Cementation USA, Inc.

Plain-English summary

Cementation USA initially asked the Commission to reopen a penalty assessment without explaining the missed deadline. After the Commission requested more information, the contractor attributed the default to management changes and a recent office move and described new procedures to prevent another communication failure. The Secretary withdrew opposition to the revised request but noted that Cementation had not updated its official address. The Commission reopened the assessment and remanded it for further proceedings.

Decision snapshot

• Cited provisions: 29 C.F.R. §§ 2700.1(b) and 2700.28; 30 U.S.C. § 815(a)
• Outcome: The final penalty assessment was reopened and remanded for proceedings on the merits.
• Key point: A revised motion can establish good cause by explaining the failure and documenting corrective procedures, but contractors must also keep MSHA address records current.

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

1331 PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON, D.C. 20004-1710

December 10, 2012

SECRETARY OF LABOR, 

MINE SAFETY AND HEALTH 

ADMINISTRATION (MSHA) 

v.

CEMENTATION USA, INC. 

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Docket No. WEST 2012-408-M

A.C. No. 02-00152-270348 M445

BEFORE: Jordan, Chairman; Young 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 January 19, 2012, the Commission received from
Cementation USA, Inc. (“Cementation”) 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 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).

The record indicates that the proposed assessment was delivered on October 26, 2011,
and became a final order of the Commission on November 25, 2011. Cementation enclosed a
copy of MSHA’s delinquency notice, dated January 10, 2012. The Secretary opposed the request
to reopen, stating that Cementation provided no explanation for failing to timely contest the
proposed assessment.

On March 23, 2012, the Commission sent Cementation a letter asking it to explain why it
did not timely contest the proposed assessment, and what office procedures were implemented to
prevent future defaults. In response, Cementation asserts that it missed the filing deadline due to
changes in management and its recent move to a new location. Cementation further states that it
discovered the penalty was not timely contested after receiving MSHA’s delinquency notice, and
has since implemented procedures to ensure the lack of communication will not happen again.

The Secretary does not oppose the revised motion to reopen, but notes that there has been
no change to Cementation’s address of record. The Secretary urges the independent contractor to
notify the MSHA District Office of any address changes, and to submit a corrected Contractor ID
Request (MSHA Form 7000-52).

Having reviewed Cementation’s requests and the Secretary’s responses, in the interests 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/Michael G. Young

Michael G. Young, Commissioner

/s/ Patrick K. Nakamura

Patrick K. Nakamura, Commissioner

Distribution:

Cementation USA, Inc.

Brian Still, Safety Manager

10150 Centennial Pkwy, Ste. 110

Sandy, UT 84070

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

US Department of Labor

1100 Wilson Blvd. 25th Floor

Arlington, VA 22209

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