Contractor's Sand & Gravel, Inc. v. Federal Mine Safety & Health Review Commission

199 F.3d 1335, 339 U.S. App. D.C. 324, 1999 CCH OSHD 32,001, 2000 U.S. App. LEXIS 121, 1999 WL 1260302
Court of Appeals for the D.C. Circuit·Decided January 7, 2000·No. 98-1480·Published·Cited by 8 cases

Opinion

Opinion for the Court filed by Circuit Judge SENTELLE.

SENTELLE, Circuit Judge:

Contractor’s Sand and Gravel, Inc. (“CSG”) petitions for review of a Federal Mine Safety and Health Review Commission (“FMSHRC”) decision vacating an Administrative Law Judge’s (“ALJ”) award of attorneys fees and expenses against the Secretary of Labor arising out of an underlying proceeding in which CSG had successfully defended against citations and civil penalty assessments for alleged violations of Mine Safety Regulations. The Commission responds both that it has the jurisdiction to review the award and that the award was improper because the conduct of the Secretary in the underlying litigation was “substantially justified.” While we agree with the Commission that it had jurisdiction to review the award, we agree with petitioner that the conduct of the Department of Labor in the underlying Mine Act proceedings was not substantially justified. Therefore, for the reasons more fully set out below, we allow the petition for review.

I. Underlying Proceedings

A. The MSHA Citations

In March of 1993, Inspector Ann Frederick of the Mine Safety and Health Administration (“MSHA”), purporting to act under the Federal Mine Safety and Health Act of 1977 (“Mine Act”), 30 U.S.C. § 801 *1337 et seq., issued numerous citations against petitioner Contractor’s Sand & Gravel, Inc. and its general manager Eric Shoonmaker. While most citations were dismissed or otherwise disposed of, the one underlying the present proceeding resulted in substantial administrative litigation. This citation charged violation of 30 C.F.R. § 56.12025, which requires that “[a]ll metal enclosing or encasing electrical circuits shall be grounded or provided with equivalent protection.” The citation specifically alleged that the grounding system employed by petitioner for its crusher was not in compliance with law and constituted “an unwarrantable failure by [the] operator to comply with the standards” of the Mine Act. Secretary of Labor v. Contractors Sand and Gravel Supply, Inc., 18 F.M.S.H.R.C. 384, 385 (ALJ 1996) (quoting citation). The citation did not allege that the device was not grounded, but only that the method of grounding — that is the use of the frame of the equipment as the conduit to the ground — “has been forbidden for over fifteen years.” Id. In fact, neither section 56.12025, nor the Secretary’s regulatory definition applicable to the grounding requirement of section 56.12025, nor any other statute or regulation forbade frame grounding and never had. The regulatory definition simply defines “electrical grounding” as: “to connect with the ground to make the earth part of the circuit.” 30 C.F.R. § 56.2 (1999).

After testing confirmed that its method of grounding complied with the regulatory definition, CSG declined to modify the structure to comply with the Secretary’s instructions, and proceeded to contest the citation. A second MSHA inspector issued a closure order closing the entire crushing plant until such time as the crushing operation was properly grounded with a fourth wire. Only after CSG incorporated a second grounding system according to the dictates of the inspectors did MSHA lift the closure order. On May 27, 1993, MSHA assessed a $7,000 civil penalty against CSG and a $6,000 civil penalty against Shoonmaker personally, in contrast with the Secretary’s average penalty proposal of $66 and previous high penalty proposal of $81. At no time during the entire proceeding did the inspectors or any other emissary of the Secretary conduct any test to determine whether the frame grounding employed by CSG in fact complied with the regulatory definition. CSG and Shoonmaker contested the excessive penalty assessments as well as the underlying violation. The Secretary then initiated civil penalty proceedings against both before the FMSHRC.

In the Mine Act proceeding, the Secretary initially advanced a position similar to the one that Frederick had articulated in the citation, that is, she. maintained that 30 C.F.R. § 56.12025 prohibited frame grounding. Specifically, the Secretary alleged:

The grounding system set up by [CSG] did not conform to MSHA standards or to standards recognized in the building and construction industries. The use of feeder and stacker frames as grounding is prohibited by the National Electrical Codé....
The use of structural frames as grounding conductors is not recognized by MSHA....

Subsequently, in response to a pre-hearing order by the ALJ, and in apparent recognition that section 56.12025 does not contain any provision . forbidding frame grounding, that the regulations have never adopted the National Electrical Code, and that the Secretary’s inspectors had never conducted any inspection to determine compliance with the actual requirements of the actual regulatory scheme, the Secretary changed her position and alleged that MSHA would establish a violation of section 56.12025 “by showing that the stacker and crusher conveyor motors were not properly grounded. Specifically ... that these two motors did not have a ground lead or ‘fourth wire’ ... [leaving] the motors without a proper and effective ground....”

*1338 Just as the regulations did not forbid frame grounding, neither did they affirmatively require “fourth wire grounding.” Therefore, CSG moved for a summary decision from the ALJ. The Secretary opposed that motion and filed a cross-motion for summary disposition, arguing that a reasonably prudent person would infer the Secretary’s contended requirements and prohibitions from the cited sections and that the Secretary's “interpretation” was therefore entitled to “deference.”

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Contractor's Sand & Gravel, Inc. v. Federal Mine Safety & Health Review Commission, 199 F.3d 1335, 339 U.S. App. D.C. 324, 1999 CCH OSHD 32,001, 2000 U.S. App. LEXIS 121, 1999 WL 1260302 (D.C. Cir. 2000).

199 F.3d 1335 (Contractor's Sand & Gravel, Inc. v. Federal Mine Safety & Health Review Commission) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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