Ballmer v. Babbitt

926 F. Supp. 575, 1996 U.S. Dist. LEXIS 7507, 1996 WL 294128
CourtDistrict Court, S.D. West Virginia
DecidedMay 28, 1996
DocketCivil Action No. 2:96-0010
StatusPublished

This text of 926 F. Supp. 575 (Ballmer v. Babbitt) is published on Counsel Stack Legal Research, covering District Court, S.D. West Virginia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ballmer v. Babbitt, 926 F. Supp. 575, 1996 U.S. Dist. LEXIS 7507, 1996 WL 294128 (S.D.W. Va. 1996).

Opinion

MEMORANDUM OPINION AND ORDER

HADEN, Chief Judge.

Pending is the Defendants’ Motion to Dismiss pursuant to Rule 12(b)(1) of the Federal Rules of Civil Procedure. The parties have submitted their respective memoranda and the matter is mature for the Court’s consideration.

In considering a motion to dismiss, the Court should accept as true all well-pleaded allegations and should view the complaint in a light most favorable to the plaintiff. See, e.g., De Sole v. United States, 947 F.2d 1169, 1171 (4th Cir.1991) (considering a motion to dismiss pursuant to Fed.R.Civ.P. 12(b)(6)); Mylan Laboratories, Inc. v. Matkari, 7 F.3d 1130, 1134 (4th Cir.1993) (same), cert. denied, — U.S. —, 114 S.Ct. 1307, 127 L.Ed.2d 658 (1994); see Ridgeway Coal Co. v. FMC Corp., 616 F.Supp. 404, 406-07 (S.D.W.Va.1985) (Haden, C.J.) (same) (citing Conley v. Gibson, 355 U.S. 41, 45-46, 78 S.Ct. 99, 101-02, 2 L.Ed.2d 80 (1957)).

BACKGROUND

In April 1983 Plaintiff was involved in the formation of Great American Coal Corporation (“Great American”) and was named vice president of the company.1 Plaintiff also held a twenty-five percent (25%) interest in Great American. By late 1984, Great American began to encounter financial difficulties. Ultimately, the company became insolvent and ceased operations in 1985.

In early 1985, the Office of Surface Mining Reclamation and Enforcement (“OSM”) began issuing violations to Great American.2 Lacking financial resources and equipment, Plaintiff maintains there was nothing he could do to abate the violations.3

OSM alleges Great American owes delinquent abandoned mine lands reclamation fees (“AML fees”) in the amount of seven thousand nine hundred dollars ($7,900.00), federal civil penalties in the principal amount of two hundred eighty thousand nine hundred dollars ($280,900.00), state civil penalties, and two state bond forfeitures.4 Based upon Great American’s unpaid civil penalties and AML fees, OSM placed Great American on its Applicant Violator System (“AVS”) in 1991.5 The AVS also reflects an ownership and control link between the Plaintiff and Great American.

On August 14, 1995 Plaintiff submitted to OSM a challenge of the AVS listing. Plaintiff argued the AVS listing violated Plaintiffs constitutional rights by imposing a permit block against him and any coal company that would employ him in a position of control, effectively denying him employment in his field. Plaintiff did not dispute he was an officer and shareholder of Great American. Furthermore, Plaintiff did not argue he did not possess the authority, either directly or indirectly, to determine the manner in which [577]*577Great American’s coal mining operations were conducted. On December 7,1995 OSM issued a Final Agency Decision (“FAD”) concluding Plaintiff was an owner and controller of Great American within the meaning of section 510(e) of the Surface Mining Control and Reclamation Act of 1977 (“SMCRA”), 30 U.S.C. § 1260(c), and its implementing regulations, 30 C.F.R. §§ 773.15(b)(1)6 and 773.5.7 Plaintiff seeks relief from this decision.

Plaintiffs Amended Complaint sets forth three claims. Count I seeks a declaratory judgment that action taken by the Defendants to list Plaintiff on the AVS as an owner or controller of Great American violates constitutional prohibitions against bills of attainder and ex post facto laws, because the 1988 regulations are being applied to punish him for past conduct by “blackballing” him from the coal industry. Count II seeks a declaratory judgment that Defendants’ action listing Plaintiff as permit-blocked on the AVS in 1991 is an attempt to collect civil penalties now barred by the statute of limitations pursuant to 28 U.S.C. § 2462. Count III requests the Court to enjoin permanently the Defendants from listing Plaintiff on the AVS.

Defendants contend the constitutional claims are a challenge to national regulations, which may be brought only in the United States District Court for the District of Columbia. Defendants also argue the statute of limitations found in 28 U.S.C. § 2462 does not bar collection of civil penalties.

I.

RULES CHALLENGE

Pursuant to section 526(a)(1) of SMCRA, challenges to national rules promulgated under SMCRA are subject to judicial review in the United States District Court for the District of Columbia. 30 U.S.C. § 1276(a)(1). Our Court of Appeals has consistently held this provision establishes exclusive subject matter jurisdiction for challenges to national rules under SMCRA. Pittston Coal Co. v. Babbitt, 66 F.3d 714, 715 (4th Cir.1995), cert. denied, — U.S. —, 116 S.Ct. 1417, 134 L.Ed.2d 542 (1996); Clinchfield Coal Co. v. Department of the Interior, 802 F.2d 102 (4th Cir.1986); Commonwealth of Virginia v. Watt, 741 F.2d 37, 40-41 (4th Cir.1984), cert. dismissed, 469 U.S. 1198, 105 S.Ct. 983, 83 L.Ed.2d 984 (1985); Tug Valley Recovery Center v. Watt, 703 F.2d 796, 799-800 (4th Cir.1983).

This requirement governs not only direct challenges, but also indirect challenges that are “tantamount to an attack on a federal regulation” under SMCRA. Commonwealth of Virginia, 741 F.2d at 40 (a due process challenge to OSM cessation orders that sought, in effect, to block implementation of OSM regulations constituted a rule challenge; court lacked subject matter jurisdiction); Tug Valley, 703 F.2d at 800 (challenge of OSM’s approval of state regulatory program—authorizing membership on a review board of persons having financial interests in mining operations as being in violation of conflict of interest requirements of SMCRA—constituted a challenge to the federal implementing regulation itself; court lacked subject matter jurisdiction).

As in Commonwealth of Virginia, granting the relief sought by Plaintiff would [578]*578prohibit the implementation of federal regulations.

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Related

Conley v. Gibson
355 U.S. 41 (Supreme Court, 1957)
Clinchfield Coal Company v. Doi
802 F.2d 102 (Fourth Circuit, 1986)
United States v. Tri-No Enterprises, Inc.
819 F.2d 154 (Seventh Circuit, 1987)
United States v. Hawk Contracting, Inc.
649 F. Supp. 1 (W.D. Pennsylvania, 1985)
Ridgeway Coal Co., Inc. v. FMC Corp.
616 F. Supp. 404 (S.D. West Virginia, 1985)
Arch Mineral Corp. v. Babbitt
894 F. Supp. 974 (S.D. West Virginia, 1995)
Mylan Laboratories, Inc. v. Matkari
7 F.3d 1130 (Fourth Circuit, 1993)
Pittston Coal Co. v. Babbitt
66 F.3d 714 (Fourth Circuit, 1995)
Tug Valley Recovery Center v. Watt
703 F.2d 796 (Fourth Circuit, 1983)

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Bluebook (online)
926 F. Supp. 575, 1996 U.S. Dist. LEXIS 7507, 1996 WL 294128, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ballmer-v-babbitt-wvsd-1996.