ESTATE OF COWART v. NICKLOS DRILLING CO. ET AL.
No. 91-17
SUPREME COURT OF THE UNITED STATES
Argued March 25, 1992—Decided June 22, 1992
505 U.S. 469
Lloyd N. Frischhertz argued the cause and filed briefs for petitioner.
Michael R. Dreeben argued the cause for the federal respondent. With him on the brief were Solicitor General Starr, Deputy Solicitor General Mahoney, Steven J. Mandel, and Edward D. Sieger. H. Lee Lewis, Jr., argued the cause and filed a brief for the private respondents.*
JUSTICE KENNEDY delivered the opinion of the Court.
The Longshore and Harbor Workers’ Compensation Act (LHWCA or Act), 44 Stat. 1424, as amended,
I
The injured worker in this case was Floyd Cowart, and his estate is now the petitioner. Cowart suffered an injury to his hand on July 20, 1983, while working on an oil drilling platform owned by Transco Exploration Company (Transco). The platform was located on the Outer Continental Shelf, an area subject to the Act.
Cowart, meanwhile, had filed an action against Transco alleging that Transco‘s negligence caused his injury. On July 1, 1985, Cowart settled the action for $45,000, of which he received $29,350.60 after attorney‘s fees and expenses. Nicklos funded the entire settlement under an indemnifica-
After settling, Cowart filed an administrative claim with the Department of Labor seeking disability payments from Nicklos. Nicklos denied liability on the grounds that under the terms of § 33(g)(2) of the LHWCA, Cowart had forfeited his benefits by failing to secure approval from Nicklos and Compass of his settlement with Transco, in the manner required by § 33(g)(1).
Section 33(g) provides in pertinent part:
“(g) Compromise obtained by person entitled to compensation
“(1) If the person entitled to compensation (or the person‘s representative) enters into a settlement with a third person referred to in subsection (a) of this section for an amount less than the compensation to which the person (or the person‘s representative) would be entitled under this chapter, the employer shall be liable for compensation as determined under subsection (f) of this section only if written approval of the settlement is obtained from the employer and the employer‘s carrier, before the settlement is executed, and by the person entitled to compensation (or the person‘s representative). The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commissioner within thirty days after the settlement is entered into.
“(2) If no written approval of the settlement is obtained and filed as required by paragraph (1), or if the employee fails to notify the employer of any settlement obtained from or judgment rendered against a third person, all rights to compensation and medical benefits under this chapter shall be terminated, regardless of whether the employer or the employer‘s insurer has
made payments or acknowledged entitlement to benefits under this chapter.” 33 U. S. C. § 933(g) .
The Administrative Law Judge (ALJ) rejected Nicklos’ argument on the basis of prior interpretations of § 33(g) by the Benefits Review Board (Board or BRB). In the first of those decisions, O‘Leary v. Southeast Stevedoring Co., 7 BRBS 144 (1977), aff‘d mem., 622 F. 2d 595 (CA9 1980), the Board held that in an earlier version of § 33(g) the words “person entitled to compensation” referred only to injured employees whose employers were making compensation payments, whether voluntary or pursuant to an award. The O‘Leary decision held that a person not yet receiving benefits was not a “person entitled to compensation,” even though the person had a valid claim for benefits.
The statute was amended to its present form, the form we have quoted, in 1984. In that year Congress redesignated then subsection (g) to what is now (g)(1) and modified its language somewhat, but did not change the phrase “person entitled to compensation.” Congress also added the current subsection (g)(2), as well as other provisions. Following the 1984 amendments the Board decided Dorsey v. Cooper Stevedoring Co., 18 BRBS 25 (1986), app. dism‘d, 826 F. 2d 1011 (CA11 1987). The Board reaffirmed its interpretation in O‘Leary of the phrase “person entitled to compensation,” saying that because the 1984 amendments had not changed the specific language, Congress was presumed to have adopted the Board‘s previous interpretation. It noted that nothing in the 1984 legislative history disclosed an intent to overrule the Board‘s interpretations. The Board decided that the forfeiture provisions of subsection (g)(2), including the final phrase providing that forfeiture occurs “regardless of whether the employer ... has made payments or acknowledged entitlement to benefits,” was a “separate provisio[n] applicable to separate situations.” 18 BRBS, at 29.
