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- NOTICE: This opinion is subject to formal revision before publication in the
- preliminary print of the United States Reports. Readers are requested to
- notify the Reporter of Decisions, Supreme Court of the United States, Wash-
- ington, D.C. 20543, of any typographical or other formal errors, in order that
- corrections may be made before the preliminary print goes to press.
- SUPREME COURT OF THE UNITED STATES
- --------
- No. 94-820
- --------
- METROPOLITAN STEVEDORE COMPANY, PETI-
- TIONER v. JOHN RAMBO et al.
- on writ of certiorari to the united states court
- of appeals for the ninth circuit
- [June 12, 1995]
-
- Justice Kennedy delivered the opinion of the Court.
- Section 22 of the Longshore and Harbor Workers'
- Compensation Act, 44 Stat. 1437, as amended, 33
- U. S. C. 922 (LHWCA), allows for modification of a
- disability award -on the ground of a change in condi-
- tions or because of a mistake in a determination of fact.-
- The question in this case is whether a party may seek
- modification on the ground of -change in conditions-
- when there has been no change in the employee's
- physical condition but rather an increase in the employ-
- ee's wage-earning capacity due to the acquisition of new
- skills.
-
- I
- In 1980, respondent John Rambo injured his back and
- leg while working as a longshore frontman for petitioner
- Metropolitan Stevedore Company. Rambo filed a claim
- with the Department of Labor that was submitted to an
- Administrative Law Judge. After Rambo and petitioner
- stipulated that Rambo sustained a 2212% permanent
- partial disability and a corresponding $120.24 decrease
- in his $534.38 weekly wage, the ALJ, pursuant to
- LHWCA 8(c)(21) awarded Rambo 6623% of that figure,
- or $80.16 per week. App. 5. Because the ALJ also
- found that Rambo's disability was not due solely to his
- work-related injury and was -materially and substan-
- tially greater than that which would have resulted from
- the subsequent injury alone,- LHWCA 8(f)(1), 33
- U. S. C. 908(f)(1), he limited the period of petitioner's
- liability to pay compensation to 104 weeks. Ibid.; App.
- 6. Later payments were to issue from the special fund
- administered by respondent Director of the Office of
- Workers' Compensation Programs (OWCP), LHWCA
- 8(f)(2), 33 U. S. C. 908(f)(2). Employers (or their
- insurance carriers) contribute to the fund based on their
- outstanding liabilities. See LHWCA 44(c)(2)(B), 33
- U. S. C. 944(c)(2)(B).
- After the award, Rambo began attending crane school.
- With the new skills so acquired, he obtained longshore
- work as a crane operator. He also worked in his spare
- time as a heavy lift truck operator. Between 1985 and
- 1990, Rambo's average weekly wages ranged between
- $1,307.81 and $1,690.50, more than three times his pre-
- injury earnings, though his physical condition remained
- unchanged. In light of the increased wage-earning
- capacity, petitioner, which may seek modification even
- when the special fund has assumed responsibility for
- payments, see LHWCA 22, 33 U. S. C. 922; 20 CFR
- 702.148(b) (1994), filed an application to modify the
- disability award under LHWCA 22. Petitioner asserted
- there had been a -change in conditions- so that respond-
- ent was no longer -disabled- under the Act. The ALJ
- agreed that an award may be modified based on changes
- in the employee's wage-earning capacity, even absent a
- change in physical condition. After discounting wage
- increases due to inflation and considering petitioner's
- risk of job loss and other employment prospects, the ALJ
- concluded Rambo -no longer has a wage-earning capacity
- loss- and terminated his disability payments. App. 68.
- The Benefits Review Board affirmed, relying on Fleet-
- wood v. Newport News Shipping & Dry Dock Co., 16
- BRBS 282 (1984), aff'd, 776 F. 2d 1225 (CA4 1985),
- which held that -change in condition[s]- means change
- in wage-earning capacity, as well as change in physical
- condition. App. 73. A panel of the Court of Appeals for
- the Ninth Circuit reversed. Rambo v. Director, OWCP,
- 28 F. 3d 86 (1994). Rejecting the Fourth Circuit's
- approach in Fleetwood, the Ninth Circuit held that
- LHWCA 22 authorizes modification of an award only
- where there has been a change in the claimant's
- physical condition. We granted certiorari to resolve this
- split, 513 U. S. ___ (1995), and now reverse.
