Byrge ex rel. Estate v. Premium Coal Co.
This text of 301 F. Supp. 3d 785 (Byrge ex rel. Estate v. Premium Coal Co.) is published on Counsel Stack Legal Research, covering District Court, E.D. Tennessee primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.
Opinion
C. Clifford Shirley, Jr., United States Magistrate Judge
This case is before the undersigned pursuant to
Now before the Court is the Plaintiff's Motion for Summary Judgment [Doc. 17]. The Defendants filed a Response [Doc. 19], and the Plaintiff filed a Reply [Doc. 22]. The parties have also filed a number of supplemental notices [Docs. 27, 29, 30], which the Court has considered. The parties appeared before the Court on March 2, 2017, for a motion hearing. Attorney Evan Smith appeared on behalf of the Plaintiff. Attorneys Mark Solomons, Laura M. Klaus, and Richard Solomons appeared on behalf of the Defendants. Accordingly, and for the reasons more fully explained below, the Court hereby GRANTS the Plaintiff's Motion for Summary Judgment [Doc. 17 ].
I. BACKGROUND
As an initial matter, the Court notes that the Plaintiff's Motion contains a section of material facts. [Doc. 17 at 2]. The Defendants did not specifically respond to the Plaintiff's statement of material facts, but it appears to the Court that there is no dispute regarding the administrative procedural history of this case. Thus, the following facts are taken from the Plaintiff's statement of material facts, unless otherwise noted.
The Plaintiff, filing on behalf of the estate, is the widow of Reddin Byrge, who worked for Defendant Premium Coal Company, Inc., ("Premium Coal") in Campbell and Anderson Counties in Tennessee. In June 2010, Mr. Byrge filed a claim for benefits pursuant to the Black Lung Benefits Act with the United States Department of Labor. The Director of the Office of Workers' Compensation Program administers the program. On April 15, 2011, the district director's office found that Mr. Byrge was entitled to black lung benefits. The Defendants sought a formal hearing before an administrative law judge ("ALJ").
The Defendants did not begin payment of Mr. Byrge's monthly benefits while the appeal was pending with the ALJ. As a result, the Department of Labor's Black Lung Disability Trust Fund ("Trust Fund") made interim payments to Mr. Byrge. On January 16, 2013, following a formal hearing, the ALJ awarded benefits to Mr. Byrge dating back to June 2010. The ALJ's Order was received by the district director on February 14, 2013. [Doc. 17-1].
In a letter dated March 4, 2013, to Defendant Premium Coal, the Office of Workers'
*790Compensation stated, in relevant part, as follows:
In accordance with the Decision and Order-Awarding Benefits issued by Daniel F. Solomon dated January 16, 2013[,] Premium Coal Company, Inc. shall provide monthly benefits to the claimant beginning February 2013 (check to be issued March 15, 2013) at the rate of $938.30. The operator shall reimburse the Black Lung Disability Trust Fund the sum of $21,580.90 for interim benefits paid to the claimant from April 2011 through February 2013.
...
Premium Coal Company, Inc. shall also pay the claimant retroactive benefits from June 2010 through March 2011, in the amount of $9,383.00.
...
Please be advised that by failing to initiate benefits and reimburse the Black Lung Disability Trust Fund within 10 days of the date payment is due, the employer may be subject to a penalty of up to 20% of the amount due. (In a footnote, the letter continues: See 20 CFR 725.607 and Section 14(f) of the Longshoremen's and Harbor Workers' Compensation Act as incorporated by Section 422(a) of the Black Lung Benefits Act. Such benefits are due within the 30 day period following the date of the decision in this case). Further, failure to pay benefits as ordered may result in enforcement of the final award in Federal District Court ( 20 CFR 725.604 ). An appeal does not stay this penalty unless an Order staying payments has been issued by the Board or Court.
[Doc. 17-2]. On February 11, 2013, the Defendants appealed the ALJ's award to the Department of Labor's Benefits Review Board. During this appeal, the Defendants did not pay Mr. Bryge's benefits and did not receive or request a stay.1 The Trust Fund continued to make interim payments to Mr. Byrge.
On February 24, 2014, the Benefits Review Board affirmed the ALJ's award of benefits. The Defendants sought reconsideration, but the Board denied on May 28, 2014. Later, on July 23, 2014, the Defendants petitioned the United States Sixth Circuit Court of Appeals. On February 23, 2015, while the claim was still pending, Mr. Byrge passed away. Subsequently, on July 22, 2015, the Sixth Circuit affirmed Mr. Byrge's award of benefits. The Sixth Circuit issued its mandate on September 11, 2015.
