Secretary of Labor v. Kiah Creek Transport, LLC (Commission decision, May 31, 2013)

Plain-English summary

Kiah Creek Transport asked the Commission to reopen three penalty assessments that became final after MSHA recorded no timely contests. The company said its counsel mailed contest notices on time but did not use certified mail. It discovered the problem after receiving delinquency notices about six weeks after the assessments became final. The Secretary did not oppose reopening but noted that MSHA's Civil Penalty Compliance Office had no record of receiving the forms. The Commission reopened all three matters in the interests of justice and remanded them for penalty proceedings.

Decision snapshot

• Governing provisions: 30 U.S.C. § 815(a); 29 C.F.R. §§ 2700.1(b) and 2700.28
• Outcome: Three final assessments were reopened and remanded, with penalty petitions due within 45 days.
• Key point: A claimed timely mailing that could not be tracked supported reopening when the operator acted after receiving delinquency notices and the Secretary did not oppose relief.

Full text (FMSHRC public release)

Federal Mine Safety and Health Review Commission

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION

1331 PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON, D.C. 20004-1710

May 31, 2013

SECRETARY OF LABOR, 

MINE SAFETY AND HEALTH 

ADMINISTRATION (MSHA) 

v.

KIAH CREEK TRANSPORT, LLC 

:

:

:

:

:

:

:

:

:

:

Docket No. WEVA 2013-6

A.C. No. 46-08704-293125 U203

Docket No. WEVA 2013-7

A.C. No. 46-08772-293126 U203

Docket No. WEVA 2013-8

A.C. No. 46-09428-293137 U203

BEFORE: Jordan, Chairman; Young and Nakamura, Commissioners

ORDER

BY THE COMMISSION:

These matters arise under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.
§ 801 et seq. (2006) (“Mine Act”). On October 1, 2012, the Commission received from Kiah Creek Transport, LLC (“Kiah”) three motions seeking to reopen three 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 proposed assessments were delivered on June 28, 2012, and became final orders of the Commission on July 30, 2012. Kiah asserts that its counsel sent a timely notice of contest but did not use certified mail. Kiah further states that it discovered the error after receiving delinquency notices, dated September 12, 2012. The Secretary does not oppose the requests to reopen, but notes that there is no record that the penalty contest forms were received by the Department of Labor’s Mine Safety and Health Administration’s (“MSHA”) Civil Penalty Compliance Office in Arlington, VA. The Secretary urges the operator to take steps to ensure that future penalty contests are timely filed.

Having reviewed Kiah’s requests and the Secretary’s responses, in the interests of justice, we hereby reopen these matters and remand them 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 G. Young, Commissioner

______

Patrick K. Nakamura, Commissioner

Distribution

Jill Bruner, Esq.

Kiah Creek Transport, LLC

2408 Sir Barton Way, Suite 375

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

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