Secretary of Labor v. Eastern Associated Coal, LLC (Commission decision, March 26, 2014)

Plain-English summary

Eastern Associated Coal missed the deadline to contest a proposed penalty assessment. Its safety manager said he received the assessment later than MSHA's delivery record showed and believed the contest mailed on March 15 was timely. The Secretary did not oppose reopening and noted that Eastern also paid the uncontested penalties. The Commission reopened the matter in the interest of justice, remanded it for further proceedings, 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: A documented misunderstanding about the assessment's receipt date supported unopposed relief from a missed contest deadline.

Full text (FMSHRC public release)



FEDERAL MINE SAFETY AND HEALTH REVIEW
COMMISSION

1331
PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON,
D.C. 20004‑1710

March
26, 2014

SECRETARY OF LABOR,                               

 MINE SAFETY AND HEALTH

 ADMINISTRATION (MSHA)

              v.

EASTERN ASSOCIATED COAL, LLC

         Docket No.
WEVA 2013-944

         A.C. No. 46-05295-313257

                                                                                               

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 May 28, 2013, the Commission received from Eastern Associated Coal, LLC (“Eastern”) 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 February 6, 2013, and became a final order of the Commission on March 8, 2013. Eastern asserts that its safety manager received the proposed assessment on February 14, 2013, and believed that his contest on March 15, 2013 was timely. The Secretary does not oppose the request to reopen, and notes that MSHA received a contest form postmarked March 15, 2013, and a payment for the uncontested penalties, by check dated March 19, 2013. The Secretary urges the operator to adopt procedures to ensure that future penalty contests are timely filed.

Having reviewed Eastern’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:

Jonathan R. Ellis, Esq.

Steptoe & Johnson, PLLC, 8th, Floor

Bank One Center, P.O. Box 1588

Charleston, WV  25326-1588

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