ROBERTS v. SEA-LAND SERVICES, INC., ET AL.
No. 10-1399
SUPREME COURT OF THE UNITED STATES
March 20, 2012
566 U.S. 93
Argued January 11, 2012
No. 10-1399. Argued January 11, 2012—Decided March 20, 2012
Joseph R. Palmore argued the cause for the federal respondent. With him on the brief were Solicitor General Verrilli, Deputy Solicitor General Kneedler, and M. Patricia Smith. Peter D. Keisler argued the cause for respondent Sea-Land Services, Inc. With him on the brief were Carter G. Phillips, Eric D. McArthur, and Frank B. Hugg.*
JUSTICE SOTOMAYOR delivered the opinion of the Court.
The Longshore and Harbor Workers’ Compensation Act (LHWCA or Act),
I
A
The LHWCA “is a comprehensive scheme to provide compensation ‘in respect of disability or death of an employee . . . if the disability or death results from an injury occurring upon the navigable waters of the United States.‘” Metropolitan Stevedore Co. v. Rambo, 515 U. S. 291, 294 (1995) (quoting
*Jeffrey R. White filed a brief for the American Association for Justice as amicus curiae urging reversal.
If an employer controverts, or if an employee contests his employer‘s actions with respect to his benefits, the dispute advances to the Department of Labor‘s Office of Workers’ Compensation Programs (OWCP). See
In fiscal year 2002, petitioner Dana Roberts slipped and fell on a patch of ice while employed at respondent Sea-Land Services’ marine terminal in Dutch Harbor, Alaska. Roberts injured his neck and shoulder and did not return to work. On receiving notice of his disability, Sea-Land (except for a 6-week period in 2003) voluntarily paid Roberts benefits absent a compensation order until fiscal year 2005. When Sea-Land discontinued voluntary payments, Roberts filed an LHWCA claim, and Sea-Land controverted. In fiscal year 2007, after a hearing, an ALJ awarded Roberts benefits at the statutory maximum rate of $966.08 per week. This was twice the national average weekly wage for fiscal year 2002, the fiscal year when Roberts became disabled.
Roberts moved for reconsideration, arguing that the “applicable” national average weekly wage was the figure for fiscal year 2007, the fiscal year when he was “newly awarded compensation” by the ALJ‘s order. The latter figure would have entitled Roberts to $1,114.44 per week. The ALJ denied reconsideration, and the Department of Labor‘s Benefits Review Board (or BRB) affirmed, concluding that “the pertinent maximum rate is determined by the date the disability commences.” App. to Pet. for Cert. 20. The Ninth Circuit affirmed in relevant part, holding that an employee “is ‘newly awarded compensation’ within the meaning of [
Roberts contends that “awarded compensation” means “awarded compensation in a formal order.” Sea-Land, supported by the Director, OWCP, responds that “awarded compensation” means “statutorily entitled to compensation because of disability.” The text of
A
We first consider “whether the language at issue has a plain and unambiguous meaning with regard to the particular dispute in the case.” Robinson v. Shell Oil Co., 519 U. S. 337, 340 (1997). The LHWCA does not define “awarded,” but in construing the Act, as with any statute, “we look first to its language, giving the words used their ordinary meaning.” Ingalls Shipbuilding, Inc. v. Director, Office of Workers’ Compensation Programs, 519 U. S. 248, 255 (1997) (quoting Moskal v. United States, 498 U. S. 103, 108 (1990)). At first blush, Roberts’ position is appealing. In ordinary usage, “award” most often means “give by judicial decree” or “assign after careful judgment.” Webster‘s Third New International Dictionary 152 (2002); see also, e. g., Black‘s Law Dictionary 157 (9th ed. 2009) (“grant by formal process or by judicial decree“).
In short, the text of
B
Statutory language, however, “cannot be construed in a vacuum. It is a fundamental canon of statutory construction that the words of a statute must be read in their context and with a view to their place in the overall statutory scheme.” Davis v. Michigan Dept. of Treasury, 489 U. S. 803, 809 (1989). In the context of the LHWCA‘s comprehensive, reticulated regime for worker benefits in which
1
Section 906 governs compensation in all LHWCA cases. As explained above, see supra, at 98, the LHWCA requires employers to pay benefits voluntarily, and in the vast majority of cases, that is just what occurs. Under Roberts’ interpretation of
By its terms, and subject to one express exception,
Recognizing this deficiency in his reading of
2
Using the national average weekly wage for the fiscal year in which an employee becomes disabled coheres with the LHWCA‘s administrative structure. Section 914(b) requires an employer to pay benefits within 14 days of notice of an employee‘s disability. To do so, an employer must be able to calculate the cap. An employer must also notify the Department of Labor of voluntary payments by filing a form that indicates, inter alia, whether the “maximum rate is being paid.” Dept. of Labor, Form LS-206, Payment of Compensation Without Award (rev. Aug. 2011), online at http://www.dol.gov/owcp/dlhwc/ls-206.pdf. On receipt of this form, an OWCP claims examiner must verify the rate of compensation in light of the applicable cap. See Dept. of Labor, Longshore (DLHWC) Procedure Manual § 2-n201(3)(b)(3) (hereinafter Longshore Procedure Manual), on-
Moreover, applying the national average weekly wage for the fiscal year in which an employee becomes disabled advances the LHWCA‘s purpose to compensate disability, defined as “incapacity because of injury to earn the wages which the employee was receiving at the time of injury.”
