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Newport News Shipbuilding and Dry Dock Company v. Marie Stilley, Widow of Lyman Stilley Director, Office of Workers' Compensation Programs, United States Department of Labor

Citations: 243 F.3d 179; 2001 A.M.C. 1247; 2001 U.S. App. LEXIS 3783Docket: 00-1155

Court: Court of Appeals for the Fourth Circuit; March 11, 2001; Federal Appellate Court

Narrative Opinion Summary

The case involves a dispute over workers' compensation liability under the Longshore and Harbor Workers' Compensation Act (LHWCA) following the death of an employee who developed mesothelioma due to asbestos exposure while working for both a maritime employer and a subsequent non-maritime employer. The widow of the deceased sought compensation from the maritime employer, Newport News Shipbuilding and Dry Dock Company, which contested liability by arguing that the last maritime employer rule should not apply when a non-maritime employer also contributed to the harm. The case was heard by an Administrative Law Judge and the Benefits Review Board, both of which upheld the last maritime employer rule, assigning full liability to Newport News. The decision was based on the rule's alignment with congressional intent to streamline claims processing and ensure prompt compensation. Newport News challenged the rule's constitutionality, citing violations of the Equal Protection, Due Process, and Takings Clauses, but these arguments were rejected under rational basis review. The court affirmed the rule's constitutionality and Newport News's full liability, denying their petition for review and confirming the widow's entitlement to benefits under the LHWCA.

Legal Issues Addressed

Constitutionality under Equal Protection and Due Process Clauses

Application: The last maritime employer rule is upheld as constitutional under rational basis review, serving a legitimate legislative purpose.

Reasoning: Newport News also claims the rule is unconstitutional, arguing it violates the Equal Protection and Due Process Clauses, but acknowledges that the review standard is rational basis.

Entitlement to LHWCA Benefits

Application: The widow of the deceased worker is entitled to LHWCA benefits due to medical evidence linking asbestos exposure at the maritime employer to the disease.

Reasoning: Lyman Stilley's widow is eligible for LHWCA benefits, as medical evidence indicates Mr. Stilley's asbestos exposure at Newport News caused his mesothelioma, justifying full liability under the last maritime employer rule.

Judicial Deference to Administrative Interpretation

Application: The court provides deference to the Director's reasonable interpretation of the LHWCA unless there is clear congressional intent to the contrary.

Reasoning: However, a reasonable interpretation by the Director, who does hold such authority, is afforded deference unless there is clear congressional intent to the contrary.

Last Maritime Employer Rule under the LHWCA

Application: The rule assigns full liability to the last maritime employer for occupational diseases, even when a non-maritime employer also contributed to the injury.

Reasoning: The last maritime employer rule, an extension of the last employer rule, assigns liability to the employer during the last employment in which the claimant was exposed to harmful stimuli, prior to becoming aware of their occupational disease.

Takings Clause and Compensation Liability

Application: Assigning costs to the last maritime employer for conditions caused by subsequent employers does not violate the Takings Clause, as it serves those benefiting from labor.

Reasoning: Furthermore, Newport News argues the rule breaches the Takings Clause; however, it is established that the rule assigns costs to those benefiting from the labor, which does not violate this clause.