United States Court of Appeals, First Circuit
United States Court of Appeals, First Circuit
2d 340
This appeal involves the combined claims of Charles Graziano, deceased, for
workmen's compensation benefits and Mary Graziano, his widow, for death
benefits under the Longshoremen's and Harbor Workers' Compensation Act
(Act). 33 U.S.C. 901 et seq. Mary Graziano appeals from the Decision and
Order of the Benefits Review Board of the Department of Labor (Board)
reversing the unpublished Decision and Order of the Administrative Law Judge
(ALJ) who awarded the claimants benefits on the basis that the decedent's
occupation constituted "maritime employment" within the meaning of 2(3) of
the Act, 33 U.S.C. 902(3). It having been stipulated between the parties that
the decedent met the jurisdictional situs requirement of the Act, 33 U.S.C.
903(a), the only issue for review is whether the decedent meets the status
requirement of 33 U.S.C. 902(3), which provides:
2
The decedent, Charles Graziano, was employed from June 3, 1964, to January
30, 1974, as a maintenance-mason at General Dynamics, a corporation engaged
in the building and repairing of ships. As one of only two men classified in the
Maintenance Department as a mason-laborer, Graziano's duties primarily
involved the repair of masonry in shipyard buildings, but also included digging
ditches, breaking up concrete with a jackhammer, laying cement, grouting,
removing asbestos from pipes, repairing boilers and manholes, and cleaning
acid tanks. This work was conducted throughout the shipyard, including the
steel mill, turret, metal, and pipe shops, and warehouses, areas which exposed
the decedent to high levels of dust and noxious fumes.
In 1972, while Graziano was hospitalized for bladder, prostate, and kidney
infections, a pulmonary disease was diagnosed and linked to the poor air
conditions of his employment. After his release from the hospital, Graziano
returned to work on December 18, 1972. Despite the lighter workload given to
him, his condition continued to deteriorate, and on January 30, 1974, he was
forced to leave his job permanently. After two more hospitalizations, Graziano
died in the hospital on February 12, 1976. The cause of death was given as
"pneumonia" due to "chronic obstructive lung disease" of some years' duration.
ALJ Decision and Order at 4. During his lifetime, Graziano filed for
compensation for permanent total disability and upon his death his widow filed
for death benefits.
Board. The Board concluded that the overall duties of Graziano were not
essential to the shipbuilding operations of General Dynamics, although his
"work in cleaning out the acid tanks and maintaining the boilers in the steel mill
arguably might constitute repair of shipbuilding equipment," meriting coverage
under the Act. BRB Decision and Order at 4 n.1.
6
"Our review of the Board's decision is limited to 'errors of law, including the
question of whether the Board adhered to the substantial evidence standard in
its review of factual findings' by the ALJ." General Dynamics Corp. v.
Director, Office of Workers' Compensation Programs, 585 F.2d 1168, 1170 (1st
Cir. 1978), quoting Bath Iron Works Corp. v. White, 584 F.2d 569, 574 (1st
Cir. 1978).
The courts of appeals have wrestled with the jurisdictional status requirement
since its inception as part of the 1972 Amendments to the Act.1 "The question
is made difficult by the failure of Congress to define the relevant terms'maritime employment,' 'longshoremen,' 'longshoring operations'-in either the
text of the Act or its legislative history." Northeast Marine Terminal Co., Inc. v.
Caputo, 432 U.S. 249, 265, 97 S.Ct. 2348, 2358, 53 L.Ed.2d 320 (1977)
(footnotes omitted).2 The language of the 1972 Amendments, however, is broad
and suggests an expansive view of coverage. "The Act must be liberally
construed in conformance with its purpose, and in a way which avoids harsh
and incongruous results." Id. at 268, 97 S.Ct. at 2359, quoting Voris v. Eikel,
346 U.S. 328, 333, 74 S.Ct. 88, 92, 98 L.Ed. 5 (1953). Appellate courts have
stressed the wide scope of coverage which the 1972 Amendments afford. See,
e. g., Warren Bros. v. Nelson, 635 F.2d 552, 556 (6th Cir. 1980); Boudloche v.
