Armstrong Coal Company (Commission decision, July 7, 2009)

Plain-English summary

Armstrong Coal missed the deadlines for three assessments because its Director of Safety and Accounting Officer each believed the other was sending the contest forms. The company supplied evidence that it had paid the proposed assessments it did not intend to contest. The Secretary did not oppose reopening. The Commission reopened all three assessments, remanded the matters, and directed the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Governing provisions: 29 C.F.R. §§ 2700.1(b) and 2700.28; 30 U.S.C. § 815(a)
• Outcome: Three final assessments were reopened and remanded for further proceedings.
• Key point: A documented communication failure over who was responsible for mailing contest forms can support reopening.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

601 NEW JERSEY AVENUE, NW

SUITE 9500

WASHINGTON, DC 20001

July 7, 2009

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

ARMSTRONG COAL COMPANY

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Docket No. KENT 2009-419

A.C. No. 15-18552-160177

Docket No. KENT 2009-420

A.C. No. 15-18552-165855

Docket No. KENT 2009-421

A.C. No. 15-19217-165874

BEFORE: Duffy, Chairman; Jordan, 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 December 12, 2008, the Commission received from Armstrong Coal Company (“Armstrong”) a letter 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).

However, 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 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 August 13, 2008, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Assessment No. 000160177 for alleged violations occurring at Armstrong’s Big Run Mine. On October 15, 2008, MSHA issued Proposed Assessment Nos. 000165855 and 000165874 for alleged violations occurring at Armstrong’s Big Run and Midway Mines, respectively. In its letter, Armstrong asserts that it failed to contest the proposed penalty assessments because of a mistaken failure of communication between its Director of Safety and its Accounting Officer, who each believed that the other individual was sending in the contest forms. Along with its letter, Armstrong furnished evidence that it had paid proposed assessments that it did not intend to contest. The Secretary states that she does not oppose the reopening of the proposed penalty assessments.

Having reviewed Armstrong’s request and the Secretary’s response, in the interests 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.

Michael F. Duffy, Chairman

Mary Lu Jordan, Commissioner

Michael G. Young, Commissioner

Robert F. Cohen, Jr., Commissioner

Distribution:

Donald W. Lamb, Safety Dir.

Armstrong Coal Co.

407 Brown Rd.

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