Pac. Ship Repair & Fabrication, Inc. v. Office of Worker Comp. Programs, No. 11-70292 (9th Cir. 2012)
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Deborah Benge, a former employee of Pacific Ship Repair and Fabrication, filed a disability claim under the Longshore and Harbor Workers' Compensation Act seeking compensation for her work-related injury. The ALJ found that Benge's disability at the time was permanent. The Office of Workers' Compensation Programs (OWCP) made partial permanent disability payments to Benge until Benge underwent surgery. An ALJ subsequently determined that Benge's nine-month total disability immediately following the surgery was temporary in nature. This determination absolved the OWCP from making disability payments during this time period. Instead, Pacific was liable for the payments. The Department of Labor's Benefits Review Board affirmed the ALJ, concluding that even if a disability is declared permanent, it may be later re-characterized as temporary when the underlying condition worsens and re-stabilizes following a surgical procedure. The Ninth Circuit Court of Appeals affirmed, holding (1) under the Longshore Act, a prior finding of partial permanent disability does not preclude a later finding of temporary disability for the same underlying injury during a period of recovery following surgery; and (2) because Benge's partial disability could be re-characterized as a temporary total disability in accord with changed circumstances, Pacific was responsible for the temporary total disability payments.
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