-
- II
- The LHWCA is a comprehensive scheme to provide
- compensation -in respect of disability or death of an
- employee . . . if the disability or death results from an
- injury occurring upon the navigable waters of the United
- States.- LHWCA 3, 33 U. S. C. 903(a). Section 22 of
- the Act provides for modification of awards -on the
- ground of a change in conditions or because of a mistake
- in a determination of fact.- 33 U. S. C. 922. In
- Rambo's view and that of the Ninth Circuit, -change in
- conditions- means change in physical condition and does
- not include changes in other conditions relevant to the
- initial entitlement to benefits, such as a change in wage-
- earning capacity. In our view, this interpretation of
- -change in conditions- cannot stand in the face of the
- language, structure, and purpose of the Act.
-
- A
- Neither Rambo nor the Ninth Circuit has attempted
- to base their position on the language of the statute,
- where analysis in a statutory construction case ought to
- begin, for -when a statute speaks with clarity to an
- issue judicial inquiry into the statute's meaning, in all
- but the most extraordinary circumstance, is finished.-
- Estate of Cowart v. Nicklos Drilling Co., 505 U. S. 469,
- 475 (1992); Demarest v. Manspeaker, 498 U. S. 184, 190
- (1991).
- Section 22 of the Act provides the only way to modify
- an award once it has issued. The section states:
-
- -Upon his own initiative, or upon the application of
- any party in interest (including an employer or carrier
- which has been granted relief under section 908(f) of
- this title), on the ground of a change in conditions or
- because of a mistake in a determination of fact by the
- deputy commissioner, the deputy commissioner may,
- at any time prior to one year after the date of the last
- payment of compensation, . . . or at any time prior to
- one year after the rejection of a claim, review a
- compensation case . . . and . . . issue a new compensa-
- tion order which may terminate, continue, reinstate,
- increase, or decrease such compensation, or award
- compensation.- 33 U. S. C. 922.
-
- On two occasions we have construed the phrase
- -mistake in a determination of fact- and observed that
- nothing in the statutory language supports attempts to
- limit it to particular kinds of factual errors or to cases
- involving new evidence or changed circumstances. See
- O'Keeffe v. Aerojet-General Shipyards, Inc., 404 U. S.
- 254, 255-256 (1971) (per curiam); Banks v. Chicago
- Grain Trimmers Assn., Inc., 390 U. S. 459, 465 (1968).
- The language of 22 also provides no support for
- Rambo's narrow construction of the phrase -change in
- conditions.- The use of -conditions,- a word in the
- plural, suggests that Congress did not intend to limit
- the bases for modifying awards to a single condition,
- such as an employee's physical health. See 2A N.
- Singer, Sutherland on Statutory Construction 47.34,
- p. 274 (5th rev. ed. 1992) (-`Ordinarily the legislature by
- use of a plural term intends a reference to more than
- one matter or thing'-) (quoting N. Y. Statutes Law 252
- (McKinney 1971)); cf. 1 U. S. C. 1 (-[W]ords importing
- the plural include the singular-). Rather, under the
- -normal- or -natural reading,- Estate of Cowart, supra,
- at 477, the applicable -conditions- are those that entitled
- the employee to benefits in the first place, the same
- conditions on which continuing entitlement is predicated.
- Our interpretation is confirmed by the language of
- LHWCA 2(10) and 8(c)(21). Section 2(10) defines
- -disability- as -incapacity because of injury to earn the
- wages which the employee was receiving at the time of
- injury in the same or any other employment.- 33
- U. S. C. 902(10). For certain injuries the statute
- creates a conclusive presumption of incapacity to earn
- wages and sets compensation at 6623% of the claimant's
- actual wage for a fixed number of weeks, according to a
- statutory schedule. See LHWCA 8(c)(1)-(20), (22), 33
- U. S. C. 908(c)(1)-20, (22). When these types of
- scheduled injuries occur, a claimant simply proves the
- relevant physical injury and compensation follows for a
- finite period of time. See Bath Iron Works Corp. v.
- Director, OWCP, 506 U. S. ___, ___, n. 4 (1993) (slip op.,
- at 3, n. 4); Potomac Electric Power Co. v. Director,
- OWCP, 449 U. S. 268, 269 (1980). -In all other cases,-
- however, the statute provides -the compensation shall be
- 6623% per centum of the difference between the average
- weekly wages of the employee and the employee's wage-
- earning capacity thereafter in the same employment or
- otherwise, payable during the continuance of partial
- disability.- LHWCA 8(c)(21), 33 U. S. C. 908(c)(21).
- For these non-scheduled injuries, the type at issue in
- this case, loss of wage-earning capacity is an element of
- the claimant's case, for without the statutory presump-
- tion that accompanies scheduled injuries, a claimant is
- not -disabled- unless he proves -incapacity because of
- injury to earn the wages.- LHWCA 2(10), 33 U. S. C.
