UNDER THE ACT OF AUGUST 16, 1941' (G7296-2, Federal Defense Bases Compensation Endorsement, effective 6/26/54) provides:
'The obligations of paragraph One (a) of the policy include the Longshoremen's and Harbor Workers' Compensation Act, being Public Law No. 803 of the 69th Congress, approved March 4, 1927, as extended by the provisions of the Act of Congress providing compensation for disability or death resulting from injury to persons employed at military, air, and naval bases and at certain other places, being Public Law No. 208 of the 77th Congress, approved August 16, 1941, and all laws amendatory thereof or supplementary thereto which may be or become effective while this Policy is in force.
'The Company will carry out the provisions of Section 35 of said Act. * * *
'Reference to the law of any State in Conditions B and D of this Policy are hereby declared to include for the purpose of this endorsement only, the provisions of the Longshoremen's and Harbor Workers' Compensation Act and the said Act of Congress approved August 16, 1941 (Public Law No. 208, 77th Congress), as amended.'
Endorsement #2 (page 1) of the policy contains this language:
'It is agreed that such insurance as is afforded by this Policy, under Paragraph One (b) shall apply as respects civilian employees of this employer, located at installations anywhere in the world which may come under the cognizance of the U.S. Navy Ship's Store Office, subject to the following provisions: '2. If employees sustain personal injury, including death, at any time resulting therefrom, and such injuries or death arise out of and in the course of said employee's employment by this employer, the company will pay, voluntarily an amount equivalent to that afforded for compensation, medical, and other benefits provided by the Longshoremen's and Harborworkers' Compensation Act and U.S.Code (1946) Title 33-Section 901-49; * * * '4. Such payments shall be made only if the circumstances under which the injury or death were sustained were such that payments, either by this employer or any company as his insurer, would have been required, if the employee or the person claiming by, through, or under him, had a legal claim under the Longshoremen's and Harbor-workers' Compensation Act; * * *.
Condition D of the policy contains this language:
'D. * * * If the law of any state in which the Policy is applicable provides for the enforcement of the rights of such employees or such dependents by any Commission, Board or other state agency for the benefit of such employees or such dependents, then the provisions of such law are made a part thereof, as respects any matter subject thereto, as fully as if written herein.'
The policy and the statute indicate that exhaustion of administrative remedies is a condition precedent to recovery upon the policy. In order to give plaintiff a reasonable time within which to institute an appropriate proceeding under the Longshoremen's and Harbor Workers' Compensation Act, supra, this action will be stayed pending the out-come of such proceeding, and it is unnecessary to consider at this time the other defenses
challenged by the above Motion. See Somma v. United States, 283 F.2d 149, 151-2 (3rd Cir.1960).
And now, August 22, 1963, it is ordered that this action is stayed in order to permit plaintiff a reasonable time within which to proceed under the Longshoremen's and Harbor Workers' Compensation Act, 33 U.S.C.A. § 901 ff., in accordance with the foregoing Memorandum Opinion.