Secretary of Labor v. Inwood Quarry, Inc.

Plain-English summary

Inwood Quarry said it never received the hearing packet or the ALJ's show-cause order before the case defaulted. The penalty assessment form listed the company's correct post-office box, but the certificate of service and later show-cause order used a different address. The Secretary did not oppose reopening but urged the operator to keep its address current and respond promptly. The Commission reopened the proceeding, vacated the default order, and remanded the case for further proceedings.

Decision snapshot

• Cited authority: 30 U.S.C. § 823(d)(1)-(2); 30 C.F.R. §§ 2700.1(b), 2700.69(b), 2700.70(a)
• Outcome: The default order was vacated and the case was remanded.
• Key point: Conflicting service addresses supported relief where the operator said it never received the documents that led to default.

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.  WEVA 2019-0221

:         A.C. No. 46-02119-481551

INWOOD QUARRY, 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 July 23, 2019, the Commission received from
Inwood Quarry, Inc. (“Inwood”) a motion seeking to reopen a penalty assessment
proceeding and relieve it from the Default Order entered against it.

On April
2, 2019, the Chief Administrative Law Judge issued an Order to Show Cause in response
to Inwood’s perceived failure to answer the Secretary of Labor’s February 13,
2019 Petition for Assessment of Civil Penalty. By its terms, the Order to Show
Cause was deemed a Default Order on April 23, 2019, when it appeared that the
operator had not filed an answer within 20 days.

Inwood
claims that it never received the hearing packet and was told by someone at
MSHA that the hearing paperwork was delivered to an address at “Rt. 11 South,
Inwood, WV,” which it states is not an address for the company. MSHA’s Operator
Information System and the company’s MSHA Legal ID Report shows Inwood’s
principal office address as “Rt. 11 South.” The Judge’s Show Cause Order was
also sent to “Rt. 11 South.” The Secretary responds that the Proposed Penalty
Assessment was sent to P.O. Box 65, Inwood, WV 25428, which Inwood states is the
correct address. However, we note that while the correct address appears on the
Proposed Penalty Assessment form, the incorrect address appears in the
Certificate of Service for the Penalty Assessment. The Secretary does not
oppose the motion to reopen, but urges the operator to ensure that its mailing
address is correctly filed with MSHA, that its responses are timely filed, and
that Show Cause Orders are taken seriously.

The
Judge’s jurisdiction in this matter terminated when the default occurred. 29
C.F.R. § 2700.69(b). Under the Mine Act and the Commission’s procedural rules,
relief from a judge’s decision may be sought by filing a petition for
discretionary review within 30 days of its issuance. 30 U.S.C. §
823(d)(2)(A)(i); 29 C.F.R. § 2700.70(a). If the Commission does not direct
review within 40 days of a decision’s issuance, it becomes a final decision of
the Commission. 30 U.S.C. § 823(d)(1). Consequently, the Judge’s order here has
become a final decision of the Commission.

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”); Jim Walter Res., Inc .,
15 FMSHRC 782, 786-89 (May 1993). 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 will be permitted. See Coal Prep. Servs., Inc ., 17 FMSHRC
1529, 1530 (Sept. 1995).

Having
reviewed Inwood’s request and the Secretary’s response, in the interest of
justice, we hereby reopen the proceeding and vacate the Default Order. Accordingly,
this case is remanded 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

/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:

D.L. Morgan, Jr.

President

Inwood Quarry, Inc.

P.O. Box 65

Inwood, WV 25428

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]