Warrior Coal, LLC (Commission decision, May 1, 2008)

Plain-English summary

Warrior Coal sought relief concerning two proposed penalty assessments. It said it timely mailed a contest covering 17 citations in one assessment, while a holiday shutdown and temporary clerical staffing caused it to miss the deadline for the other. The Secretary did not clarify whether the first contest was received but did not oppose relief on either assessment. The Commission remanded both matters for the Chief Administrative Law Judge to determine whether good cause supported relief from the final orders.

Decision snapshot

• Governing provisions: 29 C.F.R. § 2700.1(b); 30 U.S.C. § 815(a)
• Outcome: Both reopening requests were remanded for a determination of good cause and entitlement to relief.
• Key point: A claimed timely mailing and a separate staffing-related default each require factual review when the filing record is unresolved.

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, D.C. 20001

May 1, 2008

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

WARRIOR COAL, LLC

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Docket No. KENT 2008-470

A.C. No. 15-17216-131881

Docket No. KENT 2008-471

A.C. No. 15-17216-129480

BEFORE: Duffy, Chairman; Jordan and Young, 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. (2000) (“Mine Act”). On January 31, 2008, the Commission received from Warrior Coal, LLC (“Warrior”) two letters seeking to reopen 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).

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).

On October 18 and November 15, 2007, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Penalty Assessment Nos. 000129480 and 000131881, respectively, to Warrior for several citations. Warrior states that on November 16, 2007, it timely sent to MSHA its contest of the proposed penalties for 17 of the citations listed in Proposed Penalty Assessment No. 000129480. The operator explains that it failed to timely contest proposed penalties listed in Proposed Assessment No. 000131881 due to the “mine Holiday shutdown” and the employment of temporary clerical help during December 2007.

As to Proposed Penalty Assessment No. 000129480, the Secretary’s response does not state whether the contest of the proposed penalties were received, but she does not oppose reopening the matter. The Secretary states that she does not oppose Warrior’s request to reopen Proposed Penalty Assessment No. 000131881.

We have held 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 inadvertence or mistake. 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).

Having reviewed Warrior’s requests, in the interests of justice, we remand this matter to the Chief Administrative Law Judge for a determination of whether good cause exists for granting relief from the final orders. If it is determined that such relief is appropriate, this case shall proceed pursuant to the Mine Act and the Commission’s Procedural Rules, 29 C.F.R. Part 2700.

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Michael F. Duffy, Chairman

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Mary Lu Jordan, Commissioner

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Michael G. Young, Commissioner

Distribution:

Kevin Vaughn

Director of Safety & Training

Warrior Coal, LLC.

57 J. E. Ellis Road

Madisonville, KY 42431

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Myra James

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