United States Court of Appeals
FOR THE DISTRICT OF COLUMBIA CIRCUIT
Argued April 13, 2001 Decided June 19, 2001
No. 00-1318
Florence Snowden,
Petitioner
v.
Director, Office of Workers' Compensation
Programs,
United States Department of Labor, et al.,
Respondents
On Petition for Review of an Order of the
Benefits Review Board
Richard W. Galiher, Jr. argued the cause and
filed the
briefs for petitioner.
Joshua T. Gillelan, II, Senior Attorney, argued
the cause
for respondent Director, Office of Workers'
Compensation
Programs. With him on the brief was Carol
A. De Deo,
Associate Solicitor.
Roger S. Mackey argued the cause and filed
the brief for
respondents Washington Hospital Center and
Travelers
Property Casualty Company.
Before: Williams, Ginsburg and Rogers, Circuit
Judges.
Rogers, Circuit Judge: This case is one of
the last claims
likely to be brought by a District of Columbia
employee under
the Longshore and Harbor Workers' Compensation
Act, 33
U.S.C. ss 901-950 (1994).1 Florence Snowden
appeals an
order of the Benefits Review Board of the
United States
Department of Labor overturning a supplementary
compen-
sation order of the Office of Workers' Compensation
Pro-
grams. The underlying controversy is whether
Ms. Snow-
den's compensation rate should include annual
cost of living
adjustments under s 910(f) of the Act for
the years between
her 1978 injury and the 1990 classification
of her disability as
permanent and total. The only question the
court reaches,
however, is whether the Board erred in asserting
jurisdiction
to review the supplementary compensation
order. We join
the other circuits that have addressed this
question in holding
that the Board lacked jurisdiction to review
the order because
it was issued pursuant to s 918(a), and thus
became final
when issued, with relief available only from
the district court.
Accordingly, we vacate the November 15, 1999
decision and
order of the Board.
I.
Florence Snowden injured her back in 1978
while working
__________
1 The Longshore and Harbor Workers' Compensation
Act ap-
plies to injuries suffered by private-sector
workers in the District of
Columbia before July 24, 1982. Thereafter,
the District of Colum-
bia Workers' Compensation Act of 1979, D.C.
Code s 36-301 to
36-345 (1981), applies. See District of Columbia
Self-Government
and Governmental Reorganization Act, Pub.
L. No. 93-198, ss 204,
302, 404, 87 Stat. 774, 783-84, 787-88 (1973).
Because Ms. Snow-
den's injury occurred in 1978, we refer to
the Longshore and
Harbor Workers' Compensation Act as it applies
in the District of
Columbia as "the Act."
as a psychiatric nurse at the Washington Hospital
Center.2
After a formal hearing, an Administrative
Law Judge issued a
compensation order in 1992 awarding her benefits
under the
Act for permanent total disability, "commencing
December
18, 1990 and continuing for a period of 104
weeks thereafter,
including periodic increases to which she
may be entitled
under the Act." Both the Office of Workers'
Compensation
Programs ("OWCP") and Aetna appealed to the
Benefits
Review Board; OWCP appealed the award of
s 908(f)3 relief
to Aetna, while Aetna challenged the determination
of perma-
nent total disability. The Benefits Review
Board affirmed
the award of compensation but remanded the
claim for
s 908(f) relief.4
The 1992 compensation order did not specify
the manner in
which Ms. Snowden's benefit payments were
to be calculated.
Rather, the order simply stated that Aetna
must "pay all
periodic permanent total disability benefits
... including
periodic increases to which she may be entitled
under the
Act." Thus, the order did not explicitly
state whether Ms.
Snowden's compensation rate should reflect
the annual cost of
living adjustments under s 910(f), i.e.,
the "catch-up" adjust-
ments, that had accrued in the years between
her injury and
__________
2 For ease of reference, we refer to Ms.
Snowden's employer,
the Washington Hospital Center, and its insurer,
Aetna Casualty &
Surety Company (now known as Travelers Insurance
Company) as
"Aetna." We also refer to "OWCP," the Office
of Workers' Com-
pensation Programs, without distinguishing
between actions taken
by various officials in or on behalf of OWCP.
