KenAmerican Res., Inc. v. U.S. Sec'y of Labor

33 F.4th 884
CourtCourt of Appeals for the Sixth Circuit
DecidedMay 11, 2022
Docket20-4102
StatusPublished
Cited by4 cases

This text of 33 F.4th 884 (KenAmerican Res., Inc. v. U.S. Sec'y of Labor) 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
KenAmerican Res., Inc. v. U.S. Sec'y of Labor, 33 F.4th 884 (6th Cir. 2022).

Opinion

RECOMMENDED FOR PUBLICATION Pursuant to Sixth Circuit I.O.P. 32.1(b) File Name: 22a0101p.06

UNITED STATES COURT OF APPEALS FOR THE SIXTH CIRCUIT

┐ KENAMERICAN RESOURCES, INC., │ Petitioner, │ > No. 20-4102 │ v. │ │ UNITED STATES SECRETARY OF LABOR; MINE SAFETY │ AND HEALTH ADMINISTRATION, FEDERAL MINE │ SAFETY AND HEALTH REVIEW COMMISSION, │ Respondent. │ ┘

Upon Petition for Review from the Federal Mine Safety & Health Administration; No. KENT 2013-211.

Argued: July 20, 2021

Decided and Filed: May 11, 2022

Before: BOGGS, CLAY, and WHITE, Circuit Judges.

_________________

COUNSEL

ARGUED: Artemis D. Vamianakis, FABIAN VANCOTT, Salt Lake City, Utah, for Petitioner. Emily Toler Scott, UNITED STATES DEPARTMENT OF LABOR, Arlington, Virginia, for Respondent. ON BRIEF: Artemis D. Vamianakis, Jason W. Hardin, FABIAN VANCOTT, Salt Lake City, Utah, for Petitioner. Emily Toler Scott, UNITED STATES DEPARTMENT OF LABOR, Arlington, Virginia, for Respondent. No. 20-4102 KenAmerican Res., Inc. v. U.S. Sec’y of Labor Page 2

OPINION _________________

HELENE N. WHITE, Circuit Judge. Petitioner KenAmerican Resources, Inc. challenges an order of the Federal Mine Safety and Health Review Commission upholding a citation issued by the Secretary of Labor. We DENY the petition for review.

I.

The Paradise No. 9 mine is a large underground coal mine located in Muhlenberg County, Kentucky, operated by Petitioner KenAmerican Resources, Inc. (“KenAmerican”). On April 19, 2012, someone filed an anonymous hazard complaint with the Department of Labor’s Mine Safety and Health Administration (“MSHA”) reporting potentially dangerous conditions at the Paradise No. 9 mine. The next day, MSHA inspector Doyle Sparks and several other inspectors1 from the MSHA arrived at the mine to perform an unannounced safety inspection.

The Paradise No. 9 mine has two portals, so the MSHA team split into two groups for the inspection; Sparks and three other inspectors went to the mine’s new portal, and two inspectors went to the mine’s old portal, located about six miles away. The mine’s dispatcher, Lance Holz, worked in a shack outside the old portal. Since the MSHA inspectors arrived midway through the evening shift, Holz called for a miner to return to the surface with a mantrip.2 The inspectors at the old portal instructed Holz not to tell anyone down in the mine that they were there.

Unbeknownst to Holz, Sparks, who was positioned at the new portal, was monitoring a mine-phone receiver from which he could hear Holz. While Sparks was listening, an unidentified miner in unit four picked up the receiver and asked Holz, “do we have any company