- 902(10). See Bath Iron Works, supra, at ___ (slip op.,
- at 2-3); Potomac Electric Power Co., supra, at 269-270.
- These two sections make it clear that compensation, as
- an initial matter, is predicated on loss of wage-earning
- capacity, and that such compensation should continue
- only -during the continuance of partial disability,-
- LHWCA 8(c)(21), 33 U. S. C. 908(c)(21), i.e., during
- the continuance of the -incapacity . . . to earn the
- wages,- LHWCA 2(10), 33 U. S. C. 902(10). Section
- 22 accommodates this statutory requirement by provid-
- ing for modification of an award on the ground of -a
- change in conditions.- 33 U. S. C. 922.
- Rambo's insistence on what seems to us a -`narrowly
- technical and impractical construction'- of this phrase,
- O'Keeffe, supra, at 255 (quoting Luckenbach S. S. Co. v.
- Norton, 106 F. 2d 137, 138 (CA3 1939)), does more than
- disregard the plain language of 22, 2(10), and 8(c)(21).
- It also is inconsistent with the structure and purpose of
- the LHWCA. Like most other workers' compensation
- schemes, the LHWCA does not compensate physical
- injury alone but the disability produced by that injury.
- See LHWCA 3(a), 8, 33 U. S. C. 903(a), 908; see
- also 1C A. Larson, Law of Workmen's Compensation
- 57.11 (1994). Disability under the LHWCA, defined in
- terms of wage-earning capacity, LHWCA 2(10), is in
- essence an economic, not a medical concept. Cf. 3
- Larson, supra, at 81.31(e) (-[D]isability in the compen-
- sation sense has an economic as well as a medical
- component-). It may be ascertained for nonscheduled
- injuries according to the employee's actual earnings, if
- they -fairly and reasonably represent his wage-earning
- capacity,- and if they do not, then with -due regard to
- the nature of [the employee's] injury, the degree of
- physical impairment, his usual employment and any
- other factors or circumstances in the case which may
- affect his capacity to earn wages in his disabled condi-
- tion, including the effect of disability as it may naturally
- extend into the future.- LHWCA 8(h), 33 U. S. C.
- 908(h). The fundamental purpose of the Act is to com-
- pensate employees (or their beneficiaries) for wage-
- earning capacity lost because of injury; where that wage-
- earning capacity has been reduced, restored, or im-
- proved, the basis for compensation changes and the
- statutory scheme allows for modification.
-
- B
- Given that the language of 22 and the structure of
- the Act itself leave little doubt as to Congress' intent,
- any argument based on legislative history is of minimal,
- if any, relevance. See Connecticut Nat. Bank v.
- Germain, 503 U. S. 249, 254, (1992); Ardestani v. INS,
- 502 U. S. 129, 136 (1991); cf. Intercounty Constr. Corp.
- v. Walter, 422 U. S. 1, 8 (1975) (construing ambiguity in
- application of 22's 1-year limitations period). In any
- event, we find Rambo's arguments that the legislative
- history provides support for his view lacking in force.
- From congressional Reports accompanying amendments
- to 22 in 1934, 1938, and 1984, Reports suggesting
- Congress was unwilling to extend the 1-year limitations
- period in which a party may seek modification, Rambo
- would have us infer that Congress intended a narrow
- construction of other parts of 22, including the circum-
- stances that would justify reopening an award. We
- rejected this very argument in Banks, 390 U. S., at 465,
- and its logic continues to elude us. Congress' decision
- to maintain a 1-year limitations period has no apparent
- relevance to which changed conditions may justify
- modifying an award.
- Rambo next contends that following McCormick S. S.
- Co. v. United States Employees' Compensation Comm'n,
- 64 F. 2d 84 (CA9 1933), the Courts of Appeals unani-
- mously held that -change in conditions- refers only to
- changes in physical conditions, so Congress's reenact-
- ment of the phrase -change in conditions- when it
- amended other parts of 22 as late as 1984 must be
- understood to endorse that approach. We have often
- relied on Congress's -reenact[ment of] statutory language
- that has been given a consistent judicial construction,-
- Central Bank of Denver v. First Interstate Bank of
- Denver, 511 U. S. ___, ___ (1994) (slip op., at 21); see
- Pierce v. Underwood, 487 U. S. 552, 566-567 (1988), in
- particular where Congress was aware of or made
- reference to that judicial construction, see Brown v.
