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Ito Corporation v. Director, Office of Workers' Compensation Programs, U.S. Department of Labor and Paul Aples

Citations: 883 F.2d 422; 1989 U.S. App. LEXIS 14074; 1989 WL 100134Docket: 88-4688

Court: Court of Appeals for the Fifth Circuit; September 19, 1989; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by ITO Corporation against a Benefits Review Board decision upholding an Administrative Law Judge's (ALJ) award of disability benefits to a longshoreman, following a series of back injuries. Initially injured in 1980 while working for another employer, the claimant experienced worsening conditions after working for ITO in 1981, leading to a determination of total permanent disability. The ALJ rejected ITO's defense of late injury notification, finding no prejudice as required under the Longshore and Harbor Workers' Compensation Act (LHWCA). The ALJ's decision to award benefits considered the presumption of compensability, which was rebutted, yet concluded the claimant's condition was aggravated by work with ITO. ITO's appeal challenged the denial of a credit for a prior $20,000 settlement related to the initial injury, arguing for a reduction in its liability. However, the Board and the court denied this credit, distinguishing the nature of the compensation as separate under the LHWCA from state workers' compensation laws. The court affirmed that ITO is liable for the claimant's residual loss of earning capacity, with the Board's decision reflecting substantial evidence supporting the ALJ's findings.

Legal Issues Addressed

Credit for Prior Settlements under the Longshore and Harbor Workers' Compensation Act

Application: ITO's request for a credit against its liability based on a previous settlement was denied, as the credit provision does not apply to the type of compensation involved in this case.

Reasoning: The statutory credit provision cited by ITO is inapplicable here, as it only pertains to compensation under state workers' compensation laws or the Jones Act, whereas Ryan's payment was made under the LHWCA.

Determination of Disability Status

Application: The ALJ found that the worker was temporarily totally disabled initially, transitioning to a status of permanent total disability based on the aggravation of his condition by work activities.

Reasoning: Aples was temporarily totally disabled from October 31, 1981, to January 23, 1984, then permanently totally disabled thereafter, and (3) ITO would receive a weekly credit for the $20,000 settlement.

Notice of Injury under the Longshore and Harbor Workers' Compensation Act

Application: The ALJ determined that the employer's defense of late notice was without merit, as the Act allows exceptions when the employer is not prejudiced by the delay.

Reasoning: ITO claims Aples is barred from compensation due to untimely injury notification, but the Longshore and Harbor Workers' Compensation Act (LHWCA) allows exceptions if the employer is not prejudiced. ITO's assertion of prejudice is insufficient as it lacks specific evidence.

Presumption of Compensability under the Longshore and Harbor Workers' Compensation Act

Application: In this case, the ALJ initially granted a presumption of compensability, which was later rebutted by the employer's evidence. However, the ALJ ultimately found that the worker's condition was aggravated by his employment.

Reasoning: ITO also argues that the ALJ improperly granted Aples a presumption of compensability and that the finding of work-related aggravation of Aples' back condition is unsupported. However, the ALJ clarified that the presumption was rebutted by ITO's evidence, and he subsequently assessed all relevant evidence, concluding Aples' work aggravated his condition.