Howard Trucking Co., Inc., 632 F.2d 1346, 1347 (5th Cir. 1980), cert. denied, -- U.S. ----, 101 S.Ct. 3049, 69 L.Ed.2d 418 (June 8, 1981); Trotti & Thompson
v. Crawford, 631 F.2d 1214, 1220-21 & n.5 (5th Cir. 1980); Price v. Norfolk &
Western Ry. Co., 618 F.2d 1059, 1061 (4th Cir. 1980); Newport News
Shipbuilding & Dry Dock Co. v. Graham, 573 F.2d 167 (4th Cir.), cert. denied,
439 U.S. 979, 99 S.Ct. 563, 58 L.Ed.2d 649 (1978); Alabama Dry Dock &
Shipbuilding Co. v. Kininess, 554 F.2d 176, 178 (5th Cir.), cert. denied, 434
U.S. 903, 98 S.Ct. 299, 54 L.Ed.2d 190 (1977); Bradshaw v. McCarthy, 3
BRBS 195 (1976), petition for review denied, 547 F.2d 1161 (3d Cir. 1977).
This court, as well, has struggled to interpret the phrase "maritime
employment" in a way that facilitates predictable enforcement. See Prolerized
New England Co. v. Benefits Review Board, 637 F.2d 30, 35-38 (1st Cir.
1980), cert. denied, --- U.S. ----, 101 S.Ct. 3080, 69 L.Ed.2d 952 (1981).
The Board's decision in the case before us is contrary to the expansive approach
which it had itself adopted. Indeed, its holding is inconsistent with a recent
ruling, clearly germane to this case, in which it determined that a sheet metal
worker who repaired and maintained shipyard buildings was covered by the
Act. Sills v. Newport News Shipbuilding & Dry Dock Co., 7 BRBS 976
(1978), aff'd mem. sub nom. Newport News Shipbuilding & Dry Dock Co. v.
Director, OWCP, 591 F.2d 1340 (4th Cir. 1979). Realizing that the ruling in
Sills would dictate a different result in Graziano, the Board chose simply to
discard its earlier holding without explanation and in a footnote stated: "To the
extent that Sills is inconsistent with the law as announced in the instant case,
we decline to follow it." BRB Decision and Order at 5 n.2. Price v. Norfolk and
Western Ry. Co., 618 F.2d 1059, exemplifies the liberal trend in construing the
Act, and we find its reasoning applicable to the case at hand. In Price, the
claimant was injured while painting, as part of routine maintenance, a support
tower for a gallery belt system used in loading and unloading grain. The support
tower itself was not a part of the gallery belt system. Citing Newport News
Shipbuilding & Dry Dock Co. v. Graham, 573 F.2d 167, where a claimant was
awarded compensation benefits for injuries sustained when he bumped against
a machine he was oiling, and Bradshaw v. McCarthy, 3 BRBS 195, where a
waterfront mechanic was granted benefits for a back injury received while
repairing a forklift, the Price court held:
9 can discern no significant distinction between the repair of machinery essential
We
to the movement of maritime cargo and the painting of a structure essential to the
loading and unloading of the same. Nor can we discern any significant distinction
between oiling a machine used in building ships, as was the claimant in Graham, and
painting a structure used in loading and unloading ships.
10
Price at 1061.
11
12
duties parallel the unskilled support services denied coverage in Dravo Corp. v.
Banks, 567 F.2d 593 (3d Cir. 1977). In Dravo, a maintenance-laborer who
performed such unskilled jobs as cleaning up debris was excluded from
coverage because his duties had "no traditional maritime characteristics, but
rather (were) typical of the support services performed in any production entity,
maritime or not." Id. at 595. We agree that those "support services equally
suited to land-based enterprises, such as office clerical work, do not qualify as
maritime employment." Prolerized New England Co. v. Benefits Review
Board, 637 F.2d at 37; see also Maher Terminals, Inc. v. Farrell, 548 F.2d 476,
477 (3d Cir. 1977). But unlike the duties in Dravo or the clerical employment in
Maher, Graziano's work was a necessary link in the chain of work that resulted
in ships being built and repaired. We think "he falls within the broad concept of
maritime employment," Prolerized New England Co. v. Benefits Review
Board, 637 F.2d at 37-38, which the Act covers.
