Secretary of Labor v. Granite Construction Company (Commission decision, May 4, 2018)

Plain-English summary

Granite Construction timely mailed its penalty-contest form, but administrative staff inadvertently used MSHA's former address. Postal tracking confirmed that a parcel was sent to the wrong location. Granite discovered the mistake while counsel searched for the expected penalty petition and moved to reopen four days after MSHA issued a delinquency notice. The operator had filed no other reopening motions during the prior two years, and the Secretary did not oppose relief. The Commission reopened the final order and remanded for proceedings on the merits.

Decision snapshot

• Cited authority: Section 105(a) of the Mine Act, 30 U.S.C. § 815(a)
• Outcome: The penalty assessment was reopened and remanded to the Chief Administrative Law Judge.
• Key point: A documented, promptly corrected mailing error can establish good cause to reopen a penalty assessment that became final by default.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331
PENNSYLVANIA AVE., N.W., SUITE 520N

WASHINGTON,
DC 20004-1710

SECRETARY
OF LABOR,

MINE
SAFETY AND HEALTH   

ADMINISTRATION
(MSHA)        

v.

GRANITE
CONSTRUCTION

COMPANY,

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:

:

:

:

:

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Docket
No. WEST 2017-637-M

A.C.
No. 04-05683-436870

BEFORE:  Althen,
Acting Chairman; Jordan, Young, and Cohen, 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. (2012) (“Mine Act”). On August 22, 2017, the Commission received from Granite Construction Company (“Granite”) 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), 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 May 9, 2017, and became a final order of the Commission on June 8, 2017. Granite asserts that on June 1, 2017 it timely mailed the penalty contest form to MSHA. However, the operator claims that administrative personnel inadvertently sent the form to MSHA’s previous mailing address. The operator produced USPS tracking information showing that a parcel had been sent, but to the wrong address. The operator asserts that it learned of its mistake when its counsel searched for the petition and realized the penalty was sent to the wrong address. MSHA sent a delinquency notice on August 18, 2017, and Granite filed its motion to reopen four days later. Granite has not filed any other motions to reopen with the Commission in the last two years and responded quickly upon discovering its mistake. 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 Granite’s request and the Secretary’s
response, we find that the operator inadvertently mailed its contest form to MSHA’s previous address. 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/ William I. Althen

William I. Althen, Acting Chairman

/s/ Mary Lu Jordan

Mary Lu Jordan, Commissioner

/s/ Michael G. Young

Michael G. Young, Commissioner

/s/ Robert F. Cohen, Jr.

Robert F. Cohen, Jr., Commissioner

Distribution:

Laura
E. Beverage, Esq.

Jackson
Kelly, PLLC

1099
18 th St., Suite 2150

Denver,
CO 80202

Ali
Beydoun, Esq.

Office
of the Solicitor

U.S.
Department of Labor

201
12th St. South, Suite 401

Arlington,
VA 22202-5450

Chief
Administrative Law Judge Robert J. Lesnick

Federal
Mine Safety & Health Review Commission

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

Washington,
DC 20004-1710

Melanie
Garris

Office
of Civil Penalty Compliance

Mine
Safety and Health Administration

U.S.
Department of Labor

201
12th St. South, Suite 500

Arlington,
VA 22202-5450