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3 Mar. Law. 265 (1977-1978)
Awards and Conflicts of Interest under Section 933(6): The Longshoreman Bandied about Again

handle is hein.journals/tulmar3 and id is 271 raw text is: COMMENTS
AWARDS AND CONFLICTS OF INTEREST UNDER SECTION
933(6): THE LONGSHOREMAN BANDIED ABOUT AGAIN.
The Longshoremen's and Harbor Workers Compensation Act' was
passed by the Congress in 1927 after serveral years of prodding by the
United States Supreme Court.2 Patterned almost word for word after
the New York workmen's compensation statute,3 the Act was designed to
fill the gap left by the Supreme Court opinions and provide
longshoremen with a federal remedy for injuries or death occurring on
navigable waters. In almost all respects, the Act was passed with the
benefit of the injured employee as the primary consideration and
subsequent decisions reaffirmed the principle that it was to be construed
liberally in favor of the employee.4 However, as had New York,5
Congress provided one section devoted exclusively to the benefit of the
employer, section 933, whereby       the employer was assigned the
employee's cause of action against third party tort-feasors upon the
acceptance of compensation.6 The provision was amended in 1938 to
require acceptance of compensation under an award in a compensation
order filed by the deputy commissioner before an assignment would
take place,7 and again in 1959, wherein a six month waiting period was
added before the assignment became effective.8 Although the section
was passed in aid of the employer's interest in recoupment of paid
compensation,9 until recently it had never been construed as a penalty to
the employee.10
As will be discussed, it is unquestioned that the term assignment in
section 933 is to be construed literally as a transfer of the employee's
entire cause of action against a third party. It was this strict
interpretation, however, that prompted the Congress to adopt the
1. 44 Stat. 1424 (1927): current version at 33 U.S.C. §§ 901-950 (1976).
2. See Southern Pacific Co. v. Jensen, 244 U.S. 205(1917): Knickerbocker Ice Co. v. Stewart, 253 U.S.
149 (1920): Washington v. W.C. Dawson & Co., 264 U.S. 219 (1924): International Stevedoring Co. v.
Haverty. 272 U.S. 50 (1926).
3. N.Y. Workmen's Compensation Laws (McKinney) § 1-401 (1922).
4. See qenerally Reed v. Yaka, 373 U.S. 410 (1963): Voris v. Eikel. Tex. 346 U.S. 328 (1956); Alabama
Dry Dock & Shipbuilding Co. v. Kininess, 554 F. 2d 176 (5th Cir. 1977).
5. N.Y. Workmen's Compensation Laws (McKinney) § 29.2 (1922).
6. § 33. 44 Stat. 1440 (1927): current version at 33 U.S.C. § 933(b) (1976).
7. § 12, 52 Stat. 1168 (1938): current version at 33 U.S.C. § 933(b) (1976).
8. Pub. L. 86-171, 73 Stat. 391 (1959): current version at 33 U.S.C. § 933(b) (1976).
9. The Etna, 138 F. 2d 37, 40 (3rd. Cir. 1943).
10. Liberty Mutual Insurance Co. v. Ameta & Co., 564 F. 2d 1097 (4th Cir. 1977): Bandy v. Bank Line,
Ltd., 442 F. Supp. 882 (E.D.Va. 1977).
265

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