Secretary of Labor v. Specialty Rock Products, Inc. (Commission decision, January 25, 2010)

Plain-English summary

Specialty Rock Products attempted to contest two proposed assessments within the 30-day deadline. It sent the contest forms to MSHA's Franklin, Tennessee office instead of the Civil Penalty Compliance Office in Arlington, Virginia, whose address appeared on the forms. The Secretary did not oppose reopening. The Commission reopened both assessments in the interests of justice and remanded the cases. It directed the Secretary to file penalty petitions within 45 days.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. §§ 2700.1(b) and 2700.28
• Outcome: Both assessments were reopened and remanded to the Chief Administrative Law Judge.
• Key point: Timely contest forms sent to the wrong MSHA office may support reopening when the record shows an attempted on-time response.

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

January 25, 2010

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

SPECIALTY ROCK PRODUCTS, INC.

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Docket No. KENT 2009-1289-M

A.C. No. 15-17075-178181

Docket No. KENT 2009-1290-M

A.C. No. 15-17075-180774

BEFORE: Jordan, Chairman; Duffy, Young, and Cohen, 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 July 6, 2009, the Commission received from Specialty Rock Products, Inc. (“Specialty Rock”) a motion by counsel 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).

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 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).

On March 3, 2009, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Assessment No. 000178181 to Specialty Rock, and on April 1, 2009, it issued Proposed Assessment No. 000180774 to Specialty Rock. The operator alleges that it sent its contests of the two proposed assessments to MSHA’s Franklin, Tennessee, office rather than to the correct address of MSHA’s Civil Penalty Compliance Office in Arlington, Virginia, as indicated on the proposed assessment forms. The contests were apparently sent within the 30-day time period for contesting proposed assessments although they were sent to the wrong office.

The Secretary does not oppose the operator’s request to reopen.

Having reviewed Specialty Rock’s request and the Secretary’s response, in the interests of justice, we hereby reopen Penalty Assessment Nos. 000178181 and 000180774 and remand the 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.

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Mary Lu Jordan, Chairman

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Michael F. Duffy, Commissioner

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Michael G. Young, Commissioner

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Robert F. Cohen, Jr., Commissioner

Distribution:

Wm. R. Whitledge, Esq.

24 Court St.

P.O. Box 279

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, 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