Workers’ Compensation · Primary-source case analysis

Bloomer: The Longshore Carrier’s Reimbursement Lien Was Not Reduced for the Worker’s Attorney Fees

By Aneeta Mishra and Timothy Chan

Published August 12, 2026

Bloomer v. Liberty Mutual Insurance Co. concerned an injured longshoreman who received statutory compensation, settled a negligence claim against the vessel owner, and asked that the carrier share the legal cost of creating the recovery fund.

The worker received benefits and pursued the vessel owner

William Bloomer received more than $17,000 from the compensation carrier after an onboard injury. He later sued the vessel owner for negligent deck conditions and settled for $60,000.

The carrier asserted its statutory reimbursement lien

The carrier intervened and sought repayment of the full compensation amount from the settlement. Bloomer argued that equity required the carrier to absorb a proportionate share of the attorney fees and expenses.

The statutory scheme displaced the common-fund request

The Court examined section 33 of the Longshore Act, its distribution rules, structure, and history. It concluded that Congress did not require a carrier to contribute to the worker’s litigation costs when the worker obtained the third-party recovery.

The full compensation lien was affirmed

The Court affirmed the distribution without reducing the carrier’s lien. Current claims require application of the present statutory text, settlement terms, allocation rules, and any later controlling authority.

Key takeaways

• Track every compensation payment, medical benefit, litigation expense, and third-party recovery.
• Give timely notice to all lienholders before settlement or distribution.
• Apply the governing Longshore Act allocation rules rather than assuming a common-fund reduction.
• Confirm present statutory amendments and circuit authority before calculating reimbursement.