Washington Rock Quarries, Inc. (Commission decision, November 24, 2010)

Plain-English summary

MSHA sent Washington Rock's proposed penalty assessment to the wrong address, and the company did not receive it. Washington Rock learned about the assessment months later when a Treasury Department debt collector called. The Secretary did not oppose relief. The Commission held that the assessment never became a final order because Washington Rock had not received it, so reopening was unnecessary. It dismissed the reopening request as moot, remanded the case, and directed Washington Rock to contest within 30 days if it had not already done so.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. §§ 2700.26 and 2700.28
• Outcome: Reopening was denied as moot because the assessment was not final, and the case was remanded for a timely contest and penalty petition.
• Key point: A proposed assessment sent to the wrong address does not become a final Commission order when the operator never receives it.

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

November 24, 2010

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

WASHINGTON ROCK QUARRIES INC.

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Docket No. WEST 2010-1706-M

A.C. No. No. 45-03224-199237

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 August 20, 2010, the Commission received from Washington Rock Quarries Inc. (“Washington Rock”) a motion by counsel seeking to reopen a penalty assessment that may have 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 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 October 1, 2009, the Department of Labor’s Mine Safety and Health Administration (“MSHA”) issued Proposed Penalty Assessment No. 000199237 to Washington Rock. The record indicates that the proposed assessment was delivered to a wrong address and not received at that time by Washington Rock. Washington Rock allegedly only learned of the assessment months later when it was contacted by telephone by a debt collector retained by the U.S. Treasury Department. The Secretary states that she does not oppose the reopening of the proposed penalty assessment.

Having reviewed Washington Rock’s request and the Secretary’s response, we conclude that the proposed penalty assessment has not become a final order of the Commission because it was not received by Washington Rock. Accordingly, we deny the request to reopen as moot and remand this matter 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. If Washington Rock has not done so already, it must file a contest of the proposed penalty assessment within 30 days of the date of this order and the Secretary shall file a petition for assessment of penalty within 45 days of the date of its contest. See 29 C.F.R. §§ 2700.26 and 2700.28.

Mary Lu Jordan, Chairman

Michael F. Duffy, Commissioner

Michael G. Young, Commissioner

Robert F. Cohen, Jr., Commissioner

Patrick K. Nakamura, Commissioner

Distribution:

Mark N. Savit, Esq.

Patton Boggs LLP

1801 California Street, Suite 4900

Denver, CO 80202

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 the Penalty Compliance

U.S. Department of Labor, MSHA

1100 Wilson Blvd., 22nd Floor West

Arlington, VA 22209-2247

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