13
14 (was) no evidence in the record that claimant spent a substantial portion of his
there
time in these activities. In Boudloche v. Howard Trucking Co., Inc., 11 BRBS 687,
BRB No. 78-383 (1979), the Board held that a claimant's maritime-related duties
must constitute a substantial portion of his overall employment in order for him to
qualify as a maritime employee.
15
100 S.Ct. at 337-38. In rejecting the Benefit Review Board's analysis, the Fifth
Circuit reasoned that "(b)y substituting its 'substantial portion' language for the
Court's 'some' in the coverage definition, the Board has departed from the letter
and spirit of the High Court's rule. This, of course, it cannot do." Boudloche v.
Howard Trucking Co., Inc., 632 F.2d at 1348. Although only 2.5 to 5 percent of
Boudloche's overall employment was maritime in character, the Fifth Circuit
extended coverage because "he was directed to regularly perform some portion
of what was indisputably longshoring work." Id. Similarly, Graziano occupies a
status covered by the Act because a regular portion of his overall employment
entailed cleaning out acid tanks and steel mill boilers, work which is
indisputably maintenance of shipbuilding equipment.
16
17
Reversed.
18
19
The essential difficulty we face in this and other like cases under the
Longshoremen's and Harbor Workers' Compensation Act is giving the status
term, "maritime employment," some meaning as applied to the work activities
of a shipyard. The Act has both a status and a situs requirement. While
Graziano met the situs standard-he was working at a shipyard-he was not
meaningfully engaged in maritime employment. In my view, the logic of
today's opinion simply reads the status requirement out of the Act. It grants
federal rather than state compensation coverage to shore-based employees
doing work indistinguishable from that done at garden variety industrial plants.
Rather than take such a step, sub silentio, I feel this court has a duty to attempt
to give meaning to both the status and situs requirements as Congress and the
Supreme Court have suggested we should. I therefore respectfully dissent.
20
The Act, itself, was originally passed to fill a gap in the workmen's
compensation scheme. That gap was the result of the Supreme Court's decision
in Southern Pacific Co. v. Jensen, 244 U.S. 205, 37 S.Ct. 524, 61 L.Ed. 1086
(1917), which held that under the Constitution the states were without power to
extend their own workmen's compensation to longshoremen whenever they
were injured on navigable waters rather than on land. Congress responded in
This construction of the Act was altered by the 1972 Amendments. The 1972
Amendments specifically extended the Act's coverage shoreward. The Act thus
expanded the physical situs covered by the Act to include navigable waters and
"any adjoining pier, wharf, dry dock, terminal, building way, marine railway, or
other adjoining area customarily used by an employer in loading, unloading,
repairing, or building a vessel." 33 U.S.C. 903. This expansion of
geographical scope, however, made it necessary to describe limits on the class
of employees Congress intended to compensate. Congress therefore added the
status requirement that the injured worker be "engaged in maritime
employment." This, in turn, was defined and limited to a "longshoreman or
other person engaged in longshoring operations, and any harbor worker
including a ship repairman, shipbuilder, and shipbreaker...." 33 U.S.C.
902(3).
22
Since 1972, the courts have again struggled to draw meaningful lines defining
the scope of coverage under this new regime. The two Supreme Court cases
cited by the majority are indicative of both the direction the courts have taken
and the possible limits of coverage under the 1972 Amendments. In Northeast
Marine Terminal Co. v. Caputo, 432 U.S. 249, 97 S.Ct. 2348, 53 L.Ed.2d 320
(1977), the Court found that a cargo "checker" who worked both on the shore
side and the ship side of a pier and a regular longshoreman who was injured on
land while loading cargo onto trucks were both covered by the Act. Both men
spent a portion of their regular working time on vessels and a portion on land.
However, under the pre-1972 Act they would not have been covered because
their injuries occurred on land.