3 Pursuant to s 908(f), the Special Fund,
established in 33
U.S.C. s 944, will assume responsibility
for permanent total disabil-
ity payments after 104 weeks if "the employee
is totally and
permanently disabled, and the disability
is found not to be due
solely to that injury...." 33 U.S.C. s 908(f)(1).
4 On remand, the Administrative Law Judge
ruled that s 908(f)
was inapplicable and denied Aetna's request
for reconsideration.
The Board affirmed on Aetna's second appeal.
Aetna thereafter
reimbursed the Special Fund for payments
it had made to Ms.
Snowden since December 1992 and reinstated
payments at rates
that included catch-up adjustments.
the classification of her injury as a permanent
and total
disability.5 Consistent with Brandt v. Stidham
Tire Co., 785
F.2d 329 (D.C. Cir. 1986), OWCP advised Aetna
that Ms.
Snowden's weekly compensation rate would
increase from the
$192.80 that she had received for temporary
total disability to
$357.80 for permanent total disability, a
figure reflecting the
s 910(f) catch-up adjustments compounded
since her 1978
injury. Aetna paid Ms. Snowden as OWCP instructed.
Aetna did not challenge OWCP's methodology
for comput-
ing Ms. Snowden's benefit payments until
June 11, 1998.
Then, relying on the Board's recent decision
in Bailey v.
Pepperidge Farm, Inc., BRB No. 97-1156, 1998
WL 285563
(Benefits Review Bd. May 19, 1998), Aetna
unilaterally cut
Ms. Snowden's weekly benefit payments by
nearly half, from
$438.00 to $236.00, and requested an order
from OWCP
allowing it to take a credit under s 914(j)
for $76,626.31 in
alleged overpayments.6 Ms. Snowden filed
a claim under
__________
5 Under s 910, "Determination of Pay," subsection
(f) provides
that cost of living adjustments to compensation
benefits are avail-
able only to those claimants whose disability
is classified by OWCP
as permanent and total. See 33 U.S.C. s 910(f).
6 In Brandt, 785 F.2d at 332, this court adopted
the interpreta-
tion of s 910(f) set forth in Holliday v.
Todd Shipyards Corp., 654
F.2d 415, 417, 422 (5th Cir. 1981), whereby
s 910(f) catch-up
adjustments were retroactive to the date
of injury. In this opinion,
we refer to "Brandt/Holliday" as the rule
that applied when OWCP
issued Ms. Snowden's 1992 compensation order.
In 1990, the Fifth
Circuit, sitting en banc, overruled Holliday.
See Phillips v. Ma-
rine Concrete Structures, Inc., 895 F.2d
1033, 1035 (5th Cir. 1990).
Some years later, in 1998, the Board held
in Bailey that
Brandt/Holliday "no longer applies to cases
arising under the [ ]
Act." Bailey, 1998 WL 285563, at *4. Henceforth,
catch-up bene-
fits under s 910(f) would no longer be retroactive
to the date of
injury but would apply only to periods after
an injury was classified
by OWCP as permanent and total. See id. In
contrast to the
request made by Aetna for a credit reimbursement,
no retroactive
adjustment arose in Bailey, 1998 WL 285563,
at *1-*4, because the
employer had never commenced paying at the
retroactive catch-up
s 914(f)7 for additional compensation for
overdue installments
based on Aetna's failure to pay in accord
with Brandt/Holli-
day. OWCP issued a "supplementary compensation
order" in
1998, finding Aetna in violation for failure
to make more than
$3500 in benefit payments, and liable, therefore,
under
s 914(f) for a penalty equal to 20% of the
shortfall. Aetna
paid Ms. Snowden the past-due benefits but
not the 20%
penalty.8 Aetna then appealed the supplementary
compensa-
tion order to the Benefits Review Board.
