Secretary of Labor v. Marfork Coal Company, LLC

Plain-English summary

Marfork Coal sought to reopen three penalty assessments after the employee responsible for contest notices unexpectedly missed work because of a medical issue. She discovered the missed deadlines when she returned and contacted counsel. The company filed its reopening motions within 30 days, and the Secretary did not oppose them. The Commission found an excusable mistake caused by unforeseen circumstances, reopened all three assessments, and remanded them for further proceedings. It urged Marfork to establish backup procedures so contests would still be processed when the normally responsible employee was unavailable.

Decision snapshot

• Cited authority: None
• Outcome: Three final penalty assessments were reopened and remanded for further proceedings.
• Key point: An unforeseen employee absence supported reopening, but the operator needed backup procedures for time-sensitive contests.

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.

MARFORK
COAL COMPANY, LLC

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:

:

:

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Docket
No. WEVA 2020-0195

A.C.
No. 46-09091-503553

Docket
No. WEVA 2020-0205

A.C.
No. 46-09212-503556

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:

:

Docket
No. WEVA 2020-0206

A.C.
No. 46-09550-503558

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 January 9 and 10, 2020, the Commission
received from Marfork Coal Company (“Marfork”) motions seeking to reopen penalty
assessments that had become final orders of the Commission pursuant to section
105(a) of the Mine Act, 30 U.S.C.  § 815(a). [1]

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 assessments were delivered on November 13, 2019, and
became final orders of the Commission on December 13, 2019. Marfork asserts
that the employee responsible for processing the notices of contest missed the
mailing deadline because she was out of the office in early December due to an
unforeseen medical issue. Upon her return to work, she realized the notices had
not been timely filed and contacted counsel. Motions to reopen the captioned
dockets were then filed within 30 days. The Secretary does not oppose the
request to reopen, but urges the operator to take steps to ensure that future
penalty contests are timely filed.

Having
reviewed Marfork’s request and the Secretary’s
response, we find that the delay in this instance was an excusable
mistake arising from unforeseen circumstances. To prevent such a mistake from
recurring, however, we urge the operator to enact procedures that will ensure
penalty contests are timely processed even when the normally responsible
individual is unavailable.

In the interest of
justice, we hereby reopen these matters and remand them 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/ 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:

Christopher
D. Pence, Esq.

Hardy
Pence PLLC

10
Hale Street, 4th floor

P.O.
Box 2548

Charleston,
WV 25329

[email protected]

Emily
Scott, Esq.

Office
of the Solicitor

201
12th St. South, Suite 401

Arlington,
VA 22202-5450

[email protected]

April
Nelson, Esq.

Office
of the Solicitor

US
Department of Labor

201
12th St. South, Suite 401

Arlington,
VA 22202-5450

[email protected]

Chief
Administrative Law Judge Glenn Voisin

Federal
Mine Safety & Health Review Commission

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

Washington,
DC 20004-1710

[email protected]

Melanie
Garris

Office
of Civil Penalty Compliance

Mine
Safety and Health Administration

201
12th Street South, Suite 401

Arlington,
VA 22202

[email protected]

[1]  For the limited purpose of
addressing these motions to reopen, we hereby consolidate docket numbers WEVA
2020-0195, WEVA 2020-0205 and WEVA 2020-0206 involving similar procedural
issues. 29 C.F.R. § 2700.12.