Pan American Electric, Inc. (Commission decision, July 27, 2010)

Plain-English summary

MSHA's proposed penalty assessment and later delinquency notice were returned undelivered, and Pan American Electric learned of the assessment only when a collection agency contacted it. The contractor then sought reopening and submitted an address change. The Commission held that the assessment never became a final order because Pan American had not received it. It denied reopening as moot, remanded the matter for penalty proceedings, and directed the Secretary to file a petition within 45 days.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. § 2700.28
• Outcome: Reopening was denied as moot because the assessment was not final, and the matter was remanded for penalty proceedings.
• Key point: An assessment returned undelivered did not become final under section 105(a), although contractors remain responsible for keeping their MSHA address current.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

601 NEW JERSEY AVENUE, NW

SUITE 9500

WASHINGTON, DC 20001

July 27, 2010

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

PAN AMERICAN ELECTRIC, INC.

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Docket No. CENT 2010-151-M

A.C. No. 34-01905-154656 H094

BEFORE: Jordan, Chairman; Duffy, Young, Cohen, and Nakamura, Commissioners

ORDER

BY THE COMMISSION:

This matter arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.
§ 801 et seq. (2006) (“Mine Act”). On November 18, 2009, the Commission received from contractor Pan American Electric, Inc. (“Pan American”) a letter seeking to reopen a penalty assessment that may have become a final order of the Commission pursuant to section 105(a) of the Mine Act, 30 U.S.C. § 815(a).

Under section 105(a) of the Mine Act, an operator who wishes to contest a proposed penalty must notify the Secretary of Labor no later than 30 days after receiving the proposed penalty assessment. If the operator fails to notify the Secretary, the proposed penalty assessment is deemed a final order of the Commission. 30 U.S.C. § 815(a).

We have held, however, that in appropriate circumstances, we possess jurisdiction to reopen uncontested assessments that have become final Commission orders under section 105(a). Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). In evaluating requests to reopen final section 105(a) orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure under which, for example, a party could be entitled to relief from a final order of the Commission on the basis of mistake, inadvertence, or excusable neglect. See 29 C.F.R. § 2700.1(b) (“the Commission and its Judges shall be guided so far as practicable by the Federal Rules of Civil Procedure”); JWR, 15 FMSHRC at 787. We have also observed that default is a harsh remedy and that, if the defaulting party can make a showing of good cause for a failure to timely respond, the case may be reopened and appropriate proceedings on the merits permitted. See Coal Prep. Servs., Inc., 17 FMSHRC 1529, 1530 (Sept. 1995).

On June 24, 2008, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Penalty Assessment No. 000154656 to Pan American. The record indicates that the assessment was returned undelivered, as was a later delinquency notice sent by MSHA. Pan American states that it only learned of the assessment when it was contacted by a collection agency on November 13, 2009. The Secretary states that she does not oppose the reopening of the proposed penalty assessment, but stresses that contractors are obligated to keep their addresses of record current with MSHA. She also notes that soon after filing its request to reopen, the contractor submitted an address change.

Having reviewed Pan American’s request and the Secretary’s response, we conclude that Assessment No. 000154656 has not become a final order of the Commission because it was never received by Pan American. Accordingly, we deny the request to reopen as moot and remand this matter to the Chief Administrative Law Judge for further proceedings pursuant to the Mine Act and the Commission’s Procedural Rules, 29 C.F.R. Part 2700. Consistent with Rule 28, the Secretary shall file a petition for assessment of penalty within 45 days of the date of this order. See 29 C.F.R. § 2700.28.

Mary Lu Jordan, Chairman

Michael F. Duffy, Commissioner

Michael G. Young, Commissioner

Robert F. Cohen, Jr., Commissioner

Patrick K. Nakamura, Commissioner

Distribution:

Ted Anderson, Safety Coordinator

Pan American Electric, Inc.

978 Hwy., 77 South

Davis. OR 73030

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Myra James, Chief

Office of Civil Penalty Compliance, MSHA

U.S. Dept. of Labor

1100 Wilson Blvd., 25th Floor

Arlington, VA 22209-3939

Chief Administrative Law Judge Robert J. Lesnick

Federal Mine Safety & Health Review Commission

601 New Jersey Avenue, N.W., Suite 9500

Washington, D.C. 20001-2021