The Board reversed OWCP's award of catch-up
adjust-
ments in the 1998 supplementary compensation
order, while
noting that because the penalty had not been
paid, it "lack[ed]
jurisdiction to address the propriety of
the penalty." On
reconsideration, the Board rejected OWCP's
argument that
the Board lacked jurisdiction because the
1998 supplementary
compensation order was issued pursuant to
s 918(a), and thus
was subject only to review by the district
court. The Board
took the position that there had never been
a formal determi-
nation in the 1992 compensation order that
Ms. Snowden was
entitled to s 910(f) catch-up adjustments
retroactive to the
date of her injury, and thus the alleged
default of the catch-
up adjustments was not "compensation due
under any award
__________
rate, and in Phillips, 895 F.2d at 1035-36,
the employer and the
Board agreed not to seek reimbursement from
the claimant.
7 Section 914(f), "Additional Compensation
for Overdue Install-
ment Payments Payable Under Terms of Award,"
provides:
If any compensation, payable under the terms
of an award, is
not paid within ten days after it becomes
due, there shall be
added to such unpaid compensation an amount
equal to 20 per
centum thereof, which shall be paid at the
same time as, but in
addition to, such compensation, unless review
of the compensa-
tion order making such award is had as provided
in section 921
of this title and an order staying payment
has been issued by
the Board or court.
33 U.S.C. s 914(f).
8 After Ms. Snowden filed for a default under
s 918(a), OWCP
issued a second supplementary compensation
order in 1999 declar-
ing the 20% penalty in default.
of compensation" pursuant to s 918(a). In
the Board's view,
the 1998 supplementary compensation order
was "an original
adjudication of the Brandt/Holliday issue
which is subject to
review by the Board." The Board also ruled
that Aetna
would not receive credit for catch-up adjustments
made prior
to the Bailey decision but would be entitled
to reduce Ms.
Snowden's payments subsequent to Bailey so
as to recover
the amount of Brandt/Holliday overpayments.
II.
As a threshold matter, Ms. Snowden, joined
by OWCP,
contends that the Benefits Review Board lacked
jurisdiction
to review the 1998 supplementary compensation
order be-
cause the order was issued under s 918(a),
not s 921(a).
Our review of decisions and orders of the
Benefits Review
Board is for errors of law and for confirmation
that the Board
acted within the scope of its review in evaluating
the decision
of the administrative law judge. See Brown
v. I.T.T./Conti-
nental Baking Co., 921 F.2d 289, 293 (D.C.
Cir. 1990) (citing
Stark v. Washington Star Co., 833 F.2d 1025,
1027 (D.C. Cir.
1987); Stevenson v. Linens of the Week, 688
F.2d 93, 96-97
(D.C. Cir. 1982); Sun Shipbuilding &
Dry Dock Co. v.
McCabe, 593 F.2d 234, 237 (3d Cir. 1979)).
The Board does
not make policy; "its interpretation of the
[Act] thus is not
entitled to any special deference from the
courts." Potomac
Elec. Power Co. v. Director, OWCP, 449 U.S.
268, 278 n.18
(1980) (citing Hastings v. Earth Satellite
Corp., 628 F.2d 85,
94 (D.C. Cir. 1980); Tri-State Terminals,
Inc. v. Jesse, 596
F.2d 752, 757 n.5 (7th Cir. 1979)). We hold
that the Board
lacked the jurisdiction to review the 1998
supplementary
compensation order because it was a final
order unreviewable
by the Board.
The Act provides for review of compensation
orders in two
principal ways. Section 921 provides generally
for the review
of compensation orders by the Board.9 Specifically,
s 921(a)
__________
9 Section 921, "Review of Compensation Orders,"
provides in
subsection (b)(3):
provides that a compensation order shall become
"effective"
upon its filing pursuant to s 919, "unless
proceedings for the
suspension or setting aside [the] order are
instituted" within
thirty days. 33 U.S.C. s 921(a). Until that
time, the Board
has jurisdiction to "determine appeals raising
a substantial
question of law or fact taken by any party
in interest from
decisions with respect to claims of employees...."
