Andalex Resources, Inc. v. Director, Office of Workers' Compensation Programs

713 F. App'x 484
CourtCourt of Appeals for the Sixth Circuit
DecidedNovember 14, 2017
Docket17-3057
StatusUnpublished

This text of 713 F. App'x 484 (Andalex Resources, Inc. v. Director, Office of Workers' Compensation Programs) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Andalex Resources, Inc. v. Director, Office of Workers' Compensation Programs, 713 F. App'x 484 (6th Cir. 2017).

Opinion

MARTHA CRAIG DAUGHTREY, Circuit Judge.

Andalex Resources, Inc,, petitions for review of an order of the Benefits Review Board (BRB) that held Andalex liable to Eddie Smith for benefits to compensate him for the pneumoconiosis he contracted through his coal mine employment. Neither Andalex nor Smith nor the director of the Department of Labor’s Office of Workers’ Compensation Programs now contests Smith’s eligibility for the benefits. Anda-lex, however, insists that it is not liable for the payments and that Ikerd-Bandy, a subsequent employer of Smith, is the proper “responsible operator” to whom Smith should look for compensation. We conclude that the administrative law judge did not err in designating Andalex as the responsible operator. We thus deny the petition for review.

In 1969, Congress passed the Black Lung Benefits Act, 30 U.S.C. §§ 901-944, in part “to provide benefits ... to coal miners who are totally disabled due to pneumoconiosis,” a condition defined in the Act as “a chronic dust disease of the lung and its sequelae, including respiratory and pulmonary impairments, arising out of coal mine employment.” 30 U.S.C. §§ 901(a), 902(b). Pursuant to regulations promulgated to carry out the mandates of the Act, “coal mine operators are liable to the maximum extent feasible for awarded claims.” Ark Coals, Inc. v. Lawson, 739 F.3d 309, 313 (6th Cir. 2014) (internal quotation marks and citation omitted).

As a general matter, “[t]he operator responsible for the payment of benefits” is the company “that most recently employed the miner.” 20 CFR § 725.495(a)(1). In order to be designated as the responsible operator, however, a coal mining company must have employed the disabled miner “for a cumulative period of not less than one year.” 20 CFR § 725.494(c). Under the relevant regulations, the term “Year means a period of one calendar year (365 days, or 366 days if one of the days is February 29), or partial periods totaling one year, during which the miner worked in or around a coal mine or mines for at least 125 “working days.’ ” 20 CFR § 725.101(a)(32). Furthermore:

(ii) To the extent the evidence permits, the beginning and ending dates of all periods of coal mine employment must be ascertained. The dates and length of employment may be established by any credible evidence including (but not limited to) company records, pension records, earnings statements, coworker affidavits, and sworn testimony. If the evidence establishes that the miner’s employment lasted for a calendar year or partial periods totaling a 365-day period amounting to one year, it must be presumed, in the absence of evidence to the contrary, that the miner spent at least 125 working days in such employment. (iii) If the evidence is insufficient to establish the beginning and ending dates of the miner’s coal mine employment, or the miner’s employment lasted less than a calendar year, then the adjudication officer may use the following formula: divide the miner’s yearly income from work as a miner by the coal mine industry’s average daily earnings for that year, as reported by the Bureau of Labor Statistics (BLS).

20 CFR § 725.101(a)(32)(ii) and (iii).

The record in this case, including Internal Revenue Service W-2 Wage and Tax Statements and Social Security Administration earnings records, establishes that Smith worked for Andalex from 1988 until December 1993. However, beginning in December 1993 and continuing until March 1994—when Smith suffered a heart attack—the miner was employed by Ikerd Bandy Company, Inc. Because IRS and Social Security documents indicated that Smith received money from Ikerd Bandy in both 1994 and 1995, Andalex contends that the miner worked for Ikerd Bandy for at least one year, making Ikerd Bandy the proper responsible operator liable for payments to Smith for his disabling pneumo-coniosis.

In further support of its position, Anda-lex points to Smith’s June 2010 deposition testimony in which the miner stated, when asked how long he had worked for Ikerd Bandy, “I think it was around two year[s] I think. I ain’t for sure.” Smith also was unsure when he began work for Ikerd Bandy and knew only that his last day of work with that company “was 1994 somewhere.”

Smith gave a second deposition in October 2012, and in that testimony, he again stated that he could not say for sure how long he actually worked for Ikerd Bandy. He did agree, however, that his tenure with that company probably “was a little bit less than a year.” Finally, in December 2012, when asked during the hearing before an administrative law judge whether he had worked for Ikerd Bandy from December 1993 until March 1994, Smith replied, ‘Yeah, that sounds right.”

In light of Smith’s uncertainty regarding the length of his employment with Ikerd Bandy, the administrative law judge “f[ou]nd Claimant is not a good historian of his coal mine employment, gave his testimony on the issue “little probative weight,” and concluded “that Andalex has produced insufficient evidence to establish that Claimant worked .for Ikerd-Bandy for one year or more after his employment with Andalex.” Andalex appealed to the BRB the administrative law judge’s decision requiring the company to pay pneu-moconiosis benefits to Smith. The BRB agreed with the administrative law judge that little probative weight should be given to Smith’s own testimony regarding the length of his employment with Ikerd Bandy. Nevertheless, the Board noted that “the administrative law judge did not make specific findings or explain how he determined that the [Social Security] records, which reflect earnings from Ikerd in 1994 and 1995, do not support a finding of employment for at least one year.” Consequently, the BRB remanded the case to the administrative law judge “to explain with specificity whether the evidence supports a finding that Ikerd employed the miner for a period of at least one year.”

On remand, the administrative law judge found no evidence in the record that established conclusively “the beginning and ending dates of Claimant’s employment with Ikerd Bandy.” Furthermore, the administrative law judge noted that “[w]hile the record confirms that Claimant was. employed by Ikerd Bandy in 1994 and 1995, that evidence is insufficient to conclude that Claimant was employed for a period of one calendar year or partial periods totaling one year in order to establish a year as defined by the regulations.” Thus, in order to determine if Smith worked the requisite 125 days for Ikerd Bandy in any twelve-month period during the years 1994 and 1995, the administrative law judge resorted to the calculation explained in 20 CFR § 725

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713 F. App'x 484, Counsel Stack Legal Research, https://law.counselstack.com/opinion/andalex-resources-inc-v-director-office-of-workers-compensation-ca6-2017.