delivered the opinion of the Court.
Thе Federal Employees’ Compensation Act (FECA), 5 U. S. C. §8101 et seq., provides a comprehensive system of compensation for federal employees who sustain work-related injuries. As part of that system, an employee who receives FECA payments is required to reimburse the United States for those payments, to a specified extent, when he obtains a damages award or settlement from a third party who is liable to the employee for his injuries. § 8132. The question presented by this case is whether the United States may recover FECA payments for medical expenses and lost wages from an employee whose third-party tort recovery compensates him solely for noneconomic losses like pain and suffering.
The facts are clear. Respondent Paul B. Lorenzetti is a special agent for the Federal Bureau of Investigation. On November 21, 1977, he was injured in an automobile accident in Philadelphia while on official business. Federal employees who are injured while engaged in the performance of their official duties are entitled under FECA to compensation for medical expenses, lost wages, and vocational rehabilitation. See §§8102-8107. Respondent’s injuries were not serious enough to require vocational rehabilitation, but he eventually received, from the Federal Employees’ Compensation Fund, the sum of $1,970.81 for his medical expenses and lost wages. See §8147. Because the United States’liability for work-related injuries under FECA is exclusive, see § 8116(c), respondent cannot recover from the United States for losses such as pain and suffering that are not compensated under FECA.
Respondent subsequently instituted a tort action in a Pennsylvania state court against the driver of the other automobile. Respondent’s action was subject to the terms of the Pennsylvania No-fault Motor Vehicle Insurance Act (No-fault Act), Pa. Stat. Ann., Tit. 40, § 1009.101
et seq.
(Purdon Supp. 1984-1985), which substantially alters conventional tort liability for automobile accidents. Under the No-fault Act, an accident victim must look to his own insurance carrier to cover basic economic losses, including an unlimited amount of medical expenses and up to $15,000 in lost wages. §§ 1009.104, 1009.106, 1009.202. The victim may maintain a tort action against the driver of the other automobile, but his recovеry is generally limited to noneconomic losses like pain and suffering; he may recover damages for economic losses only to the extent that they are not otherwise compensated because they exceed statutory limits (such as the $15,000 lost-wage ceiling) under the No-fault Act. §§ 1009.301(a)(4) and (a)(5). In this case, respondent’s medical expenses and
The United States thеreafter sought to be reimbursed for its FECA payments out of respondent’s tort settlement. 1 FECA contains several provisions designed to shift the compensation burden from the United States to any third party who is independently liable for the employee’s injuries. Under § 8131, if an accident for which the United States is liable under FECA also creates a legal liability in a person other than the United States to pay damages, the Secretary of Labor may require the еmployee either to prosecute an action in his own name against the third party or to assign to the United States his right of action to enforce the liability. When an employee maintains an action in his own name, the United States is entitled to be reimbursed for its FECA payments in accordance with §8132. This statute in relevant part reads:
“If an injury or death for which compensation is payable under [FECA] is caused under circumstances creating a legal liability in a person other than the United States to pay damages, and a beneficiary entitled to compensation from the United States for that injury or death receives money or other property in satisfaction of that liability as the result of suit or settlement by him or in his behalf, the beneficiary, after deducting therefrom the costs ofsuit and a reasonable attorney’s fee, shall refund to the United States the amount of compensation pаid by the United States and credit any surplus on future payments of compensation payable to him for the same injury.” 2
The United States asserted that it was entitled to reimbursement for its FECA payments in this case pursuant to § 8132.
Respondent declined to pay over the requested sum and, instead, commenced a declaratory judgment action in the United States District Court for the Eastern District of Pennsylvania. He sought a declaration that the United States’ right of reimbursement under § 8132 was confined to recovery out of damages awards or settlements for economic losses of the sort covered by FECA, and that an award or settlement confined to noneconomic losses like pain and suffering was immune from recovery under § 8132. In opposition, the United States took the position that § 8132 created a general right of reimbursement not conditioned on the nature of the loss for which an employee recеived payment in his tort action.
The District Court granted summary judgment to the United States.
On appeal, the United States Court of Appeals for the Third Circuit reversed.
The Court of Appeals rejected the District Court’s reading of § 8132 on the ground that it would not serve the purposes of the statute and would be “manifestly unfair” to federal employees subject to no-fault statutes.
We granted certiorari to resolve the conflict over the scope of the United States’ right of reimbursement under § 8132.