The Office of Workers' Compensation sent Defendant Premium Coal a letter dated October 28, 2015, stating that "in accordance with the Decision and Order-Awarding Benefits issued by the Court of Appeals dated July 22, 2015, the operator shall also reimburse the Black Lung Disability Trust Fund the sum of $52,676.50 for interim benefits paid to the claimant from June 2010 through January 2015." [Doc. 17-3]. The letter continues:
Please be advised that by failing to initial benefits and reimburse the Black Lung Disability Trust Fund within 10 days of the date payment is due, the employer may be subject to a penalty of up to 20% of the amount due. (In a footnote, the letter continues: See 20 CFR 725.607 and Section 14(f) of the Longshoremen's and Harbor Workers' Compensation Act as incorporated by Section 422(a) of the Black Lung Benefits Act. Such benefits are due within the 30 day period *791following the date of the decision in this case). Further, failure to pay benefits as ordered may result in enforcement of the final award in Federal District Court ( 20 CFR 725.604 ). An appeal does not stay this penalty unless an Order staying payments has been issued by the Board or Court.
The Defendants state that they repaid $52,676.50 within the ten days of their receipt of the October 28, 2015 letter.
On March 21, 2016, the Plaintiff initiated [Doc.1] the instant action. The Plaintiff alleges that the Defendants refused to pay Mr. Byrge's benefits while the appeal was pending even though the Defendants did not receive a stay of the ALJ's Order pending appeal. The Plaintiff states that the Trust Fund stepped in and made interim payments to Mr. Byrge. The Plaintiff alleges that from February 2013 until February 2015, the Defendants did not pay Mr.
Free access — add to your briefcase to read the full text and ask questions with AI
C. Clifford Shirley, Jr., United States Magistrate Judge
This case is before the undersigned pursuant to
Now before the Court is the Plaintiff's Motion for Summary Judgment [Doc. 17]. The Defendants filed a Response [Doc. 19], and the Plaintiff filed a Reply [Doc. 22]. The parties have also filed a number of supplemental notices [Docs. 27, 29, 30], which the Court has considered. The parties appeared before the Court on March 2, 2017, for a motion hearing. Attorney Evan Smith appeared on behalf of the Plaintiff. Attorneys Mark Solomons, Laura M. Klaus, and Richard Solomons appeared on behalf of the Defendants. Accordingly, and for the reasons more fully explained below, the Court hereby GRANTS the Plaintiff's Motion for Summary Judgment [Doc. 17 ].
I. BACKGROUND
As an initial matter, the Court notes that the Plaintiff's Motion contains a section of material facts. [Doc. 17 at 2]. The Defendants did not specifically respond to the Plaintiff's statement of material facts, but it appears to the Court that there is no dispute regarding the administrative procedural history of this case. Thus, the following facts are taken from the Plaintiff's statement of material facts, unless otherwise noted.
The Plaintiff, filing on behalf of the estate, is the widow of Reddin Byrge, who worked for Defendant Premium Coal Company, Inc., ("Premium Coal") in Campbell and Anderson Counties in Tennessee. In June 2010, Mr. Byrge filed a claim for benefits pursuant to the Black Lung Benefits Act with the United States Department of Labor. The Director of the Office of Workers' Compensation Program administers the program. On April 15, 2011, the district director's office found that Mr. Byrge was entitled to black lung benefits. The Defendants sought a formal hearing before an administrative law judge ("ALJ").
The Defendants did not begin payment of Mr. Byrge's monthly benefits while the appeal was pending with the ALJ. As a result, the Department of Labor's Black Lung Disability Trust Fund ("Trust Fund") made interim payments to Mr. Byrge. On January 16, 2013, following a formal hearing, the ALJ awarded benefits to Mr. Byrge dating back to June 2010. The ALJ's Order was received by the district director on February 14, 2013. [Doc. 17-1].
In a letter dated March 4, 2013, to Defendant Premium Coal, the Office of Workers'
*790Compensation stated, in relevant part, as follows:
In accordance with the Decision and Order-Awarding Benefits issued by Daniel F. Solomon dated January 16, 2013[,] Premium Coal Company, Inc. shall provide monthly benefits to the claimant beginning February 2013 (check to be issued March 15, 2013) at the rate of $938.30. The operator shall reimburse the Black Lung Disability Trust Fund the sum of $21,580.90 for interim benefits paid to the claimant from April 2011 through February 2013.
...
Premium Coal Company, Inc. shall also pay the claimant retroactive benefits from June 2010 through March 2011, in the amount of $9,383.00.
...
Please be advised that by failing to initiate benefits and reimburse the Black Lung Disability Trust Fund within 10 days of the date payment is due, the employer may be subject to a penalty of up to 20% of the amount due. (In a footnote, the letter continues: See 20 CFR 725.607 and Section 14(f) of the Longshoremen's and Harbor Workers' Compensation Act as incorporated by Section 422(a) of the Black Lung Benefits Act. Such benefits are due within the 30 day period following the date of the decision in this case). Further, failure to pay benefits as ordered may result in enforcement of the final award in Federal District Court ( 20 CFR 725.604 ). An appeal does not stay this penalty unless an Order staying payments has been issued by the Board or Court.
[Doc. 17-2]. On February 11, 2013, the Defendants appealed the ALJ's award to the Department of Labor's Benefits Review Board. During this appeal, the Defendants did not pay Mr. Bryge's benefits and did not receive or request a stay.1 The Trust Fund continued to make interim payments to Mr. Byrge.
