Secretary of Labor v. KWV Operations, LLC (Commission decision, April 27, 2010)

Plain-English summary

The Commission had earlier denied KWV Operations' reopening requests without prejudice because the company gave only a general claim of inadvertence or mistake. KWV returned with a more detailed affidavit explaining that its corporate office may have sent the contest notices to MSHA's payment address instead of the contest address. The company also changed its assessment-handling procedures to prevent recurrence. The Secretary had not opposed the original reopening requests. In the interests of justice, the Commission reopened both assessments, remanded them, and directed the Secretary to file penalty petitions within 45 days.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. § 2700.28
• Outcome: Two final assessments were reopened and remanded for further proceedings.
• Key point: A renewed request may succeed when it supplies the specific mailing error missing from an earlier conclusory explanation and shows corrective procedures.

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

April 27, 2010

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA),

v.

KWV OPERATIONS, LLC

:

:

Docket No. WEVA 2009-1038

A.C. No. 46-08122-170790

Docket No. WEVA 2009-1039

A.C. No. 46-08904-170801

BEFORE: Jordan, Chairman; Duffy, 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. (2006) (“Mine Act”). On July 10, 2009, the Commission received from KWV Operations, LLC (“KWV”) an amended motion by counsel to reopen two penalty assessments that had become final orders 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).

In its original motions, filed on March 25, 2009, KWV’s vice president stated that he received the assessments and marked the citations that he intended to contest and then forwarded them to KWV’s corporate office. KWV asserted that through “inadvertence or mistake” the assessments were not timely returned to MSHA. The Secretary did not oppose reopening the proposed penalty assessments. The Commission subsequently denied the requests to reopen without prejudice because of KWV’s failure to provide a sufficiently detailed explanation for its failure to file timely contests. KWV Operations, LLC, 31 FMSHRC 613, 615 (June 2009).

The amended request to reopen from KWV includes a more detailed affidavit from the vice-president, who explains that he has further investigated the matter with KWV’s corporate office, and that the office may have mistakenly sent the notices of contest to the MSHA address for penalties payments. He further states that KWV has changed its handling procedures for penalty assessments in an attempt to avoid this occurring in the future.

Having reviewed KWV’s amended request and the Secretary’s original response, 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.

______

Mary Lu Jordan, Chairman

______

Michael F. Duffy, Commissioner

______

Michael G. Young, Commissioner    

______

Robert F. Cohen, Jr., Commissioner

Distribution:

Billy R. Shelton, Esq.

Jones, Walters, Turner & Shelton PLLC

151 N. Eagle Creek Drive, Suite 310

Lexington, KY 40509

W. Christian Schumann, Esq.

Office of the Solicitor

U.S. Department of Labor

1100 Wilson Blvd., Room 2220

Arlington, VA 22209-2296

Myra James, Chief

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

601 New Jersey Avenue, N.W., Suite 9500

Washington, D.C. 20001-2021