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Gaston Lafaille v. Benefits Review Board, United States Department of Labor Director Office of Workers' Compensation Programs, United States Department of Labor, General Dynamics Corporation, and Insurance Company of North America

Citations: 884 F.2d 54; 1989 U.S. App. LEXIS 12768Docket: 977

Court: Court of Appeals for the Second Circuit; August 22, 1989; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by a former employee seeking disability benefits under the Longshore and Harbor Workers' Compensation Act (LHWCA). The appellant, a welder exposed to toxic substances, suffered lung collapses and was awarded temporary total disability benefits calculated from his 1969 wage. He contended that benefits should reflect his earnings at the time he became aware of the occupational nature of his disease in 1979. The primary legal issue concerns the application of LHWCA Sections 10(c) and 10(i) for determining average weekly wages. The Benefits Review Board upheld the ALJ's decision using 1977 wages, but the court remanded the case, advocating for the application of Section 10(i) to align with the statutory compensatory goals. Additionally, the Board denied a de minimis award for permanent partial disability, leading to further contention. The appellant argued for adjustments reflecting his post-injury earning capacity and inflation impacts. The court supported the need for a more comprehensive evaluation of earning capacity, emphasizing the potential for future earnings loss and the appropriateness of a de minimis award. Ultimately, the case highlights the complexities of calculating disability benefits under LHWCA and the necessity of accurately reflecting changes in earning capacity due to occupational diseases.

Legal Issues Addressed

Assessment of Permanent Partial Disability under LHWCA

Application: The Board's decision that LaFaille had no residual permanent loss of earning capacity was contested, requiring a proper comparison of pre-injury and post-injury wages as per Sections 8(c)(21) and 8(h).

Reasoning: The appropriate determination of post-injury wage-earning capacity for permanent partial disability must be made per Secs. 8(c)(21) and 8h, which necessitate a comparison of pre-injury and post-injury wages.

Calculation of Average Weekly Wage under LHWCA Section 10(i)

Application: The court determined that the Board should apply Section 10(i) for calculating benefits, as it reflects the wage at the time the employee becomes aware of the connection between their illness and employment.

Reasoning: The primary issue is whether the Board was correct in instructing the ALJ to use the average weekly wage from 1977, the date of disability onset, under Section 10(c) of the Longshore and Harbor Workers' Compensation Act (LHWCA), rather than the wage from 1979, the date of awareness, as specified in Section 10(i).

Eligibility for De Minimis Award under LHWCA

Application: The court recognized the possibility of awarding a de minimis payment to LaFaille to address potential future earnings loss despite no current loss in wage-earning capacity.

Reasoning: If the ALJ determines that LaFaille did not experience an actual loss in wage-earning capacity, he should still receive a de minimis periodic payment according to the precedents set in Hole and Randall.