Avondale Shipyards, Inc. v. Guidry: The LHWCA and Wage-Earning Capacity—From Injury to Insult Under Section 908(h)

Recent Development by J.R. Klein

In July of 1979, Ronald J. Guidry injured his neck while on duty at Avondale Shipyards, Inc., where he worked as a scientific instrument mechanic. Unable to return to his position at Avondale, he obtained a lower paying job at the University of New Orleans (UNO). Guidry subsequently claimed benefits under the Longshore and Harbor Workers' Compensation Act (LHWCA), contending he had suffered a loss in wage-earning capacity due to the injury. At a hearing before an Administrative Law Judge (ALJ) in September of 1986, Avondale refuted Guidry's charge by presenting expert testimony to the effect that higher paying electronics jobs were available to Guidry in the New Orleans area. Avondale further alleged that the difference between Guidry's salaries at Avondale and UNO was an improper basis from which to compute the claimed LHWCA benefits. The ALJ rejected Avondale's position, concluding that Guidry's wages at UNO were representative of his wage-earning capacity, and that Avondale had not sustained its burden to prove otherwise. The ALJ classified Guidry as permanently, partially disabled and set his benefits at $85.07 per week. The Benefits Review Board (BRB) affirmed the ALJ's decision. The Fifth Circuit Court of Appeals vacated the order of the BRB and remanded the case, holding that the ALJ and BRB had subjected Avondale to an overly stringent burden of proof in demanding a showing that actual job openings were available to Guidry. Avondale Shipyards, Inc. v. Guidry, 967 F.2d 1039, 1045 (5th Cir. 1992).


About the Author

J.R. Klein.

Citation

67 Tul. L. Rev. 1677 (1993)