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Dillingham Ship Repair v. United States Department of Labor

Citation: 320 F. App'x 585Docket: No. 07-73611

Court: Court of Appeals for the Ninth Circuit; March 25, 2009; Federal Appellate Court

Narrative Opinion Summary

In this case, Dillingham Ship Repair petitioned for a review of a Benefits Review Board decision under the Longshore and Harbor Workers’ Compensation Act concerning liability for an asbestos-related disease resulting in the claimant's husband's death. The court was tasked with reviewing the Board's decision for any legal errors and ensuring compliance with statutory standards, emphasizing the necessity for the Board to accept the administrative law judge’s (ALJ) findings unless found to be legally erroneous or unsupported by substantial evidence. Central to the case was the application of the 'last employer rule,' which assigns liability to the employer during the last exposure to injurious stimuli. Dillingham contested the burden of proof, referencing the Board’s prior McAllister decision, but the ALJ’s sequential application of the burden starting with the last employer was deemed correct. The Board’s ruling that all employers must demonstrate non-responsibility was upheld. Furthermore, the ALJ determined that Northwest Marine did not expose the decedent to harmful asbestos levels, based on substantial evidence and credible testimony, leading to the dismissal of Dillingham's speculative arguments about potential alternative exposure. The petition for review was denied, and the decision remains unpublished under Ninth Circuit Rule 36-3.

Legal Issues Addressed

Burden of Proof in Asbestos-Related Claims

Application: The Board's decision that each employer must prove non-responsibility for the claimant’s condition was upheld as reasonable, supporting the sequence of burden applied by the ALJ.

Reasoning: The ALJ found the evidence inconclusive regarding Dillingham’s liability; therefore, the Board’s ruling that all employers must prove they were not responsible was upheld as reasonable and consistent with past decisions.

Last Employer Rule under Longshore and Harbor Workers’ Compensation Act

Application: The last employer rule assigns full liability to the employer during the last exposure to injurious stimuli, which was correctly applied sequentially by the ALJ, beginning with the last employer.

Reasoning: The case involves application of the 'last employer rule,' which holds that the employer during the last exposure to injurious stimuli is liable for the full award.

Review of Benefits Review Board Decisions

Application: The court examines the Benefits Review Board's decision for legal errors and compliance with statutory standards, ensuring that the Board accepts the ALJ's findings unless they are legally erroneous, irrational, or unsupported by substantial evidence.

Reasoning: The court reviews the Board’s decision for legal errors and adherence to statutory standards, noting that the Board must accept the administrative law judge’s (ALJ) findings unless they are legally erroneous, irrational, or unsupported by substantial evidence.

Substantial Evidence Standard

Application: Substantial evidence, including credible testimony, supported the ALJ's conclusion that Northwest Marine did not expose the decedent to harmful asbestos levels.

Reasoning: The ALJ concluded that Northwest Marine successfully demonstrated it did not expose the decedent to harmful levels of asbestos, supported by substantial evidence, including credible testimony that the decedent could not have worked in a relevant boiler while employed by Northwest.