The ALJ in this case held that under the reasoning of O‘Leary and Dorsey, Cowart was not a person entitled to
On review, a panel of the Court of Appeals for the Fifth Circuit reversed. 907 F. 2d 1552 (1990). Without addressing the Board‘s specific statutory interpretation, it held that § 33(g) contains no exceptions to its written-approval requirement. Because this holding, and a decision by a panel in a different case, Petroleum Helicopters, Inc. v. Barger, 910 F. 2d 276 (CA5 1990), conflicted with a previous unpublished decision in the same Circuit, Kahny v. O. W. C. P., 729 F. 2d 777 (CA5 1984), the Court of Appeals granted rehearing en banc. The Director of the Office of Workers’ Compensation Programs (OWCP), a part of the Department of Labor,
In a per curiam opinion, the en banc Court of Appeals confirmed the panel‘s decision reversing the BRB in its Cowart case. 927 F. 2d 828 (CA5 1991). The Court of Appeals’ majority held that § 33(g) is unambiguous in providing for forfeiture whenever an LHWCA claimant fails to get written approval from his employer of a third-party settlement. The majority acknowledged the well-established principle requiring judicial deference to reasonable interpretations by an agency of the statute it administers, but concluded that the plain language of § 33(g) leaves no room for interpretation. Judge Politz, joined by Judges King and Johnson, dissented on the ground that the OWCP‘s was a reasonable
We granted certiorari because of the large number of LHWCA claimants who might be affected by the Court of Appeals’ decision. 502 U. S. 1003 (1991). We now affirm.
II
In a statutory construction case, the beginning point must be the language of the statute, and when a statute speaks with clarity to an issue judicial inquiry into the statute‘s meaning, in all but the most extraordinary circumstance, is finished. Demarest v. Manspeaker, 498 U. S. 184, 190 (1991). The question is whether Cowart, at the time of the Transco settlement, was a “person entitled to compensation” under the terms of § 33(g)(1) of the LHWCA. Cowart concedes that he did not comply with the written-approval requirements of the statute, while Nicklos and Compass do not claim that they lacked notice of the Transco settlement. By the terms of § 33(g)(2), Cowart would have forfeited his LHWCA benefits if, and only if, he was subject to the written-approval provisions of § 33(g)(1). Cowart claims that he is not subject to the approval requirement because in his view the phrase “person entitled to compensation,” as long interpreted by both the BRB and the OWCP, limits the reach of § 33(g)(1) to injured workers who are either already receiving compensation payments from their employer, or in whose favor an award of compensation has been entered. Nicklos and Compass, supported by the United States, defend the holding of the Court of Appeals that § 33(g) cannot support that reading. We agree with these respondents and hold that under the plain language of § 33(g), Cowart forfeited his right to further LHWCA benefits by failing to obtain the written approval of Nicklos and Compass prior to settling with Transco.
As a preliminary matter, the natural reading of the statute supports the Court of Appeals’ conclusion that a person entitled to compensation need not be receiving compensation or have had an adjudication in his favor. Both in legal and general usage, the normal meaning of entitlement includes a right or benefit for which a person qualifies, and it does not depend upon whether the right has been acknowledged or adjudicated. It means only that the person satisfies the prerequisites attached to the right. See generally Board of Regents of State Colleges v. Roth, 408 U. S. 564, 577 (1972) (discussing property interests protected by the Due Process Clause and contrasting an entitlement to an expectancy); Black‘s Law Dictionary 532 (6th ed. 1990) (defining “entitle” as “To qualify for; to furnish with proper grounds for seeking or claiming“). Cowart suffered an injury which by the terms of the LHWCA gave him a right to compensation from his employer. He became a person entitled to compensation at the moment his right to recovery vested, not when his employer admitted liability, an event even yet to happen.