On February 24, 2014, the Benefits Review Board affirmed the ALJ's award of benefits. The Defendants sought reconsideration, but the Board denied on May 28, 2014. Later, on July 23, 2014, the Defendants petitioned the United States Sixth Circuit Court of Appeals. On February 23, 2015, while the claim was still pending, Mr. Byrge passed away. Subsequently, on July 22, 2015, the Sixth Circuit affirmed Mr. Byrge's award of benefits. The Sixth Circuit issued its mandate on September 11, 2015.
The Office of Workers' Compensation sent Defendant Premium Coal a letter dated October 28, 2015, stating that "in accordance with the Decision and Order-Awarding Benefits issued by the Court of Appeals dated July 22, 2015, the operator shall also reimburse the Black Lung Disability Trust Fund the sum of $52,676.50 for interim benefits paid to the claimant from June 2010 through January 2015." [Doc. 17-3]. The letter continues:
Please be advised that by failing to initial benefits and reimburse the Black Lung Disability Trust Fund within 10 days of the date payment is due, the employer may be subject to a penalty of up to 20% of the amount due. (In a footnote, the letter continues: See 20 CFR 725.607 and Section 14(f) of the Longshoremen's and Harbor Workers' Compensation Act as incorporated by Section 422(a) of the Black Lung Benefits Act. Such benefits are due within the 30 day period *791following the date of the decision in this case). Further, failure to pay benefits as ordered may result in enforcement of the final award in Federal District Court ( 20 CFR 725.604 ). An appeal does not stay this penalty unless an Order staying payments has been issued by the Board or Court.
The Defendants state that they repaid $52,676.50 within the ten days of their receipt of the October 28, 2015 letter.
On March 21, 2016, the Plaintiff initiated [Doc.1] the instant action. The Plaintiff alleges that the Defendants refused to pay Mr. Byrge's benefits while the appeal was pending even though the Defendants did not receive a stay of the ALJ's Order pending appeal. The Plaintiff states that the Trust Fund stepped in and made interim payments to Mr. Byrge. The Plaintiff alleges that from February 2013 until February 2015, the Defendants did not pay Mr. Byrge his benefits within 10 days of being due. The Plaintiff requests 20% additional compensation on the unpaid benefits, which results in $10,535.30 (20% of $52,675.50). Further, the Plaintiff argues that the Defendants owe interest on the $10,535.30.
The Plaintiff has now moved for summary judgment.
II. POSITIONS OF THE PARTIES
The Plaintiff argues that the Defendants failed to pay Mr. Byrge his benefits within ten days of being due from February 2013, when the ALJ's Order became effective, until February 2015, when Mr. Byrge passed away. The Plaintiff asserts that the ALJ's Order became effective when it was filed with the District Director on February 14, 2013. The Plaintiff submits that despite the Defendants' appeals, an order can become "effective" before it becomes "final." Because the Defendants missed twenty-five payments from February 2013 to February 2015 and the lump sum payment for back benefits that was due on April 3, 2013, the Plaintiff submits that they are responsible for an additional 20% compensation on the missed payments. In support of its argument, the Plaintiff cites to
Finally, the Plaintiff argues that its claims are both ripe and timely. The Plaintiff asserts that she is under no obligation to exhaust any administrative remedy and that § 921(d) of the Longshore Act provides a freestanding right of action for claimants to enforce a final award of benefits, including the 20% additional compensation. In addition, the Plaintiff asserts that she does not need to seek a supplementary order from the district director prior to bringing suit under § 921(d). The Plaintiff asserts that the claim is not barred by any statute of limitations.
