Secretary of Labor v. Tidewater Contractors, Inc. (Commission decision, July 31, 2013)

Plain-English summary

Tidewater Contractors missed the formal penalty-contest deadline after mailing its notice to MSHA in St. Louis instead of the Civil Penalty Compliance Office in Arlington. After receiving a delinquency notice, it mistakenly sent its response to St. Louis again. The Secretary did not oppose reopening but urged Tidewater to improve its filing procedures. The Commission reopened the final assessment in the interest of justice and remanded the case for proceedings on the merits. It directed the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. §§ 2700.1(b) and 2700.28
• Outcome: The final penalty assessment was reopened and the matter was remanded for further proceedings.
• Key point: A timely contest sent to the wrong MSHA office may support reopening, but operators must follow the filing address on the assessment form.

Full text (FMSHRC public release)



FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331 PENNSYLVANIA AVENUE, NW, SUITE
520N

WASHINGTON, D.C. 20004-1710

July 31, 2013

SECRETARY OF LABOR,
MINE SAFETY AND
HEALTH
ADMINISTRATION (MSHA)

v.

TIDEWATER CONTRACTORS,
INC.
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Docket No. WEST
2013-439-M
A.C. No. 35-03681-303849

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 February 5, 2013, the Commission received from Tidewater Contractors, Inc. (“Tidewater”) 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).

MSHA’s
records indicate that the proposed assessment was delivered on October 22, 2012, and became a final order of the Commission on November 21, 2012. Tidewater asserts that it mailed a timely notice of contest to St. Louis, MO, instead of Arlington, VA. After receiving a delinquency notice dated January 7, 2013, Tidewater mistakenly mailed its response to St. Louis, MO. The Secretary does not oppose the request to reopen, and urges the operator to take steps to ensure that future penalty contests are timely filed and mailed to MSHA’s Civil Penalty Compliance Office in Arlington, VA, as instructed on the proposed assessment form.

Having
reviewed Tidewater’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, Commissioner

/s/
Michael G. Young

Michael G. Young, Commissioner

/s/
Patrick K. Nakamura

Patrick K. Nakamura, Commissioner

Distribution:

Robert W. Elayer

Tidewater Contractors, Inc.

16156 Highway, 101 South

P.O. Box 1956

Brookings, OR 97415

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

1331 Pennsylvania Avenue, N. W., Suite 520N

Washington, D.C. 20004-1710