Secretary of Labor v. Cargill Deicing Technology (Commission decision, March 24, 2021)

Plain-English summary

Cargill Deicing Technology sought to reopen two penalty assessments that had become final orders. The company said it inadvertently mailed the contest forms with payment for other citations to MSHA's St. Louis address. The Secretary did not oppose reopening but urged Cargill to send future contests to the Civil Penalty Compliance Office in Arlington. The Commission found that an inadvertent mistake caused the missed deadlines. It reopened both assessments and remanded them, with penalty petitions due within 45 days.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a)
• Outcome: Both final assessments were reopened and remanded.
• Key point: Mailing contest forms to the payment address by mistake supported reopening.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331
PENNSYLVANIA AVE., N.W., SUITE 520N

WASHINGTON,
DC 20004-1710

SECRETARY
OF LABOR,

MINE
SAFETY AND HEALTH      

ADMINISTRATION
(MSHA)         

v.

CARGILL
DEICING TECHNOLOGY

:

:

:

:

:

:

:

Docket
No. CENT 2020-0130

A.C.
No. 16-00509-506934

Docket
No. CENT 2020-0131

A.C.
No. 16-00509-503010

BEFORE: Traynor,
Chair; Althen and Rajkovich, Commissioners

ORDER

BY THE
COMMISSION:

These
matters arise under the Federal Mine Safety and Health Act of 1977, 30 U.S.C. § 801 et seq. (2018) (“Mine Act”). On April 24, 2020, the Commission received from Cargill Deicing Technology a motion seeking to reopen two penalty assessments that had become final orders of the Commission pursuant to section 105(a) of the Mine Act, 30 U.S.C. § 815(a). [1]

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 orders, the Commission has found guidance in Rule 60(b) of the Federal Rules of Civil Procedure, under which the Commission may relieve a party from a final order of the Commission on the basis of mistake, inadvertence, excusable neglect, or other reason justifying relief. 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).

Records
of the Department of Labor’s Mine Safety and Health Administration (“MSHA”) indicate that a proposed assessment was delivered on November 4, 2019, and became a final order on December 4, 2019 (CENT 2020-0131). A second proposed assessment was delivered on January 10, 2020 and became a final order of the Commission on February 9, 2020 (CENT 2020-0130). Cargill asserts that it inadvertently mailed the notice of contest forms along with payment for the remainder of the citations at issue to MSHA’s address in St. Louis, Missouri.

The Secretary does not oppose the
request to reopen, but urges the operator to take steps to ensure that future penalty contests are timely filed with MSHA’s Civil Penalty Compliance Office in Arlington, Virginia.

Having
reviewed Cargill’s request and the Secretary’s
response, we find that Cargill’s failure to timely contest was the result of an inadvertent mistake. In the interest of justice, we hereby reopen these matters and remand the cases 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/ Arthur R. Traynor, III

Arthur R. Traynor, III, Chair

/s/ William I. Althen

William I. Althen, Commissioner

/s/ Marco M. Rajkovich, Jr.

Marco M. Rajkovich, Jr., Commissioner

Distribution:

Avi Meyerstein

Brian Hendrix

Charles
Fleischmann

HUSCH BLACKWELL,
LLP

750 17 th
Street, NW, Suite 900

Washington, DC. 20006-4675

[email protected]

John M.
McCracken, Esq.

Office of the
Solicitor

Division of Mine
Safety and Health

U.S. Department
of Labor

201 12th Street
South, Suite 401

Arlington, VA
22202-5452

[email protected]

April Nelson,
Esq.

Office of the
Solicitor

U.S. Department
of Labor

201 12th Street
South, Suite 401

Arlington, VA
22202-5452

[email protected]

Chief
Administrative Law Judge Glynn Voisin

Federal Mine
Safety & Health Review Commission

1331
Pennsylvania Avenue, NW, Suite 520N

Washington, DC 20004-1710

[email protected]

Melanie Garris

Office of Civil
Penalty Compliance

Mine Safety and
Health Administration

201 12th Street
South, Suite 401

Arlington, VA
22202-5452

[email protected]

[1]
For the
limited purpose of addressing the motions to reopen, we hereby consolidate these captioned dockets. 29 C.F.R. § 2700.12.