1As noted by the ALJ, there is conflicting information in the record regarding the number of inspectors responding to the complaint. However, the precise number of inspectors is not material to any issue in this appeal. 2A mantrip is “a car that carries miners underground.” Pendley v. Fed. Mine Safety & Health Rev. Comm’n, 601 F.3d 417, 419 (6th Cir. 2010). No. 20-4102 KenAmerican Res., Inc. v. U.S. Sec’y of Labor Page 3

outside?” App. 107. According to Sparks, Holz responded, “yeah, I think there is.” 3 App. 108. Sparks then asked the miner to identify himself and received the response, “who is this?” Id. Sparks stated that he was a representative of MSHA and again asked the miner to identify himself, but received no response. Believing that the unidentified miner was asking Holz whether MSHA was there to conduct an inspection, and believing that Holz’s response was an illegal attempt to tip the miner off about MSHA’s impending inspection, Sparks issued Citation No. 8502992 to KenAmerican. The citation accused KenAmerican of providing advance notice of a MSHA inspection to personnel underground, which is a violation of section 103(a) of the Federal Mine Safety and Health Act of 1977 (“Mine Safety Act”), 30 U.S.C. § 813(a).

KenAmerican contested the citation and associated penalty. An administrative law judge (“ALJ”) granted summary judgment to KenAmerican and vacated the citation, finding that the Secretary did not establish a violation of section 103(a) because the conversation between Holz and the unknown miner was ambiguous, and Holz’s response did not clearly constitute advance notice of a MSHA inspection. The Secretary filed a petition for review, and the Commission reversed the ALJ, finding that whether Holz’s response constituted advance notice of an inspection was an issue of material fact that precluded summary judgment. The Commission remanded with instructions to hold a hearing.

At the hearing before the ALJ, Sparks testified that he heard an underground miner ask Holz, “do we have any company outside?” and heard Holz respond, “yeah, I think there is.” App. 107–08. Sparks then asked the miner to identify himself and received no response. He testified that based on his decades of experience working in the mining industry, he believed that the miner and Holz were using coded language and that Holz’s statement provided the miner with advance notice of an MSHA inspection.

Holz’s testimony largely corroborated Sparks’s recollection of the events at issue, with one exception: Holz confirmed that when he heard the caller ask if there was “company outside” he assumed the caller was asking about MSHA inspectors, but he testified that he responded,

3During the October 3, 2017 evidentiary hearing before Administrative Law Judge L. Zane Gill, Sparks quoted this line as both “yeah, I think there is” and as “yeah, I think we do.” App. 107–08. Because the opinions below quoted this phrase as “yeah, I think there is,” App. 54; 69, we do the same. No. 20-4102 KenAmerican Res., Inc. v. U.S. Sec’y of Labor Page 4

“I don’t know[.]” App. 248. Holz immediately acknowledged, however, that “it’s possible” he said something else. Id. at 247–48.

Following the hearing, the ALJ again ruled in KenAmerican’s favor and vacated the citation. The ALJ credited Holz’s claim that he responded “I don’t know” over Sparks’s testimony that he heard Holz say “I think there is.” The ALJ then concluded that KenAmerican had not provided advance notice of an MSHA inspection. App. 54–66.

The Secretary appealed the ALJ’s second decision, and the Commission again reversed, finding that the ALJ abused his discretion in crediting Holz’s testimony over Sparks’s testimony,4 and that KenAmerican had provided advance notice of an inspection in violation of section 103(a)). The Commission’s second decision also rejected KenAmerican’s arguments that section 103(a)’s prohibitions do not apply to mine operators and that section 103(a) violates the First Amendment. The Commission remanded and ordered the ALJ to assess an appropriate penalty.

On remand, the ALJ assessed a penalty of $18,742. KenAmerican petitioned the Commission for discretionary review, which was denied. Forty days later, the ALJ’s third decision became the final decision of the Commission. 30 U.S.C. § 823(d)(1).

This appeal followed.

II.

A party aggrieved by an order of the Commission may seek review in this court. 30 U.S.C. § 816(a)(1). “The standard under which this Court reviews the Commission’s order is governed by the Mine Safety Act and general administrative law principles, although the Administrative Procedure Act’s judicial review provisions do not apply here, 30 U.S.C.

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33 F.4th 884, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kenamerican-res-inc-v-us-secy-of-labor-ca6-2022.