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- NOTE: Where it is feasible, a syllabus (headnote) will be released, as is
- being done in connection with this case, at the time the opinion is issued.
- The syllabus constitutes no part of the opinion of the Court but has been
- prepared by the Reporter of Decisions for the convenience of the reader.
- See United States v. Detroit Lumber Co., 200 U. S. 321, 337.
-
- SUPREME COURT OF THE UNITED STATES
-
- Syllabus
-
- ESTATE OF COWART v. NICKLOS DRILLING CO.
- et al.
- certiorari to the united states court of appeals for
- the fifth circuit
- No. 91-17. Argued March 25, 1992-Decided June 22, 1992
-
- Floyd Cowart, whose estate is the petitioner, was injured while working
- on an oil drilling platform owned by Transco Exploration Company
- (Transco), in an area subject to the Longshore and Harbor Workers'
- Compensation Act (LHWCA or Act). The Department of Labor gave
- respondent Compass Insurance Co. (Compass), the insurer for Cow-
- art's employer, respondent Nicklos Drilling Company (Nicklos), an
- informal notice that Cowart was due permanent disability payments,
- but none were never made. In the meantime, Cowart settled a
- negligence action with Transco, which Nicklos funded under an
- indemnification agreement with Transco. However, Cowart did not
- secure from Nicklos or Compass a formal, prior, written approval of
- the settlement. Subsequently, Cowart filed a claim with the Depart-
- ment of Labor seeking disability payments from Nicklos. Nicklos
- denied liability on the ground that recovery was barred under 33(g)
- of the Act, which provides that a ``person entitled to compensation''
- must obtain prior written approval from the employer and its insurer
- of any settlement of a third-party claim, 33(g)(1), and that the
- failure of the ``employee'' to secure the approval results in forfeiture
- of all rights under the Act, 33(g)(2). The Administrative Law Judge
- awarded benefits, relying on past Benefits Review Board (BRB)
- decisions: one in which the BRB held that in an earlier version of
- 33(g) the words ``person entitled to compensation'' did not refer to
- a person not yet receiving benefits; and another in which it held that,
- since this phrase was not altered in the 1984 amendments to the
- LHWCA that added 33(g)(2), Congress was presumed to have
- adopted the BRB's interpretation. The Court of Appeals reversed,
- holding that 33(g) unambiguously provides for forfeiture whenever
- an LHWCA claimant fails to meet the written-approval requirement.
- Held:Section 33(g)'s forfeiture provision applies to a worker whose
- employer, at the time the worker settles with a third party, is
- neither paying compensation to the worker nor subject to an order to
- pay under the Act. The section's language is plain and cannot
- support the BRB's interpretation. The normal meaning of entitle-
- ment includes a right or benefit for which a person qualifies, regard-
- less of whether the right or benefit has been acknowledged or adjudi-
- cated. Thus, Cowart became ``entitled to compensation'' at the
- moment his right to recovery under the Act vested. If the language
- of 33(g)(1) left any doubt, the ambiguity would be eliminated by the
- statute's structure, especially the addition of subsection (g)(2). This
- interpretation of 33(g) is reinforced by the fact that the phrase
- ``person entitled to compensation'' is used elsewhere in the statute in
- contexts in which it cannot bear Cowart's meaning, and is not altered
- by the fact that subsection (g)(2) uses the term ``employee'' rather
- than that phrase. Contrary to Cowart's argument, this interpretation
- of 33(g) gives full meaning to all of subsection (g)(2)'s notification
- and consent requirements. The question whether Nicklos' participa-
- tion in the settlement brings this case outside 33(g)(1)'s terms is not
- addressed, since it was not fairly included within the question on
- which certiorari was granted. The possible harsh effects of 33(g)
- are recognized, but it is the duty of the courts to enforce the judg-
- ment of the legislature; it is Congress that has the authority to
- change the statute, not the courts. Pp.5-14.
- 927 F.2d 828, affirmed.
-
- Kennedy, J., delivered the opinion of the Court, in which Rehnquist,
- C. J., and White, Scalia, Souter, and Thomas, JJ., joined. Black-
- mun, J., filed a dissenting opinion, in which Stevens and O'Connor,
- JJ., joined.
-