HH t-H
The answer to the question presented here is evident on the face of the statute, it seems to us, for § 8132 by its own terms requires respondent to reimburse the United States for the disputed sum. Section 8132 provides that whenever a federal employee suffers injury or death compensable under FECA “under circumstances creating a legal liability in a person other than the United States to pay damages,” and the employee or his beneficiaries receive “money or other property in satisfaction of that liability,” they “shall refund to the United States the amount of compensation paid by the United States.” We find little room for confusion about the meaning of this language. Section 8132 imposes only two
Nothing in FECA’s legislative history persuades us that § 8132 means something less than what it says. FECA was enacted in 1916 as the first comprehensive injury-compensation statute for federal employees. Act of Sept. 7, 1916, ch. 458, 39 Stat. 742, repealed by Pub. L. 89-554, § 8(a), 80 Stat. 632, 643. Section 27 of the original statute vested the United Stаtes with a right of reimbursement in terms that do not differ materially from the relevant portions of §8132 today.
5
The section was adopted “not for the purpose of increasing [FECA] compensation, but for the purpose of reimbursing the Government for payments made and indemnifying it against other amounts payable in the future.”
Dahn
v.
Davis,
“[I]f an injury or death for which compensation is payable under this Act is caused under circumstances creating a legal liability in some person other than the United States to pay damages therefor, and a beneficiary entitled to compensаtion from the United States for such injury or death receives, as a result of a suit brought by him or on his behalf, or as a result of a settlement made by him or on his behalf, any money or other property in satisfaction of the liability of such other person, such beneficiary shall, after deducting the costs of suit and a reasonable attorney’s fee, apply the money or other property so received [as a refund to the United States for FECA payments already made and as a credit for unmatured FECA obligations arising from the same injury].”
The Court of Appeals believed that allowing the United States to recover in this case would be inconsistent with Congress’ declared intent that federal employees “be treated in a fair and equitable manner” under FECA and that the United
The Court of Appeals also sought to justify its conclusion on the ground that Congress could not have anticipated the adoption of no-fault automobile insurance statutes and the attendant restriction on third-party tort liability for economic losses. As pointed out above, the fact that Congress could not foresee no-fault statutes does not mean that Congress did
HH HH HH
For these reasons, we hold that § 8132 entitles the United States to be reimbursed for FECA compensation out of any damages award or settlement made in satisfaction of third-party liability for personal injury or death, regardless of whether the award or settlement is for losses other than medical expenses and lost wages. The judgment of the Court of Appeаls, accordingly, is reversed.
It is so ordered.
Notes
After deducting the Government’s share of a reasonable attorney’s fee, see 5 U. S. C. § 8132, the United States arrived at a reimbursement figure of $1,620.24. This roughly represents one-fifth of the sum received by respondent in the settlement of his third-party action.
Section 8132 further provides that no person shall make distribution to an employee pursuant to a damages judgment or settlement without first satisfying the United States’ reimbursement interest. The federal right оf reimbursement under § 8132 is subject to one significant limitation: regardless of the extent of his FECA receipts, an employee is entitled to retain one-fifth of the net amount of the recovery after the expenses of the suit have been deducted. The same protection is available under § 8131(c) when the Secretary of Labor prosecutes an assigned right of action on behalf of the United States.
Respondent argues that §8132 is inherently ambiguous beсause the term “damages” bears several readings. In particular, respondent suggests that “damages” could be read literally to encompass not only liability for death or personal injury but liability for property damages as well. Respondent argues that the provision cannot have been meant to create a right of reimbursement out of an employee’s recovery for property damages, and hence that the literal language of § 8132 leads to unintended results unless it is informed with the congressional policies on which the Court of Appeals relied.
We agree that § 8132 does not include a right of reimbursement out of third-party compensation for property damages, but we disagree that the statutory reference to “damages” contains any ambiguity that must be dispelled to reach that conclusion. The term “damages” clearly refers back to the “injury or death” that givеs rise to the third party’s legal liability, thereby excluding reimbursement out of any property-damages recovery. Section 8132’s predecessor provision was even clearer in this regard, for it stated that the United States’ right of reimbursement arose “if an injury or death for which compensation is payable... is caused under circumstances
Respondent does argue that § 8131 provides nothing more than an alternative means for the United States to enforce an interest in an employee’s claim for medical expenses and lost wages. The language of § 8131, however, is no more subject to this strained interpretation than is the language of § 8132.
Section 27 provided:
