North Montgomery Materials, LLC (Commission decision, January 20, 2012)

Plain-English summary

North Montgomery Materials did not answer a show-cause order, causing a default to become effective in its penalty case. The company said it had timely answered the Secretary's penalty petition and never received the show-cause order. The Secretary did not oppose reopening and confirmed that MSHA's Birmingham office timely received the answer, although the document apparently had not been sent to the Commission. Guided by Rule 60(b) and its view that default is a harsh remedy, the Commission vacated the default, reopened the proceeding, and remanded it for further proceedings.

Decision snapshot

• Governing provisions: 29 C.F.R. §§ 2700.1(b), 2700.69(b), and 2700.70(a)
• Outcome: The default order was vacated, and the penalty proceeding was reopened and remanded.
• Key point: A timely answer delivered to MSHA may support reopening when the Commission did not receive its copy and the Secretary does not oppose relief.

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 20, 2012

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH 

ADMINISTRATION (MSHA) 

v.

NORTH MONTGOMERY 

MATERIALS, LLC 

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Docket No. SE 2009-564-M

A.C. No. 01-03132-184779

BEFORE: Jordan, Chairman; Duffy, Young, Cohen, and Nakamura, 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 September 15, 2011, the Commission received from North Montgomery Materials, LLC (“North Montgomery”) a motion seeking to reopen a penalty assessment proceeding and relieve it from the order of default entered against it.

On December 7, 2010, Chief Judge Lesnick issued an Order to Show Cause and Order of Default in response to North Montgomery’s failure to answer the Secretary’s July 9, 2009 Petition for Assessment of Civil Penalty. The judge ordered the operator to file its answer within 30 days or it would be in default. The Commission did not receive North Montgomery’s answer within 30 days, so the order of default became effective on January 7, 2011.

North Montgomery asserts that it submitted a timely answer to the Secretary’s Petition for Assessment and did not receive the Order to Show Cause. The Secretary does not oppose the request to reopen and notes that the Atlanta Regional Solicitor’s Office indicated that the operator’s answer was timely received by the MSHA Birmingham District Office on July 16, 2009. However, the answer does not indicate that it was also sent to the Commission, as instructed in the penalty petition.

The judge’s jurisdiction in this matter terminated when the default occurred. 29 C.F.R.
§ 2700.69(b). Under the Mine Act and the Commission’s procedural rules, relief from a judge’s decision may be sought by filing a petition for discretionary review within 30 days of its issuance. 30 U.S.C. § 823(d)(2)(A)(i); 29 C.F.R. § 2700.70(a). If the Commission does not direct review within 40 days of a decision’s issuance, it becomes a final decision of the Commission. 30 U.S.C. § 823(d)(1). Consequently, the judge’s order here has become a final decision of the Commission.

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, 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”); Jim Walter Res., Inc., 15 FMSHRC 782, 786-89 (May 1993) (“JWR”). 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 North Montgomery’s request and the Secretary’s response, in the interest of justice, we hereby reopen the proceeding and vacate the Order of Default. Accordingly, this case is remanded 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.

/s/ Mary Lu Jordan

Mary Lu Jordan, Chairman

/s/ Michael F. Duffy

Michael F. Duffy, Commissioner

/s/Michael G. Young

Michael G. Young, Commissioner

/s/ Robert F. Cohen, Jr.

Robert F. Cohen, Jr., Commissioner

/s/ Patrick K. Nakamura

Patrick K. Nakamura, Commissioner

Distribution:

Brad H. O’Dell, Owner

North Montgomery Materials, LLC

P.O. Box 469

Millbrook, AL 36054

[email protected]

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Melanie Garris

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