Id.
s 921(b)(3). In contrast, s 918(a) addresses
the collection of
defaulted payments under an award of compensation.10
Thus,
__________
The Board shall be authorized to hear and
determine appeals
raising a substantial question of law or
fact taken by any party
in interest from decisions with respect to
claims of employees
under this chapter and the extensions thereof.
The Board's
orders shall be based upon the hearing record.
The findings of
fact in the decision under review by the
Board shall be conclu-
sive if supported by substantial evidence
in the record consid-
ered as a whole. The payment of the amounts
required by an
award shall not be stayed pending final decision
in any such
proceeding unless ordered by the Board. No
stay shall be
issued unless irreparable injury would otherwise
ensue to the
employer or carrier.
33 U.S.C. s 921(b)(3).
10 Section 918, "Collection of Defaulted Payments;
Special
Fund," provides in subsection (a):
In case of default by the employer in the
payment of compensa-
tion due under any award of compensation
for a period of thirty
days after the compensation is due and payable,
the person to
whom such compensation is payable may, within
one year after
such default, make application to the deputy
commissioner
making the compensation order or a supplementary
order
declaring the amount of the default. After
investigation, no-
tice, and hearing, as provided in section
919 of this title, the
deputy commissioner shall make a supplementary
order, de-
claring the amount of the default, which
shall be filed in the
same manner as the compensation order....
The applicant
may file a certified copy of such supplementary
order with the
clerk of the Federal district court for the
judicial district in
which the employer has his principal place
of business or
maintains an office, or for the judicial
district in which the
injury occurred.... Such supplementary order
of the deputy
where an employer has failed to make payment
for thirty
days after a payment is due under a compensation
award, the
claimant may file for a supplementary order
declaring the
amount in default; the supplementary order
becomes "final"
when issued. Id. s 918(a). Review is not
available by the
Board, but only in an enforcement proceeding
in the district
court. See id. The Ninth Circuit has described
the three
prime distinctions between s 918 orders and
s 921 orders:
(1) [O]rders issued under s 918, unlike s
921 orders, are
not appealable to the Board; (2) s 918 orders
are final
when issued unlike s 921 orders which do
not become
final until after 30 days or, if appealed,
after appeal; and
(3) as a result, s 918 supplementary orders
can immedi-
ately be filed with the federal district
court for enforce-
ment.
Providence Wash. Ins. Co. v. Director, OWCP,
765 F.2d 1381,
1385 (9th Cir. 1985). OWCP maintains that
"finality" under
s 918(a) means that "such an order is not
subject to the
ordinary review process of s [9]21, at least
where the amount
declared in default has not been paid in
full, because such
review would be duplicative of that available
from the district
court."
As other circuits have observed, the Longshore
and Harbor
Workers' Compensation Act is "explicitly
designed to encour-
age the prompt payment by employers of obligations
under a
compensation order notwithstanding the existence
of an ap-
peal." Id. at 1384. Thus, the Fifth Circuit
stated that where
employers fail to meet their obligations,
s 918(a) "provides a
quick and inexpensive mechanism for the prompt
enforcement
__________
commissioner shall be final, and the court
shall upon the filing
of the copy enter judgment for the amount
declared in default
by the supplementary order if such supplementary
order is in
accordance with law. Review of the judgment
so entered may
be had as in civil suits for damages at common
law. Final
proceedings to execute the judgment may be
had by writ of
execution in the form used by the court in
suits at common law
in actions of assumpsit....
33 U.S.C. s 918(a) (footnote omitted).
of unpaid compensation awards, a theme central
to the spirit,
intent, and purposes of the [Act]." Tidelands
Marine Serv.
v. Patterson, 719 F.2d 126, 129 (5th Cir.