The Defendants assert that Plaintiff requests the Court to impose a Longshore penalty provision on the adjudication of a black lung claim, which as applied here, punishes the Defendants for litigating this claim. The Defendants assert that
*792The Defendants assert that the Plaintiff's request is time-barred or that no penalty is due. The Defendants explain that a plaintiff may seek to enforce an award through the district court by two avenues:
Further, the Defendants argue that the Department of Labor's departure from
The Plaintiff filed a Reply [Doc. 22] starting that the Defendants do not contest that there is a genuine dispute as to any material fact and that
The Defendants filed a Notice of Supplemental Authorities [Doc. 24]. In the Notice, the Defendants submit that the United States Supreme Court granted certiorari in a case involving the rule of lenity or its companion canon of strict construction of penal statutes. Further, the Defendants assert that since they first raised the issue of standing, the Sixth Circuit issued an unpublished opinion, adopting an expansive view of the standing in the aftermath of Spokeo Inc. v. Robins , --- U.S. ----,
III. STANDARD OF REVIEW
Summary judgment under Rule 56 of the Federal Rules of Civil Procedure is proper "if the movant shows that there is no genuine dispute as to any material fact and the movant is entitled to judgment as a matter of law." Fed. R. Civ. P. 56(a). The moving party bears the burden of establishing that no genuine issues of material *793fact exist. Celotex Corp. v. Catrett ,
"Once the moving party presents evidence sufficient to support a motion under Rule 56, the nonmoving party is not entitled to a trial merely on the basis of allegations." Curtis v. Universal Match Corp. ,
The Court's function at the point of summary judgment is limited to determining whether sufficient evidence has been presented to make the issue of fact a proper question for the finder of fact. Anderson , 477 U.S. at 250,
IV. ANALYSIS
As an initial matter, the Court notes that the Defendants have raised the issue of standing, albeit in a footnote. Because standing involves the jurisdiction of this Court, the Court must address this argument first. See A.C.L.U. of TN v. Rutherford County, TN , No. 3:02-cv-0396,
A. Standing
In a footnote, the Defendants submit, "Mrs. Byrge arguably lacks standing to pursue this lawsuit. She has not suffered an injury-in-fact, a basic requirement for Article III standing." [Doc. 19 at 17, n. 1]. The Defendants assert that whether a statute can "confer standing in the absence of any injury is an unresolved question." [Id. at 18, n. 1]. Later, the Defendants filed a Notice of Supplemental Authorities [Doc. 24], directing this Court to Sixth Circuit case law, although no analysis of the case law or how it relates to the instant case was provided.
The Plaintiff responds that she is not asserting a generalized grievance but rather is seeking the statutory compensation traceable to Defendants' failure to pay Mr. Byrge in a timely fashion. The Plaintiff asserts that the 20% additional compensation provision in
The Court finds that the Plaintiff has standing to sue. In order to establish standing, a plaintiff must allege: (1) "injury *794in fact," (2) "a causal connection between the injury and the conduct complained of," and (3) redressability. Lujan v. Defenders of Wildlife ,
B. Additional Compensation
The Plaintiff asserts that she is entitled to 20% additional compensation in the total amount of $10,535.30. The Plaintiff argues that she is entitled to such amount pursuant to
At the outset, the Court notes that this case involves interpretation of the Longshore and Harbor Workers' Compensation Act ("LHWCA") and the Black Lung Benefits Act ("BLBA"). "The BLBA established a comprehensive schedule designed to compensate miners for medical problems and disabilities related to pneumoconiosis." Nowlin v. Eastern Associated Coal Corp. ,
Section 914(f) provides as follows:
(f) Additional compensation for overdue installment payments payable under terms of award
If any compensation, payable under the terms of an award, is not paid within ten days after it becomes due, there shall be added to such unpaid compensation an amount equal to 20 per centum thereof, which shall be paid at the same time as, but in addition to, such compensation, unless review of the compensation order making such award is had as provided in section 921 of this title and an order staying payment has been issued by the Board or court.
Pursuant to
authorized to prescribe in the Federal Register such additional provisions, not inconsistent with those specifically excluded by this subsection, as he deems necessary to provide for the payment of benefits by such operator to persons entitled thereto as provided *795in this part and thereafter those provisions shall be applicable to such operators.
In exercising the above authority, the Secretary of Labor has promulgated
(a) If any benefits payable under the terms of an award by a district director (§ 725.419(d) ), a decision and order filed and served by an administrative law judge (§ 725.478), or a decision filed by the Board or a U.S. court of appeals, are not paid by an operator or other employer ordered to make such payments within 10 days after such payments become due, there will be added to such unpaid benefits an amount equal to 20 percent thereof, which must be paid to the claimant at the same time as, but in addition to, such benefits, unless review of the order making such award is sought as provided in section 21 of the LHWCA and an order staying payments has been issued.
In addition,
Section 914(f) does not provide an enforcement mechanism. See Nowlin v. Eastern Associated Coal Corp. ,
(d) District court; jurisdiction; enforcement of orders; application of beneficiaries of awards or deputy commissioner; process for compliance with orders
If any employer or his officers or agents fails to comply with a compensation order making an award, that has become final, any beneficiary of such award or the deputy commissioner making the order, may apply for the enforcement of the order to the Federal district court for the judicial district in which the injury occurred (or to the United States District Court for the District of Columbia if the injury occurred in the District). If the court determines that the order was made and served in accordance with law, and that such employer or his officers or agents have failed to comply therewith, the court shall enforce obedience to the order by writ of injunction or by other proper process, mandatory or otherwise, to enjoin upon such person and his officers and agents compliance with the order.
With the above analysis in mind, the Court will now address the parties' arguments. Specifically, the Defendants have raised three primary issues in their Response:
*796(1) Whether the Plaintiff may proceed with its claim under
1. Whether Plaintiff may proceed with its lawsuit?
The Plaintiff asserts that the decision to award benefits became effective when it was filed with the office of the district director, or February 14, 2013. The Plaintiff asserts that monthly benefits were due on the fifteenth day of the month following the month for which benefits were payable, i.e., March 15, 2013. The Plaintiff states that because the Defendants failed to pay monthly benefits and the lump-sum payment for back benefits, the Defendants now owe 20% additional compensation.
