Longshore & Harbor Workers' Compensation Act
Supplement - January 2005
Topic 65 - Interest
DISCLAIMER: The Longshore Benchbook was created solely to assist the Office of Administrative Law Judges as a first reference in researching cases arising under the Longshore and Harbor Workers' Compensation Act, and extension acts, as amended. This Benchbook does not constitute the official opinion of the Department of Labor, the Office of Administrative Law Judges, or any individual judge on any subject. This Benchbook does not necessarily contain an exhaustive or current treatment of case holdings, and should, under no circumstances, substitute for a party's own research into the statutory, regulatory, and case law authorities on any given subject referred to therein. It is intended to be used as a research tool, not as final legal authority and should not be cited or relied upon as such.
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Topic 65.8.3 Interest�Applicable Rate of Interest
Calculation of Interest
In 1984 the Benefits Review Board adopted the Treasury Bill yield immediately prior to the date of judgment (date the decision and order is filed at OWCP; cf. Nealon v. California Stevedore & Ballast Co ., 996 F.2d 966 ( 9th Cir. 1993)(Comp order is deemed filed in Ninth Circuit when the parties received the order.)). Grant v. Portland Stevedoring Co. , 16 BRBS 267 (1984), recon'd 17 BRBS 20 (1985). Upon reconsideration of Grant in 1985 the Board clarified the method used to calculate interest rates pursuant to 28 U.S.C. � Section 1961. Grant v. Portland Stevedoring Co. , 17 BRBS 20 (1985). This meant that when interest was awarded, the rate had to reflect the rate on the 52-week U.S. Treasury Bill yield immediately prior to the date of judgment. However, the last auction of 52 week Treasury bills was on February 27, 2001. OWCP is currently using the weekly average one year constant maturity Treasury yield as published by the Federal Reserve System for the week preceding the date of judgment.
Accordingly Decisions and Orders in longshore cases are no longer referencing that rate in awards of interest. Likewise, the reference to such rates in connection with settlements in 20 C.F.R. § 702.243(g) is no longer applicable. Interest calculations now are the same as that used by the United States District Courts in money judgments in civil cases�which is based on the weekly average 1-year constant maturity Treasury yield for the calendar week preceding the date of the order awarding benefits (In LHC cases, this will be the date of service by the District Director).
Additional information on interest rates may be found at DOL's web site: https://www.dol.gov/owcp/dlhwc/ .
