Secretary of Labor v. Eiger Mountain Crushing, LLC

Plain-English summary

Eiger Mountain Crushing believed it had timely mailed its contest by certified mail to the correct MSHA address and provided the return-receipt documentation. An MSHA delinquency notice later showed that the contest had not been timely received. Counsel promptly sought reopening, and the Secretary did not oppose. The Commission found inadvertence or mistake amounting to good cause, reopened the assessment, and remanded it for further proceedings.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a); 29 C.F.R. §§ 2700.1(b), 2700.28
• Outcome: The final assessment was reopened and the matter was remanded.
• Key point: Certified-mail documentation and prompt action after a delinquency notice supported relief from the missed contest.

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.

EIGER
MOUNTAIN CRUSHING, L.L.C.

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Docket
No. WEST 2019-0517-M

A.C.
No. 45-03762-492304

BEFORE: Rajkovich,
Chairman; Althen and Traynor, 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. (2018) (“Mine Act”). On August 30, 2019, the Commission received
from Eiger Mountain Crushing, L.L.C. (“Eiger”) 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 June 3, 2019, and became
a final order of the Commission on July 3, 2019. Counsel for Eiger claims that
the operator believed that it had timely contested the proposed assessment via
certified mail to the correct MSHA address and provided documentation of the
certified mail return receipt. On August 19, 2019, MSHA sent a delinquency
notice to Eiger, thereby alerting the operator that MSHA had not timely received
its contest. Upon receipt of MSHA’s delinquency notice, counsel for Eiger promptly
filed a motion to reopen the final penalty 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 Eiger’s request and the Secretary’s
response, we find that Eiger failed to timely contest penalties through
inadvertence or mistake, and that such inadvertence or mistake constitutes good
cause to reopen the penalty proceeding. 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/ Marco M. Rajkovich, Jr.

Marco
M. Rajkovich, Jr., Chairman

/s/ William I. Althen

William
I. Althen, Commissioner

/s/ Arthur R. Traynor, III

Arthur R. Traynor, III, Commissioner

Distribution:

Matthew
DeAtley

DeAtley
Law PLLC

[email protected]

Emily
Scott, Esq.

Office
of the Solicitor

[email protected]

Chief
Administrative Law Judge Glynn Voisin

Federal
Mine Safety & Health Review Commission

[email protected]

Melanie
Garris

Office
of Civil Penalty Compliance

Mine
Safety and Health Administration

[email protected]