Filed: September 25, 2000
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
No. 99-1755
Norfolk Shipbuilding & Drydock Corporation,
Petitioner,
versus
Theodore Faulk, et al.,
Respondents.
O R D E R
The court amends its opinion filed July 11, 2000,
as follows:
On the cover sheet, section 1 -- the status
is changed from UNPUBLISHED to PUBLISHED.
On the cover sheet, section 6 -- the status
line is changed to read "Affirmed by published per curiam opinion."
On page 2, section 2 -- the reference to use
of unpublished opinions as precedent is deleted.
On page 15, third full paragraph, lines 3-4
-- the phrase at the end of the line is corrected to read "on behalf of
Faulk ...."
For the Court - By Direction
/s/ Patricia S. Connor
Clerk
PUBLISHED
UNITED STATES COURT OF APPEALS
FOR THE FOURTH CIRCUIT
NORFOLK SHIPBUILDING & DRYDOCK
CORPORATION,
Petitioner,
v.
THEODORE FAULK; DIRECTOR, OFFICE
No. 99-1755
OF WORKERS' COMPENSATION
PROGRAMS, UNITED STATES
DEPARTMENT OF LABOR; NEWPORT
NEWS SHIPBUILDING AND DRY DOCK
COMPANY,
Respondents.
On Petition for Review of an Order of the
Benefits Review Board.
(98-1128)
Argued: April 6, 2000
Decided: July 11, 2000
Before WILKINS and MICHAEL, Circuit Judges,
and Patrick M.
DUFFY, United States District Judge for the
District of South
Carolina, sitting by designation.
_________________________________________________________________
Affirmed by published per curiam opinion.
_________________________________________________________________
COUNSEL
ARGUED: Gerard E.W. Voyer, TAYLOR &
WALKER, Norfolk,
Virginia, for Petitioner. Benjamin McMullan
Mason, MASON,
COWARDIN & MASON, Newport News, Virginia,
for Respondent
Newport News Shipbuilding; Kristin Marie Dadey,
Office of the
Solicitor, UNITED STATES DEPARTMENT OF LABOR,
Washing-
ton, D.C., for Respondent Director; Gary Richard
West, PATTEN,
WORNOM, HATTEN & DIAMONSTEIN, L.C., Newport
News,
Virginia, for Respondent Faulk. ON BRIEF:
Donna White Kearney,
TAYLOR & WALKER, Norfolk, Virginia, for
Petitioner. Lexine D.
Walker, MASON, COWARDIN & MASON, Newport
News, Vir-
ginia, for Respondent Newport News Shipbuilding.
Henry L. Solano,
Solicitor of Labor, Carol A. De Deo, Associate
Solicitor for
Employee Benefits, Samuel J. Oshinsky, Counsel
for Longshore,
Office of the Solicitor, UNITED STATES DEPARTMENT
OF
LABOR, Washington, D.C., for Respondent Director.
_________________________________________________________________
_________________________________________________________________
OPINION
PER CURIAM:
Norfolk Shipbuilding & DryDock Corporation
("Norshipco") peti-
tions for review of the order of the Benefits
Review Board of the
Department of Labor ("Board") affirming the
administrative law
judge's ("ALJ") order finding Norshipco the
responsible employer
and awarding permanent total disability benefits
to Theodore R. Faulk
for asbestos-related peritoneal mesothelioma
under the Longshore and
Harbor Workers' Compensation Act ("LHWCA"),
33 U.S.C.A.
§§ 901-950 (West 1986 & Supp.
1999). We have jurisdiction under
section 21(c) of the LHWCA to review final
orders of the Board for
injuries occurring in states within the circuit.
33 U.S.C. § 921(c).
I.
We review Board decisions for errors of law
and for adherence to
the statutory standard governing the ALJ's
factual findings. See New-
2
port News Shipbuilding and Dry Dock Co.
v. Director, OWCP (Har-
cum), 131 F.3d 1079, 1081 (4th Cir.
1997); 33 U.S.C. § 921 (b)(3).
