Lyle Construction, Inc. v. Ohio Department of Natural Resources, Division of Reclamation

516 N.E.2d 209, 34 Ohio St. 3d 22, 1987 Ohio LEXIS 437
CourtOhio Supreme Court
DecidedDecember 9, 1987
DocketNo. 86-1753
StatusPublished
Cited by19 cases

This text of 516 N.E.2d 209 (Lyle Construction, Inc. v. Ohio Department of Natural Resources, Division of Reclamation) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lyle Construction, Inc. v. Ohio Department of Natural Resources, Division of Reclamation, 516 N.E.2d 209, 34 Ohio St. 3d 22, 1987 Ohio LEXIS 437 (Ohio 1987).

Opinion

Douglas, J.

The instant appeal requires this court to determine whether the jurisdictionally required penalty prepayment provision set forth within R.C. 1513.02(F)(3) denies an insolvent mine operator due process of law or [24]*24equal protection of the laws. For the reasons expressed infra, we answer this question in the negative.

“It is axiomatic that all legislative enactments enjoy a presumption of constitutionality. Benevolent Assn. v. Parma (1980), 61 Ohio St. 2d 375, 377 [15 O.O. 3d 450]; State, ex rel. Taft, v. Campanella (1977), 50 Ohio St. 2d 242, 246 [4 O.O. 3d 423]; State, ex rel. Dickman, v. Defenbacher (1955), 164 Ohio St. 142 [57 O.O. 134], paragraph one of the syllabus. Similarly uncontroverted is the legal principle that the courts must apply all presumptions and pertinent rules of construction so as to uphold, if at all possible, a statute or ordinance assailed as unconstitutional. State v. Sinito (1975), 43 Ohio St. 2d 98, 101 [72 O.O. 2d 54]; Wilson v. Kennedy (1949), 151 Ohio St. 485, 492 [39 O.O. 301]; Eastman v. State (1936), 131 Ohio St. 1 [5 O.O. 248], paragraph four of the syllabus.” State v. Dorso (1983), 4 Ohio St. 3d 60, 61, 4 OBR 150, 151, 446 N.E. 2d 449, 450. See, also, State v. Meadows (1986), 28 Ohio St. 3d 43, 51-52, 28 OBR 146, 153, 503 N.E. 2d 697, 704; and State v. McDonald (1987), 31 Ohio St. 3d 47, 48, 31 OBR 155, 156, 509 N.E. 2d 57, 59. “* * * Thus, we are obligated to indulge every reasonable interpretation favoring the ordinance in order to sustain it.” Dorso, supra, at 61, 4 OBR at 151, 446 N.E. 2d at 450; see, also, R.C. 1.47 which provides that “[i]n enacting a statute it is presumed that * * * compliance with the constitutions of the state and the United States * * * [ar;e] intended.” (Emphasis added.)

Keeping these principles in mind, we now address the question before us. Ohio’s enforcement scheme for the reclamation of surface coal mining is divided into two parts, a “guilt determination” stage and a “penalty determination” stage.5 As the court of appeals correctly noted, “* * * an operator charged with a violation is afforded a myriad of appellate opportunities within the Division ***.*** [A]t no time during this ‘guilt determination’ stage is the operator required to prepay any penalty. * * * [A]fter the operator has availed himself of all of the avenues of appeal as to the violation, * * * [including review by the Reclamation Board of Review,] the operator is assessed a civil penalty and * * * subjected to the penalty determination stage. * * * Again, the operator is provided with the opportunity for an informal conference to review the amount of the penalty. No prepayment is required and the time allowed for payment of the penalty is tolled while the penalty is being reviewed in an informal conference. The only time the penalty must be prepaid is when review of the amount of the penalty is sought * * * [pursuant to R.C. 1513.02(F)(3), in the Reclamation Board of Review].” (Emphasis added.)

Appellant argues, however, that, notwithstanding the alternative review opportunities available without prepayment, insolvent coal miners are unable to prepay the penalty amount into escrow and thus are being unconstitutionally deprived of their right to review by the Reclamation Board of Review. We disagree.

Although this court has not previously passed upon this issue, at least three federal circuit courts of appeals and six federal district courts have upheld the constitutionality of a nearly identical penalty prepayment provision contained within the federal Surface [25]*25Mining Control and Reclamation Act of 1977, Section 1268(c), Title 30, U.S. Code.6 Each of the referenced courts found that Section 1268(c) was not constitutionally infirm, because the comprehensive review procedures preceding the penalty prepayment stage substantially protected the mine operator’s interest. Further, in Graham v. Office of Surface Mining Reclamation & Enforcement (C.A. 3, 1983), 722 F. 2d 1106, the Third Circuit Court of Appeals upheld the constitutionality of the penalty prepayment provision against an attack by an insolvent operator which was virtually identical to the cause now before us.

“* * * While the fundamental requirement of procedural due process is the opportunity to be heard ‘at a meaningful time and in a meaningful manner,’ Armstrong v. Manzo, 380 U.S. 545, 552 * * * (1965), ‘due process is flexible and calls for such procedural protections as the particular situation demands.’ Morrissey v. Brewer, 408 U.S. 471, 481 * * * (1972).” Blackhawk Mining Co. v. Andrus (C.A. 6, 1983), 711 F. 2d 753, 757. Three factors have been set forth for determining what process is due an aggrieved party: “First, the private interest that will be affected by the official action; second, the risk of an erroneous deprivation of such interest through the procedure used, and the probable value, if any, of additional or substitute procedural safeguards; and, finally, the Government’s interest, including the function involved and the fiscal and administrative burdens that the additional or substitute procedural requirement would entail.” Mathews v. Eldridge (1976), 424 U.S. 319, 335.

Application of the Mathews standards to R.C. 1513.02(F)(3) indicates that the non-penalty prepayment review alternatives within R.C. Chapter 1513 are sufficient to provide mine operators, such as appellant herein, with a meaningful opportunity to be heard and, therefore, are constitutional.

First, appellant’s private interest, although arguable, is not overriding. The statute acts only to temporarily deprive appellant of the use of the money paid into escrow during the pending appeal. Graham, supra, at 1111; Blackhawk Mining Co., Inc., supra, at 757. Further, the money must be returned within thirty days with interest, pursuant to R.C. 1513.02(F)(3), if appellant is successful in reversing the assessment. This court is convinced, therefore, that any poten[26]*26tial deprivation which might occur under this section is of much lesser magnitude than the deprivation of funds earmarked for life’s necessities, such as welfare benefits. Goldberg v. Kelly (1970), 397 U.S. 254.

Second, this court believes that under the present procedures, the risk of an erroneous deprivation is slight. As described above, R.C. Chapter 1513 prescribes several procedural safeguards, including hearings and review conferences, which may be utilized prior to any penalty prepayment being required. “[‘] * * * [A]n operator’s failure to take advantage of the relief available [does not] render * * * the statutory scheme unconstitutional. * * * [’]” Blackhawk Mining Co., Inc. at 757.

Finally, the government has a substantial interest in the prompt assessment and collection of penalties as part of its objective to insure compliance with R.C. Chapter 1513, Ohio’s coal mining reclamation provisions.

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Bluebook (online)
516 N.E.2d 209, 34 Ohio St. 3d 22, 1987 Ohio LEXIS 437, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lyle-construction-inc-v-ohio-department-of-natural-resources-division-ohio-1987.