The Defendants assert that the Complaint does not seek enforcement of a final compensation order under
"By explicit statutory provisions, [ §§ 918 and 921 ] are the sole means of enforcing compensation awards." Henry v. Gentry Plumbing & Heating ,
At the hearing, the Defendants argued that the "final compensation order" is the October 28, 2015, letter to the Defendants. The Defendants asserted that pursuant to § 921(d), the Plaintiff did not have a claim because they timely paid benefits pursuant to the October 28 letter. The Court finds this interpretation inconsistent with the language in the statutes. For instance, "compensation order" is defined in
In the present matter, the Court finds that the "compensation order" in this case is the ALJ's January 16, 2013, Decision and Order, which is the order "making the award."
The Defendants state that
Finally, while the ALJ's compensation order does not reference the 20% additional compensation, and the March 4 and October 28 letters do reference the additional compensation, the Court notes that the additional compensation in § 914(f) has been described as "automatic." See *798Hudson v. Pine Ridge Coal Co., LLC , No. 2:11-cv-248,
2. When did the compensation order become effective?
In the Defendants' brief, they assert that the Plaintiff does not dispute that the "relevant trigger for enforcement of [its] claim is September 11, 2015," and that Mr. Byrge's case did not become final until September 11, 2015, when the Sixth Circuit issued its mandate. [Doc. 19 at 13-14]. The Defendants assert that they were not obligated to pay before that time. The Plaintiff argued at the hearing that the compensation order becomes effective when it is filed and the filing creates the obligation to pay.
Section 921(a) states that "[a] compensation order shall be effective when filed in the office for the deputy-commissioner as provided, and, unless proceedings for the suspension or setting aside of such order are instituted as provided in subsection (b) of this section, shall become final at the expiration of the thirtieth day thereafter." The " 'proceedings ... provided in subsection (b)' are appeals to the Benefit Review Board." Hudson,
The Court finds the § 921(a) is clear in that a compensation order becomes effective when it is filed with the district director. Here, the ALJ's decision became effective when it was filed, which in this case occurred on February 14, 2013. Accordingly, the Court finds that the Defendants were required to start paying benefits because the ALJ's Order became effective and they did not receive, let alone request, a stay of the ALJ's decision granting benefits.
Further, the Defendants repeatedly claim that such interpretation punishes them for continuing to litigate the claim.
*799The Court disagrees. First, if the Defendants prevail in their continued litigation, they will not owe the Plaintiff-hence, no punishment. Second, if they had sought and received a stay order, they would not have had to pay the additional compensation for non-payment. Third, once an award was made for the Plaintiff, the Defendants had to engage in a risk analysis, i.e., whether to hold onto the award money and not pay it to Plaintiff and instead continue to litigate (and continue to earn interest on the unpaid amount) and have the Trust Fund pay the Defendants' obligation, all with hopes of prevailing eventually, or not to run a risk of the additional 20% award by paying the award now (or seeking a stay) and still continue to litigant with the risk of over recovery for the miner if the Defendants ultimately prevail. Defendants chose the former and cannot now be heard to complain because they were deemed to have no basis for not paying the award back in 2013.
3. Whether the Secretary of Labor unlawfully departed from
The Defendants have also challenged the additional compensation as described in § 914(f) and
As noted above, § 914(f) provides that an employer shall pay 20% additional compensation on any compensation that becomes due and is not paid within ten days, unless an employer has appealed the compensation order and a stay has been issued. Although the Defendants have challenged the regulation, they acknowledge, however, that § 914(f) is an incorporated provision from the LHWCA. [Doc. 19 at 4]. The Defendants contend that § 914(f) does not make sense when applied in the adjudication of a black lung claim prior to the issuance of a final award. The Defendants reason that § 914(f) operates to ensure injured workers are not required to wait for compensation during an appeal, but in the context of a black lung claim, the Trust Fund makes interim payments to the claimant. Further, the Defendants assert that its application forces an employer to pay unrecoverable benefits in contested claims.
"Congress passed the [BLBA] and created the Black Lung Disability Trust Fund to provide benefits for miners and their survivors when a miner is killed or disabled by pneumoconiosis." Arkansas Coals, Inc. v. Lawson ,
First, the Defendants have acknowledged that § 914(f) is incorporated into the BLBA. While the Defendants argue that § 914(f) does not make sense in the context of black lung benefits, the proper recourse for any perceived inadequacies in a statute is through the legislative branch, not the judiciary. Second, while the Defendants assert that § 914(f) forces employers to pay on contested claims, the Court notes that the statute explicitly provides that the additional compensation will not be provided if the employer is granted a stay. See 33 U.S.C. 914(f). The Defendants admitted in their Answer that they did not request a stay.
*800See Answer ¶ 15 ("Defendants admit that they did not apply for or receive a stay of the ALJ's decision and order pending appeal."). Accordingly, the Defendants' position is not well-taken.
