Secretary of Labor v. Wake Stone Corporation (Commission decision, June 22, 2015)

Plain-English summary

Wake Stone received a proposed penalty assessment on February 22, 2014, but did not contest it before it became a final order. The company had misread an earlier order staying the dockets pending assessment to mean that its obligation to contest the eventual assessment was also stayed. The Secretary explained that the order did not suspend either issuance of the assessment or the operator's contest deadline, but did not oppose reopening. The Commission reopened the matter in the interest of justice and remanded it for proceedings on the merits. It directed the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Governing provision: 30 U.S.C. § 815(a)
• Outcome: The final assessment was reopened and the case was remanded to the Chief Administrative Law Judge.
• Key point: A stay pending assessment does not suspend the later 30-day contest deadline, although a documented misunderstanding may support reopening when the Secretary does not oppose.

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.

WAKE STONE CORPORATION.

:

:

:

:

:

:

:

Docket No.

A.C. No.

SE 2014-314-M

31-00564-343555

BEFORE:  Jordan, Chairman; Young, Nakamura and Althen, Commissioners1

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 May 16, 2014, the Commission received from Wake Stone Corporation (“Wake”) 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) 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 was delivered on February 22, 2014, and became a final order of the Commission on March 24, 2014. On January 14, 2014, the Chief Judge issued an order staying the dockets in this matter pending the assessment of proposed penalties. Wake asserts that it misread this order to mean that the operator’s obligation to contest the proposed assessment of penalties was stayed. The Secretary asserts that the Chief Judge’s order did not stay the Secretary’s issuance of the proposed assessment or the operator’s obligation to contest the proposed assessment. The Secretary does not oppose the request to reopen, but urges the operator to take steps to ensure that future penalty contests are timely filed.

Having reviewed
Wake’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.