1983). With that
statutory purpose in mind, it follows that
a s 914 order and a
s 918 standard default order differ only
in immaterial ways;
under the former, OWCP must compute the 20%
penalty
amount that should be added to the default
amount. An
order issued under s 914(f) thus "is nothing
more than a
standard default order, plus an additional
arithmetic compu-
tation." Providence, 765 F.2d at 1386. Because
s 914 di-
rects that both the default amount and the
penalty amount be
paid at the same time, the terms of the statute
explicitly
reject any distinction between s 918 awards
of "existing
compensation" and s 914(f) awards of "additional
compensa-
tion." Id. Both awards are "based on an appealable
prior
compensation order that resolves the substantive
rights of the
parties." Id.
Both the statute and caselaw indicate that
whether the
award of additional compensation for overdue
installments
and the declaration of the default are separately
issued
orders or combined into a single supplementary
order is
irrelevant. See id. at 1385; Tidelands, 719
F.2d at 128-29 &
128 n.3. In Tidelands, when the employer
failed to pay the
s 914(f) penalty due within thirty days after
the filing of the
award, OWCP issued a supplementary compensation
order,
finding the employer in default of the penalty
under s 914(f).
See Tidelands, 719 F.2d at 128 & n.3.
The Fifth Circuit held
that the second order was not a s 914(f)
order because the
clear "substance [of] the order was a 'supplementary
order
declaring the amount of the default' within
the meaning of
Section [9]18(a) of the [Act]...." Id. at
128 n.3. In Provi-
dence, the supplementary compensation order
awarding a
20% penalty and the supplementary compensation
order de-
claring default of the 20% penalty were combined
into a
single supplementary compensation order.
See Providence,
765 F.2d at 1385. The Ninth Circuit adopted
the Fifth
Circuit's approach, observing that were the
s 914(f) supple-
mentary order "subject to s 921 procedures,
it would be far
more difficult and cumbersome for a claimant
to collect both
awards at the same time," as the Act contemplates.
Id. at
1386. For, as the Ninth Circuit noted, the
default amount
would be immediately collectible, while the
20% penalty could
be collected only after waiting for the expiration
of the 30-
day review period under s 921 and then obtaining
from
OWCP a second supplementary order under s
918 declaring
the first supplementary order in default.
See id. The latter
scheme, the court concluded, "is obviously
needlessly duplica-
tive and time consuming and completely at
variance with
Congress' intent," id. (citing Tidelands,
719 F.2d at 129),
namely, to provide "a quick and streamlined
mechanism for
the collection of compensation under the
[Act]." Id.
Consequently, "notwithstanding the general
grant of juris-
diction to the Benefits Review Board contained
in 33 U.S.C.
s 921(b)(3)," the circuits to address the
issue have concluded
that "actions for the enforcement of orders
declaring default
in the payment of [installments] due under
either s 914(f) or
any other substantive section of the [Longshore
and Harbor
Workers' Compensation Act] are to be brought
in the district
court and, only subsequent thereto, by appeal
to the appropri-
ate court of appeals." Tidelands, 719 F.2d
at 129; see also
Sea-Land Serv., Inc. v. Barry, 41 F.3d 903,
907 (3d Cir.
1994); Providence, 765 F.2d at 1386. We agree,
for reasons
set forth by the Fifth and Ninth Circuits,
that such an
interpretation is consistent with the statutory
language and
"far better" conforms to Congressional intent.
Providence,
765 F.2d at 1386.
The 1998 supplementary compensation order
was sought by
Ms. Snowden pursuant to s 914(f) and resulted
in OWCP's
issuance of a supplementary order declaring
Aetna in default
of paying installments due under the 1992
compensation
order. See supra n.8. As such, the 1998 order
was manifest-
ly an order for the collection of defaulted
payments within the
meaning of s 918(a). As OWCP states, the
1992 compensa-
tion order was "plainly premised on th[e]
view" that
Brandt/Holliday applied to all awards for
permanent total
disability under the Act, and "on the consequent
proposition
that the compensation [ ] calculated and
declared in default
was 'due under' the [1992 compensation order]."