Section 21(b)(3) of the LHWCA directs that
"[t]he findings of fact in
the decision under review by the Board shall
be conclusive if sup-
ported by substantial evidence in the record
considered as a whole."
33 U.S.C. § 921(b)(3). To determine whether
the Board complied
with the standard, the Court of Appeals conducts
an independent
review of the administrative record. Bumble
Bee Seafoods v. Director,
OWCP (Hanson), 629 F.2d 1327, 1329
(9th Cir. 1980). Like the
Board, the Court of Appeals will uphold the
factual findings of the
ALJ so long as they are supported by substantial
evidence, and it will
not disregard these findings merely "on the
basis that other inferences
might have been more reasonable." Director,
OWCP v. Newport
News Shipbuilding & Dry Dock Co. (Carmines),
138 F.3d 134, 140
(4th Cir. 1998). Review of factual findings
is limited, and
"[d]eference must be given the fact-finder's
inferences and credibility
assessments." Id. (quoting Newport
News Shipbuilding and Dry Dock
Co. v. Tann, 841 F.2d 540, 543 (4th
Cir.1988)). Nevertheless, to be
sufficient, the evidence must be "more than
a scintilla but less than
a preponderance," Elliott v. Administrator,
Animal & Plant Health
Inspection Serv., 990 F.2d 140, 144
(4th Cir. 1993), and "such rele-
vant evidence as a reasonable mind might accept
as adequate to sup-
port a conclusion." Carmines, 138 F.3d
at 140 (quoting Richardson
v. Perales, 402 U.S. 389, 401 (1971)).
The ALJ may not "merely
credulously accept the assertions of the parties
or their representa-
tives, but must examine the logic of their
conclusions and evaluate the
evidence upon which their conclusions are
based." Carmines, 138
F.3d at 140.
II.
Theodore R. Faulk was employed by Norshipco
as a shipfitter from
November 29, 1978 until November 27, 1996.
Prior to his employ-
ment at Norshipco, Faulk spent almost six
years constructing and
repairing ships at Newport News Shipbuilding
and Dry Dock Com-
pany ("NNS"). On November 27, 1996, Faulk
was diagnosed with
peritoneal mesothelioma, caused, at least
in part, by his exposure to
airborne asbestos dust and fibers. Faulk has
a permanent and total dis-
ability which is deemed to have begun on November
27, 1996 and is
continuing as a result of the mesothelioma.
3
Faulk testified that he was certain that he
was exposed to asbestos
while employed at NNS as a shipfitter. He
cut asbestos cloth and used
it to cover himself and other surfaces as
protection from welding fire.
Cutting and moving the cloth created visible
dust and particles. He
also worked around insulators and welders
who used asbestos materi-
als. Faulk rarely wore a respirator while
at NNS. NNS does not deny
Faulk's exposure and did not present any contradictory
evidence.
With respect to his employment at Norshipco,
Faulk testified that
he could not state with certainty that he
was exposed to asbestos
except for the time he worked aboard the U.S.S.
Flint
when Nor-
shipco informed him of the presence of asbestos.
The incident on the
U.S.S. Flint occurred in October or
November of 1996 when workers
ruptured the insulation around a pipe covering
when they hit it with
the sharp edge of a bulkhead. Faulk had worked
in and around the
compartment for days, but was not present
during the rupture.
Regarding the incident, Faulk recalled, "I
came in right after that had
happened, and they told me what had happened,
so I got my tools, and
I got out of the room until they came in to
test it to see what was
wrong, see what kind of material it was."
J.A. at 728. He estimated
that it took him five minutes to pick up his
tools. Later that day, Faulk
returned to put his tools back in the compartment
where he was stor-
ing them. After the rupture, Norshipco had
someone come and test the
material. The night crew fixed the torn area
but did not remove all the
asbestos from the pipe. Faulk described the
compartment after the
rupture as follows: "It wasn't real dusty,
or nothing in there. It was
just normal like it always been. You couldn't
tell nothing had hap-
pened." J.A. at 720.
