Arch Coal, Inc. v. Hugler

242 F. Supp. 3d 13, 2017 U.S. Dist. LEXIS 37749, 2017 WL 1034688
CourtDistrict Court, District of Columbia
DecidedMarch 16, 2017
DocketCivil Action No. 2016-0669
StatusPublished
Cited by9 cases

This text of 242 F. Supp. 3d 13 (Arch Coal, Inc. v. Hugler) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Arch Coal, Inc. v. Hugler, 242 F. Supp. 3d 13, 2017 U.S. Dist. LEXIS 37749, 2017 WL 1034688 (D.D.C. 2017).

Opinion

MEMORANDUM OPINION

JOHN D. BATES, United States District Judge

The Office of Workers’ Compensation Programs within the Department of Labor is charged with determining the “Responsible Operator” liable for a worker’s black lung benefits claim. The process has several steps, the first of which is the District Director’s initial determination of the Responsible Operator. The Department issued a guidance document — Bulletin No. 16-01 — instructing District Directors to make an initial determination that Arch Coal, Inc. (the plaintiff), is the Responsible Operator for certain miners who previously were employees of three subsidiaries that were once owned by Arch Coal but *15 later were sold to a now-bankrupt company, Patriot Coal.

Arch Coal argues that this Bulletin is unlawful because it contradicts the Black Lung Benefits Act’s liability rules, 30 U.S.C. § 932(i), because it is a rule that the Department did not promulgate in accordance with the Administrative Procedure Act, 5 U.S.C. § 553(b), because it violates the APA’s prohibition on retroactive rulemaking, and because the Department has acted arbitrarily and capriciously by not following its own self-insurance regulations. The Department, on the other hand, maintains that this Court has no jurisdiction because Congress has created an exclusive administrative adjudication process that can only be appealed to the circuit court. Alternately, it argues that Arch Coal has failed to state a claim because there is not yet a final agency action. 2 The Court will grant the Department’s motion to dismiss for lack of jurisdiction and will not reach the Department’s failure to state a claim argument.

BACKGROUND

1. Statutory and Regulatory Background

The Black Lung Benefits Act, 30 U.S.C. § 901 et seq., “providfes] benefits to coal miners who are totally disabled by pneumoconiosis, also known as black lung disease, and to the surviving dependents of miners who died of the disease.” Nat’l Mining Ass’n v. Dep’t of Labor, 292 F.3d 849, 854 (D.C. Cir. 2002) (per curiam). Black lung disease is a “severe, and frequently crippling, chronic respiratory impairment ... caused by long-term inhalation of coal dust.” Usery v. Turner Elkhorn Mining Co., 428 U.S. 1, 6, 96 S.Ct. 2882, 49 L.Ed.2d 752 (1976).

Generally, a miner’s most recent employer is responsible for paying. claims to miners who become disabled or died due to employment in that operator’s mine. See 20 C.F.R. § 725.494. The miner must have been employed by that operator for at least one year, and the operator must be capable of paying the claim. See id. §§ 725.494(c), (e), 725.495. The Department imposes various obligations on mine operators to ensure that they are able to pay these claims. An operator may choose to qualify as a self-insurer or it may purchase commercial .insurance. See 30 U.S.C. §§ 932(b), 933(a). For a mine to self-insure, it must obtain Departmental approval and meet the Department’s requirements — including posting a surety bond or other security — to guarantee that the mine operator can pay future liability. See id.; 20 C.F.R. §§ 725.606(a), 726.109, 726.115. When there is no operator able to pay the claim, or if the Responsible Operator fails to pay, the Black Lung Disability Trust Fund provides payment. 26 U.S.C. § 9501(d)(1); 30 U.S.C. § 934(b)(1)(A)-(B); see also Regulations Implementing the Federal Coal Mine Health & Safety Act of 1969, as Amended 65 Fed. Reg. 79,920, 79,924 (Dec. 20, 2000). The Trust Fund is administered by the Department, and financed by an excise tax on coal. See 26 U.S.C. §§ 4121, 9501.

*16 The Act lays out a process for adjudicating miners’ claims and determining the Responsible Operator. This adjudication process largely adopts the procedures outlined in the Longshore and Harbor Workers’ Compensation Act, 33 U.S.C. §§ 901-950. See 30 U.S.C. § 932(a) (incorporating provisions of the Longshore Act into the BLBA). To seek benefits, a worker files a claim with the applicable District Director for the Office of Workers’ Compensation Programs. See 33 U.S.C. § 919; 20 C.F.R. § 725.401. The District Director then investigates the claim and makes a preliminary determination of the miner’s eligibility and of the Responsible Operator. See 20 C.F.R. §§ 725.401-23. These determinations are explained in a “proposed decision and order.” Id. § 725.418. The claimant and Responsible Operator may then acquiesce to the proposed decision, or may request a hearing before an Administrative Law Judge. See id. § 725.419; 33 U.S.C. § 919(c), (d); see also 20 C.F.R. §§ 725.450-83 (detailing hearing procedures before the ALJ). If the parties request a hearing, the ALJ makes a de novo determination of the Responsible Operator’s liability. See 20 C.F.R. § 725.455(a); Pyro Mining Co. v. Slaton, 879 F.2d 187, 190 (6th Cir. 1989). In that hearing, the District Director “bears the burden of proof that the responsible operator is potentially liable.” Ark. Coals, Inc. v. Lawson, 739 F.3d 309, 313 (6th Cir. 2014) (citing 20 C.F.R. § 725.495(b), (d)).

The parties may then seek review of the ALJ’s decision by a panel of the Benefits Review Board. 33 U.S.C. § 921(b). The panel’s decision can then be appealed to the Board en banc, or to a federal court of appeals'. See id. §§ 921(b)(5), (c); 20 C.F.R. § 802.407(b).

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242 F. Supp. 3d 13, 2017 U.S. Dist. LEXIS 37749, 2017 WL 1034688, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arch-coal-inc-v-hugler-dcd-2017.