If the language of § 33(g)(1), in isolation, left any doubt, the structure of the statute would remove all ambiguity. First, and perhaps most important, when Congress amended § 33(g) in 1984, it added the explicit forfeiture features of § 33(g)(2), which specify that forfeiture occurs “regardless of whether the employer or the employer‘s insurer has made payments or acknowledged entitlement to benefits under this chapter.” We read that phrase to modify the entirety of subsection (g)(2), including the beginning part discussing the written-approval requirement of paragraph (1). The BRB did not find this amendment controlling because the quoted language is not an explicit modification of subsection (1). This is a strained reading of what Congress intended. Subsection (g)(2) leaves little doubt that the contemplated for-
The addition of subsection (g)(2) in 1984 also precludes the primary argument made by the BRB in favor of its decisions in Dorsey and this case, and repeated by Cowart to us: That Congress in 1984, by reenacting the phrase “person entitled to compensation,” adopted the Board‘s reading of that language in O‘Leary. The argument might have had some force if § 33(g) had been reenacted without changes, but that was not the case. In 1984 Congress did more than reenact § 33(g); it added new provisions and new language which on their face appear to have the specific purpose of overruling the prior administrative interpretation. In light of the clear import of § 33(g)(2), the Board erred in relying on the purported lack of legislative history showing an explicit intent to reject the O‘Leary decision. Even were it relevant, the Board‘s reading of the legislative history is suspect because as the federal respondent demonstrates, the legislative history of predecessor bills to the eventual 1984 enactment do indicate an intent to overturn O‘Leary. See Longshoremen‘s and Harbor Workers’ Compensation Act Amendments of 1981: Hearings on S. 1182 before the Subcommittee on Labor of the Senate Committee on Labor and Human Resources, 97th Cong., 1st Sess., 209, 210-211, 396 (1981). In any event, administrative interpretation followed by congressional reenactment cannot overcome the plain language of a statute. Demarest v. Manspeaker, 498 U. S., at 190. And the language of § 33(g) is plain.
Our interpretation of § 33(g) is reinforced by the fact that the phrase “person entitled to compensation” appears elsewhere in the statute in contexts in which it cannot bear the meaning placed on it by Cowart. For example, § 14(h) of the LHWCA,
Yet another reason why we are not convinced by the Board‘s position is that the Board‘s interpretation of “person entitled to compensation” has not been altogether consistent; and Cowart‘s interpretation may not be the same as the Board‘s in precise respects. At times the Board has said this language refers to an employee whose “employer is actually paying compensation either pursuant to an award or voluntarily when claimant enters into a third party settlement.” Dorsey, 18 BRBS, at 28; 23 BRBS, at 44 (case below). At other times, sometimes within the same opinion, the Board has spoken in terms of the employer either making payments or acknowledging liability. O‘Leary, 7 BRBS, at 147-149; Dorsey, supra, at 29; see also In re Wilson, 17 BRBS 471, 480 (ALJ 1985). Cowart, on the other hand, would include within the phrase both employees receiving compensation benefits and employees who have a judicial award of compen-
We do not believe that Congress’ use of the word “employee” in subsection (g)(2), rather than the phrase “person entitled to compensation,” undercuts our reading of the statute. The plain meaning of subsection (g)(1) cannot be altered by the use of a somewhat different term in another part of the statute. Subsection (g)(2) does not purport to speak to the question of who is required under subsection (g)(1) to obtain prior written approval.
Cowart‘s strongest argument to the Court of Appeals was that any ambiguity in the statute favors him because of the deference due the OWCP Director‘s statutory construction, a deference which Nicklos and Compass concede is appropriate. Brief for Private Respondents 7. As we have said, we are not faced with this difficult issue because the views of the OWCP Director have changed since we granted certiorari. Supra, at 476. It seems apparent to us that it would be quite inappropriate to defer to an interpretation which has been abandoned by the policymaking agency itself. It is noteworthy, moreover, that even prior to this case the position of the Department of Labor has not been altogether consistent. It is true that the Director has twice, albeit in a somewhat equivocal manner, endorsed the Board‘s rulings in O‘Leary and Dorsey. First, in a 1986 circular discussing the Board‘s Dorsey case a subordinate of the Director stated: “While the Board‘s position may not be totally consistent with the amended language of Section 33(g), we think it is a rational approach and have advised the Associate Solicitor that we will support this position.” United States Dept. of Labor, LHWCA Circular No. 86-3, p. 1 (May 30, 1986).
