Spyridon KOLLIAS, Petitioner,
v.
D & G MARINE MAINTENANCE, State Insurance Fund, and
Director, Office of Workers' Compensation
Programs, United States Department of
Labor, Respondents.
B & A MARINE CO. and State Insurance Fund, Petitioners,
v.
Eleftherios GOUVATSOS and Director, Office of Workers'
Compensation Programs, United States Department of
Labor, Respondents.
Nos. 567, 741, Dockets 89-4114, 92-4109.
United States Court of Appeals,
Second Circuit.
Argued Oct. 21, 1993.
Decided July 6, 1994.
Bernard Rolnick, New York City (Jane R. Goldberg, Philadelphia, PA, of counsel), for Spyridon Kollias.
Joshua T. Gillelan, II, Office of the Sol., U.S. Dept. of Labor, Washington, DC (Thomas S. Williamson, Jr., Sol. of Labor, Carol A. De Deo, Associate Sol., U.S. Dept. of Labor, of counsel), for Director, OWCP.
Richard A. Cooper, New York City (Amy Levitt, Martin Krutzel, Fischer Brothers, Bernard Rolnick, New York City, Jane R. Goldberg, Philadelphia, PA, of counsel), for D & G Marine Maintenance, State Ins. Fund and B & A Marine Co.
Before: MESKILL, PIERCE and MAHONEY, Circuit Judges.
MESKILL, Circuit Judge:
These petitions for review require us to determine whether the Longshore and Harbor Workers' Compensation Act (LHWCA), 33 U.S.C. Secs. 901-950, applies to injuries sustained on the high seas. In Docket No. 89-4114 (Kollias case), petitioner Spyridon Kollias petitions for review of a final order of the Benefits Review Board (Board) denying his claim for LHWCA benefits. The Board based its denial of benefits on the ground that Kollias' injury had occurred on the high seas, which is not a statutorily covered situs as defined in the coverage provision of the LHWCA, 33 U.S.C. Sec. 903(a) (section 3(a)). In Docket No. 92-4109 (Gouvatsos case), petitioner B & A Marine Co. (B & A Marine) petitions for review of a final order of the Board granting LHWCA benefits to B & A Marine's employee, respondent Eleftherios Gouvatsos. The Board granted Gouvatsos' claim for benefits on the ground that Gouvatsos' injury, which had occurred on the high seas, was covered by the LHWCA because the phrase "navigable waters of the United States" in section 3(a) includes the high seas. We grant Kollias' petition and reverse the Board's denial of benefits; we deny the petition in the Gouvatsos case and affirm the Board.
BACKGROUND
Kollias Case
Kollias, an employee of respondent D & G Marine Maintenance (D & G Marine), was injured while working as a repairman on the T.T. WILLIAMSBURGH (WILLIAMSBURGH). Kollias' injury occurred during a voyage from Galveston, Texas, to Long Beach, California. At the time of the injury, the WILLIAMSBURGH was on the high seas, which have been defined as those waters beyond the territorial waters of the United States, which extend three miles from the coast. See Moragne v. States Marine Lines,
Kollias sought compensation for his injury from D & G Marine pursuant to section 4(a) of the LHWCA, which provides that "[e]very employer shall be liable for and shall secure the payment to his employees of the compensation payable under [the LHWCA]." 33 U.S.C. Sec. 904(a). D & G Marine's compensation insurer, State Insurance Fund (Fund), was also a party to the action.
After a hearing, an administrative law judge (ALJ) of the United States Department of Labor denied Kollias' claim on the ground that Kollias' injury had not occurred on a covered situs, which is defined in section 3(a) as "upon the navigable waters of the United States (including any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or other adjoining area customarily used by an employer in loading, unloading, repairing, dismantling, or building a vessel)." The parties did not dispute that Kollias met the LHWCA's status requirement, that is, that he satisfied the statutory definition of "employee." 33 U.S.C. Sec. 902(3) (section 2(3)). Although the ALJ made no factual findings with respect to Kollias' citizenship, the WILLIAMSBURGH's country of registry, or the location of D & G Marine, the parties appear to agree that Kollias is a New York resident, D & G Marine is based in New York, and the WILLIAMSBURGH is an American flag ship. We will assume, without deciding, that these representations are accurate.
Kollias appealed to the Board, which affirmed. In its decision, the Board noted that Kollias had received state workers' compensation benefits paid voluntarily by D & G Marine and that the parties had agreed that state workers' compensation coverage would be available to Kollias if he were not covered under the LHWCA.
Kollias then filed a petition for review in this Court. This Court received full briefing and heard oral argument on May 31, 1990. The Court then remanded the case to the Board for further factual findings and retained jurisdiction.
Gouvatsos, an employee of B & A Marine, a New York ship repair company, was injured while working as a repairman and supervisor on the AMOCO CREMONA, a ship of Bermudian registry. At the time of Gouvatsos' injury, the AMOCO CREMONA was on the high seas during a return voyage from Bagaritos, Mexico, to Galveston Roads, Texas. The record does not reveal Gouvatsos' citizenship or residence, but the Director represents that Gouvatsos is American. For purposes of this case, we assume that this representation is accurate.
