Eastern Associated Coal Corp.

Plain-English summary

Eastern Associated Coal failed to submit a request to contest a proposed penalty within the 30-day period because a substitute mailroom employee did not refer it to the legal department. The Commission found that the existing record was insufficient to decide whether the company qualified for relief from the final penalty under Federal Rule of Civil Procedure 60(b). It remanded the matter for a judge to determine whether Eastern had shown grounds for reopening, after which the case could proceed under the Mine Act and Commission rules.

Decision snapshot

• Cited provision(s): 30 U.S.C. § 815(a), 30 U.S.C. § 823(c), 29 C.F.R. § 2700.1
• Outcome: The Commission remanded the reopening request for a judge to determine whether Rule 60(b) relief was warranted.
• Key point: A final uncontested penalty may be reopened only after the operator establishes adequate grounds for relief under Rule 60(b).

Full text (FMSHRC public release)

FEDERAL MINE SAFETY AND HEALTH REVIEW COMMISSION
1730 K STREET NW, 6TH FLOOR
WASHINGTON, D.C. 20006

                                      March 19, 1997

SECRETARY OF LABOR, :
MINE SAFETY AND HEALTH :
ADMINISTRATION (MSHA) :
:
v. : Docket No. WEVA 97-81
: A.C. No. 46-01456-04119
EASTERN ASSOCIATED COAL CORP. :

BEFORE: Jordan, Chairman; Marks and Riley, Commissioners1

                                          ORDER

BY THE COMMISSION:

      This matter arises under the Federal Mine Safety and Health Act of 1977, 30 U.S.C.

' 801 et seq. (1994) (AMine Act@). On March 4, 1997, the Commission received from Eastern
Associated Coal Corp. (AEastern@) a request 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). It
has been administratively determined that the Secretary of Labor does not oppose the motion for
relief filed by Eastern.

    Under section 105(a) of the Mine Act, an operator has 30 days following receipt of the

Secretary of Labor's proposed penalty assessment within which to notify the Secretary that it
wishes to contest the proposed penalty. 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).

   Eastern states that it failed to submit its request for a hearing (AGreen Card@) to the

Department of Labor's Mine Safety and Health Administration (AMSHA@) within 30 days

   1
     Pursuant to section 113(c) of the Federal Mine Safety and Health Act of 1977, 30

U.S.C. ' 823(c), this panel of three Commissioners has been designated to exercise the powers of
the Commission.

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following receipt because a substitute employee who was working in its mailroom temporarily
failed to refer the proposed assessment to its legal department, and that the error was not
discovered until almost two months later. Eastern requests the Commission to reopen this matter.
Attached as exhibits to Eastern=s motion are copies of the certified mail receipt that accompanied
the Proposed Assessment Form from MSHA, and affidavits from the employee in charge of its
mailroom and an administrative assistant and an attorney in its legal department.

    The Commission has held that, in appropriate circumstances and pursuant to Fed. R. Civ.

P. 60(b), it possesses jurisdiction to reopen uncontested assessments that have become final under
section 105(a). Jim Walter Resources, Inc., 15 FMSHRC 782, 786-89 (May 1993); Rocky
Hollow Coal Co., 16 FMSHRC 1931, 1932 (September 1994).

    The Commission has observed that default is a harsh remedy and that, if the defaulting

party can make a showing of adequate or good cause for the failure to timely respond, the case
may be reopened and appropriate proceedings on the merits permitted. See Coal Preparation
Services, Inc., 17 FMSHRC 1529, 1530 (September 1995). In accordance with Rule 60(b)(1),
the Commission has previously afforded a party relief from a final order of the Commission on the
basis of inadvertence or mistake. See General Chemical Corp., 18 FMSHRC 704, 705 (May
1996); Kinross DeLamar Mining Co., 18 FMSHRC 1590, 1591-92 (September 1996).

    On the basis of the present record, we are unable to evaluate the merits of Eastern=s

position. In the interest of justice, we remand the matter for assignment to a judge to determine
whether Eastern has met the criteria for relief under Rule 60(b). If the judge determines that such

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relief is appropriate, this case shall proceed pursuant to the Mine Act and the Commission=s
Procedural Rules, 29 C.F.R. Part 2700.

                                         Mary Lu Jordan, Chairman




                                         Marc Lincoln Marks, Commissioner




                                         James C. Riley, Commissioner




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