The history of the Department of Labor regulation goes far toward confirming our view of the significance of the 1984 amendments. The original § 702.281, proposed in 1976 and enacted in final form in 1977, required only that an employee notify his employer and the Department of any third-party claim, settlement, or judgment. 41 Fed. Reg. 34297 (1976); 42 Fed. Reg. 45303 (1977). The sole reference to the forfeiture provisions was a closing parenthetical: “Caution: See 33 U. S. C. § 933(g).” In 1985, in response to the 1984 congressional amendments, the Department proposed to amend § 702.281 by replacing the closing parenthetical with a subsection (b), stating that failure to obtain written approval of settlements for amounts less than the compensation due under the Act would lead to forfeiture of future benefits. 50 Fed. Reg. 400 (1985). In response to comments, the final
We also reject Cowart‘s argument that our interpretation of § 33(g) leaves the notification requirements of § 33(g)(2) without meaning. An employee is required to provide notification to his employer, but is not required to obtain written approval, in two instances: (1) Where the employee obtains a judgment, rather than a settlement, against a third party; and (2) Where the employee settles for an amount greater than or equal to the employer‘s total liability. Under our construction the written-approval requirement of § 33(g)(1) is inapplicable in those instances, but the notification requirement of § 33(g)(2) remains in force. That is why subsection (g)(2) mandates that an employer be notified of “any settlement.”
This view comports with the purposes and structure of § 33. Section 33(f) provides that the net amount of damages recovered from any third party for the injuries sustained reduces the compensation owed by the employer. So the employer is a real party in interest with respect to any settlement that might reduce but not extinguish the employer‘s liability. The written-approval requirement of § 33(g) “protects the employer against his employee‘s accepting too little for his cause of action against a third party.” Banks v. Chicago Grain Trimmers Assn., Inc., 390 U. S. 459, 467 (1968). In cases where a judgment is entered, however, the employee does not determine the amount of his recovery, and employer approval, even if somehow feasible, would serve no purpose. And in cases where the employee settles for greater than the employer‘s liability, the employer is pro-
As a final line of defense, Cowart‘s attorney suggested at oral argument that Nicklos’ participation in the Transco settlement brought this case outside the terms of § 33(g)(1). Tr. of Oral Arg. 4-7. Relying on the recent decision of the Court of Appeals for the Fourth Circuit in I. T. O. Corporation of Baltimore v. Sellman, 954 F. 2d 239, 242-243 (1992), counsel argued that § 33(g)(1) requires written approval only of “settlement[s] with a third person,” and that Nicklos’ participation in the Transco settlement meant it was not with a third person. Without indicating any view on the merits of this contention, we do not address it because it is not fairly included within the question on which certiorari was granted. See this Court‘s Rule 14.1(a).
We need not today decide the retroactive effect of our decision, nor the relevance of res judicata principles for other LHWCA beneficiaries who may be affected by our decision. Cf. Pittston Coal Group v. Sebben, 488 U. S. 105, 121-123 (1988). We do recognize the stark and troubling possibility that significant numbers of injured workers or their families may be stripped of their LHWCA benefits by this statute, and that its forfeiture penalty creates a trap for the unwary. It also provides a powerful tool to employers who resist liability under the Act. Counsel for respondents stated during oral argument that he had used the Transco settlement as a means of avoiding Nicklos’ liability under the LHWCA. Tr. of Oral Arg. 23-26. These harsh effects of § 33(g) may be exacerbated by the inconsistent course followed over the years by the federal agencies charged with enforcing the Act. But Congress has spoken with great clarity to the precise question raised by this case. It is the duty of the courts to
For the reasons stated, the judgment of the Court of Appeals is
Affirmed.
JUSTICE BLACKMUN, with whom JUSTICE STEVENS and JUSTICE O‘CONNOR join, dissenting.
For more than 14 years, the Director of the Office of Workers’ Compensation Programs interpreted the Longshore and Harbor Workers’ Compensation Act (LHWCA or Act), 44 Stat. 1424, as amended,
After certiorari was granted, however, and after Cowart‘s opening brief was filed, the federal respondent informed this Court: “In light of the en banc decision in this case, the Department of Labor reexamined its views on the issue.” Brief for Federal Respondent 8, n. 6. The federal respondent now assures us that the interpretation the Director advanced and defended for 14 years is inconsistent with the statute‘s “plain meaning.” The Court today accepts that improbable contention, and in so doing rules that perhaps thousands of employees and their families must be denied death and disability benefits. I cannot agree with the federal respondent‘s newly discovered interpretation, and still less do I find it to be compelled by the “plain meaning” of the statute. The Court needlessly inflicts additional injury upon these workers and their families. I dissent.
