Secretary of Labor v. Fairfax Materials

Plain-English summary

Fairfax Materials received an assessment containing two penalties and intended to contest one while paying the other. It accidentally selected the wrong citation for contest, paid the $100 penalty it meant to challenge, and proceeded with the other citation instead. Fairfax acted promptly after discovering the mistake, and the Secretary did not oppose reopening but urged better filing procedures. The Commission found the selection error inadvertent, reopened the assessment, and remanded for the Secretary to file a penalty petition within 45 days.

Decision snapshot

• Cited authority: 30 U.S.C. § 815(a); 29 C.F.R. § 2700.28
• Outcome: The final assessment was reopened and remanded to the Chief Administrative Law Judge for penalty proceedings.
• Key point: Accidentally checking the wrong citation on an assessment may justify reopening when the operator promptly corrects the mistake.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331
PENNSYLVANIA AVE., N.W., SUITE 520N

WASHINGTON,
DC 20004-1710

SECRETARY
OF LABOR,

MINE SAFETY AND HEALTH 

ADMINISTRATION (MSHA)       

v.

FAIRFAX
MATERIALS

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Docket
No. WEVA 2015-1016-M

A.C.
No. 46-08620-389553

BEFORE:   Althen,
Acting Chairman; Jordan, 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. (2012) (“Mine Act”).   On September 22, 2015, the Commission
received from Fairfax Materials (“Fairfax”) 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 August 17, 2015, and
became a final order of the Commission on September 16, 2015.   Fairfax asserts
that the proposed assessment contained two penalties, Citation Nos. 8915870 and
8915871.   Fairfax timely contested Citation No. 8911571 and paid the $100
penalty for Citation No. 8911570. [1]   
Fairfax contends that it had inadvertently selected the wrong penalty to
contest. The Secretary does not oppose the request to reopen, but urges the
operator to take steps to adopt procedures to ensure that future penalty
contests are timely filed.  

Having
reviewed Fairfax’s request and the Secretary’s
response, we find that Fairfax inadvertently checked the wrong penalty
to contest, but took prompt action to correct the mistake when it became known.  
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/ William I. Althen

William
I. Althen, Acting Chairman

/s/
Mary Lu Jordan

Mary
Lu Jordan, Commissioner

/s/ Michael G. Young

Michael G. Young, Commissioner

/s/ Robert F. Cohen, Jr.

Robert F. Cohen, Jr., Commissioner

Distribution:

Dennis
Sullivan

Fairfax
Materials, Inc.

14504
Greenview Dr., Suite 210

Laurel,
MD 20708

W.
Christian Schumann, Esq.

Office
of the Solicitor

U.S.
Department of Labor

201
12th St. South, Suite 500

Arlington,
VA 22202-5450

Chief
Administrative Law Judge Robert J. Lesnick

Federal
Mine Safety & Health Review Commission

1331
Pennsylvania Ave. N.W., Suite 520N

Washington,
DC 20004-1710

Melanie
Garris

Office
of Civil Penalty Compliance

Mine
Safety and Health Administration

U.S.
Department of Labor

201
12th St. South, Suite 500

Arlington,
VA 22202-5450

[1]
Citation No 8915171 was docket as WEVA 2015-974.   On November 9, 2015, the
Chief Administrative Law Judge approved a settlement of this case whereby
Fairfax agreed to pay the penalty for Citation No. 8915171 in full.