Secretary of Labor v. Holcim (US) Inc.

Plain-English summary

Holcim sought to reopen contests of two section 104(b) withdrawal orders. The first order had already been contested with its underlying citation and was vacated by the Secretary in an approved settlement, making reopening moot. For the second order, Holcim's reopening motion was filed three days after it received the related assessment and clearly stated an intent to contest the order. The Commission treated that motion as a timely notice of contest, so the second order never became final. It denied both reopening requests as moot and remanded the unresolved second order for further proceedings.

Decision snapshot

• Cited authority: 30 U.S.C. §§ 814(b), 815(a); 30 C.F.R. § 2700.1(b)
• Outcome: Both reopening requests were denied as moot, and the unresolved second order was remanded.
• Key point: A reopening motion can serve as a timely notice of contest when it clearly identifies the order being challenged.

Full text (FMSHRC public release)

FEDERAL
MINE SAFETY AND HEALTH REVIEW COMMISSION

1331
PENNSYLVANIA AVENUE, NW, SUITE 520N

WASHINGTON,
D.C. 20004‑1710

SECRETARY OF LABOR,                              :

MINE SAFETY AND HEALTH                   
:

ADMINISTRATION (MSHA)                      
:

:

v.                                              
:         Docket No. PENN 2020-0022

:         A.C. No. 36-00271-503052

HOLCIM (US) INC.                                        :

:

BEFORE: Rajkovich, Chairman; Althen and Traynor,
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 November 7, 2019, the Commission received from Holcim
(US) Inc. (“Holcim”) a motion seeking to reopen contest proceedings pursuant to
section 105(a) of the Mine Act, 30 U.S.C. § 815(a) for section 104(b) Order
Nos. 9464868 and 9464892, issued on September 12, 2019, and September 30, 2019,
respectively. The Commission has decided to construe Holcim’s motion as a
motion to reopen. The Secretary does not oppose.

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).

The
Commission has held that “a section 104(b) withdrawal order may be contested
under section 105(a) in a civil penalty proceeding regardless of whether it was
separately contested under section 105(d).” UMWA v. Maple Creek Mining, Inc .,
29 FMSHRC 583, 591 (July 2007).

The
record shows that the proposed assessment for Citation No. 9464851, the underlying citation for section 104(b) Order No. 9464868, was issued on May 29, 2020, and properly contested in Docket No. PENN 2020-0084. On August 24, 2020, the
Administrative Law Judge in that docket issued a decision approving settlement,
which stated that Order No. 9464868 has been vacated by the Secretary. We
conclude that the Order was properly contested along with the underlying
citation and has been vacated. Therefore, the motion to reopen the contest of
this Order is moot.

With regard to Order No. 9464892, the operator first received the
proposed penalty assessment for underlying Citation No. 9464877 on November 4,
2019, and three days later filed its motion to reopen on November 7, 2019. In
its motion, Holcim specified that it intended to contest Order No. 9464892
along with the underlying citation and penalty. A recent review of the
Department of Labor’s Mine Safety and Health Administration’s (“MSHA”) data
retrieval system shows, however, that Holcim has paid the proposed civil
penalty for underlying Citation No. 9464877. To date, no civil penalties have
been proposed for Order No. 9464892, and this Order remains unresolved.

We conclude that this motion to reopen may serve as the operator’s
timely notice of contest for Order No. 9464892. Therefore, because the operator
timely filed its notice of contest, the Order is not a final order of the
Commission and the motion to reopen contest of Order No. 9464892 is denied as
moot. Rock N Road Quarry , 31 FMSHRC 769, 770 (July 2009); Double
Bonus Coal Co ., 31 FMSHRC 358, 360 (Mar. 2009) (holding that statements in
motions to reopen could serve as operator’s notice of contest, and denying the
motions as moot).

Accordingly, we deny Holcim’s request regarding Order Nos. 9464868, as
the order has been vacated. We also deny the operator’s request regarding Order
No. 9464892, as the order has not become a final order of the Commission and we
remand this matter to the Chief Administrative Law Judge for further
proceedings as appropriate, pursuant to the Mine Act and the Commission’s
Procedural Rules, 29 C.F.R. Part 2700.

/s/
Marco M. Rajkovich, Jr.

Marco
M. Rajkovich, Jr., Chairman

/s/
William I. Althen

William
I. Althen, Commissioner

/s/
Arthur R. Traynor, III

Arthur R. Traynor, III,
Commissioner

Distribution:

Margaret Lopez, Esq.

Ogletree, Deakins, Nash,

Smoak & Stewart P.C.

1909 K Street NW, Suite 1000

Washington, DC 20006

[email protected]

Emily Toler Scott, Esq.

Office of the Solicitor

Division of Mine Safety and
Health

201 12th Street South, Suite
401

Arlington, VA 22202-5450

[email protected]

Melanie Garris

USDOL/MSHA, OAASEI/CPCO

201 12th Street South, Suite
401

Arlington, VA 22202

[email protected]

Chief Administrative Law
Judge Glynn F. Voisin

Federal Mine Safety Health Review Commission

1331 Pennsylvania Avenue, NW Suite 520N

Washington, DC 20004-1710

[email protected]