Applying the national average weekly wage at the time of onset of disability avoids disparate treatment of similarly situated employees. Under Roberts’ reading, two employees who earn the same salary and suffer the same injury on the same day could be entitled to different rates of compensation based on the happenstance of their obtaining orders in different fiscal years. We can imagine no reason why Congress would have intended, by choosing the words “newly awarded compensation,” to differentiate between employees based on such an arbitrary criterion.
Finally, using the national average weekly wage for the fiscal year in which disability commences discourages gamesmanship in the claims process. If the fiscal year in which an order issues were to determine the cap, the fact that the national average weekly wage typically rises every year with inflation, see n. 2, supra, would become unduly significant. Every employee affected by the cap would seek the entry of a compensation order in a later fiscal year. Even an employee who has been receiving compensation at the proper rate for years would be well advised to file a claim for greater benefits in order to obtain an order at a later time. Likewise, an employee might delay the adjudicatory process to defer the entry of an order. And even in an adjudicated case where an employer is found to have paid benefits at the proper rate, an ALJ would adopt the later fiscal year‘s national average weekly wage, making the increased cap retroactively applicable to all of the employer‘s payments. Roberts candidly acknowledges that his position gives rise to such perverse incentives. See Tr. of Oral Arg. 58-59. We decline to adopt a rule that would reward employees with windfalls for initiating unnecessary administrative proceedings, while simultaneously punishing employers who have complied fully with their statutory obligations.
III
We find Roberts’ counterarguments unconvincing.
A
First, Roberts observes that some provisions of the LHWCA clearly use “award” to mean “award in a formal order,” and contends that the same must be true of “awarded compensation” in
For example,
Likewise,
Finally,
B
Next, Roberts notes that this Court has refused to read the statutory phrase “person entitled to compensation” in
Finally, Roberts contends that his interpretation furthers the LHWCA‘s purpose of providing employees with prompt compensation by encouraging employers to avoid delay and expedite administrative proceedings. But Roberts’ remedy would also punish employers who voluntarily pay benefits at the proper rate from the time of their employees’ injuries. These employers would owe benefits under the higher cap applicable in any future fiscal year when their employees chose to file claims. And Roberts’ remedy would offer no relief at all to the many beneficiaries entitled to less than the statutory maximum rate.
The more measured deterrent to employer tardiness is interest that “accrues from the date a benefit came due, rather than from the date of the ALJ‘s award.” Matulic v. Director, OWCP, 154 F. 3d 1052, 1059 (CA9 1998). The Director has long taken the position that “interest is a necessary and inherent component of ‘compensation’ because it ensures that the delay in payment of compensation does not diminish the amount of compensation to which the employee is entitled.” Sproull v. Director, OWCP, 86 F. 3d 895, 900 (CA9 1996); see also, e. g., Strachan Shipping Co. v. Wedemeyer, 452 F. 2d 1225, 1229 (CA5 1971). Moreover, “[t]imely [c]ontroversion does not relieve the responsible party from paying interest on unpaid compensation.” Longshore Procedure Manual § 8-201, online at http://www.dol.gov/owcp/dlhwc/lspm/lspm8-201.htm. Indeed, the ALJ awarded Roberts interest “on each unpaid installment of compensation from the date the compensation became due.” App. to Pet. for Cert. 108, Order ¶ 5.11
We hold that an employee is “newly awarded compensation” when he first becomes disabled and thereby becomes statutorily entitled to benefits, no matter whether, or when, a compensation order issues on his behalf.12 The judgment of the Court of Appeals for the Ninth Circuit is affirmed.
It is so ordered.
JUSTICE GINSBURG, concurring in part and dissenting in part.
Section 6 of the Longshore and Harbor Workers’ Compensation Act (LHWCA or Act) defines the maximum disability benefit an injured worker may receive under the Act. Specifically, § 6 states that an injured employee may receive, at most, twice the national average weekly wage for the fiscal year in which the employee is “newly awarded compensation.”
Petitioner Dana Roberts contends that an employee is “newly awarded compensation” in the year she receives a formal compensation award. For the reasons cogently explained by the majority, that argument is untenable. See ante, at 100-111. Unlike the Court, however, I do not regard as reasonable respondent Sea-Land Services’ view that an employee is “newly awarded compensation” in the year she becomes “statutorily entitled to compensation.” Ante, at 100 (internal quotation marks omitted). Applying the common meaning of the verb “award” and recognizing the Act‘s distinction between benefits paid voluntarily, and those paid
I
In determining the meaning of a statutory phrase, “we look first to its language, giving the words used their ordinary meaning.” Moskal v. United States, 498 U. S. 103, 108 (1990) (internal quotation marks and citation omitted). As the Court acknowledges, ante, at 100, the verb “award” ordinarily means “to give by judicial decree” or “[to] assign after careful judgment.” Webster‘s Third New International Dictionary 152 (2002). See also Black‘s Law Dictionary 157 (9th ed. 2009) (defining the verb “award” as “[t]o grant by formal process or by judicial decree“). Giving “award” this usual meaning, an employee is “newly awarded compensation,” if not voluntarily paid, in the fiscal year in which payment is directed by administrative order or judicial decree.
