ARMCO, Inc. v. Martin

277 F.3d 468, 2002 WL 46015
CourtCourt of Appeals for the Fourth Circuit
DecidedJanuary 14, 2002
Docket01-1278
StatusPublished
Cited by17 cases

This text of 277 F.3d 468 (ARMCO, Inc. v. Martin) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
ARMCO, Inc. v. Martin, 277 F.3d 468, 2002 WL 46015 (4th Cir. 2002).

Opinions

Petition for review denied and Board affirmed by published opinion. Judge NIEMEYER wrote the opinion, in which Judge MAGILL joined. Judge LUTTIG wrote an opinion concurring in the judgment.

OPINION

NIEMEYER, Circuit Judge.

On James Martin’s application for black lung benefits, filed in 1989, the Benefits Review Board ordered the payment of benefits and found Armco, Inc. to be the responsible coal mine operator, even though Martin was employed by two other coal mine operators after his layoff by Armco in 1982. In its petition for review, Armco contends that under 20 C.F.R. § 725.493 (1999), Babcock Mining Company, Martin’s most recent employer, qualified as the responsible operator and that because the Director of the federal Office of Workers’ Compensation Programs (“Director”) failed to join Babcock Mining as a party, Martin’s benefits should be paid by the Black Lung Disability Trust Fund, not by Armco. Armco also raises issues for the first time on appeal, challenging the award of benefits to Martin. For the reasons that follow, we deny Armco’s petition for review and affirm the decision and order of the Board.

I

James Martin, of Beckley, West Virginia, filed a claim for black lung benefits with the United States Department of Labor’s Office of Workers’ Compensation Programs on January 4, 1989. He had not worked for over two years because of a back injury; but before December 11, 1986, when he quit working, Martin had worked underground in coal mines as an electrician for 13 years. The last three [471]*471employers for whom he worked in coal mines were:

Armco, Inc. Feb.l979-July 1982 (3 years, 5 months)

Chafe Mining Co. Nov.1982-Nov.1985 (3 years)

Babcock Mining Co. June 1986-Dee.l986 (6 months)

The Department of Labor forwarded notice of Martin’s claim to Chafe Mining and to Armco as potential responsible employers. It did not forward notice to Babcock Mining because it concluded that Babcock Mining could not be a responsible operator since Martin worked for that company for less than one year. See 20 C.F.R. § 725.493 (1999). Because of disputes over the determination of the responsible operator, the procedural course within the Department of Labor was protracted.

The district director of the Department of Labor initially denied Martin’s application for benefits on June 29, 1989. He later denied Martin’s offer to include additional evidence as untimely. But upon Martin’s request, he forwarded Martin’s claim to the Office of Administrative Law Judges for a hearing.

Before the Administrative Law Judge (“ALJ”), Armco filed a motion to dismiss the claim against it on the basis that it was not the responsible operator or, in the alternative, to remand to the district director for a determination of who the proper responsible operator was. In its motion, Armco stated that “[t]he miner lists only six months of employment with [Bab-cock Mining] thus, presumably, Babcock Mining Co., is not the responsible operator as defined by 20 C.F.R. § 725.492.” Armco therefore asserted that the next most recent employer, Chafe Mining, was the responsible operator. The Director agreed with Armeo’s assessment of responsibility, but opposed dismissal Instead, he favored a remand to the district director for further evidentiary development. Accordingly, the ALJ remanded the claim for a determination of the “putative responsible operator.”

On remand, the district director concluded that the most recent responsible operator was Chafe Mining. Chafe Mining, however, was not a viable company because it had filed for bankruptcy and was no longer an active corporation. The former principal of Chafe Mining (its president, secretary, and treasurer), Charles Lieberman, would be responsible individually, but Lieberman submitted information showing that he lacked the financial capacity to assume liability for Martin’s claim. Accordingly, the district director concluded, in a decision and order of July 10,1991, that Lieberman was liable for the claim and, “[s]hould it be determined that Charles Lieberman does not have the wherewithal to assume liability or he is otherwise found not liable in this matter, Armco, Inc. will be liable as the secondary operator in this claim.” The matter was then referred back to the ALJ for a hearing.

Following a hearing on both the merits of Martin’s claim and the responsible operator issue, the ALJ issued his decision and order on August 18, 1993, concluding that Martin was entitled to benefits. Considering the x-ray evidence, the ALJ concluded that “true doubt” existed as to whether or not the three x-rays demonstrated the existence of pneumoconiosis, and, pursuant to the law then applicable, he resolved that doubt in favor of Martin. The ALJ also considered medical evidence and decided that the reasoned medical opinions presented in the case established the existence of pneumoconiosis. With respect to the responsible operator, the ALJ concluded that Babcock Mining was the most recent employer to have employed Martin for a cumulative period of one year. Even though Martin had worked at Babcock Mining for only six months, he worked for [472]*472more than 125 working days during that period, and, according to the ALJ, he therefore satisfied the one-year requirement of 20 C.F.R. § 725.493(b). Because the Director had not joined Babcock Mining as a potential responsible operator, the ALJ transferred liability to the Black Lung Disability Trust Fund (“Trust Fund”). The ALJ also determined that Chafe Mining and its former president, Lieberman, were not capable of assuming liability for the payment of benefits if it were later determined that benefits should not be paid by the Trust Fund.

The Director appealed this decision, and on appeal, the Benefits Review Board affirmed the award of benefits to Martin. It agreed with the ALJ’s decision not to join Babcock as a responsible operator because the Director had failed to name Babcock Mining in the initial stages of the claim. But it observed that the ALJ never addressed Armco’s potential liability as a responsible operator. Accordingly, the Board vacated the ALJ’s finding that the Trust Fund was liable for Martin’s benefits and remanded the claim to the ALJ for further consideration of the responsible operator issue.

On remand, the ALJ again found the Trust Fund liable for Martin’s black lung benefits. It reasoned that Babcock Mining was the most recent responsible operator, as defined by applicable regulations, and because Babcock Mining was not joined, the Trust Fund would be liable. The Director again appealed this determination to the Board.

Once again, the Board vacated the ALJ’s assignment of liability to the Trust Fund and remanded the case for further consideration by the ALJ. In its opinion, the Board specifically disagreed with the ALJ’s conclusion that a miner who establishes that he worked for at least 125 days must be credited with one year of coal mine employment.

On remand, this time before a different ALJ, Armco was found to be the responsible operator and was ordered to pay benefits to Martin.

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Bluebook (online)
277 F.3d 468, 2002 WL 46015, Counsel Stack Legal Research, https://law.counselstack.com/opinion/armco-inc-v-martin-ca4-2002.