I
Ever since the LHWCA was adopted in 1927, it has included some version of the present § 33(g),
A
The LHWCA requires employers to provide compensation, “irrespective of fault,” for injuries and deaths arising out of covered workers’ employment. §§ 3(a) and 4(b),
In a case where a third party may be liable, the LHWCA does not require a claimant to elect between statutory compensation and tort recovery. § 33(a). Where a claimant has accepted compensation under a formal award, then, within a specified time, he may file a civil action against the third party. § 33(b). If a claimant recovers in that action, his compensation under the LHWCA is limited to the excess, if any, of his statutory compensation over the net amount of his recovery. § 33(f). Section 33(f) thus operates as a setoff provision, allowing an employer to reduce its LHWCA liability by the net amount a claimant obtains from a third party. Where the claimant nets as much or more from the third
Section 33(g) of the LHWCA,
Before the LHWCA‘s 1984 amendments, § 33(g) provided that if a “person entitled to compensation” settled for less than the compensation to which he was entitled under the Act, then the employer would be liable for compensation, as determined in § 33(f), only if the person obtained and duly filed with the Department of Labor the employer‘s written approval of the settlement. The meaning of the term “person entitled to compensation” has proved to be a difficult issue, both in the pre-1984 version of the Act and—as this case demonstrates—in the Act‘s current form.
B
This issue apparently was considered first in O‘Leary v. Southeast Stevedoring Co., 7 BRBS 144 (1977), aff‘d, 622 F. 2d 595 (CA9 1980). In that case, the employer denied liability for the death of the claimant‘s husband, contending that the decedent was not an employee covered by the LHWCA and that the injury did not arise out of his employment. 7 BRBS, at 145. The employer persisted in denying liability even after its position was rejected by the Benefits
The ALJ rejected the employer‘s position, reasoning that the claimant was not a “person entitled to compensation” at the time of the settlement. The BRB affirmed. The Board pointed out that the “underlying concept” of the LHWCA is that “the employer upon being informed of an injury will voluntarily begin to pay compensation.” O‘Leary, 7 BRBS, at 147 (citing § 14(a)). Further, the Board observed, § 33(g) refers to the conditions under which an employer will be “liable” for compensation under § 33(f); the reference to “liability,” the Board reasoned, “contemplat[es] that [the] employer either be making voluntary payments under the Act or that it ha[s] been found liable for benefits by a judicial determination.” Id., at 148. Moreover, the Board continued, § 33(b) gives the employer the right to pursue third parties only if the employer is paying compensation under an award. Thus, the premise of employer rights under § 33, the Board concluded, is that the employer is “making either voluntary payments under the Act or pursuant to an award.” Ibid.
“If a claimant was injured through the negligence of a third party and the employer denied coverage under the Act, a claimant would be forced to sue the third party. However, even if the claimant obtained a reasonable settlement offer, an employer could refuse to give its consent to the third party settlement for any number of reasons, e. g., it does not wish to approve the settlement on a form provided under the Act since its consent to jurisdiction under the Act might be inferred. This could result in a claimant not being paid any compensation, yet the claimant would be afraid to make a third party settlement for in so doing he might waive his rights to compensation under the Act. Ultimately, a claimant going without income for a long enough time could be forced into a third party settlement without employer‘s consent to obtain money....” Id., at 149.
And under the employer‘s interpretation of § 33(g), the employee would thereby forfeit all right to compensation under the Act. Surely, the Board concluded, “Congress by requiring written consent could not have contemplated such a result.” Ibid.
