Weaver v. Ingalls Shipbuilding, Inc.

IN THE UNITED STATES COURT OF APPEALS FOR THE FIFTH CIRCUIT _______________ m 00-60475 _______________ CLAUDE O. WEAVER, Petitioner, DIRECTOR, OFFICE OF WORKERS’ COMPENSATION PROGRAMS, UNITED STATES DEPARTMENT OF LABOR, Respondent, VERSUS INGALLS SHIPBUILDING, INC., Respondent. _________________________ Petition for Review of an Order of the Benefits Review Board _________________________ February 26, 2002 Before JOLLY, SMITH, and BENAVIDES, director. We reverse and remand. Circuit Judges. I. JERRY E. SMITH, Circuit Judge: On February 4, 1992, Weaver filed a claim for hearing loss under the Longshore and Har- Claude Weaver appeals a decision of the bor Workers’ Compensation Act (“LHWCA”) Benefits Review Board (“BRB”) affirming an against his former employer, Ingalls award of attorney’s fees by the district Shipbuilding, Inc. (“Ingalls”), which controverted the claim on February 11.1 On The remaining $150, representing work done February 12, Ingalls received formal notice of after March 12, was assessed against Ingalls. the claim from the district director. In The BRB, sitting en banc, affirmed this September, Ingalls initiated voluntary decision but divided over the continued payments on the claim and offered to settle; validity of Liggett to LHWCA cases. Weaver Weaver rejected this offer, and the case and the director appeal this decision. proceeded to a hearing before an administra- tive law judge, who found in favor of Weaver II. but awarded him less than the settlement offer. This case calls for an interpretation of the fee-shifting provision of the LHWCA, which Weaver’s attorney then submitted an reads in relevant part: application for attorney’s fees. The district director denied the application because the If the employer or carrier declines to pay recovery was less than the proffered any compensation on or before the settlement. The BRB reversed and remanded, thirtieth day after receiving written no- finding Weaver was entitled to fees incurred tice of a claim for compensation having before Ingalls commenced voluntary payments been filed from the deputy commission- in September. er, on the ground that there is no liability for compensation . . . and the person Before the director issued a revised fee seeking benefits thereafter have utilized award, Weaver’s attorney filed an amended the services of an attorney at law in the application based on a recent change in the successful prosecution of his claim, interpretation of the fee-shifting provision of there shall be awarded . . . a reasonable the LHWCA.2 Under the new interpretation, attorney’s fee against the employer or an attorney may recover, from the employer, carrier. fees incurred before formal notice of the claim. 33 U.S.C. § 928(a). Our review of statutory The district director ruled on the amended interpretation by the BRB is de novo. fee application by awarding fees at $100 per Equitable Equip. Co. v. Dir., OWCP, 191 hour and divided the fee between Ingalls and F.3d 630, 631 (5th Cir. 1999) (citing Potomac Weaver. The division held Weaver liable for Elec. Power Co. v. Dir., OWCP, 449 U.S. $290 in fees based on work done by his 268, 279 n.18 (1980)). attorney before March 12, 1992, thirty days after the receipt of formal notice by Ingalls. Weaver and the director urge us to interpret the word “thereafter” merely to signify that the use of an attorney is a precondition to the as- 1 sessment of fees against the employer. This Once an employer has notice of a claim, it has interpretation would allow an attorney, fourteen days in which either to pay or to assuming the other conditions are met, to controvert, to avoid a 10% penalty in addition to the award. 33 U.S.C. § 914(b),(d),(e). recover fees from the employer regardless of when the attorney incurred the fees. Ingalls, 2 See Liggett v. Crescent City Marine Ways & on the other hand, reads “thereafter” to mean Dry Dock, 136 Ben. Rev. Bd. Serv. (MB) 135 that an attorney could recover only those fees (1997). 