Faulk testified that he had used a respirator
when he was in the
compartment on the day of the rupture but
that he had not "con-
stantly" used a respirator while working aboard
the ship. Although he
was not in the compartment during the rupture,
the record is unclear
about where he was or how far away he was
from the compartment,
or if it was completely sealed at the time
of the rupture. Faulk was
not wearing a respirator when the pipe ruptured.
Faulk also stated that he was "sure" that
he had been on many ships
with asbestos at Norshipco. He was able to
point specifically to the
U.S.S. Briscoe, the U.S.S. Coronado,
the U.S.S. Detroit, and the
4
U.S.S. Josephus Daniels as ships he
worked on while at Norshipco,
although he claimed no actual knowledge of
asbestos on those ships.
His job as a shipfitter encompassed removing
and replacing bent
steel, removing and installing foundations,
and removing flooring to
reach the steel deck for renovation. Although
he could not remember
the specific jobs he performed or the length
of time he spent on each
ship, he recalled working in the engine room
of two ships which
housed boilers generally insulated with asbestos
materials. However,
Faulk could not recall whether the insulation
was being torn off while
he was working on each respective ship.
In addition to his work, Faulk was present
in ship compartments
when other tradesmen such as insulators, tore
off old insulation before
they covered pipes or put insulation on walls.
He was frequently
around insulators as they removed insulation
on Navy ships to com-
plete repair work. Faulk also removed tile
flooring with a chipping
hammer. This type of work generates a great
deal of dust and trash
as the concrete under the tile is chipped
away. It was not until
November of 1996 that Faulk became aware that
some of the flooring
material contained asbestos. Because repair
work generates considera-
bly more dust and smoke than new construction
work, he wore a res-
pirator during his employment at Norshipco
as early as 1978. Faulk
testified that he took it upon himself to
wear a respirator because Nor-
shipco "did not have a good ventilation system
on these jobs. . . they
[were] very slack in . . . ventilating the
area, getting the smoke out."
J.A. at 49. While he wore a respirator a majority
of the time, he did
not "walk around eight hours a day with a
respirator on." J.A. at 72.
In his deposition, Faulk stated that he did
not always wear a respirator
when the tile floors were being torn up and
the insulation was torn
off. J.A. at 724. Faulk described the respirators
as rubber with double
filters on each side that fit over the nose
and under the mouth. He
would use it for a few days and then exchange
it for a clean one. He
sometimes also used paper-type disposable
respirators depending on
the type of work.
Faulk recalled times when Norshipco closed
off an area to its
employees while asbestos was being removed,
but he was unsure
whether they took these measures all the time
or when he first arrived
in 1978. He could not state with a certainty
that the dust from the
5
Norshipco jobs contained asbestos, because
he "didn't have anything
tested." J.A. at 65.
NNS presented the testimony of Daniel Harrington,
a certified
industrial hygienist at NNS, for his conclusion
that Faulk was
exposed to asbestos on two naval ships at
Norshipco. While Harring-
ton was not directly responsible for NNS's
asbestos program, he testi-
fied that he had "extensive experience" with
asbestos. J.A. at 87.
Harrington explained that asbestos was commonly
used in thermal
insulation systems, cloth, gaskets, floor
tiles, underlayment, adhesive
glue or cement, friction materials, and a
variety of tapes. He testified
that prior to 1971, Navy ships used asbestos
"almost exclusively" on
thermal insulation systems. J.A. 90, 100-01.
While he had no access
to specific ship specifications, he based
this statement on the refer-
ence book The Naval Ships Technical Manual,
a Department of
Defense document. Harrington also relied upon
Jayne's
Fighting
Ships to determine that two of the
ships on which Faulk worked, the
Josephus Daniels and the Coronado,
had been built prior to 1971.
From that, Harrington concluded that Faulk
was exposed to asbestos
at Norshipco. Harrington admitted that he
did not research the ships'
histories to learn of every overhaul or repair
and conceded that it
might be possible that the ships were repaired,
removing the asbestos
prior to their arrival at Norshipco. However,
he did state that he had
not seen any projects where NNS was asked
to remove all the asbes-
tos from a ship; instead, the Navy's standard
procedure was to remove
what was necessary to complete a job without
disturbing the rest.
