Reminder: What follows are some observations and a summary of general principles based on my reading of the statute, regulations and case law. Obviously, such statements of general principles and summary review in this format do not represent the position of any party in any actual case or controversy.
Section 908(i) (33 U.S.C. 908(i)) is a key provision of the Longshore and Harbor Workers’ Compensation Act. It provides for the closing of a claim, discharging the liability of the employer/carrier.
Section 908(i) states – “(1) Whenever the parties to any claim for compensation under this Act, including survivor’s benefits, agree to a settlement, the deputy commissioner or administrative law judge shall approve the settlement within thirty days unless it is found to be inadequate or procured by duress. Such settlement may include future medical benefits if the parties so agree. No liability of any employer, carrier, or both for medical, disability, or death benefits shall be discharged unless the application for settlement is approved by the deputy commissioner or administrative law judge. If the parties to the settlement are represented by counsel, then agreements shall be deemed approved unless specifically disapproved within thirty days after submission for approval.”
All of the information necessary to file a complete section 908(i) settlement application is contained in the Department of Labor’s Regulations governing administration of the Longshore Act at 20 C.F.R. sections 702.242 and 702.243. It will save time and money to get it right the first time.
Basically, a complete application should contain:
There are many considerations to keep in mind when preparing a section 908(i) settlement. Here are some of them:
These are just some of my thoughts and observations regarding lump sum settlements under the Longshore Act.