Elkhorn Eagle Mining Co. v. Atlantia Higgins

CourtCourt of Appeals for the Sixth Circuit
DecidedApril 30, 2020
Docket18-3926
StatusUnpublished

This text of Elkhorn Eagle Mining Co. v. Atlantia Higgins (Elkhorn Eagle Mining Co. v. Atlantia Higgins) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Elkhorn Eagle Mining Co. v. Atlantia Higgins, (6th Cir. 2020).

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 20a0235n.06

No. 18-3926

UNITED STATES COURT OF APPEALS FILED FOR THE SIXTH CIRCUIT Apr 30, 2020 DEBORAH S. HUNT, Clerk ELKHORN EAGLE MINING CO., ) ) Plaintiff-Appellee, ) ON PETITION FOR REVIEW v. ) OF ORDER OF THE ) BENEFITS REVIEW BOARD, ATLANTIA HIGGINS, et al., ) ) UNITED STATES Defendant-Appellant. ) DEPARTMENT OF LABOR )

BEFORE: BATCHELDER, DONALD, and READLER, Circuit Judges.

ALICE M. BATCHELDER, Circuit Judge. Elkhorn Eagle Mining Company (“Elkhorn”)

petitions this court to review the Benefit Review Board’s (“Board”) order finding that Elkhorn

failed to raise timely its Appointments Clause challenge before the Board. Since the Supreme

Court’s June 2018 decision in Lucia v. SEC, 138 S. Ct. 2044 (2018), we have addressed several

variations of this timeliness issue, including one with a nearly identical procedural scenario.

Because Elkhorn failed to raise its Appointments Clause challenge in its opening brief before the

Board, we AFFIRM.

I.

The parties agree that Edward Higgins began working for Elkhorn on July 23, 1997, and

that his final day of work was August 3, 1998. The heart of the dispute is whether Higgins worked

for at least one year under the Black Lung Benefits Act (“BLBA”). Under the BLBA, the mine

operator that last employed the claimant for at least a year is the employer that is held liable for

the miner’s damages. 20 C.F.R. §§ 725.494, 725.495(a). This means that Elkhorn would be liable No. 18-3926, Elkhorn Eagle v. Higgins

for Higgins’s claims if Elkhorn was the last operator that employed Higgins for at least one year.

Elkhorn argues that because Higgins missed over a month of employment due to an injury in the

spring of 1998, he was not on Elkhorn’s payroll for 365 days and therefore failed to meet the one-

year requirement. The Board and the ALJ disagreed, holding that Elkhorn misunderstands the

regulatory scheme and that Higgins did meet the one-year requirement under the BLBA.

Summarized briefly, there are four ways a miner can accumulate one year’s worth of

service time: (1) if the miner was employed for 365 calendar days and worked 125 days in or

around the coal mine, the miner has “clearly established” one year’s service time; (2) if the miner

worked at least 125 days in or around the mine, the miner is presumed to have met the one-year

requirement “for the purposes of the [BLBA]”; (3) if the miner was employed for one calendar

year or partial periods totaling at least 365 days, the miner is “presumed” to have met the 125-day

working day requirement, unless there is evidence to the contrary; or (4) if a miner worked for less

than one year, an adjudicator can use the miner’s yearly income and the average daily earnings of

coal mine industry employees to calculate if the miner worked at least 125 days in or around the

mine. 20 C.F.R. § 725.101(a)(32)(i)-(iii); Shepherd v. Incoal, Inc., 915 F.3d 392, 401-02 (6th Cir.

2019).

A claim under the BLBA follows a winding path that includes four sequential stages of

review: (1) an Office of Workers’ Compensation Programs (“OWCP”) district director initially

reviews the claim and issues a Proposed Decision; (2) the miner or the operator may then have a

Department of Labor Administrative Law Judge (“ALJ”) review the decision de novo; (3) any

party of interest may appeal a “substantial question of law or fact” to the Benefits Review Board;

and (4) finally, an aggrieved party may petition this court to review the Board’s legal conclusions

de novo and factual findings under the substantial-evidence standard. 33 U.S.C. § 921(c);

-2- No. 18-3926, Elkhorn Eagle v. Higgins

20 C.F.R. §§ 725 et seq., 801 et seq.; Zurich Am. Ins. Group v. Duncan, 889 F.3d 293, 299 (6th

Cir. 2018).

After first filing for BLBA benefits in 2002,1 Higgins again filed a claim on May 3, 2013.

Higgins v. Elkhorn Eagle Mining Co., No. 17-0475 BLA, 2018 WL 3727423, at *1, n.1 (Ben. Rev.

Bd. July 30, 2018). On July 28, 2014, an OWCP district director issued a Proposed Decision and

Order finding Elkhorn liable for Higgins’s claims. Elkhorn requested a de novo hearing before an

ALJ, which was held two years later, on July 11, 2016. The ALJ issued her decision on May 8,

2017, finding that Elkhorn was liable for Higgins’s claim. Specifically, the ALJ determined that

Higgins worked at least 260 days in or around the mine, and thus found that Higgins met the one-

year requirement under the second provision of the BLBA (i.e., by working at least 125 days in or

around the coal mine). Id. at *3. On June 6, 2017, Elkhorn timely appealed the ALJ’s decision to

the Board. Elkhorn submitted its opening brief to the Board on July 18, 2017, but it did not raise

the Appointments Clause issue at that time. Id. at *1, n.3. The OWCP district director filed its

briefs to the Board on January 16, 2018, and Elkhorn did not file a reply brief.

While both parties were waiting for the Board’s final decision, the Supreme Court handed

down Lucia v. SEC on June 21, 2018. The case held that Securities & Exchange Commission

(“SEC”) ALJs must be appointed by the Head of a Department in accordance with the

Appointments Clause of the Constitution. 138 S. Ct. at 2049 (citing Art. II, § 2, cl. 2). Seventeen

days later, on July 9, 2018, Elkhorn moved to remand, relying on this new Supreme Court decision,

and raised the Appointments Clause issue for the first time. Higgins, No. 17-0475 BLA at *1, n.3.

But this was nearly a year after Elkhorn submitted its opening brief to the Board. On July 30th,

the Board issued its decision finding for Higgins on the merits and rejecting Elkhorn’s

1 The District Director denied the claim on April 18, 2003, “by reason of abandonment.” Higgins v. Elkhorn Eagle Mining Co., No. 17-0475 BLA, 2018 WL 3727423, at *1, n.1 (Ben. Rev. Bd. July 30, 2018).

-3- No. 18-3926, Elkhorn Eagle v. Higgins

Appointments Clause arguments as untimely. Id. at *5. Elkhorn now petitions this court to review

the Board’s decision.

II.

As a general matter, the first question is whether parties must exhaust issues before an

agency prior to bringing them to court. See Island Creek Coal Co. v. Bryan, 937 F.3d 738, 743

(6th Cir. 2019). Courts have held there must be issue exhaustion before the agency: (1) whenever

the statute requires it, (2) whenever a regulation requires it, or (3) when courts hold there is an

implied exhaustion rule. Id. at 746-50. The BLBA falls under the second category: 20 C.F.R.

§ 802.211(a) requires issue exhaustion before the Benefits Review Board. Id. at 749.

The next—and most important—question is whether Elkhorn exhausted its Appointments

Clause challenge by raising it for the first time in a motion for remand before the Board’s decision.

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