23
The Court held, however, that the 1972 Amendments were intended to cover
"persons whose employment is such that they spend at least some of their time
in indisputably longshoring operations and who, without the 1972
Amendments, would be covered for only part of their activity." Id., at 273, 97
S.Ct. at 2362. The two men were covered because they spent at least part of
their time doing indisputably longshoring work and because, without the 1972
Amendments, they would have been covered for only their shipboard work.
The Court noted, however, that a truck driver or a clerical worker on the situs
would not be covered.
24
The Court clarified this limitation in P. C. Pfeiffer Co. v. Ford, 444 U.S. 69,
100 S.Ct. 328, 62 L.Ed.2d 225 (1979). In Pfeiffer, the Court found that two
shipyard warehouse employees, who were injured while loading and unloading
cargo, were covered by the Act despite the fact that their work never took them
on board a ship. The Court stated that the status requirement of the Act did not
depend upon situs considerations such as whether the employee worked
occasionally beyond "the water's edge." Rather, the Court adopted a functional
approach. Since the warehousemen were engaged in "the type of duties that
longshoremen perform in transferring goods between ship and land ...," id., at
81, 100 S.Ct. at 337, and they were an "integral part of the unloading process,"
id. at 75, 100 S.Ct., at 333, they were covered by the Act.
25
26
Until today, however, the courts have agreed that a third category of shipyard
employees is indisputably not covered by the Act. These are shipyard workers
whose functions are not tied into actual production or repair work, such as the
unskilled maintenance man in Dravo Corp. v. Banks, 567 F.2d 593 (3d Cir.
1977), and the clerical worker in Maher Terminals, Inc. v. Farrell, 548 F.2d 476
(3d Cir. 1977). In sum, three categories of employees have emerged-the "core"
and shipbuilding equipment maintenance workers, who are covered; and the
miscellaneous shipyard employees who are not.
28
Graziano's case must fall within either the second or third of these categories.
Graziano, according to the ALJ, spent most of his time doing routine masonry
and maintenance work on the buildings in the shipyard. He occasionally-and
the record suggests to me that these jobs came up only rarely-helped to repair
large acid vats and boilers in the steel mill and the pipe shop. Thus, the
question becomes first whether Graziano's primary functions as a mason were
"integrally related" to the loading, repair or building of ships. Secondly, if his
usual work did not qualify him, we need to ask whether his occasional repair of
the vats and boilers-special equipment which is essential to the shipbuilding
and repair functions of the yard-nevertheless entitles him to benefits as a
maritime employee. The majority answers both questions affirmatively,
suggesting, however, that either ground would be sufficient to support an award
of benefits.
29
On the first question, I find the facts of our case closer to the maintenance man
in Dravo than to the cited cases of painters and sandblasters. Graziano's
primary duties, according to the Board, "did not involve the repair and
maintenance of shipbuilding equipment; rather, they involved the repair and
maintenance of the buildings located on employer's facility." Similarly, the
ALJ found that Graziano's work involved maintaining the "physical integrity of
the employer's shipbuilding plant," not, we may infer, of the essential
equipment used in making or repairing ships. It seems to me that these findings
describe the claimant in Dravo as well as our claimant. It is no less essential to
clear the debris from the shop floors than to keep the masonry and plumbing of
the buildings in shape. Both are support activities more removed than
"integrally related" to the job of cleaning the hulls and repairing the decks of
ships. I thus disagree with the court's characterization of the masonry work
performed by Graziano as "integrally related" to shipbuilding. Unless the
"integral function" test is to sweep into its net everyone at the situs whose
presence contributes to the operation of the yard-which logically means
watchmen, clerks and general yard maintenance personnel-I do not see how we
can include those who repair and maintain buildings. To be sure, there must be
buildings if ships are to be built but so also must there be security and
paperwork.
30
As to the second ground of decision, the court takes the Supreme Court's
language referring to people who "spend at least some of their time in
indisputably longshoring operations" out of context and stretches the words so
as to fundamentally alter the scope of the Act. When the Supreme Court spoke
in Caputo of covering employees who were engaged "at least some of the time"
in indisputably longshoring activities (a core activity), it was referring, as the
full quotation indicates, to people who spent only some (not all) of their time
loading on board ship. Pfeiffer extended this to include workers who were
engaged in some portion of the core activity of loading and unloading and who
worked exclusively on land.
