Workers’ Compensation · Primary-source case analysis

Potomac Electric: A Scheduled Longshore Injury Used the Statutory Schedule

Decision: Supreme Court of the United States, No. 79-816, decided December 15, 1980. Document: Published United States Reports opinion.

Potomac Electric Power Co. v. Director, OWCP involved a covered employee whose workplace injury permanently reduced use of his left leg, an injury specifically listed in the Longshore Act’s permanent-partial-disability schedule.

The administrative award used actual wage loss

Although the leg injury appeared in the schedule, the administrative law judge awarded the worker the larger amount available under section 8(c)(21), based on the difference between preinjury wages and postinjury earning capacity.

All other cases did not include scheduled injuries

The Court read section 8(c)(21)’s residual language literally. It applies when a permanent partial disability is not already identified in the statutory schedule, not as an optional alternative whenever a scheduled award appears inadequate.

The schedule reflects a legislative compromise

Fixed awards provide prompt and predictable recovery without requiring individualized wage-loss proof, while giving employers defined exposure. The Act did not guarantee the largest possible recovery for every covered impairment.

The scheduled measure controlled the disposition

The Court reversed the judgment allowing the residual wage-loss method. Current claims still require careful classification of each impairment, later statutory amendments, multiple-injury rules, and any separate unscheduled conditions.

Key takeaways

Discuss the procedural record

Mishra X Trial Lawyers represents clients in California. Call (949) 343-9735 or email office@mishrax.com.