Kenneth E. Craven v. Director, Office of Workers’ Compensation Programs, U.S. Dept. of Labor
Before this Court was an appeal by claimant, Kenneth Craven, a longshoreman who had injured his back in the course and scope of his employment.
The Benefits Review Board found that it did not have jurisdiction under the Longshore Harbor Workers’ Compensation Act, LHWCA, to consider a direct appeal that bypassed the administrative law judge (ALJ).
Craven sustained a back injury while working for Northrop Grumman. Upon determination that the back injury was permanent, not temporary, Craven and Northrup debated the extent of his permanent disability, (partial v. total) and the degree of compensation he was to receive.
Northrop paid Craven for partial disability, and Craven decided to pursue benefits for permanent total disability.
The district director held two informal conferences pursuant to the LHWCA, and following the conferences, the district director ultimately recommended that Northrop pay Craven compensation for permanent partial disability.
Craven failed to appeal to the ALJ in accordance with the administrative scheme. Craven filed directly with the BRB in order to have the Board order the district director to issue a recommendation in his favor regarding the extent of his disability.
The Board, BRB, determined that it had no jurisdiction to hear Craven’s appeal because there was no findings of fact or final actions in Craven’s record, as performed by an ALJ.
Craven appealed the BRB’s determination that it lacked jurisdiction.
Did the BRB have jurisdiction?
This Court found that Craven’s failure to appeal the district director’s recommendation to the ALJ for an evidentiary hearing precluded this Court’s jurisdiction.
The Fifth Circuit has jurisdiction to hear a petition for review from an LHWCA administrative decision derives from 33 U.S.C. §921(c) of the LHWCA.
Accordingly, § 921(c) limits the appellate court’s review to a review of the “final order of the Board”. There was no final order in this case, the Board dismissed the action based on lack of jurisdiction. Craven failed to submit findings of an ALJ because he sought none.
Accordingly, this Court dismissed Craven’s appeal for lack of subject matter jurisdiction.
It is important to understand the established (3)-tier process of adjudicating claims. (1) Informal Mediation before the district director (2) Formal hearings and fact-findings by an ALJ; and (3) Appellate review by the Board (potentially followed by a circuit court).
The DOL allows a district director to promptly resolve problems in an informal manner, however, where the parties do not reach an agreement following the district director’s informal recommendation- the district director has no authority to issue a compensation order.
The parties must take their claims to an Administrative Law Judge (ALJ).
Steve Gordon
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