Respon-
dent's Brief at 15. The Board's characterization
of the 1998
supplementary compensation order as "an original
adjudica-
tion of the Brandt/Holliday issue" ignores
both this circuit's
law at the time the 1992 compensation order
was issued and
OWCP's contemporaneous understanding of the
compensa-
tion rate for permanent total disability
benefits in the District
of Columbia. The Board's interpretation would
also mean
delays in receipt of amounts due to claimants
contrary to the
purposes of the Act and the specific provisions
of s 918 to
ensure quick payment of defaulted amounts.
See Providence,
765 F.2d at 1386.
Essentially then, the Board failed to acknowledge
the dis-
tinction between appeals of compensation
orders and proceed-
ings relating to compensation orders that
are not direct
appeals of the underlying compensation orders,
but are "ap-
plication[s] for a supplementary order declaring
a default in
the payment of compensation under s [9]18(a)...."
Bray v.
Director, OWCP, 664 F.2d 1045, 1047 (5th
Cir. 1981). "Such
a deficiency is distinct from an error of
fact or law, which
must be asserted within 30 days after the
filing of a compen-
sation order." Id. (citing s 921(a)). Given
the undisputed
record that Aetna paid Ms. Snowden pursuant
to the 1992
compensation order on the basis that she
was entitled to the
benefit of the catch-up adjustments, the
fact that s 910(f) was
not explicitly mentioned in the 1992 compensation
order is not
dispositive of the jurisdictional issue.
The reference was
implicit in light of Brandt/Holliday, and
for years Aetna paid
without challenging OWCP's methodology for
calculating Ms.
Snowden's compensation rate. When Aetna did
challenge the
methodology, it relied on the Board's decision
in Bailey,
which acknowledged a change of law in ruling
that the
Brandt/Holliday rule "no longer applies to
cases arising
under the [ ] Act." Bailey, 1998 WL 285563,
at *4.
Finally, although Ms. Snowden and OWCP ask
the court to
address whether Brandt/Holliday is still
law in this circuit,
we decline to do so in view of our holding
that the Board
lacked jurisdiction to review the supplementary
compensation
order. Once the court has determined that
the agency did
not have jurisdiction to act, the court has
declined to consider
the merits of contentions that the agency
erred. See, e.g.,
Stoddard v. Board of Governors of the Fed.
Reserve Sys., 868
F.2d 1308, 1312 (D.C. Cir. 1989); see also
Synovus Fin. Corp.
v. Board of Governors of the Fed. Reserve
Sys., 952 F.2d 426,
428 (D.C. Cir. 1991); Seatrain Lines, Inc.
v. Federal Mari-
time Comm'n, 460 F.2d 932, 949 (D.C. Cir.
1972), aff'd, 411
U.S. 726 (1973). In view of our practice,
which is binding
absent en banc review, the court has no occasion
to decide
whether it has jurisdiction to reach the
substantive conten-
tions. Cf. Steel Co. v. Citizens for a Better
Env't, 523 U.S. 83
(1998); Bender v. Williamsport Area Sch.
Dist., 475 U.S. 534,
541 (1986).11
Accordingly, because the Benefits Review Board
lacked
jurisdiction to review the 1998 supplementary
compensation
order issued pursuant to s 918(a), we vacate
the November
15, 1999 decision and order of the Board.
__________
11 The court, therefore, also does not reach
Ms. Snowden's
contentions that any modification to Brandt/Holliday
be prospec-
tive, and that the Board erred in ruling
that the lower compensation
rates should be applied as of the date of
Bailey. The court likewise
does not reach OWCP's contentions that the
Board misread Brandt,
that this court should overrule Brandt, and
that, in any event,
Aetna waived any objection to the application
of Brandt by failing
timely to raise its objection. |