The Defendants have challenged
As an initial matter, § 914(f) was promulgated as part of the LHWCA. The LHWCA does not contain a fund to provide injured employees payments when an employer refuses to pay, so there would be no reason to add such language to § 914(f). Section
The Defendants assert that the Trust Fund was created, in part, to be fair to employers who are entitled to a full and fair adjudication but that § 725.607 punishes employers for exercising those rights. The Defendants have not cited any support for their allegation that the Trust Fund was established for the benefit of employers. To the contrary, and to this Court, all indications are that it was created to benefit the miner-to allow him/her a paid benefit if the employer refused to pay, was unable to pay, or continued to litigate without paying. Regardless, coal mine operators are afford protection from the additional compensation while seeking an appeal in the form of a stay. Here, the Defendants acknowledge that they did not even request a stay and claimed, without any legal support, at the hearing that "no one" gets a stay. This allegation is an insufficient ground to rule § 725.607 unconstitutional. See Hudson,
The Court agrees with the Plaintiff in that the purpose of the additional compensation is to discourage employers from shifting the risk to the Trust Fund and that the Secretary of Labor's enactment § 725.607 was reasonably related to the purpose of the statute. See Arkansas Coals Inc.,
The Defendants also assert that "when the district director announces its decision, the employer is pretty much in the dark." [Doc. 29 at 15]. This allegation, however, is not accurate. As emphasized by the Plaintiff, while Mr. Byrge's claim was pending with the district director, the Defendants were obviously provided with notice of the claim because they sent Mr. Byrge to a physician for an examination. [Doc. 19-1 at 10]. Furthermore, as the Plaintiff has argued, the district director's 2011 decision was not an "effective order" that resulted in the 20% additional compensation. Instead, the compensation order is the ALJ's 2013 decision that was filed with the district director. See
Further, the Defendants assert that the additional compensation operates as a penalty in the black lung context. The Court notes that the term "penalty" is missing from § 725.607. Instead, similar to § 914(f), the 20 % is referred to as "additional compensation." See also Newport News Shipbuilding and Dry Dock Co. v. Brown ,
C. Interest
The Plaintiff asserts that she is entitled to interest on the unpaid additional compensation pursuant to
In Warren , the deputy commissioner made an initial determination on May 23, 1980, that the claimant was eligible for black lung benefits as of January 1, 1980.
*802The question on appeal was whether the claimant was entitled to interest from the date of his eligibility (January 1, 1980) or the date of the initial determination (May 23, 1980).
With respect to the Defendants' argument-that is, there was no determination that a penalty is due-as noted above, " § 914(f) is self-executing; the 20 percent additional compensation automatically becomes due immediately upon the expiration of the ten-day period following the filing of the compensation order with the deputy commissioner." Combs,
Further, the Defendants argue that "where interest is statutory, as it is under the black lung program, a specific statutory authorization is required and there is none with respect to any amount owed under section 914(f)." [Doc. 19 at 13, n. 4]. Specifically, the Plaintiff has requested interest on the additional compensation pursuant to
(3) In any case in which an operator is liable for the payment of additional compensation ( § 725.607 ), the beneficiary shall also be entitled to simple annual interest computed from the date upon which the beneficiary's right to additional compensation first arose.
Accordingly, the Defendants' position is not well-taken and that the Plaintiff is entitled to interest but only on the additional compensation (i.e., the 20%) from March 25, 2013,7 to February 23, 2015, when Mr. Byrge passed away, being interest on the $10,553.00.
As a final matter, the Court notes that it is unclear if the Plaintiff is requesting interest on the lump-sum payment (and not additional compensation) that became due on April 3, 2013, because she asserts that interest on the lump sum became due on April 13, 2013. [Doc. 17 at 16]. To be clear, however, the Plaintiff is not entitled to interest on any payments that the Trust Fund has paid because only the Trust Fund is entitled to such interest payments. See
*803V. CONCLUSION
Accordingly, for the reasons explained above, the Plaintiff's Motion for Summary Judgment [Doc. 17 ] is GRANTED. A separate judgment will enter.
ORDER ACCORDINGLY.
MEMORANDUM AND ORDER ON MOTION TO ALTER OR AMEND JUDGMENT
This case is before the undersigned pursuant to
Now before the Court is Defendants' Motion to Alter or Amend Judgment [Doc. 33]. Plaintiff has responded [Doc. 35] in opposition to the Motion. The Motion is ripe for adjudication. Accordingly, for the reasons set forth below, the Court finds Defendants' Motion [Doc. 33 ] not well taken, and it is DENIED.
Although discussed herein to the extent relevant to the Court's analysis, the Court presumes familiarity with the facts of this case as well as the analysis in the underlying opinion. Relevant here, on March 31, 2017, the Court entered a Memorandum Opinion [Doc. 31] granting Plaintiff's Motion for Summary Judgment. A separate Judgment [Doc. 32] was also entered. Specifically, the Court found that Plaintiff was entitled to 20% additional compensation and interest on the additional compensation.
