Freeman United Coal Mining Co. v. Benefits Review Board, United States Department of Labor

942 F.2d 415, 1991 WL 133532
CourtCourt of Appeals for the Seventh Circuit
DecidedJuly 23, 1991
DocketNo. 89-2307
StatusPublished
Cited by1 cases

This text of 942 F.2d 415 (Freeman United Coal Mining Co. v. Benefits Review Board, United States Department of Labor) is published on Counsel Stack Legal Research, covering Court of Appeals for the Seventh Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Freeman United Coal Mining Co. v. Benefits Review Board, United States Department of Labor, 942 F.2d 415, 1991 WL 133532 (7th Cir. 1991).

Opinion

COFFEY, Circuit Judge.

Freeman United Coal Mining Company appeals a decision of the Benefits Review Board reversing an Administrative Law Judge’s denial of benefits to William Doty under the Black Lung Benefits Act on the ground that Freeman failed to rebut the 20 C.F.R. § 727.208 interim presumption entitling Doty to benefits. We agree with the Benefits Review Board that the Administrative Law Judge erred, but we base our decision on different grounds.

I. FACTS

Freeman United Coal Company employed William Doty as a laborer and electrician from 1934 until his retirement in 1977. Doty was born on July 18, 1912, and has never smoked. He testified before the Administrative Law Judge (“AU”) that he was exposed to coal dust in his work and experienced difficulty breathing during his last three years on the job.

Since we decide this case on procedural grounds, our statement of facts will be limited primarily to the procedural history. Doty filed his complaint for black lung benefits with the Department of Labor on August 1, 1977. On March 27, 1979, the Department of Labor’s Division of Coal Mine Workers’ Compensation sent Freeman United Coal Mining Company a Notice of Initial Finding stating that the Department had found “that the claimant is entitled to benefits” and that Freeman United Coal is “liable to pay benefits.” Freeman filed its controversion of the initial finding on a Department of Labor “Operator Response” form dated May 1, 1979, five days more than the thirty days from the date of the Notice of Initial Findings that the regulations permit for filing a controversion of liability,1 but within the thirty-seven days permitted for filing a controversion through the U.S. mail.2

The parties3 held an informal conference regarding Doty’s claim on January 16,1980 pursuant to 20 C.F.R. § 725.416.4 Freeman claims that its non-lawyer representative, Harry Treadwell, requested during the hearing that the Acting Deputy Commissioner send the Memorandum of Conference to him at Freeman’s West Frankfort, Illinois address. But the Acting Deputy Commissioner’s Memorandum of Conference recommending that Doty receive black lung benefits was sent to the atten[418]*418tion of Freeman’s attorney at the address included on Freeman’s Operator Response form. Freeman received the Memorandum in its Chicago office on May 19, 1980, but failed to send a letter to the Acting Deputy Commissioner rejecting her recommendation until June 26, 1980, more than thirty days after the date of the Acting Deputy Commissioner’s recommendation. See 20 C.F.R. § 725.417(d).5 Upon receipt of Freeman’s rejection of the recommendation, the Deputy Commissioner proceeded to issue a proposed decision on July 11, 1980, awarding benefits to Doty effective August 1, 1977 (without addressing the untimeliness of Freeman’s response).

The Labor Department regulations permit a proposed decision of the Deputy Commissioner to be appealed to an ALJ within 30 days of issuance.6 Freeman asserts that it sent the Deputy Commissioner a letter dated July 22, 1980, rejecting the proposed findings of fact and conclusions of law and requesting that the claim be forwarded to the Office of Administrative Law Judges for a formal hearing, but Doty claims he never received it. The problem is that this alleged letter is not now nor was it ever made part of the Labor Department’s record, and it is impossible to verify whether the document was actually sent. Doty subsequently began receiving interim payments from the Black Lung Trust Fund until such a time as liability could be enforced against Freeman.

More than a year later, on October 20, 1981, Donald Shire, Associate Solicitor for Employee Benefits of the Department of Labor’s Division of Coal Mine Workers’ Compensation addressed a memorandum to Ralph M. Hartman, Director of the Department’s Office of Worker Compensation Programs, regarding enforcement of the claim. Noting Freeman’s untimely mailing of its rejection of the Memorandum of Conference and that “[t]he Responsible Operator did not subsequently respond to the Award of Benefits,” Shire requested that proceedings be instituted to compel Freeman to pay benefits. The record contains no trace of any Labor Department action in response to Shire’s request, but early in 1982 Freeman requested that liability for payments be shifted to the Trust Fund. The Deputy Commissioner denied the requested transfer of liability on March 8, 1982, and Freeman failed to appeal this determination.

It would be four years until the Labor Department would return to the question of the disposition of Doty’s claim. Francis A. DeMarino, Deputy Associate Director of the Office of Workers’ Compensation Programs, Division of Coal Mine Workers’ Compensation, sent a memorandum to Robert A. Mitchell, the Deputy Commissioner in the Division of Coal Mine Workers’ Compensation, on October 31,1985. The memorandum failed to acknowledge Shire’s 1981 memorandum and stated:

“A Memorandum of Conference was issued to Harry A. Treadwell c/o Louis R. Hedgeman of Freeman United Coal Mine Company in Chicago, instead of di[419]*419rectly to Mr. Treadwell at P.0. Box 100 Frankfort, II. This document, which was received in [C]hicago on May 19, 1980, was responded to on June 26, 1980. Because of the delayed response a proposed Decision and Order was issued July 11, 1980.
“Experience with this particular responsible operation suggests that the failure to respond within 30 days is a rare occurrence and the Proposed Decision and Order should have been held in abeyance until the cause for the delay was determined. There is no evidence in the file to establish if and when the Proposed Decision and Order was received by the Interested Parties.
“In March of 82, in the process of resolving the issue of ‘Transfer of Liability’, Claims Examiner Rosemary Kress suggested referral to an Administrative Law Judge would appear to be the more appropriate action rather than referral for enforcement. Apparently the designated responsible operator anticipated that the claim was to be submitted to an Administrative Law Judge for a medical examination of the miner was scheduled and the report of finding forwarded to the file.
“Unless you have evidence to the contrary, we are returning the claim for referral to the Office of the Administrative Law Judge.”

Even though the record reveals no request from either party for a formal hearing, the case was referred to the Office of Administrative Law Judges. The first notice Doty received to the effect that the benefits awarded to him July 11, 1980, were in jeopardy came in a letter dated November 20, 1985:

“Dear Mr. Doty:
“It has been several years since your claim has been reviewed. Our efforts to enforce your July 11, 1980 Award of Benefits has been dismissed with the recommendation that your claim be forwarded to the Office of Administrative Law Judges for a hearing decision.

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942 F.2d 415, 1991 WL 133532, Counsel Stack Legal Research, https://law.counselstack.com/opinion/freeman-united-coal-mining-co-v-benefits-review-board-united-states-ca7-1991.