Secretary of Labor v. Linwood Mining and Minerals Corporation (Commission decision, July 31, 2013)

Plain-English summary

Linwood Mining missed the 30-day deadline to contest a proposed MSHA penalty. It said it mailed a contest notice with payment for uncontested citations one day after the deadline, and MSHA's St. Louis payment office received the check. The Secretary did not oppose reopening but noted that the contest would have been late even if sent to the correct Arlington office. The Commission reopened the final assessment in the interest of justice and remanded the case for proceedings on the merits. It directed the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. §§ 2700.1(b) and 2700.28
• Outcome: The final penalty assessment was reopened and the matter was remanded for further proceedings.
• Key point: The Commission may reopen a final assessment for good cause even when the operator's contest was filed just after the statutory deadline.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

1331 PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON, D.C. 20004-1710

July 31, 2013

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

LINWOOD MINING AND MINERALS
CORPORATION

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Docket No.CENT 2013-256-M

A.C. No. 13-01617-279454

BEFORE: Jordan, Chairman; Young 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 February 1, 2013, the Commission received from Linwood Mining and Minerals Corporation (“Linwood”) a motion seeking to reopen a penalty assessment that had 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).

MSHA’s records indicate that the proposed assessment was delivered on February 7, 2012, and became a final order of the Commission on March 8, 2012. Linwood asserts that it mailed a notice of contest with payment for the uncontested citations on March 9, 2012. The Secretary does not oppose the request to reopen, and notes that the MSHA payment office in St. Louis, MO, received a check dated March 9, 2012. However, the Secretary notes that even if the contest form had been sent to the correct address it would not have been processed as a timely contest because it was mailed one day after the expiration of the 30 day contest period. The Secretary states that a delinquency letter was mailed on April 23, and the case was referred to the Department of Treasury for collection on August 9, 2012. Linwood enclosed its response to the collection notice, dated August 21, 2012. The Secretary urges the operator to take steps to ensure that future penalty contests are timely filed and mailed to MSHA’s Civil Penalty Compliance Office in Arlington, VA, as instructed on the proposed assessment form.

Having reviewed Linwood’s request and the Secretary’s response, in the interest of justice, we hereby reopen this matter and remand it 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. Accordingly, 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.

/s/ Mary Lu Jordan

Mary Lu Jordan, Commissioner

/s/ Michael G. Young

Michael G. Young, Commissioner

/s/ Patrick K. Nakamura

Patrick K. Nakamura, Commissioner

Distribution:

Dallas R. Allen

Linwood Mining & Minerals Corp.

401 East Front Street

Devenport, IA 52804-9500

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Melanie Garris

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

1331 Pennsylvania Avenue, N. W., Suite 520N

Washington, D.C. 20004-1710