Harrington also acknowledged that NNS used
asbestos extensively
prior to his arrival in 1979 and that it was
possible Faulk was exposed
to asbestos at NNS. Since Harrington's employment,
the bulk of
NNS's asbestos work has involved removal and
replacement with
non-asbestos materials. NNS has used asbestos-free
material in new
construction and repair at least since 1979.
The
Naval Ships Technical
Manual also noted that since 1974 most
thermal insulation had been
repaired with asbestos-free materials. Harrington
further testified that
there is no risk of exposure if the asbestos-containing
materials are
not disturbed and are in a well-maintained
condition.
Norshipco presented the medical expert testimony
of Dr. Paul Fair-
man, a pulmonary disease specialist at the
Medical College of Vir-
6
ginia. He explained that peritoneal mesothelioma
generally develops
35-40 years after the initial exposure and
that it is extremely rare for
it to develop in less than 20 years. Dr. Fairman
reviewed Faulk's
medical records, deposition testimony, and
interrogatory answers, and
opined that any exposure to asbestos aboard
the U.S.S. Flint did not
cause Faulk's mesothelioma, but that it was
caused by the inhalation
of asbestos at NNS.
After the hearing, the ALJ made extensive
findings of fact. In his
decision, the ALJ found "that the weight of
the credible evidence
establishes that Claimant was exposed to asbestos
while working at
Norshipco." J.A. at 764. In reaching his decision,
he found Faulk to
be "a very credible witness" and detailed
the facts supporting expo-
sure. Id. For instance, the ALJ noted
that Faulk stored his tools in the
U.S.S. Flint compartment where the
insulation rupture occurred; that
he worked in and around the compartment for
days; that he entered
the compartment twice after the rupture; that
there was no evidence
that the compartment was sealed off before
or after the rupture; that
he wore a respirator while in the compartment
but had not continu-
ously worn one while working around the compartment
before, dur-
ing, and after the rupture; that Faulk did
not wear his respirator for
the entire eight hour shift; that Dr. Steinberg
noted that asbestos expo-
sure can occur when protective clothing is
not worn; and that Faulk
did not wear protective clothing during his
years of employment.
Moreover, he found that Norshipco offered
no evidence to contradict
Faulk's assertions that he was exposed to
asbestos while aboard the
U.S.S. Flint. He also noted that Harrington's
credible testimony
helped "to generally buttress Claimant's testimony
that he may well
have been exposed to asbestos at other times
while performing repair
work at Norshipco on various Navy ships from
1978-1996." J.A. at
764. Nonetheless, the ALJ limited his finding
to exposure on the
U.S.S. Flint.
On appeal, the Board emphasized the ALJ's
determination that
Faulk was a very credible witness. In determining
that credible evi-
dence supported the ALJ's decision, the Board
noted that,
Claimant testified that, while he believed
he may have
worked on many ships exposing him to asbestos
at Norfolk,
he could recall only one incident of confirmed
exposure to
7
asbestos, which occurred aboard the U.S.S.
FLINT, when
pipe insulation ruptured in a particular compartment
where
he worked; claimant testified he entered this
area twice fol-
lowing the rupture to pick up and return tools.
Claimant
stated that he wore a respirator on the day
he learned of the
presence of asbestos, but had not been wearing
a respirator
at the time the rupture occurred. The [ALJ]
further reasoned
that the credible testimony of Mr. Harrington,
an industrial
hygienist at Newport News, generally buttresses
claimant's
testimony that he may have been exposed to
asbestos at
other times while performing repair work at
Norfolk on var-
ious Navy ships. According to Mr. Harrington,
based on the
Naval Ship's Technical Manual, § 635-10.8
(1st rev. May
15, 1986), ships built prior to 1971 used
asbestos for thermal
insulation. Mr. Harrington confirmed that
two of the ships
on which claimant worked at Norfolk were built
before
1971.
J.A. at 774-75 (citations and footnotes omitted).
As a result, the Board
affirmed.
III.