2 incurred after the thirtieth day following the Watkins dictates that the BRB’s decision be receipt of formal notice from the affirmed insofar as it holds Weaver responsible commissioner. for those fees his attorney incurred before Feb- ruary 12, 1992SSthe date Ingalls received for- Our resolution of this question is largely mal notice. Thus, those fees accrued between controlled by precedent. In Watkins v. Ingalls February 4 and February 12, 1992, cannot be Shipbuilding, Inc., No. 93-4367 (5th Cir. charged against Ingalls. Dec. 9, 1993) (unpublished), we were asked to interpret this same section of the LHWCA. Watkins, though, answers only half of the The claimant incurred attorney’s fees over an question. There remains the issue of those eight-month period preceding receipt of formal fees accrued between February 12, notice by the employer. Interpreting the 1992SSwhen Ingalls both had received formal statute, we held that receipt of notice by the notice and had controverted the claimSSand employer was a prerequisite to the recovery of March 12 1992SSthe thirtieth day following attorney’s fees. Thus, any fees incurred before receipt of notice. The district director receipt of such notice could not be charged assessed the fees accrued during this period against the employer. against Weaver. The three judges on the BRB who voted to affirm the award did so without Watkins binds this panel. Tigner v. Cock- specific mention of the fees for this thirty-day rell, 264 F.3d 521, 526 (5th Cir. 2001) (noting period. rule that one panel may not overrule an earlier panel). Accordingly, we cannot adopt the po- This question is also a matter of statutory sition advanced by Weaver and the director to interpret ation. The fee-shifting provision of charge all attorney’s fees of a successful the LHWCA contemplates four triggering claimant against the employer. The fact that events for assessing fees against the employer: Watkins is unpublished does not alter its pre- (1) formal notice, (2) employer controversion cedential status, because it was decided before of the claim, (3) successful prosecution by the January 1, 1996. 5TH CIR. R. 47.5.3.3 claimant, and (4) use of an attorney to prosecute the claim. 3 Although this rule is framed to limit citations The wording of the controversion clause to unpublished opinions (“normally . . . cited only leaves little doubt an employer can be liable for when the doctrine of res judicata, collateral estop- fees incurred during the thirty-day window if pel or law of the case is applicable”), it has been the other conditions are met. The disjunctive interpreted to render unpublished decisions before “or” merely indicates that the employer’s act January 1, 1996, precedential. Of all the cases cit- of declining to pay the claim may be triggered, ing this rule, only one interprets the “normally” either on the thirtieth day or at any time before clause of the rule to limit citations of pre-January 1, 1996, unpublished opinions as precedent to the specifically enumerated exceptions to the rule. Ar- 3 nold v. United States Dep’t of Interior, 213 F.3d (...continued) 193, 196 n.4 (5th Cir. 2000), cert. denied, 531 fective date precedential. See, e.g., Baldwin v. U.S. 1144 (2001). All other references treat the Daniels, 250 F.3d 943, 946 n.** (5th Cir. 2001); rule as making unpublished decisions before the ef- United States v. Flanagan, 87 F.3d 121, 124 (5th (continued...) Cir. 1996). 3 that day, by a controversion of the claim. Our court apparently has not addressed this precise question. This interpretation, though, has been endorsed by the BRB. Jones v. Chesapeake & Potomac Tel. Co., 11 Ben. Rev. Bd. Serv. 7 (1979).4 We hereby adopt the position of the BRB and co nclude that fees incurred within the thirty-day window may be assessed against the employer. If the employer controverts a claim within the thirty-day window, and the other triggers have been satisfied, the fees accrued thereafter properly may be assessed against the employer, even though they are incurred be- fore the thirtieth day following receipt of notice. The order of the BRB is REVERSED and REMANDED for recalculation of the fee award. 4 See also Liggett (explaining the state of the rule before Jackson v. Jewell Ridge Coal Co., 21 Black Lung Rep. 1-27 (1997)). Employers also frequently behave as though this is the rule. See, e.g., Kemp v. Newport News Shipbuilding & Dry Dock Co., 805 F.2d 1152, 1152 (4th Cir. 1986) (in which employer implicitly conceded liability for fees accrued post-controversion but within the thirty-day window by appealing only those fees accrued before controversion). 4