Defendants have now moved the Court, pursuant to Federal Rule of Civil Procedure 59(e), to alter or amend the March 31 Judgment in this case.
Defendants argue that the plain language of the Longshore and Black Lung Acts and the Department's regulations preclude a finding that the penalty in
Plaintiff responds [Doc. 35] that pursuant to
As mentioned above, Defendants' Motion was filed pursuant to Federal Rule Civil Procedure 59(e). Rule 59(e) provides, "A motion to alter or to amend a judgment must be filed no later than 28 days after the entry of the judgment." A court may grant a Rule 59(e) motion to alter or amend if there is: (1) a clear error of law; (2) newly discovered evidence; (3) an intervening change in controlling law; or (4) a need to prevent manifest injustice. Intera Corp. v. Henderson ,
Defendants do not specifically explain the basis for their Rule 59(e), but given the language in their Motion (i.e., the Court *804reached a contrary interpretation; the Court has no sound basis, and the Court's analysis is not supported by fact or law), the Court will treat the Motion as if Defendants are arguing that the Court committed clear error of law.
Defendants request that the Court reconsider as follows: (1) whether Defendants' payments were in keeping with the regulatory language setting the date the payments were due and were, therefore, timely; (2) whether prior case law, including Sixth Circuit precedent, requires this Court to follow Department of Labor's black lung rules and not Longshore rules in matters concerning the payment of benefits; (3) whether the Court's decision properly accounts for the fact that in black lung claims, but not in Longshore claims, it is necessary to coordinate a transition from payments made by the federal government in accordance with federal disability benefit program rules used in Social Security Act programs that are not designed to accommodate an immediate switch over from federal payments to private payments; and (4) whether the decision of the ALJ, the Benefits Review Board or Court provided adequate information to support an informed decision on how to pay benefits and how much to pay. [Doc. 33-1 at 3].
Defendants have asserted three primary arguments in support of their request that the Court reconsider the above. The Court will address the arguments in the order that they appear in Defendants' brief.
A. Additional Compensation
Defendants assert that this Court stands alone in its rejection of the rational system for paying black lung benefits necessitated by the specific circumstances of the black lung program. Defendants argue that the Black Lung Benefits Act ("BLBA") expressly provides that Longshore procedures to the extent applicable in black lung claims may be amended or abandoned. Defendants continue that when it comes to the payment of benefits, the black lung regulations do not follow the Longshore rules for many reasons. First, they assert that the black lung payment rules were originally established by the Social Security Administration ("SSA"). They assert that the SSA's disability benefits payment procedures were made applicable for the payment of black lung benefits. In addition, they assert that the black lung rules include a regulation that defines when a benefit payment following an adjudicated award becomes due and payable,
In its previous decision, the Court already noted that pursuant to
authorized to prescribe in the Federal Register such additional provisions, not inconsistent with those specifically excluded by this subsection, as he deems necessary to provide for the payment of benefits by such operator to persons entitled thereto as provided in this part and thereafter those provisions shall be applicable to operators.
Defendants assert that
(b)(1) While an effective order requiring the payment of benefits remains in effect, monthly benefits, at the rates set forth in § 725.520, shall be due on the fifteenth day of the month following the month for which the benefits are payable. For example, benefits payable for the month of January shall be due on the fifteenth day of February.
(2) Within 30 days after the issuance of an effective order requiring the payment of benefits, the district director shall compute the amount of benefits payable for periods prior to the effective date of the order, in addition to any interest payable for such periods (see § 725.608 ), and shall so notify the parties. Any computation made by the district director under this paragraph shall strictly observe the terms of the order. Benefits and interest payable for such periods shall be due on the thirtieth day following issuance of the district director's computation. A copy of the current table of applicable interest rates shall be attached to the computation.
When the ALJ issued his decision granting benefits, the Defendants were not required to immediately start paying some unknown amount. As explained below, the ALJ's compensation order does not become effective until it is filed with the district director.33 U.S.C. § 921 (a),20 C.F.R. § 725.479 (a). As noted above,20 C.F.R. § 502 (b)(2) provides that the district director has thirty days after the issuance of an order to compute the amount and notify the parties. Further, § 725.502(b)(2) states, "Any computation by the district director under this paragraph shall strictly observe the terms of the order."
[ Doc. 31 at 797 ]. Although not entirely clear, it appears Defendants' argument is that the district director's computation is the 2015 letter. The Court has already explained its Memorandum Opinion that the order granting benefits (i.e., ALJ's Order) was effective in 2013 (i.e., when it was filed with the district director) and benefits were payable thereafter. The Court finds no reason to repeat its findings herein.
