Elkhorn Eagle Mining Co. v. Atlantia Higgins

Court of Appeals for the Sixth Circuit·Decided April 30, 2020·No. 18-3926·Unpublished

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NOT RECOMMENDED FOR PUBLICATION File Name: 20a0235n.06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

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);

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).

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. Elkhorn argues that (1) it timely raised the issue, and (2) even if its challenge was untimely, the challenge should fall under an exception for facial constitutional challenges or for extraordinary circumstances. We hold that the Elkhorn did not timely raise its Appointments Clause challenge and that it does not fall under either of the two exceptions Elkhorn attempts to invoke.2 A. Elkhorn’s Appointments Clause Challenge was Untimely Since the Supreme Court handed down Lucia v. SEC in June 2018, this court has repeatedly had to address whether Appointments Clause challenges were timely raised. First, in July 2018, we held that an as-applied constitutional challenge based on the Appointments Clause was forfeited when the party raised the issue for the first time before the Court of Appeals, not before the agency. Jones Brothers, Inc. v. Sec’y of Labor, 898 F.3d 669, 677 (6th Cir. 2018). Next, in December 2018, we held that a party forfeited its challenge when it first raised the issue in its reply

2 Because Elkhorn’s challenge was untimely, we do not address the merits of its Appointments Clause claim.

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

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