It is undisputed that asbestos exposure caused
Faulk's peritoneal
mesothelioma. The sole issue is the identity
of the employer responsi-
ble for the exposure under the LHWCA. The
last employer rule,
which controls the allocation of liability
among multiple employers
or carriers in occupational disease cases,
was set forth in Traveler's
Ins. Co. v. Cardillo, 225 F.2d 137,
145 (2d Cir. 1955), and has been
followed by many circuits. See e.g., Liberty
Mutual Ins. Co. v. Com-
mercial Union Ins. Co., 978 F.2d 750,
752 (1st Cir. 1992); Avondale
Indus., Inc. v. Director, OWCP (Cuevas),
977 F.2d 186, 190 (5th Cir.
1992); Port of Portland v. Director, OWCP,
932 F.2d 836, 840 (9th
Cir. 1991); see also Newport News Shipbuilding
and Dry Dock v.
Fishel, 694 F.2d 327, 329 n.2 (4th
Cir. 1982) (explaining the last
employer rule but finding instead that the
aggravation rule was appli-
cable to the given facts). In Cardillo,
the Second Circuit held that:
the employer during the last employment in
which the
claimant was exposed to injurious stimuli,
prior to the date
8
upon which the claimant became aware of the
fact that he
was suffering from an occupational disease
arising naturally
out of his employment, should be liable for
the full amount
of the award.
Cardillo, 225 F.2d at 145.
In adopting the rule, the Second Circuit noted
that it was meant to
avoid the difficulties and delays in administration
of the Act that
would result if courts attempted to apportion
liability. Cardillo, 225
F.2d at 145. The court recognized the practical
difficulties of appor-
tionment stating,
The nature of occupational diseases and the
dearth of medi-
cal certainty with respect to the time that
is required for
them to develop and the permanence and extent
of the resul-
tant injurious effects at different stages
of the diseases' evo-
lution, make it exceedingly difficult, if
not practically
impossible, to correlate the progression of
the disease with
specific points in time or specific industrial
experiences.
Id. at 144. While Norshipco "accepts
the validity" of the Cardillo
holding, it argues that NNS was the last employer
to expose Faulk to
injurious stimuli, and is therefore liable
for benefits under the
LHWCA. Norshipco challenges the ALJ's findings
and conclusions
by suggesting that NNS had the burden of proof
and did not meet it;
that the ALJ's findings were not based on
substantial evidence; and
that even if Faulk were considered exposed
at Norshipco, Norshipco
rebutted the presumption of liability.
Under the LHWCA, an employee is benefitted
by a statutory pre-
sumption of compensability. Section 20(a)
provides that "in any pro-
ceeding for the enforcement of a claim for
compensation under this
chapter it shall be presumed, in the absence
of substantial evidence
to the contrary, that the claim comes within
the provisions of this
chapter." 33 U.S.C. § 920(a). "The presumption
is a broad one, and
advances the facility with which claims are
to be treated to further the
Act's purpose of compensating injured workers
regardless of fault."
Universal Maritime Corp. v. Moore,
126 F.3d 256, 262 (4th Cir.
1997).
9
The application of this presumption has resulted
in a burden shift-
ing scheme of proof for liability determinations.
"An employee seek-
ing to have the benefit of the statutory presumption
must first allege
(1) an injury or death (2) that arose out
of and in the course of (3) his
maritime employment." Id.1 Once
the employee makes this showing,
the burden shifts to the employer, who must
rebut the presumption
with substantial evidence. See id.
In order to rebut this presumption,
the employer must prove that the exposure
was not injurious or that
the employee was exposed to injurious
stimuli while performing work
covered by the LHWCA for a subsequent employer.
See
Avondale
Indus. (Cuevas), 977 F.3d at 190. An
injurious
exposure is one which
had the potential to cause the disease or
harm at issue. See id.; see
also Todd Pacific Shipyards Corp. v. Director,
OWCP (Picinich), 914
F.2d 1317, 1320 (9th Cir. 1990) (requiring
proof that exposure has the
potential to cause the harm).
This presumption and resulting burden shifting
apply two-fold in
this case. First, it applies to NNS as Faulk's
former employer. In that
case, once Faulk established entitlement to
the presumption, the bur-
den shifts to NNS to rebut that presumption
by showing either that the
exposure did not have the potential to cause
the harm or that Faulk
was exposed to injurious stimuli with such
potential while working
for a subsequent employer.
