’s earnings at a time that the employer is not paying compensation because even if an employee “knowingly and willfully omits or understates any part of [his] earnings,” see
Furthermore, we point out that, as the Director has noted,
Nevertheless, though we conclude that the information that an employer might obtain from the answers to a Form LS-200 may be of no use to it if it is not paying compensation, still we believe that the Director overstates the information’s lack of value when he asserts that “an employer has an effective remedy in forfeiture only if it also owes future compensation payments to the employee. Forfeiture affords no relief to an employer otherwise, and the proceedings would be an exercise in futility.” Director’s br. at 30 (emphasis in original). While it may be that the answers to a Form LS-200 are useless to an employer in advance payment, retroactive modification, and misrepresentation cases if the employer is not making payments, as we have explаined the answers might be valuable to an employer not making payments in cases involving disputes over employees’ right to ongoing or future compensation. As the Director acknowledges, “[i]f the employee eventually obtains an award and the employer begins paying compensation, then the employer may request earnings information concerning any period of disability covered by the award.” Director’s br. at 33, n. 17. See Plappert, 31 Ben. Rev. Bd. Serv. at 17.
The Director asserts that inasmuch as an employer who starts to pay compensation may request a statement of the emplоyee’s earnings at that time, it “gains no advantage by seeking the information before it has any use for it.” Director’s br. at 33 n.17. We are, however, far from certain that an employer who is obliged to pay compensation does not obtain any benefit from having an employee’s earnings
We do not think that our second determination is difficult. To start with, there can be no doubt that the regulation, as supported by the legislative history of
An employer ... may require an employee to ivhom it is paying compensation to submit a report on earnings from employment or self-employment.
The Committee does not intend ... to authorize a requirement that all employees receiving compensation benefits file semi-annual reports of earnings. Such reports are intended to be a device by which employers may maintain some control over claims in payment status. Whether such reports are to be required remains the employer’s option.
H.R.Rep. No. 98-570(1), аt 18 (1984), reprinted in 1984 U.S.C.C.A.N. 2734, 2751 (emphasis added). Overall, it is beyond question that inasmuch as DRS made its requests to DiFidelto to report his earnings at a time when it was not paying him compensation, insofar as the regulation governed the requests, DiFidelto was not obliged to respond.
We recognize, of course, that, as we already have stated, the regulation must be based on a reasonable construction of the statute. On this point, for the reasons that we have set forth with respect to the ambiguity of
V. CONCLUSION
For the foregoing reasons, the petition for review will be denied.
Notes
. Liberty Mutual Insurance Company, which insures DRS, is also a party to these proceedings but as a matter of convenience we will treat DRS and Liberty Mutual as a single party.
. See
. We are not concerned with these correc-lions.
. Of course, in Briskie the Board adopted the position that DiFidelto espouses here. In that case the employer, Weeks Marine, Inc., which is an amicus curiae in this case, filed a petition for review with the United States Court of Appeals for the Second Circuit but the court denied the petition in a not precedential summary order in Weeks Marine, Inc. v. Briskie,
. H.R.Rep. No. 98-570(1) at 18 (1984), reprinted in 1984 U.S.C.C.A.N. 2734, 2751, indicates that:
If compensation had already been paid during the period for which the employee failed to file a report, or willfully and knowingly underreported such earnings, the amount of compensation paid during that period may be withheld from future compensation payments due to the employee. The Committee does not contemplаte that the employer could bring a cause of action to recover compensation paid in the past.
. We are not suggesting that our result would have been different if DRS had advanced this possible benefit to an employer from the answers to a Form LS-200.
. The Secretary of Labor through the Director adopted
Concurrence Opinion
concurring.
