Burton v. Drummond Co.

350 F. Supp. 3d 1198
CourtDistrict Court, N.D. Alabama
DecidedOctober 12, 2018
DocketCase No.: 2:18-cv-00795-RDP
StatusPublished
Cited by2 cases

This text of 350 F. Supp. 3d 1198 (Burton v. Drummond Co.) is published on Counsel Stack Legal Research, covering District Court, N.D. Alabama primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Burton v. Drummond Co., 350 F. Supp. 3d 1198 (N.D. Ala. 2018).

Opinion

R. DAVID PROCTOR, UNITED STATES DISTRICT JUDGE

This matter is before the court on Defendant's Motion to Dismiss. (Doc. # 5). The Motion requires the court to decide whether it has subject matter jurisdiction over Plaintiff's claim and, if so, whether Plaintiff has stated a claim upon which relief can be granted. See Fed. R. Civ. P. 12(b)(1), 12(b)(6). The court concludes the answer to both is yes. Thus, as more fully explained below, Defendant's Motion to Dismiss is due to be denied.

I. Factual and Procedural Background

Plaintiff Verby Burton is the widow of a deceased coal miner, Allan Burton, who Defendant Drummond Company employed to work in its coal mines in Alabama. (Doc. # 1 at ¶¶ 8-12). Allan Burton died in 2015 from coal workers' pneumoconiosis, commonly known as black lung disease. (Doc. # 15 at 9).

Prior to his death, Allan Burton filed a claim for benefits under the Black Lung Benefits Act ("BLBA") with the Department of Labor ("DOL"). (Doc. # 1 at ¶ 13; Doc. # 15 at 4-7). After his death, Verby Burton filed an additional and separate claim for survivor's benefits under the Act. (Doc. # 1 at ¶ 14; Doc. # 15 at 11-12). The DOL granted both Allan and Verby Burton's claims. (Id. at ¶¶ 15-22; Doc. # 15 at 24-55, 91-100). On Allan's claim, the DOL ordered Drummond to (1) pay $12,197.90 in retroactive benefits to Verby (on behalf of Allan) and (2) reimburse the Black Lung Disability Trust Fund $18,897.70 for interim benefits paid to Allan prior to his death. (Doc. # 15 at 54). On Verby's claim, the DOL ordered Drummond to (1) begin paying Verby monthly benefits of $644.50 per month and (2) reimburse the Trust Fund $12,832.40 for interim benefits paid to Verby beginning in April 2015, when the DOL initially determined she was eligible for benefits. (Id. at 99). In its compensation orders, the DOL informed Drummond that "by failing to initiate benefits ... within 10 days of the date payment is due, [Drummond] may be subject to payments of additional compensation of up to 20% of the amount due," pursuant to 33 U.S.C. § 914(f) and 20 C.F.R. § 725.607. (Doc. # 15 at 55, 100). The orders also explained that "failure to pay benefits as ordered may result in enforcement of the final award in Federal District Court" and that "[a]n appeal does not stay this penalty unless an Order staying payments has been issued by the Board or Court." (Id. ).

Drummond declined to pay the benefits and instead appealed the decisions of the administrative law judges ("ALJs") to the Benefits Review Board. See *120033 U.S.C. § 921(b) ; (Docs. # 1 at ¶ 26; 5-1 at 2-4). Drummond did not obtain an order staying payment of the benefits from the Board (Doc. # 1 at ¶ 24), so the compensation orders became effective, and payment became due, after the orders issued. 20 C.F.R. § 725.502(a)(1). Because Drummond failed to pay the benefits it owed Verby Burton during the pendency of its appeals, the Black Lung Disability Trust Fund began paying Verby Burton's benefits as provided for by statute, 26 U.S.C. § 9501(d)(1)(A), and the BLBA's implementing regulations, 20 C.F.R. § 725.522(a). (Doc. # 1 at ¶ 25).

The Benefits Review Board eventually affirmed in part and vacated in part the ALJ's decision on Allan Burton's claim and remanded the claim to the ALJ. (Doc. # 15 at 106-12). On remand, the ALJ considered additional medical evidence as required by the Board's decision but again awarded benefits on behalf of Allan Burton. (Id. at 127-37). Drummond then withdrew its appeal of Verby Burton's claim based on its earlier concession that Verby would be automatically entitled to benefits if Allan's claim succeeded. (Id. at 139; Doc. # 5-1 at 3). The DOL's compensation order awarding benefits on Verby Burton's claim (Doc. # 15 at 99-100) became final after Drummond withdrew its appeal. The DOL also issued a new compensation order following the ALJ's decision on remand regarding Allan Burton's claim. (Id. at 142). That compensation order awarded the same benefits as the DOL's first compensation order on Allan Burton's claim-$12,197.90 in retroactive benefits to Verby Burton (on behalf of Allan) and a reimbursement of $18,897.70 to the Black Lung Disability Trust Fund for interim benefits paid to Allan prior to his death. (Id. ). Once the compensation orders became final, Drummond paid all of the benefits listed in the final compensation orders and reimbursed the Trust Fund for compensation it had paid Verby Burton during the pendency of Drummond's appeals. (Doc. # 5-1 at 4).

On May 24, 2018, Verby Burton filed this action against Drummond seeking additional compensation and interest she claims Drummond owes her under the DOL's final compensation orders, pursuant to 33 U.S.C. § 914(f) and 20 C.F.R. § 725.607. Before addressing the merits of Ms. Burton's claim, the court first reviews the relevant statutory framework.

II. Federal Black Lung Program Statutory Framework

The federal black lung program derives from several related statutes. In 1969, Congress enacted the Federal Coal Mine Health and Safety Act, Pub. L. No. 91-173, 83 Stat. 742 (1969) (codified as amended at 30 U.S.C. § 801 et seq. ). Title IV of that Act established a benefits program for coal miners who were totally disabled by pneumoconiosis and for the surviving dependents of miners who died from the disease.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cite This Page — Counsel Stack

Bluebook (online)
350 F. Supp. 3d 1198, Counsel Stack Legal Research, https://law.counselstack.com/opinion/burton-v-drummond-co-alnd-2018.