While the ultimate conclusion, that Norshipco
was the last respon-
sible employer, is supported by substantial
evidence, the ALJ's con-
clusion that NNS rebutted the presumption
against it by establishing
that Faulk was exposed subsequently at Norshipco
was in error. In
order for NNS to relieve itself of liability
and foist liability on Nor-
shipco, NNS must have proved that the U.S.S.
Flint
exposure had the
potential to cause Faulk's disease. This,
NNS failed to do. Evidence
that the exposure simply occurred is not enough.
_________________________________________________________________
1 The Director questions the showing
required for a claimant to estab-
lish his initial entitlement to the section
20(a) presumption of compensa-
bility. We, however, decline to address this
issue because regardless of
whether a claimant need only file a sufficient
claim or make some evi-
dentiary showing, Faulk did both.
10
The alternative application of the presumption
would apply directly
to Norshipco. In that case, once Faulk established
that he was entitled
to the presumption in regard to his employment
at Norshipco, the bur-
den shifted to Norshipco to establish that
such exposure did not have
the potential to cause the disease or
that Faulk was exposed to stimuli
which had the potential to cause the disease
while performing work
for a subsequent employer. As Faulk had no
employer subsequent to
Norshipco, the only way in which Norshipco
could have rebutted the
presumption of compensability would have been
to establish that
Faulk's exposure, while working for Norshipco,
did not have the
potential to cause the harm. Recognizing the
suitability of this analy-
sis to Faulk's claim, the Board affirmed the
ALJ's ultimate decision
on the reasoning that Norshipco had failed
to meet this burden.2
This court reviews the Board for errors in
law and to assure that
the Board adhered to the substantial evidence
standard when it
reviewed the decision of the ALJ. See Newport
News Shipbuilding
and Dry Dock Co. v. Director, OWCP (Harcum),
131 F.3d 1079,
1081 (4th Cir. 1997). The LHWCA mandates that
an ALJ's findings
be conclusive if they are supported by substantial
evidence on the
record as a whole. 33 U.S.C. § 921(b)(3).
Rejecting the ALJ's conclu-
sion that Faulk was sufficiently exposed aboard
the U.S.S. Flint, Nor-
shipco asserts that it did not expose Faulk
to injurious stimuli at all.
It argues that because Faulk was not present
when the pipe ruptured,
he entered the compartment for only five minutes
and was wearing a
respirator, the space was not dusty, and the
rupture was repaired that
night, ergo he was not exposed. As a result,
Norshipco concludes that
"the record is devoid of any evidence of exposure
to airborne parti-
cles." Appellant's Br. at 24.
The Board affirmed the ALJ noting his authority
to evaluate the
evidence and assess witness credibility. Granted,
the Board could
have shown more care in selecting the facts
for its opinion. For exam-
_________________________________________________________________
2 Norshipco argues that the presumption's
applicability to it, as
opposed to NNS, is not preserved for appeal
because the issue was not
raised below. However, Faulk filed his claim
for benefits against each
employer. And, as noted, infra, the
Board based its decision affirming
the award on the presumption's applicability
to Norshipco. Accordingly,
we have the authority to review the Board's
legal reasoning.
11
ple, it mentions that Faulk was not wearing
a respirator during the
rupture but fails to include that he was not
present. However, this
omission does not indicate that the Board
failed to adhere to the stan-
dard. Norshipco also takes issue with the
Board's reference to Har-
rington's testimony about Faulk's career exposure,
implying that the
Board improperly disregarded the ALJ's decision
to limit exposure to
only the U.S.S. Flint. This reference
is nothing more than an indica-
tion that the Board reviewed the ALJ's decision
on the record as a
whole.
Like the Board, we must affirm if the findings
are supported by
substantial evidence. In its appeal, Norshipco
focuses on Faulk's time
in the compartment, emphasizing its brevity
and his use of a respira-
tor. The ALJ acknowledged these points but
noted that Faulk had
worked in and around the compartment for days.