Gouvatsos sought compensation for his injury from B & A Marine pursuant to the LHWCA. The Fund, B & A Marine's compensation insurer, was an additional party to the action. The parties agreed that the sole issue presented by Gouvatsos' claim was whether his injury had occurred on a statutorily covered situs for purposes of section 3(a) of the LHWCA. After receiving written submissions, an ALJ of the Department of Labor granted Gouvatsos' claim for benefits. B & A Marine and the Fund appealed to the Board, which affirmed. B & A Marine and the Fund then petitioned for review in this Court. The Director has participated in the case in this Court as a respondent and supports Gouvatsos' position.
Issues on Appeal
The Director and the claimants generally contend that the LHWCA applies to the high seas and, therefore, provides a remedy for the claimants' injuries. More specifically, they assert that the presumption against extraterritorial application of statutes does not bar the application of the LHWCA to the high seas in these cases.1 In addition, the Director argues that its construction of the LHWCA is entitled to deference. The employers and the Fund (collectively "the employers") contend, on the other hand, that the presumption against extraterritoriality precludes the application of the LHWCA to the high seas and that the Court should not defer to the Director's interpretation of the jurisdictional scope of the statute.
DISCUSSION
I. Presumption Against Extraterritoriality
The claimants' and Director's contentions that the claimants are entitled to relief under the LHWCA rest on the premise that the LHWCA may be applied extraterritorially, that is, beyond the territorial jurisdiction of the United States. According to recent Supreme Court pronouncements, however, we must presume that Congress intended its enactments to apply only within the territorial jurisdiction of the United States, unless the legislation reflects a contrary intent. See Smith v. United States, --- U.S. ----, ----,
A. Applicability of the Presumption
We must begin our analysis by considering whether the presumption against extraterritoriality applies at all with respect to the LHWCA. The Director and Kollias assert a host of arguments against the applicability of the presumption in this context. None of these arguments is persuasive.
First, the Director and Kollias contend that neither of the two primary considerations underlying the presumption--avoidance of international discord and Congress' focus on domestic matters--is implicated here. See Aramco,
With respect to the second primary consideration underlying the presumption--Congress' focus on domestic matters--the Director and Kollias assert that maritime legislation, such as the LHWCA, naturally applies extraterritorially and that Congress does not, therefore, in the maritime context, legislate against the backdrop of the presumption against extraterritoriality. They conclude that maritime legislation is not subject to the presumption. In support of this argument, they rely primarily on United States v. Bowman,
Despite the Director's and Kollias' claim that the LHWCA is "not logically dependent on [its] locality for the Government's jurisdiction," we find Bowman unpersuasive with respect to the LHWCA. The Supreme Court's recent discussions of the presumption against extraterritoriality, none of which mentions Bowman, seem to require that all statutes, without exception, be construed to apply within the United States only, unless a contrary intent appears. See, e.g., Smith, --- U.S. at ---- & n. 5,
The Director and Kollias further contend that the presumption does not apply to the LHWCA because it does not apply to the Jones Act, 46 U.S.C.App. Sec. 688. The Director states that the presumption against extraterritoriality is relevant to the LHWCA only if "the extraterritorial application of the LHWCA is subject to construction under different principles than those applied to the Jones Act in Lauritzen." We are not persuaded.
Even assuming that the Jones Act and the LHWCA should be treated identically in this respect, it is not clear that the presumption against extraterritoriality is inapplicable to the Jones Act. The parties cite no cases holding that the Jones Act is exempt from the presumption, nor have we found any. Rather than establishing that the Jones Act is not subject to the presumption, the Director and Kollias cite Lauritzen,
Finally, Kollias asserts that the presumption against extraterritoriality does not apply in his case because application of the LHWCA would not be extraterritorial at all. He contends that, because he was injured on an American flag vessel and because the law of the flag governs the internal affairs on a vessel, see McCulloch v. Sociedad Nacional de Marineros de Honduras,
In any case, the concept of extraterritoriality does not refer to the body of law that governs the dispute; if it did, extraterritorial application of United States statutes would be an impossibility because any place where United States law governed a particular dispute would be considered United States territory. Accordingly, we decline to characterize the WILLIAMSBURGH as a kind of floating United States territory, where application of the LHWCA would not be extraterritorial.
For the above reasons, we are not persuaded that the LHWCA is exempt from the generally applicable presumption against extraterritoriality. The LHWCA may not be applied on the high seas, therefore, in the absence of a sufficiently clear indication that Congress intended extraterritorial application of the statute. We now proceed to determine whether such an indication appears.
B. Overcoming the Presumption
1. Standard
In Aramco, the Court stated that the presumption is not overcome unless there appears " 'the affirmative intention of the Congress clearly expressed.' "
The Aramco dissent and some commentators have interpreted the majority opinion in Aramco as setting forth a "clear statement" rule, such that the presumption against extraterritoriality cannot be overcome absent a clear statement in the statute itself. See id. at 261,
2. Application
With these guidelines in mind, we consider whether the LHWCA contains a sufficiently clear indication of congressional intent to apply the statute extraterritorially. We conclude that it does.
First, the administration section of the LHWCA, located in section 39, provides for the establishment of compensation districts that cover the high seas and, therefore, expressly contemplates coverage of injuries sustained on the high seas. 33 U.S.C. Sec. 939(b) (section 39(b)). Section 39(b) provides:
Judicial proceedings under sections 918 [collection of defaulted payments] and 921 [review of compensation orders] of this title in respect of any injury or death occurring on the high seas shall be instituted in the district court within whose territorial jurisdiction is located the office of the deputy commissioner having jurisdiction in respect of such injury or death.
Id. (emphasis added); see also Reynolds v. Ingalls Shipbuilding Div.,
In Aramco, the petitioners contended that Congress' intent that Title VII should apply extraterritorially was evident from the words "employer" and "commerce" in the statute because the definitions of those terms referred to "foreign commerce." The Court held, however, that such broad jurisdictional terms, which form boilerplate language in numerous congressional enactments, are insufficiently clear expressions of intent to overcome the presumption against extraterritoriality. Aramco,
By contrast, here, the reference to the high seas in section 39(b) is not merely broad, boilerplate language that arguably contemplates application beyond the territorial jurisdiction of the United States and that might, therefore, indicate an intent that the LHWCA apply extraterritorially. Rather, it is specific language directing the venue for a civil action relating to an injury sustained on the high seas. No plausible explanation exists for section 39(b)'s reference to the high seas other than that Congress intended LHWCA coverage for injuries sustained on the high seas. Accordingly, the language in section 39(b) is persuasive evidence that Congress intended the LHWCA to apply extraterritorially.
Second, Congress' overriding purpose in enacting the LHWCA was to provide consistent workers' compensation coverage to eligible longshore and harbor workers, a goal that would be frustrated by limiting the LHWCA to territorial application. Congress' specific aim when it enacted the original version of the LHWCA in 1927 was "to fill the void created by the inability of the States to remedy injuries on navigable waters." Northeast Marine Terminal Co. v. Caputo,
Although an early proposed version of section 3(a) of the 1927 LHWCA expressly provided for coverage of injuries sustained on the high seas, see S.Rep. No. 973, 69th Cong., 1st Sess. 2 (1926), the legislative history of section 3(a) does not fully explain the ultimate exclusion of that provision. One likely explanation, however, is that Congress intended to exclude all seamen from LHWCA coverage and that Congress understood the term "seamen" to encompass all workers employed on a vessel on the high seas. See Calbeck v. Travelers Ins. Co.,
Finally, the Director, the policymaker designated by the Secretary of Labor to administer the LHWCA, interprets the LHWCA as overcoming the presumption and as applying extraterritorially. This interpretation apparently has been consistent over time. Although the level of deference due to the Director in this context is not entirely clear, compare Aramco,
In light of the express reference to the high seas in section 39(b) of the LHWCA, congressional intent to provide consistent coverage for longshore and harbor workers and the Director's interpretation, we conclude that the presumption against extraterritoriality is overcome in the LHWCA. Accordingly, the statute may be applied beyond the territorial jurisdiction of the United States, including on the high seas.
II. "Navigable Waters"
Given our conclusion that Congress intended that the LHWCA apply extraterritorially, we interpret the phrase "navigable waters of the United States" in section 3(a) as including the high seas. We thus expand on our previous holding in Cove Tankers II,
III. Claimants' Entitlement to Benefits
In the cases before us, the injuries of Kollias and Gouvatsos, who both undisputedly meet the definition of "employee" contained in section 2(3), occurred on the high seas.2 No choice of law issue has been raised by the employers, and we thus conclude that United States law, that is, the LHWCA, is the applicable law. Because the high seas fall within the permissible jurisdictional reach of the LHWCA, the statute covers both claimants' injuries. The Board, therefore, improperly denied Kollias' claim for benefits under the LHWCA and properly granted Gouvatsos' claim.
In light of this conclusion, we need not reach Kollias' alternative contention that relitigation of the issue of the LHWCA's coverage of his injury is barred because that issue was resolved in a prior case in which he sought relief pursuant to the Jones Act, 46 U.S.C.App. Sec. 688. See Kollias v. Bay Tankers,
In the Kollias case, we grant the petition, reverse the Board's denial of benefits and remand for further proceedings consistent with this opinion. In the Gouvatsos case, we deny the petition and affirm the Board's grant of benefits.
Notes
The parties, with the exception of Gouvatsos, addressed the extraterritoriality issue in letter briefs filed at this Court's request after the October 21, 1993, oral argument in these cases
Because it is undisputed before this Court that both Kollias' and Gouvatsos' injuries occurred on the high seas and that both were "employees" within the meaning of section 2(3), we need not address the Director's assertion that, contrary to the claim of D & G Marine and the Fund, the presumption prescribed in section 20(a) of the LHWCA, 33 U.S.C. Sec. 920(a), applies to factual questions underlying issues of coverage under sections 2(3) and 3(a)
