Bethlehem Steel Corporation v. Jesse Mobley, Claimant-Respondent, and Director, Office of Workers' Compensation Programs, U.S. Department of Labor

Bethlehem Steel Corporation petitions for review of a decision of the Department of Labor’s Benefits Review Board. The Board upheld an Administrative Law Judge’s decision that Bethlehem was responsible under the Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 901-950 (1989) (LHWCA) for respondent Jesse Mobley’s future medical expenses caused by his on-the-job exposure to asbestos. We are called upon to interpret the provisions of sections 33(g)(1) and (2) of the LHWCA, 33 U.S.C. §§ 933 (g)(1), (2) (1989), relating to approval and notice of settlements with third parties.

Under section 33(g)(1), a claimant is required to obtain the approval of the employer when the claimant settles an action against a third party, if the settlement is for an amount less than the amount of “compensation” for which the employer is liable. Bethlehem contends that Mobley’s failure to obtain its approval of his settlements of third party claims against the asbestos manufacturers should result in forfeiture of medical benefits in this case, even though he was awarded no disability compensation.

Under section 33(g)(2) , the employee is required to give the employer notice of all settlements…