The Court of Appeals for the Ninth Circuit affirmed in an unpublished opinion, App. 113, stating: “The Board‘s ruling”
is reasonable and furthers the underlying purpose of the Act.” Id., at 117. The Court of Appeals for the Fifth Circuit, in an unpublished opinion, upheld a similar BRB decision in 1984, finding the O‘Leary approach “fully consistent with the language, legislative history, and rationale of”
C
The
“(1) If the person entitled to compensation (or the person‘s representative) enters into a settlement with a third person referred to in subsection (a) for an amount less than the compensation to which the person (or the person‘s representative) would be entitled under this Act, the employer shall be liable for compensation as determined under subsection (f) only if written approval of the settlement is obtained from the employer and the employer‘s carrier, before the settlement is executed, and by the person entitled to compensation (or the person‘s representative). The approval shall be made on a form provided by the Secretary and shall be filed in the office of the deputy commissioner within thirty days after the settlement is entered into.
“(2) If no written approval of the settlement is obtained and filed as required by paragraph (1), or if the employee fails to notify the employer of any settlement obtained from or judgment rendered against a third person, all rights to compensation and medical benefits under this Act shall be terminated, regardless
of whether the employer or the employer‘s insurer has made payments or acknowledged entitlement to benefits under this Act.”
In Dorsey v. Cooper Stevedoring Co., 18 BRBS 25 (1986), appeal dism‘d sub nom. Cooper Stevedoring Co. v. Director, Office of Workers’ Comp. Programs, 826 F. 2d 1011 (CA11 1987), the Board rejected an employer‘s argument that the final clause of the new
This interpretation is reinforced, the Board continued, by two other considerations. First, although in a number of instances the 1984 legislative history indicates a congressional intention to override other BRB and judicial decisions, that history “indicates no congressional intent to overrule O‘Leary.” Id., at 30. Second, the Board observed, this Court has held that the LHWCA “should be construed in order to further its purpose of compensating longshoremen and harbor workers ‘and in a way which avoids harsh and incongruous results.‘” Id., at 31, quoting Voris v. Eikel, 346 U. S. 328, 333 (1953), and citing Northeast Marine Terminal Co. v. Caputo, 432 U. S. 249, 268 (1977). As O‘Leary made clear, allowing employers to escape all LHWCA liability by withholding approval from any settlement, while refusing to
D
Such was the legal background against which Cowart‘s claim was considered. In the administrative proceedings, the BRB relied on O‘Leary and Dorsey to reject the argument, offered by respondent Nicklos Drilling Company, that by failing to obtain prior written approval of his third-party settlement Cowart had forfeited his LHWCA benefits. Because Nicklos was not paying Cowart benefits, either voluntarily or under an award, the Board reasoned, Cowart was not a “person entitled to compensation” within the meaning of
On Nicklos’ petition for review, the Director of the Office of Workers’ Compensation Programs (OWCP)—head of the agency charged with administering the Act—defended the Board‘s interpretation before the Court of Appeals for the Fifth Circuit. First a panel of the Court of Appeals, and then the full court, by a divided vote sitting en banc, however, rejected the Director‘s position, ruling that Cowart was a “person entitled to compensation” and was required by
II
This Court today agrees with the Director‘s postcertiorari position that Cowart‘s claim for compensation is barred by the “clear meaning” of the statute “as written.” Ante, at 476. According to the Court, Cowart is plainly a “person entitled to compensation” within the meaning of
In my view, the language of
At the same time, a consistently literal interpretation of the Act would commit the Court to positions it might be unwilling to take. The conclusion I draw is not that the Court should adopt a purely literal interpretation of the Act, but instead that the Court should recognize, as it has until today, that the LHWCA must be read in light of the purposes and policies it would serve. Once that point is recog
A
Were the Court truly to interpret the Act “as written,” it would not conclude that Cowart is barred from receiving compensation.
The “plain language” of
Indeed, if Cowart is not covered by
It is true that
It is not obvious, however, that a similar argument from statutory purpose should be available to employers such as Nicklos who refuse to pay benefits and then seek shelter under
B
For these reasons, I think it clear that a purely textual approach to the LHWCA cannot justify the Court‘s holding. In my view, a more sensible approach is to consider
1
Looking first to
The critical fact in this inquiry is Congress’ use of the term “employee,” rather than “person entitled to compensation,” in connection with the notification requirement. The use of this term is in marked contrast to the other clauses of
The use of the term “employee” in
2
The inference that Congress intended to adopt the O‘Leary rule in the amended language of
Given the parties’ different incentives in the situation where the employer already is paying benefits, it makes sense to require the claimant to protect the employer‘s interest, by requiring settlements to be reasonable in the employer‘s judgment. At the same time, giving the employer this power of approval does not generally threaten the claimant‘s interests, since, as mentioned, only the employer has an interest in settlements above the threshold of the claimant-plaintiff‘s expenses and below the amount of promised or delivered LHWCA benefits.
