Arch of Kentucky, Inc. v. Director, Office of Workers' Compensation

556 F.3d 472, 2009 U.S. App. LEXIS 2896, 2009 WL 363711
CourtCourt of Appeals for the Sixth Circuit
DecidedFebruary 17, 2009
Docket08-3311
StatusPublished
Cited by15 cases

This text of 556 F.3d 472 (Arch of Kentucky, Inc. v. Director, Office of Workers' Compensation) 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
Arch of Kentucky, Inc. v. Director, Office of Workers' Compensation, 556 F.3d 472, 2009 U.S. App. LEXIS 2896, 2009 WL 363711 (6th Cir. 2009).

Opinion

OPINION

McKEAGUE, Circuit Judge.

Fred Hatfield filed for benefits under the Black Lung Benefits Act, 30 U.S.C. § § 901-944 (“Act”). His last employer, Arch of Kentucky, Inc. (“Arch”), raised several challenges to his claim. Adjudicators for the U.S. Department of Labor’s Office of Workers’ Compensation Programs (“OWCP”) granted his claim and the Department’s Benefits Review Board (“BRB”) affirmed on appeal.

Arch petitions this court to reverse. For the reasons set forth below, we affirm.

I

A. 1988 Claim

Hatfield worked as a coal miner for twenty years, ending in 1987. He filed a claim for benefits under the Act in 1988 and identified Arch as his last employer for which he worked at least one year (“1988 claim”). Arch, a St. Louis-based *475 company, owns and operates coal mines in a number of states, including Kentucky. Under the Act, Arch is the responsible operator and is liable for any benefits awarded.

In connection with the 1988 claim, twelve physicians submitted x-ray reports. Five of the reports indicated the presence of pneumoconiosis, while the remaining seven did not. Giving greater weight to the more recent reports, both of which were positive, Administrative Law Judge (“ALJ”) Kichuk found that Hatfield had pneumoconiosis. The ALJ also found that Hatfield was totally disabled. As to whether the disability was due to the pneumoconiosis, the ALJ relied primarily upon the medical opinion of Dr. Bruce Broudy, whose qualifications were described as superior (including board certification in internal and pulmonary medicine) and who had most recently examined Hatfield. In Dr. Broudy’s opinion, Hatfield’s disability arose from the claimant’s chronic bronchitis caused by his long history of smoking. Although one physician, Dr. John Myers, Jr., had opined that Hatfield’s disability resulted from his pneumo-coniosis, 1 there was no indication that the physician was board certified and the physician’s examination occurred eight months before Dr. Broudy’s. Thus, based on Dr. Broudy’s better qualifications and his more recent examination, the ALJ concluded that Hatfield was not totally disabled by pneumoconiosis and denied his 1988 claim. Hatfield did not appeal the ruling.

B. 1993 Claim

1. The Initial Finding

Hatfield filed a subsequent claim for benefits in June 1993 (“1993 claim”). A claims examiner with the OWCP notified Arch of the claim in July 1993. Arch’s counsel responded in August 1993, indicating that the company was the responsible operator.

On December 1, 1993, a claims examiner informed Arch that the office had made a preliminary finding that Hatfield was entitled to benefits on the 1993 claim. The examiner further explained that if Arch wished to contest the finding, it must file a controversion (a merits challenge) within thirty days. If the company failed to respond within thirty days, the company would “be deemed to have accepted the initial finding, and this failure shall be considered a waiver of [the company’s] right to contest this claim unless good cause is shown to excuse such failure (20 CFR 725.413).” JA 166. The company received the examiner’s notice by certified mail on December 10,1993.

Through its then-counsel, Arch submitted its controversion on February 22, 1994. The company did not contest the timeliness of Hatfield’s 1993 claim, but did contest whether (a) he had pneumoconiosis; (b) he was totally disabled; (c) any disability was caused by the condition; and (d) the miner’s death was due to the condition (Note: Hatfield was not deceased).

The OWCP Director informed the company that the office had not received a timely response to its earlier notice of initial finding. The Director treated the lack of a timely response as a default, explaining, “Arch of Kentucky, Inc. is deemed to have accepted the Initial Finding of the District Director and shall not, except as provided in 725.463, be permitted to raise issues or present evidence with *476 respect to issues inconsistent with the Initial Finding in any further proceeding conducted with respect to the claim.” JA 173.

Arch’s counsel replied on March 17, 1994. He acknowledged that the company had not filed its controversion within the allotted time period. He sought to establish good cause for the delay, however, explaining in full,

[D]ue [to] some person[n]el changeovers in the last two months or so in this office, a very few things got miscal[e]n-dared or not calendared at all. This was one. The person[n]el problem was resolved; nevertheless, a problem in this case remains. There is no doubt that it is my responsibility that the controversion was late, but in fairness, a clerical error under these circumstances should not be interposed to prevent Arch from defending this claim.

JA 180. The Director denied the request to accept the untimely controversion, but informed the company that it could appeal the adverse good-cause finding, which the company did.

2. Subsequent Appeals and Remands

Hatfield’s 1993 claim then went through numerous rounds of appeals and remands spanning over a decade. Only those rulings with direct bearing on the instant petition for review are summarized below.

ALJ Rippey awarded benefits to Hatfield based on the Director’s initial award, finding that Arch’s controversion was untimely. The BRB affirmed.

Arch requested a modification of the award pursuant to 33 U.S.C. § 922, as incorporated at 30 U.S.C. § 932(a) and 20 C.F.R. § 725.310. Modification permits the fact-finder to reconsider prior decisions, whether based on previously developed or newly developed evidence. Arch argued that the award was based on erroneous findings of fact.

The BRB determined that the modification procedure did not provide Arch with an alternate avenue for attacking the merits of the award. It explained that if a party fails to contest timely an initial finding, the party cannot raise an issue or present evidence inconsistent with that finding in a subsequent proceeding unless it first demonstrated good cause for the untimely response. The BRB remanded the matter for further consideration of the good-cause issue.

On remand, ALJ Wood found that Arch had failed to show good cause for its tardy controversion. The ALJ acknowledged that Hatfield had likely not suffered any prejudice by the delay. She noted that Arch’s counsel’s original explanation was, in essence, that the notice of initial award got “lost-in-the-shuffle.” The ALJ, however, placed considerable emphasis on the failure by Arch’s counsel to provide any additional detail of that original explanation or any evidence to support it.

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Bluebook (online)
556 F.3d 472, 2009 U.S. App. LEXIS 2896, 2009 WL 363711, Counsel Stack Legal Research, https://law.counselstack.com/opinion/arch-of-kentucky-inc-v-director-office-of-workers-compensation-ca6-2009.