I agree that the regulation here should be upheld. I write separately because I disagree with the way in which the majority dismisses the inference that a statute which defines a noun has thereby defined the adjectival form of that noun. See Maj. Op. at 620 (quoting statutory dеfinitions of “disability” and “employee” in
It is impossible to mechanically separate the “plain meaning” and “reasonable interpretation” components of the Chevron analysis. If one tries to do so in this case, one is faced with a conundrum. The statute defines “employee” and “disability,” but the implementing regulation uses the term “disabled employee” to mean something quite different from “employee with a disability.” To be sure, Congress’s attention to definitional detail may simply have been lax in this regard; the legislative history indicates that the drafters of the statute probably had in mind a regulatory scheme of the sort adopted by the agency, as opposed to that advocated by the petitioner here. See H.R. Conf. Rep. No. 98-1027, at 33 (1984), reprinted in 1984 U.S.C.C.A.N. 2734, 2783. Nonetheless, “Congress’s constitutional voice is the text of the statutes it enacts,” Szehinskyj v. Attorney Gen. of the United States,
But legislative history is not the only interpretive resource available to us in this case. The courts have long recognized that the meaning of a statute may be inferred partly from the course of its implementation over time. The seminal statement of this principle remains that of Justice Lamar:
It may be argued that while these facts and rulings prove a usage they do not establish its validity. But government is a practical affair intended for practical men. Both officers, law-makers and citizens naturally adjust themselves to any long-continued action of the Executive Department — on the presumption that unauthorized acts would not have been allowed to be so often repeated as to crystallize into a rеgular practice. That presumption is not reasoning in a circle but the basis of a wise and quieting rule that in determining the meaning of a statute or the existence of a power, weight shall be given to the usage itself — even when the validity of the practice is the subject of investigation.
United States v. Midwest Oil Co.,
In Midwest Oil, the question was whether the President had the authority to withdraw tracts of public land from mineral exploration, in apparent contravention of statutes that provided for such exploration. The Court held that Congress had implicitly acquiesced in such withdrawals by failing to amend the relevаnt statutes over a period of' decades during which many withdrawals had been made. The Court counted at least 252 withdrawals to which Congress had thus tacitly consented. The executive branch,
Of course statutory interpretation has come a long way since 1915, but the central insight of Midwest Oil, that in the search for statutory meaning, “weight shall be given to the usage itself,” is very much at home in the Chevron era. And the usage in this case is powerful evidence of statutory meaning.
Nor have private parties objected. The Court’s searches have revealed only two challenges to the legality of this regulation: this case, and a companion case brought in the Second Circuit, both filed by the same law firm. See Weeks Marine v. Briskie,
Not all regulations that come before us to be interpreted will have enjoyed such consistent application and longstanding congressional acquiescence. In the absence of such evidence, I would be less likely to find ambiguity in the type of grammatical alteration at work here. But I am convinced that in this case, the consistent historical application of the statute is ample evidence that “there is such variation in the connection in which thе words are used as reasonably to warrant the conclusion that they were employed in different parts of the act with different intent,” Atlantic Cleaners & Dyers, Inc. v. United States,
I therefore agree with the majority that the statutory language, insofar as it conflicts with longstanding agency practice in addition to the legislative history, is ambiguous, and that deference is due to the agency’s reasonable interpretation.
.I would lay particular stress on two interpretive points: First, my invocation of Midwest Oil is in no respect a comment on the relationship between the respective inherent constitutional magisteria of Congress and the President. Second, the case at bar involves a "systematic, unbroken, executive practice, long pursued to the knowledge of the Congress and never before questioned,” Youngstown Sheet & Tube Co. v. Sawyer,
In appealing to legislative acquiescence in this case, in other words, I do not'in any way open the twin cans of worms of inherent executive authority and executive action pursued in secret. In this case the power exercised by the Secretary of Labor was wielded pursuant to statute, and was wielded openly and publicly.
. The question whether congressional acquiescence shapes meaning or is evidence of meaning is, though of undoubted philosophical interest, of little practical moment here.
. That is to say, in each of those 66,000 cases, the statute, implemented through the regulation, gave the injured worker's employer or insurance carrier (or in some cases, the Labor Department itself) the right to request income verification reporting by the employee, but only while compensation is being paid.
. There is perhaps a certain irony in citing General Dynamics here, insofar as General Dynamics appealed to congressional acquiescence in rejecting a claim of statutory ambiguity and overturning an agency’s interpretation of a statute it administered, while here we appeal to congressional acquiescence in finding the statutoiy language ambiguous so as to affirm the agency’s interpretation.' (The text in the lacuna above reads "is enough to rule out any serious claim of ambiguity.”) The difference, though, is just the difference between the facts of the two cases. In this case, it would probably stretch the language too far to hold that it unambiguously requires the agency’s reading. Accord Weeks Marine, supra,