In particular, the
ALJ found that there was no evidence that
the compartment was
closed off before or after the rupture. He
also found that Faulk had
not worn a respirator constantly while working
around the area on the
day of the accident. Moreover, Faulk was twice
permitted to enter the
area after the rupture to pick up and return
his tools. In making these
findings, the ALJ weighed and commented on
the credibility of the
various witnesses. The facts he relied upon
are supported by the
record, and his inferences are reasonable.
This court must defer to the
fact-finder's credibility assessments and
inferences. Carmines, 138
F.3d at 140. A review of the record indicates
that the ALJ appropri-
ately examined the logic of the parties' conclusions
and evaluated the
evidence. Id. He asked relevant questions
of the witnesses and did not
find exposure in every instance presented
by Faulk.
Despite this deference, the evidence must
still be sufficient- more
than a scintilla but less than a preponderance.
Elliott,
990 F.2d at 144.
Norshipco relies upon the absence of visible
dust after the rupture and
Harrington's testimony that undisturbed asbestos
is not a threat. These
two facts, however, fail to mandate the inference
that there was no
injurious exposure aboard the U.S.S. Flint.
Furthermore, witnesses
described repair work and the Norshipco environment
as very dusty,
even though Faulk testified that after the
rupture "it wasn't real dusty,
or nothing in there. It was just normal like
it always been. You
couldn't tell nothing had happened." J.A.
at 720. The record and the
witness testimony appear to be of the kind
that a reasonable mind
12
could accept to support an adequate conclusion.
Basically, Norshipco
asks this court to draw different inferences
from the facts. The case
law is clear that this court cannot disregard
an ALJ's findings "on the
basis that other inferences might have been
more reasonable." Car-
mines, 138 F.3d at 140.
Norshipco argues alternatively that even if
Faulk were exposed, the
ALJ erred by not finding that Norshipco rebutted
the presumption of
compensability given the latency of the disease
and the brevity of the
exposure. With regard to latency, Norshipco
points to evidence that
Faulk began experiencing abdominal pain prior
to the U.S.S. Flint
incident. Because Faulk experienced abdominal
pain prior to the Flint
incident and the latency period for the disease
is so long, Norshipco
argues that it is factually impossible for
employment at Norshipco to
have contributed to Faulk's mesothelioma.
We disagree.
The Ninth Circuit rejected just this type
of latency argument by an
insurance carrier in Lustig v. U.S. Dep't
of Labor, 881 F.2d 593, 596
(9th Cir. 1989). In Lustig, the claimant
worked for Todd Pacific Ship-
yards where he was exposed to asbestos during
his employment as a
pipefitter for approximately twenty-two years.
Travelers Insurance
provided LHWCA coverage to Todd for the first
fifteen years of the
claimant's employment, and Aetna did so for
the remaining time.
According to the Ninth Circuit, Aetna's contention,
that a ten-year
latency period for asbestos-related cancer
meant that any exposure
after that time period would not have affected
the claimant's disabil-
ity, "suggest[ed] an unwarranted change of
the `last employer rule' set
forth in [Cardillo]." Id. Here,
notwithstanding a prolonged latency
period, Norshipco employed Faulk during the
last eighteen years of
his employment. During this period, Faulk
was exposed to asbestos;
and, Norshipco has failed to establish that
such exposure could not
have caused his mesothelioma. As the last
employer, Norshipco is lia-
ble for the full amount of the claim.
Norshipco's reliance on Port of Portland
v. Director, OWCP
(Ronne), 932 F.2d 836, 840 (9th Cir.
1991), is misplaced. There the
court held that it was factually impossible
for the claimant's employ-
ment with the employer to have contributed
in any way to his hearing
loss where the claimant began his employment
four days after the
administration of the audiogram indicating
his hearing loss. While the
13
court recognized "a demonstrated medical causal
relationship between
the claimant's exposure and his occupational
disease" was not
required, it insisted on a "rational connection."
Id.
The evidence in
this case fails to support the inference that
due to the prolonged
latency period of mesothelioma it was factually
impossible for Faulk
to have sustained injury by his exposure at
Norshipco. Furthermore,
Faulk was not diagnosed with the disease until
after the U.S.S. Flint
incident.