Under the LHWCA, the Court recognizes, an employee is provided compensation voluntarily or in contested proceedings. See ante, at 98. Most commonly, an employer pays compensation voluntarily after receiving an employee‘s notice of disabling injury. See Pallas Shipping Agency, Ltd. v. Duris, 461 U. S. 529, 532 (1983);
The Court does not take this approach. After acknowledging that it is not relying on the typical meaning of the word “award,” see ante, at 100, the Court adopts Sea-Land‘s view that “awarded compensation” is synonymous with “[became] statutorily entitled to benefits,” ante, at 113. As a result, a person is “newly awarded compensation” in the year in which she becomes entitled to benefits—i. e., in the year the employee “first becomes disabled.” Ibid. Such a reading is plausible, the Court asserts, because “this Court has often said that statutes ‘award’ entitlements.” Ante, at 101 (citing cases).
I do not dispute that statutes are often characterized as “awarding” relief to persons falling within their compass. But “a statute must be read in [its] context.” Ibid. (quoting Davis v. Michigan Dept. of Treasury, 489 U. S. 803, 809 (1989)). Section 906 does not address whether the LHWCA, as a general matter, “awards” disability benefits to injured longshore workers. Rather, it concerns a more specific question: When has a particular employee been “newly awarded compensation.” In that context, equating “awarded compensation” with “statutorily entitled to compensation” is not plausible. A person covered by the Act would not likely say he was “awarded compensation” the moment he became disabled, if, in fact, his employer contests liability. Only after some entity—the employer, an ALJ, the BRB, or a reviewing court—recognizes the employee‘s right to compensation would he comprehend that he had been “awarded compensation.” To borrow THE CHIEF JUSTICE‘S example: No person who slips and injures herself on a negligently maintained sidewalk would tell her friends the next
The inconsistency between the Court‘s interpretation of “newly awarded compensation” and my reading of the phrase is best illustrated by contextual example. Assume an employee is injured in 2002 and the employer refuses to pay compensation voluntarily. Then, five years later, an ALJ finds in favor of the employee and orders the employer to pay benefits to the employee. Under the Court‘s view, the employee was “newly awarded compensation” in 2002, even though the employee did not receive a penny—and the employer was not obligated to pay a penny—until 2007. Only the most strained interpretation of “newly awarded” could demand that result.1
The Court‘s view, moreover, does not fit the Act‘s design. As explained supra, at 114-115, the Act envisions that an eligible employee will begin receiving benefits in either of two ways. The Court‘s interpretation disregards this design, assuming instead that all employees are awarded benefits in the same way: by the Act at the time they become disabled.
Section 906(c)‘s legislative history further confirms that Congress intended “newly awarded compensation” to have its commonsense meaning. In describing § 906, the Senate Committee on Labor and Public Welfare reported:
“[Section 906(c)] states that determinations of national average weekly wage made with respect to a [fiscal year]
apply to employees or survivors currently receiving compensation for permanent total disability or death benefits, as well as those who begin receiving compensation for the first time during the [fiscal year].” S. Rep. No. 92-1125, p. 18 (1972) (emphasis added).
Congress therefore believed an injured worker is “newly awarded compensation” in the year in which she “begin[s] receiving compensation for the first time.” Ibid. Again, an employee begins receiving compensation either when an employer voluntarily agrees to pay the employee benefits or when an ALJ, the BRB, or a court orders the employer to do so. See supra, at 114-115. When the employer resists payment, the employee will not necessarily begin receiving compensation in the year in which she becomes disabled.
Finally, interpreting “newly awarded compensation” to mean awarded through an employer‘s voluntary decision or an official order is consistent with the Act‘s goal of encouraging employers to pay legitimate claims promptly. See
II
In this case, Roberts was injured on February 24, 2002, and stopped working two weeks later. App. to Pet. for Cert. 4. Sea-Land and its insurer paid benefits to Roberts from March 11, 2002, until July 15, 2003. Id., at 101. Sea-Land then resumed paying benefits on September 1, 2003, and continued to pay Roberts compensation until May 17, 2005, when it ceased making payments for good. Ibid. After Roberts filed a complaint with the OWCP, an ALJ, in October 2006, concluded that Roberts was entitled to compensation from March 11, 2002, onwards. Id., at 107-108.
Applying my interpretation of
For the foregoing reasons, I would reverse the Ninth Circuit‘s judgment and hold that an employee is “newly awarded compensation” when her employer either voluntarily agrees to pay compensation to her or is officially ordered to do so.
n. 6. The prospect that an employer could successfully execute, or would even attempt, such a strategy is imaginary. Employers who make voluntary payments to employees are required to file a report with the Department of Labor describing the nature of the employee‘s injury and stating the amount of the payments made. See ante, at 104;