Secretary of Labor v. Mettiki Coal WV, LLC (Commission decision, August 27, 2009)

Plain-English summary

Mettiki intended to contest five penalties across two assessments and timely paid the remaining penalties. Its safety director, who had not handled contests before, mistakenly believed the main mine office would send the contest forms along with the payments. The forms were not sent, and the intended penalties became final. With no opposition from the Secretary, the Commission reopened both assessments and remanded them for penalty proceedings.

Decision snapshot

• Governing provisions: 29 C.F.R. §§ 2700.1(b) and 2700.28; 30 U.S.C. § 815(a)
• Outcome: Five penalty contests across two assessments were reopened and remanded.
• Key point: A first-time process misunderstanding can support reopening when the operator timely paid uncontested amounts and clearly intended to contest the remainder.

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

August 27, 2009

SECRETARY OF LABOR,

MINE SAFETY AND HEALTH

ADMINISTRATION (MSHA)

v.

METTIKI COAL WV, LLC

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Docket No. WEVA 2009-423

A.C. No. 46-09028-159728

Docket No. WEVA 2009-424

A.C. No. 46-09028-162606

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 December 4, 2008, the Commission received from Mettiki Coal WV, LLC (“Mettiki”) motions made by counsel seeking to reopen 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).

The record indicates that the operator intended to contest five proposed penalties on two proposed assessments and to pay the remaining penalties contained on those assessments. Mettiki submitted the penalty payments on a timely basis, but it failed to send MSHA the contest forms for the proposed penalties at the same time. The operator states that its safety director, who had never contested penalties before, mistakenly assumed that its main mine office, which is responsible for penalty payments, would also send the contest forms to MSHA.

The Secretary states that she does not oppose reopening the proposed penalty assessments.

Having reviewed Mettiki’s requests and the Secretary’s 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:

Gary D. McCollum, Esq.

Mettiki Coal , WV LLC.

771 Corporate Dr., Suite 1000

Lexington, KY 40503

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