Norshipco also suggests that it does not qualify
as the responsible
employer because Faulk's exposure was too
brief or too minimal to
have caused the disease. However, even assuming
the applicability of
a de minimus requirement, Norshipco has presented
no evidence to
establish that Faulk's exposure aboard the
U.S.S. Flint was, in fact,
de minimus. It presented no evidence of the
asbestos level on the
U.S.S. Flint the day of the incident,
nor did it present evidence of the
level of exposure it would take to cause the
disease. Dr. Fairman
merely opined that the U.S.S. Flint
exposure did not cause Faulk's
mesothelioma. He did not state that such exposure
did not have the
potential to cause the disease or was in insufficient
quantities to cause
it.
Furthermore, this court has never required
proof of a certain level
of exposure to injurious stimuli in order
to warrant the attachment of
liability under the LHWCA. The reason for
this stems directly from
the humanitarian nature of the LHWCA. See
Newport
News Ship-
building and Dry Dock Co. v. Fishel,
694 F.2d 327, 330 (4th Cir.
1982) (accepting the aggravation rule for
compensability under the
LHWCA, in part, based upon the humanitarian
nature of the Act).
"The purpose of the Act is to help longshoremen."
Id.
(citing Reed v.
Steamship Yaka, 373 U.S. 410, 415 (1963)).
It is from this purpose
that the last employer rule originates, as
well as a concern for admin-
istrative ease of claims handling and an elimination
of the inherent
difficulty in attempting to apportion liability
among employers. See
Cardillo, 225 F.2d at 145. Requiring
the employee to prove sufficient
levels of exposure to cause the disease puts
obstacles before the
employee. Whereas, the last employer rule
works on the premise that
all employers will be the last employer an
equal amount of the time.
See Todd Shipyards Corp. v. Black,
717 F.2d 1280, 1285 (9th Cir.
1983). In our view, Norshipco's proposed rule
would simply not pro-
14
mote the purposes of the LHWCA. We further
note that the Fifth Cir-
cuit has also refused to set de minimus standards
for exposure. Citing
Cardillo, it rejected an employer's
claim that exposure to sandblasting
on two occasions was insufficient to impose
liability. See Fulks v.
Avondale Shipyards, Inc., 637 F.2d
1008, 1011-12 (5th Cir. 1981);
see also Cuevas, 977 F.2d at 190 ("regardless
of the brevity of the
exposure, if it has the potential to cause
disease, it is considered inju-
rious").
Norshipco maintains that we should adopt the
rule applied by the
Ninth Circuit in Todd Pacific Shipyards
Corp. v. Director, OWCP
(Picinich), 914 F.2d 1317 (9th Cir.
1990). In that case the court held
that the claimant must be exposed "to injurious
stimuli in sufficient
quantities to cause the disease." Id.
at 1319. Norshipco interprets this
holding as establishing a requirement that
the exposure to injurious
stimuli be more than de minimus. However,
we decline to adopt such
a rule. In Picinich, the ALJ determined
that the claimant's exposure
was "non-injurious" when the ship on which
the claimant worked had
undergone a complete asbestos removal procedure
prior to his tenure,
and testing of the area showed asbestos levels
250 times below the
limit allowed by government regulations. Id.
at 1320-22. This is
clearly distinguishable from the case at bar.
IV.
Upon application of the presumption to both
NNS and Norhshipco,
we find that neither employer rebutted the
presumption of compensa-
bility raised against each of them. Consequently,
we find Norshipco
liable as the last employer.
As the responsible employer in this matter
pursuant to the provi-
sions of the LHWCA, Norshipco is entitled
to credit for the net
amount of all settlement proceeds received
by and/or on behalf of
Faulk from the Manville Settlement Trust in
the amount of
$20,000.00, and from the Center for Claims
Resolution for
$20,000.00, and from all settlements obtained
to date.
Accordingly, the decision of the Benefits
Review Board, affirming
the ALJ's order for full compensation is
AFFIRMED.
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