Matters are quite different, however, when (as in the present case) the employer has refused to make statutory payments and is not subject to an enforceable award at the time of settlement. First, the claimant generally will not be able
The employer who refuses to pay, by contrast, has taken the position that it owes no LHWCA benefits that may be reduced through a third-party settlement, and thus that it has no real interest in the amount for which the third party settles. Moreover, as has been noted, the claimant who is not receiving benefits has a strong incentive to protect the employer‘s interest in reducing or eliminating any LHWCA liability that might eventually be imposed. Under the Court‘s interpretation of
3
The Court recognizes the patent unfairness of this situation, and it as much as admits that its interpretation is out of line with the policies of the Act. See ante, at 483. Nevertheless, the Court holds that the plain meaning of the term “person entitled to compensation” clearly applies to both categories of claimants—those whose employers have denied liability, as well as those whose employers have acknowledged that they must pay statutory benefits. See ante, at 477. For that reason, the Court implies, regardless of what Congress may have thought it was accomplishing in the 1984 amendments, the words “person entitled to compensation” simply will not bear the construction O‘Leary gave them. See ante, at 478-479.
Even setting aside my doubts, expressed above, about the plain meaning rule‘s application to this statute, I am not persuaded by the Court‘s contention. In my view, it does not strain ordinary language to describe claimants whose employers have acknowledged LHWCA liability as “persons entitled to compensation,” but to withhold that description from claimants whose employers have denied liability for compensation. This is particularly so, given the context in which the term appears in the statute.
It is true, as the Court observes, that under the O‘Leary interpretation, the term “person entitled to compensation” would take on different meanings in different contexts. See ante, at 478. This Court, however, has not inflexibly required the same term to be interpreted in the same way for all purposes. Compare Barnhill v. Johnson, 503 U. S. 393, 401-402, and n. 9 (1992), with id., at 406 (STEVENS, J., dissenting) (noting that the maxim is “not inexorable,” but arguing that because “nothing in the [statute‘s] structure or purpose” counsels otherwise, the Court should have applied it). This Court has recognized:
“Most words have different shades of meaning and consequently may be variously construed, not only when they occur in different statutes, but when used more than once in the same statute or even in the same section. . . .
“It is not unusual for the same word to be used with different meanings in the same act, and there is no rule of statutory construction which precludes the courts from giving to the word the meaning which the legislature intended it should have in each instance.” Atlantic Cleaners & Dyers, Inc. v. United States, 286 U. S. 427, 433 (1932).
Moreover, the Court simply has failed to apply, or even mention, a maxim of interpretation, specifically applicable to the LHWCA, that strongly supports Cowart‘s position. This Court long has held that “[t]his Act must be liberally construed in conformance with its purpose, and in a way which avoids harsh and incongruous results.” Director, OWCP v. Perini North River Associates, 459 U. S. 297, 315-316 (1983), quoting Voris v. Eikel, 346 U. S., at 333. The only point at which the Court in this case consults the purposes of the Act is at the end of its opinion, when it assures the reader that its interpretation of the notification requirement of
4
Once it is recognized that a claimant whose employer denies LHWCA liability is not a “person entitled to compensation” for purposes of
III
The Court recognizes “the stark and troubling possibility that significant numbers of injured workers or their families may be stripped of their LHWCA benefits by this statute.” Ibid. It attempts to justify the “harsh effects” of its decision on the ground that it is but the faithful agent of the Legislature, and “Congress has spoken with great clarity to the precise question raised by this case.” Ibid. In my view, Congress did not answer the question in the way the Court suggests, let alone did it do so “with great clarity.” The responsibility for today‘s unfortunate decision rests not with Congress, but with this very Court.
I dissent.