- Gardner, 513 U. S. ___, ___ (1994); United States v.
- Calamaro, 354 U. S. 351, 359 (1957). The cases in the
- relevant period, however, were based on a misreading of
- McCormick, supra, which did not reject the idea that
- 22 included a change in wage-earning capacity, but
- merely expressed doubt that 22 -applies to a change in
- earnings due to economic conditions,- 64 F. 2d, at 85;
- they involved dicta not holdings, see, e.g., Pillsbury v.
- Alaska Packers Assn., 85 F. 2d 758, 760 (CA9 1936),
- rev'd on other grounds, 301 U. S. 174 (1937); Burley
- Welding Works, Inc. v. Lawson, 141 F. 2d 964, 966
- (1944); General Dynamics Corp. v. Director, OWCP, 673
- F. 2d 23, 25, n. 6 (CA1 1982) (per curiam); and they
- were not uniform in their approach, see, e.g., Hole v.
- Miami Shipyards Corp., 640 F. 2d 769, 772 (CA5 1981)
- (-[T]he compensation award may be modified years later
- to reflect . . . greater or lesser economic injury-). Under
- these circumstances, we are not persuaded that congres-
- sional silence in the reenactment of the phrase -change
- in conditions- carries any significance.
- In a related argument, Rambo criticizes petitioner's
- reading of 22 because it sweeps away an accumulation
- of more than 50 years of dicta. Far from counseling
- hesitation, however, we think this step long overdue.
- -[A]ge is no antidote to clear inconsistency with a
- statute,- Brown v. Gardner, supra, at ___ (slip op., at 7),
- and the dictum of Pillsbury and Burley Welding Works
- has not even aged with integrity, see, e.g., Fleetwood v.
- Newport News Shipping and Dry Dock Co., 16 BRBS 282
- (1984); LaFaille v. Benefits Review Board, U. S. Dept. of
- Labor, 884 F. 2d 54, 62 (CA2 1989); Avondale Shipyards,
- Inc. v. Guidry, 967 F. 2d 1039, 1042, n. 6 (CA5 1992)
- (dictum). Breath spent repeating dicta does not infuse
- it with life. The unnecessary observations of these
- Courts of Appeals -are neither authoritative nor persua-
- sive.- McLaren v. Fleischer, 256 U. S. 477, 482 (1921);
- cf. United States v. Estate of Donnelly, 397 U. S. 286,
- 295 (1970).
- Finally, Rambo argues that including a change in
- wage-earning capacity as a change in conditions under
- 22 will flood the OWCP and the courts with litigation
- because parties will request modification every time an
- employee's wages change or the economy takes a turn in
- one direction or the other. Experience in the 11 years
- since the Benefits Review Board decided Fleetwood,
- supra, suggests otherwise, but that argument is, in any
- case, better directed at Congress or the Director in her
- rulemaking capacity, see LHWCA 39(a), 33 U. S. C.
- 939(a); Director, OWCP v. Newport News Shipbuilding
- & Drydock Co., 514 U. S. ___, ___ (1995) (slip op., at
- 12-13), than at the courts. It is also based on a
- misconception of the LHWCA and our holding today.
- We recognize only that an award in a nonscheduled-
- injury case may be modified where there has been a
- change in wage-earning capacity. A change in actual
- wages is controlling only when actual wages -fairly and
- reasonably represent . . . wage-earning capacity.-
- LHWCA 8(h), 33 U. S. C 908(h). Otherwise, wage-
- earning capacity may be determined according to the
- many factors identified in 8(h), including -any . . .
- factors or circumstances in the case which may affect
- [the employee's] capacity to earn wages in his disabled
- condition, including the effect of disability as it may
- naturally extend into the future.- This circumspect
- approach does not permit a change in wage-earning
- capacity with every variation in actual wages or tran-
- sient change in the economy. There may be cases
- raising difficult questions as to what constitutes a
- change in wage-earning capacity, but we need not
- address them here. Rambo acquired additional, market-
- able skills and the ALJ, recognizing that higher wages
- do not necessarily prove an increase in wage-earning
- capacity, took care to account for inflation and risk of
- job loss in evaluating Rambo's new -wage-earning
- capacity in an open labor market under normal employ-
- ment conditions.- App. 66.
- We hold that a disability award may be modified
- under 22 where there is a change in the employee's
- wage-earning capacity, even without any change in the
- employee's physical condition. Because Rambo raised
- other arguments before the Ninth Circuit that the panel
- did not have the opportunity to address, we reverse and
- remand for proceedings consistent with this opinion.
-
- It is so ordered.
-