Secretary of Labor v. Mach Mining LLC (Commission decision, April 30, 2015)

Plain-English summary

Mach Mining received an assessment covering 23 citations and timely contested nine of them. It paid the uncontested penalties but inadvertently failed to mark Citation No. 8449103 for contest, while also leaving that citation's penalty unpaid. After MSHA sent a delinquency letter, Mach promptly contacted the agency to correct the omission. The Secretary did not oppose reopening but urged the operator to strengthen its contest procedures. The Commission reopened the omitted citation in the interest of justice and remanded the matter for further proceedings, directing the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a) and 29 C.F.R. § 2700.28
• Outcome: Citation No. 8449103 was reopened and remanded to the Chief Administrative Law Judge.
• Key point: A single citation mistakenly omitted from an otherwise timely partial contest may be reopened when the operator promptly acts after a delinquency notice.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION

1331
PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON,
D.C.  20004‑1710

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH  

ADMINISTRATION (MSHA)

v.

MACH MINING LLC

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Docket No.

A.C. No.

LAKE 2014-8-M

11-03141-322996

BEFORE:  Jordan, Chairman; Young, Nakamura, and Althen, Commissioners[1]

ORDER

BY THE COMMISSION: 

This matter arises under the
Federal Mine Safety and Health Act of 1977, 30 U.S.C.        § 801 et seq. (2012) (“Mine Act”).  On October 2, 2013, the Commission received from Mach Mining LLC (“Mach”) a motion seeking to reopen Citation No. 8449103 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 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 the proposed assessment involving 23 citations was delivered on June 4, 2013.  Nine citations were timely contested and the remaining uncontested citations became final orders of the Commission on July 5, 2013.  Mach asserts that it inadvertently failed to mark Citation No. 8449103 for contest.  Mach paid the assessments for all other uncontested citations.  It did not pay the assessment for the contested citations or for Citation No. 8449103.  After Mach received a delinquency letter from MSHA on or about August 28, 2013, Mach maintains that it promptly contacted MSHA to correct the mistake.  The Secretary does not oppose the request to reopen, and urges the operator to take steps to ensure that future penalty contests are timely filed.

Having reviewed Mach’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, Chairman

/s/ Michael G. Young

Michael G.
Young, Commissioner

/s/ Patrick K. Nakamura

Patrick K.
Nakamura, Commissioner

/s/ William I. Althen

William I.
Althen, Commissioner

[1]
Commissioner Cohen has elected not
to participate in this matter.