PER CURIAM:
Petitioner James Carey ("Carey") seeks review of a Benefits Review Board ("BRB") order denying him attorney's fees under § 28(b) of the Longshore and Harbor Workers' Compensation Act ("LHWCA"), 33 U.S.C. § 901 et seq.
Carey was injured while working as a longshoreman for Respondent Ormet Primary Aluminum Corporation ("Ormet"). Ormet voluntarily paid Carey benefits under the LHWCA based upon an average weekly wage ("AWW") of $1423.92. Later, Ormet informed Carey that it believed that certain holiday, vacation, and container royalty benefits (collectively, "premium pay") were improperly included in the calculation of Carey's AWW, and Ormet sought an informal conference to resolve the controversy. See 33 U.S.C. § 928(b) (requiring that, in the event that a dispute arises as to the amount of compensation to which a claimant may be entitled, the deputy
It is undisputed that Ormet contested the district director's decision by requesting a formal hearing before an Administrative Law Judge ("ALJ"). The parties also agree that Ormet continued to make payments to Carey based upon an AWW of $1423.92 through the time of the hearing before the ALJ. The parties differ, however, in their characterization of the post-informal conference payments. Carey argues that Ormet's decision to request a formal hearing before the ALJ to reargue that the AWW was properly calculated as $1,169.33 was a refusal to accept the district director's recommendation. Ormet does not contend that it accepted the recommendation, but suggests that because it voluntarily continued payments based upon the district director's recommended AWW, it did not refuse that recommendation.
After a formal hearing, the ALJ rejected Ormet's argument that Carey's AWW should not include premium pay. The ALJ also, however, determined that Carey's AWW was properly calculated as $1,369.15. Although the court cannot divine how the ALJ arrived at this figure,
"This Court conducts a de novo review of the BRB's rulings of law, owing them no deference because the BRB is not a policymaking agency." Pool Co. v. Cooper, 274 F.3d 173, 177 (5th Cir.2001) (citations omitted). "But this court does afford Skidmore deference to the Director's interpretations of the LHWCA.... Under this approach, the amount of deference owed the Director's interpretation will depend upon the thoroughness evident in its consideration, the validity of its reasoning, its consistency with earlier and later pronouncements, and all those factors which give it power to persuade, if lacking power to control." Avondale Inds., Inc. v. Alario, 355 F.3d 848, 851 (5th Cir.2003) (citing United States v. Mead Corp., 533 U.S. 218, 228, 121 S.Ct. 2164, 150 L.Ed.2d 292 (2001) (quoting Skidmore v. Swift & Co., 323 U.S. 134, 140, 65 S.Ct. 161, 89 L.Ed. 124 (1944))).
Sections 28(a)-(b) of the LHWCA are codified as 33 U.S.C. §§ 928(a)-(b) and provide two bases for awarding attorney's fees upon successful prosecution of a LHWCA claim. The parties agree that § 28(a) is not at issue. In relevant part, § 28(b) provides:
33 U.S.C. § 928(b). "From this comprehensive scheme regulating attorney's fees we discern a Congressional intent that when an employer contests its liability for compensation in whole or in part and the claimant is ultimately successful, the employer and not the claimant must pay the claimant's attorney's fees for services necessary to that success regardless of how close a case might be which is litigated but finally lost by (the employer)." Hole v. Miami Shipyards Corp., 640 F.2d 769, 774 (5th Cir. Unit B 1981) (discussing § 928).
"[S]ection 928(b) requires all of the following: (1) an informal conference, (2) a written recommendation from the deputy or Board, (3) the employer's refusal to adopt the written recommendation, and (4) the employee's procuring of the services of a lawyer to achieve a greater award than what the employer was willing to pay after the written recommendation." Va. Int'l
Here, it is undisputed that the first two requirements are met. We have little difficulty concluding that third requirement is also satisfied. Although Ormet suggests its voluntary continuation of payments after the informal conference is not a refusal to adopt the director's written recommendation, the director's recommendation was that "the proper AWW in this case is $1,423.92," a figure that reflected the inclusion of Carey's premium pay. The record reflects that Ormet sought a formal hearing on the issue of "whether [the premium pay] received by Mr. Carey ... should be included in AWW calculations?" Irrespective of any voluntary continuation of payment, Ormet sought to overturn the director's recommendation through litigation. Ormet's attempt to avoid characterization of its actions as a refusal of the director's recommendation borders on frivolous.
This dispute arises out of § 28(b)'s fourth requirement. We are confronted with the following situation: an employer actively argues it owes an employee one amount, but voluntarily pays the employee a second, higher, director-recommended amount.
We have previously confronted a similar situation. In Savannah Machine & Shipyard Co. v. Director, Office of Workers' Compensation Programs, an employee submitted a claim for compensation under the LHWCA. 642 F.2d 887, 888 (5th Cir. Unit B 1981). The employer commenced paying benefits, but later questioned "whether and to what the extent [the employee] was disabled by his injury." Id. The employer sought a hearing to resolve the controversy but continued to pay compensation. The ALJ ruled in the employee's favor, finding he was totally and permanently disabled, but also found that the employee's total disability was due in part to a prior disability. Id. As a result, the employer was due a reimbursement. Id. The ALJ awarded attorney's fees under § 28(b) and the BRB affirmed, "[f]inding that the [employer's] resistance of Mr. Floyd's claim necessitated the efforts of his attorney, the Benefits Review Board held that the [employer] was liable for the fees." Id.
On appeal, the employer in Savannah Machine contended that it was not liable for attorney's fees under § 28(b) on two
This case is nearly indistinguishable from Savannah Machine.
Andrepont does not compel a different result. 566 F.3d 415. In that case, this court determined that an unfavorable recommendation from the district director on the issue of additional compensation, even if the claimant was later successful on that issue before the ALJ, would preclude the claimant's recovery of attorney's fees pursuant to § 28(b) of the LHWCA. Id. at 423. In so doing, we noted that § 28(b) "does not literally provide for fee-shifting when employers accept the BRB's recommendation after an informal conference" and recognized that although the result in Andrepont "seems to be adverse to the purpose of the statute ... We are required to construe the plain meaning of the statute." Id. at 420-21. The BRB suggests, and Ormet argues, that Savannah Machine is no longer controlling precedent in light of Andrepont's recognition that we cannot "elevate the purposes of the statute above the plain text reading." Id. at 421. This reasoning is erroneous on three grounds: 1) unlike Andrepont, a plain text reading of the relevant statutory provision here makes it clear that "the amount paid or tendered by the employer" is "the additional compensation, if any, to which they [the employer] believe the employee is entitled"; 2) Andrepont did not purport to overrule Savannah Machine, but instead approvingly cited the case; and 3) "[i]t is a well-settled Fifth Circuit rule of orderliness that one panel of our court may not overturn another panel's decision, absent an intervening change in the law, such as by a statutory amendment, or the Supreme Court, or our en banc court." Jacobs v. Nat'l Drug Intelligence Ctr., 548 F.3d 375, 378 (5th Cir.2008).
Accordingly, consistent with Savannah Machine, we hold that Carey has met the requirements of § 28(b) and the ALJ and the BRB erred in denying him attorney's fees.
Carey's petition for review is GRANTED. The decision of the BRB is VACATED and this case is REMANDED for further proceedings consistent with this opinion.