Secretary of Labor v. Lincoln Leasing Company, Inc. (Commission decision, March 10, 2014)
Secretary of Labor v. Lincoln Leasing Company, Inc. (FMSHRC WEVA 2013-726): Health-related office lapse excused
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Plain-English summary
Lincoln Leasing missed a penalty contest deadline while its office administrator was experiencing health issues. The delinquency was not discovered until counsel received a Treasury collection notice months after MSHA had sent a delinquency notice and referred the debt for collection. The Secretary did not oppose reopening but strongly urged the operator to adopt reliable filing procedures. The Commission reopened the final assessment in the interest of justice, remanded the matter, and directed the Secretary to file a penalty petition within 45 days.
Decision snapshot
- Governing provisions: 30 U.S.C. § 815(a) and 29 C.F.R. § 2700.28
- Outcome: The final assessment was reopened and remanded for a penalty petition within 45 days.
- Key point: Health issues affecting the employee responsible for filings supported reopening, but the Commission emphasized the need for dependable backup procedures.
Full text (FMSHRC public release)
������������������ FEDERAL MINE
SAFETY AND HEALTH REVIEW COMMISSION
1331
PENNSYLVANIA AVENUE, NW, SUITE 520N
WASHINGTON,
D.C. 20004-1710
March
10, 2014
SECRETARY OF LABOR,
MINE SAFETY AND HEALTH
ADMINISTRATION (MSHA)
������ ����������������v.
LINCOLN LEASING COMPANY, INC.
������ Docket No. WEVA 2013-726
������ A.C. No. 46-08932-292862 6RP��
BEFORE: Jordan, Chairman; Young, Cohen, Nakamura, and
Althen, 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 April 3, 2013, the Commission received from Lincoln Leasing Company, Inc. (�Lincoln Leasing�) 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 26, 2012, and became a final order of the Commission on July 26, 2012. MSHA mailed a delinquency notice on September 10, 2012, and referred this case to the Department of Treasury for collection on December 24, 2012. Lincoln Leasing asserts that its office administrator was experiencing health issues which caused the failure to timely contest the assessment. Lincoln Leasing states that it discovered the delinquency on March 13, 2013, after its counsel received a Treasury collection notice. The Secretary does not oppose the request to reopen and strongly urges the operator to adopt procedures to ensure that future penalty contests are timely filed.
����������� Having reviewed
Lincoln Leasing�s request and the Secretary�s response, 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/ Mary Lu Jordan�������������������
����������������������������������������������������������������������������������� Mary Lu Jordan, Chairman
����������������������������������������������������������������������������������� /s/Michael G. Young����������������� �
����������������������������������������������������������������������������������� Michael G. Young, Commissioner
����������������������������������������������������������������������������������� /s/ Robert F. Cohen, Jr.��������������� �
����������������������������������������������������������������������������������� Robert F. Cohen, Jr., Commissioner
����������������������������������������������������������������������������������� /s/ Patrick K. Nakamura���������������� ���������������������������������������� ����������������������������������� ����������� �����������
Patrick K.
Nakamura, Commissioner
�����������������������������������������������������������������������������������������������������������������������������������������������������������
����������������������������������������������������������������������������������� /s/ William I. Althen������������������ �
����������������������������������������������������������������������������������� William I. Althen, Commissioner
�����������������������������������������������������������������������������������������������������������������������������������������������������������
Distribution:
Alexander Macia, Esq.
Spilman, Thomas & Battle, PLLC
300 Kanawha Blvd. East
P.O. Box 273
Charleston, WV 25321
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
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