Further, Plaintiff asserts that that Defendants' reading of § 725.502(b) is flawed because the regulation makes a distinction between (1) benefits that are due each month for after the effective date of an order requiring the payment of benefits (i.e., "ongoing benefits"); and (2) benefits that are due for the period before that effective date (i.e., "back benefits"). The Court agrees with Plaintiff's interpretation based on the clear language in the regulation. Further, the Court observes that Plaintiff presented this argument in her Motion for Summary Judgment. See [Doc. 15 at 8-9]. As Plaintiff originally explained, § 725.502(b)(1) provides that monthly benefits are due the fifteenth day of the month following the month for which the benefits are payable, or in this case March 15, 2013. [Id. at 8]. Plaintiff further explained that the District Director's March 4, 2013, pay order made this clear to Defendants because the letter specifically stated that the *806check should be issued March 15, 2013, at the rate of $983.30. [Id. ]. Plaintiff further explained that pursuant to § 725.502(b)(2), a lump-sum reimbursement for back benefits was due on April 3, 2013. [Id. at 8-9]. The district director also computed this amount. [Id. at 9]. Defendants did not pay either amounts. Defendants' arguments do not change the Court's underlying opinion because Defendants did not pay benefits until 2015-over two years after the benefits became due-nor did they request a stay. Accordingly, the Court finds the Defendants' argument not well taken.
2. Prior Black Lung Precedent
Defendants assert that prior black lung precedent holds that the Longshore Act's procedures do not supersede black lung regulations. Defendants further argue that because black lung claimaints are paid interim benefits under the federal disability insurance system administered by the SSA by agreement with Department when an employer declines to pay benefits, and the SSA cannot stop payment on a dime or even in ten days, the application of Longshore Act practices to this very different payment scheme makes no sense. They assert that the DOL payment regulation makes sense, is supported by BLBA, and is clear in its requirement that payment is due thirty days after the district director computes the benefits.
Similar to the Court's explanation above, Defendants do not explain why the Court's original finding (i.e., benefits were due in 2013 as opposed to 2015) was in error. It appears that they are asserting that the Court should rely on § 725.502(b), but the Court did rely on this regulation, in addition to others. See [Doc. 31 at note 7]. Further, as noted above, Defendants' argument does not change the Court's underlying opinion. Finally, with respect to Defendants' argument regarding SSA administering interim payments, Plaintiff disputes Defendants' allegation. See [Doc. 35 at 5] ("The Social Security Administration does not manage payment of claims like Mr. Byrge's that arise under "Part C" of the Black Lung Benefits Act.").1 Regardless, even if true, the Court agrees with Plaintiff that this is not a reason to justify Defendants' failure to pay benefits when they became due. The Court reiterates that when the ALJ issued his decision and filed it with the district director, the order granting benefits became effective, and Defendants had to start paying benefits shortly thereafter, see
3. Court's Analysis
Defendants assert that claims under the BLBA and Longshore Act are different, primarily because black lung claims are filed long after the claimant has left employment. Defendants assert that the presence of the Trust Fund eliminates the potential loss of wages, unlike claims under the Longshore Act. Defendants argue that
As mentioned above, in its Memorandum Opinion, the Court previously explained, "When the ALJ issued his decision granting benefits, the Defendants were not required to immediately start paying some unknown amount." [Doc. 31 at ----]. The Court continued that under § 725.502(b)(2) the district director has thirty days to compute the amount and notify the parties. [Id. ]. Further, Defendants argue, "To trigger any obligation under Section 14(f), the ALJ in Byrge's case would have had to provide the information that the district director set out in his October 28, 2015 letter. It is only with that information that defendants would know what was due." [Doc. 33-1 at 12-13]. The Court finds this argument meritless. As Plaintiff has emphasized in her brief, the information in the October 2015 letter is not materially different than the March 4, 2013 letter, by the district director. Instead, the only difference is that in 2015, Defendants owed more money to the Trust Fund because they did not pay Mr. Byre during their many appeals.
To be sure, the Court has again reviewed the March 4, 2013 letter. [Doc. 17-2]. The letter states that Defendants shall provide monthly benefits to the claimant beginning February 2013 (check to be issued March 15, 2013) at the rate of $938.30. [Id. ]. In addition, the letter states that the operator shall reimburse the Trust Fund in the sum of $21,580.90 for the interim benefits paid to the claimant from April 2011 through February 2013. [Id. ]. Further, the letter states that the Defendants shall pay the claimant retroactive benefits from June 2010 through March 2011 in the amount of $9,383.00. [Id. ]. Finally, the letter explains that the employer may be subject to a 20% penalty of the amount due for the failure to pay such amount and that an appeal does not stay the penalty, unless an order staying payments has been issued by the Board or Court. [Id. ].
The Court finds Defendants' allegation that they did not know the amount that was due, as they claim in their brief, is wholly misleading, given that the district director calculated such amount in March 2013.
V. CONCLUSION
Accordingly, for the reasons explained above and for the reasons stated in this Court's Memorandum Opinion [Doc. 31], Defendants' Motion to Alter or Amend Judgment [Doc. 33 ] is DENIED.
IT IS SO ORDERED.
Related
Cite This Page — Counsel Stack
301 F. Supp. 3d 785, Counsel Stack Legal Research, https://law.counselstack.com/opinion/byrge-ex-rel-estate-v-premium-coal-co-tned-2017.