31
The majority opinion, however, would apply the Supreme Court's "some of the
time" language to activity which is far removed from the core work of loading,
repairing and building. Under this analysis, anyone (the clerk in Maher, for
instance) who spent as little as 21/2 to 5 percent of their time (the amount of
time spent by the employee in Boudloche) engaged in such secondary support
activities as oiling the engine of a forklift or painting a shed in the shipyard
would qualify for coverage as fully as the bona fide shipwright. This seems to
me to stretch the language of the Act beyond recognition. Congress introduced
the status requirement ("maritime employment") in 1972 by way of limiting
coverage. The court's rationale in today's opinion all but eliminates that
legislative limitation.
32
It is probably too late to question the applicability of the Act to the general
category of "support" employees whose sole "maritime" attribute is that they
maintain equipment used in actual shipbuilding. Indeed, our own cases have
found such workers to be covered, though it is worth noting that the employee
in Prolerized New England v. Benefits Review Board, 637 F.2d 30 (1st Cir.
1980), cert. denied, --- U.S. ----, 101 S.Ct. 3080, 69 L.Ed.2d 952, 49 U.S.L.W.
3931 (June 15, 1981), spent a portion of his time actually on ships. I do think,
however, that it would be well within the intent of the Act if we required those
employees whose claimed maritime status hinges on such secondary support
activities to show that they were engaged in their "integrally related" support
work as their primary duty and during a substantial portion of their working
time. This would be consistent with the facts we confronted in Prolerized New
England and would also insure that building maintenance workers and clerical
employees whom the courts agree are not covered, could not gain coverage by
Thus, while, as required by the Supreme Court, anyone who performs "core"
activity-i. e., actual shipbuilding or longshoring-only some of the time would be
fully covered by the Act, those who perform only activities in support of such
"core" maritime work would have to meet the Board's Boudloche test, which
requires claimants to show that they are engaged in maritime employment a
"substantial portion of their working time." Thus, equipment maintenance and
repair would have to take up a substantial portion of their time. This limited use
of the Boudloche test neither offends the Court's Pfeiffer holding nor is
inconsistent with the Fifth Circuit's view in Boudloche v. Howard Trucking
Co., 632 F.2d 1346 (5th Cir. 1980); the employee in the latter case spent "some
of the time" in the core maritime activity of actual loading and unloading ships
and was thus covered under Pfeiffer.
34
Graziano would fail to qualify for federal coverage under such an analysis. The
ALJ found only that he repaired boilers and acid tanks as a portion of his duties
while indicating that his primary job was maintaining the physical integrity of
the entire plant. The record strongly suggests that the former duties were only
very occasional. Since Graziano's duties did not involve him a substantial
amount of the time in the maintenance and repair of equipment specifically
used in maritime work, he would not be covered.
35
I am keenly aware that drawing such a line may add to the complexity of the
analysis we must undertake in these cases. Under the test I propose, a painter
who paints shipbuilding equipment a substantial portion of his time would be
covered while one who paints mostly shipyard buildings would not. It is, I
recognize, tempting to say that we should open the doors to all shipyard
employees, regardless of function, so long as they are employed by a
shipbuilding or longshoring company and work on the situs. This test would
have the virtue of being evenhanded and easy to administer. However, it reads
the status requirement out of the Act, a step more legitimately left to Congress
than to this court. After all, most industrial activities are covered by state
compensation laws; there is no necessary reason why a non-maritime employee
doing shore-based work similar to that done in any non-maritime facility should
be awarded federal rather than state coverage. Because I feel today's opinion
has the effect of abolishing the status requirement-without saying so expressly-I
respectfully dissent.
The definition of "employee" makes clear that the category of persons engaged
in maritime employment includes more than longshoremen and persons
engaged in longshoring operations. The subcategories "ship repairman" and
"shipbuilder" are most closely analogous to Graziano's duties of employment