Secretary of Labor v. Patton Mining, LLC

Plain-English summary

Patton decided to contest four of nineteen violations and promptly paid the penalties for the other fifteen. Its service provider's safety director mistakenly failed to return the contest form to MSHA. Patton discovered the omission after receiving a delinquency notice, investigated immediately, and promptly sought reopening. The Commission found no history of missed contests or reopening motions and treated the failure as an isolated mistake under its prior cases. It reopened the assessment and remanded the case, while warning that future accidental filing failures would receive greater scrutiny.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a)
• Outcome: The final assessment was reopened and the case was remanded.
• Key point: An isolated failure to return a contest form may be excused when the operator promptly paid uncontested penalties and acted quickly after discovering the mistake.

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.
: Docket No. LAKE 2024-0004

: A.C. No. 11-03182-579201

PATTON MINING, LLC, :

BEFORE: Jordan,
Chair; Baker and Marvit, 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. (2018) (“Mine Act”). On October 2, 2023, the Commission received from
Patton Mining, LLC (“Patton”) a motion seeking to reopen a penalty assessment
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), 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 was delivered on June
27, 2023, and became a final order of the Commission on July 27, 2023.

Patton operates the Deer Run Mine in Hillsboro, Illinois, which is
owned by Foresight Energy. Foresight provides services to Patton. Patton states
that the person familiar with the processing of proposed assessments is
Foresight’s Director of Safety and Compliance (“Safety Director”). Patton
states that Foresight’s Safety Director received the proposed assessment on
June 28, 2023. Foresight’s Safety Director along with the Assistant Corporate
Safety Director for American Consolidated Natural Resources, reviewed the
assessment and decided to contest 4 of the 19 citations and orders. On July 24,
2023, MSHA received payment for 15 of the 19 violations. It was Foresight’s
Safety Director’s responsibility to return the form notifying MSHA of the
specific citations it intended to contest. Somehow, he mistakenly did not
return the form to MSHA, which resulted in Patton’s failure to timely contest
the assessment.

Patton learned of its failure to contest when it received the
delinquency letter around September 11, 2023. Foresight’s Safety Director
immediately commenced an investigation into the matter and realized that he had
not sent back the form contesting the citations per his normal routine. Patton
argues that it intended to contest the four citations and its failure to do so
was the result of an administrative error and oversight. The operator maintains
that its procedure for contest has worked well in the past because Foresight’s Safety
Director generally pays close attention to proposed assessments, thus mistakes
like this are uncommon. Because Foresight’s Safety Director made a simple
mistake and erroneously believed that he had returned the assessment, Patton
argues that fundamental fairness dictates the reopening of this case. The
operator notes that it quickly took steps to seek reopening of the case and
maintains that they will work to ensure timely future contests.

The Secretary opposes Patton’s motion responding that Patton’s
vague claims of “administrative error” and “simple mistake” do not provide viable
justifications for its failure to timely submit its contest. She further
asserts that the operator has failed to explain how its administrative error
does not reflect an inadequate and unreliable office procedure. The Secretary
states that given Patton’s overall history of timely penalty payments and
contests, as well as its timely payment of some of the penalties in this
assessment, the Commission should deny this motion without prejudice.

After
receiving the assessment, Patton immediately paid the uncontested citations. Upon
receiving the letter of delinquency and launching an internal investigation to
determine the cause of its failure, the operator timely filed its motion to
reopen. Patton does not have a history of failing to contest assessments nor a
history of filing motions to reopen. Further, we recognize that in the past, we
have found simple failure to return a contest form to constitute “mistake” or
“inadvertence” sufficient to establish good cause for reopening pursuant to
Rule 60(b)(1). See
e.g. Oak Grove Res., LLC, 39 FMSHRC 1768, 1769 (Sept. 2017) (reopening where operator paid
citations it did not intend to contest but “mistakenly” or “inadvertently”
forgot to forward contest form to counsel, which was an isolated incident). Because
Patton may have reasonably relied on our prior caselaw regrading simple failure
to return contest forms, we find it would be unjust to deny this motion. However,
we will look on all future accidental failures to timely file contests with
greater scrutiny.

Therefore,
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, Chair

/s/
Timothy J. Baker

Timothy J.
Baker, Commissioner

/s/ Moshe Z. Marvit

Moshe Z. Marvit, Commissioner

Distribution:

Christopher D. Pence, Esq.

Hardy Pence, PLLC

10 Hale Street, 4th Floor

P.O. Box 2548

Charleston, WV 25329-2548

[email protected]

April Nelson, Esq.

Associate Solicitor

Office of the Solicitor

U.S. Department of Labor

Division of Mine Safety and
Health

201 12th Street South, Suite
401

Arlington, VA 22202

[email protected]

Emily Toler Scott, Esq.

Counsel for Appellate
Litigation

Office of the Solicitor

U.S. Department of Labor

Division of Mine Safety and Health

201 12th Street South, Suite
401

Arlington, VA 22202

[email protected]

Melanie Garris

USDOL/MSHA, OAASEI/CPCO

201 12th Street South, Suite 401

Arlington, VA 22202

[email protected]

Chief Administrative Law
Judge Glynn F. Voisin

Federal Mine Safety Health Review Commission

1331 Pennsylvania Avenue, NW Suite 520N

Washington, DC 20004-1710

[email protected]