Metzler v. Tackett & Manning Coal Corp.

958 F. Supp. 307, 1997 U.S. Dist. LEXIS 4667, 1997 WL 174729
District Court, E.D. Kentucky·Decided March 28, 1997·No. Civil Action No. 95-150·Published·Cited by 1 cases

Opinion

MEMORANDUM OPINION AND ORDER

HOOD, District Judge.

The defendants have moved the Court for judgment on the pleadings [Record No. 24], The plaintiffs have responded [Record No. 38] . The plaintiffs have also moved the Court for summary judgment [Record No. 39] . The defendants have responded [Record No. 42].

The Court being advised, these matters are ripe for decision. Having reviewed the record and the memoranda submitted by the parties, the Court makes the following findings of fact and conclusions of law.

FINDINGS OF FACT

The defendant, Tackett & Manning Coal Corporation (“T & M”) was incorporated on April 15, 1970, and was dissolved on March 17, 1993. While operating in Letcher County, Kentucky, T & M employed Gene Mullins as a miner. Mr. Mullins filed a claim under the Black Lung Benefits Act (“BLBA”), 30 U.S.C. §§ 901 et seq., on August 28, 1978.

During his employment at T & M and at the time of the filing of his claim, the defendant, Kenneth Manning, was a statutory officer of the corporation, presiding as either president or secretary-treasurer. The defendant, Nancy Manning, however, was not a statutory officer; she became secretary-treasurer of the corporation on January 23, 1979.

Mr. Mullins was ultimately diagnosed with pneumoconiosis. On May 14, 1979, the District Director of the Office of Workers’ Compensation Program, United States Department of Labor (“District Director”), issued a Notice of Initial Finding, designating T & M as the responsible operator liable for Mr. Mullins’ benefits under the BLBA. T & M did not contest the District Director’s findings, and thus, the Department of Labor on August 6, 1979, issued an award of benefits. Such award was upheld by the Sixth Circuit Court of Appeals on May 5,1989.

Mr. Mullins’ right to benefits having been affirmed, benefits payments were to begin. However, T & M did not have insurance and was not a self-insurer for the initial $75,-000.00 of benefits to be paid to Mr. Mullins. Consequently, pursuant to 30 U.S.C. § 934, the District Director paid out interim benefits, in excess of $75,000.00, to Mr. Mullins from the Black Lung Disability Trust Fund (“Trust Fund”), set up for these very purposes.

The plaintiffs now seek reimbursement pursuant to 30 U.S.C. § 934(b)(1) from T & M for those benefits paid from the trust fund. The plaintiffs also seek reimbursement pursuant to 30 U.S.C. § 933(d)(1) from Kenneth Manning and Nancy Manning as statutory officers of T & M. Thus, the plaintiffs have filed this complaint in order to recover the following: (1) the benefits payments made to Mr. Mullins, (2) a statutory penalty provided for the failure to commence such payments in a timely manner, (3) costs of a physical examination provided to Mr. Mullins, (4) an attorney’s fee award made to the claimant’s attorney, and interest on such payments, where applicable.

[309]*309The defendants have filed a motion for judgment on the pleadings. The defendants argue that the claims against Kenneth Manning and Nancy Manning are barred by the appropriate statute of limitations. The defendants contend that the statute of limitations for the claims against them pursuant to 30 U.S.C. § 933(d)(1) is five years; this suit was filed six years after the final determination for benefits.

The plaintiffs respond that the appropriate statute of limitations is embodied in 30 U.S.C. § 934(b)(4)(B), which gives the United States six years to commence an action after liability is finally determined. Thus, the plaintiffs submit that this action was timely filed against Kenneth Manning and Nancy Manning. Moreover, the plaintiffs contend that they are entitled to summary judgment. They argue that it is clear that the defendants are liable for failing to secure insurance and timely pay Mr. Mullins’ benefits.

The defendants respond, admitting that T & M and Kenneth Manning are liable if the Court finds that the statute of limitations is six years rather than five years. However, they deny that Nancy Manning is liable under 30 U.S.C. § 933(d)(1), as she was not a statutory officer at the time of Mr. Mullins employment or at the time he filed his claim for benefits.

CONCLUSIONS OF LAW

I. Six-Year Statute of Limitations Is Applicable

30 U.S.C. § 933 does not contain a statute of limitations within its provisions. 30 U.S.C. § 934 does, however. 30 U.S.C. § 934(b)(4)(B) (emphasis added) states,

The liability imposed by paragraph (1) may be collected at a proceeding in court if the proceeding is commenced within 6 years after the date on which the liability was finally determined, or before the expiration of any period for collection agreed upon in writing by the operator and the United States before the expiration of such 6-year period____

Paragraph (1), as referred to in the quote above, states that an operator is liable to the United States for the amount of benefits paid out of the trust fund if “(A) an amount is paid out of the fund to an individual entitled to benefits under section 932 of this title, and (B) the Secretary determines, under the provisions of sections 932 and 933 of this title, that an operator was required to secure the payment of all or a portion of such benefits....” 30 U.S.C. § 934(b)(1)(A) & (B) (emphasis added). Thus, section 933 gives rise to the liability of an operator to repay the benefits paid out of the fund. Accordingly, these sections are interrelated and the six-year statute of limitations set forth in section 934 would logically appear to apply to the collection and reimbursement provided for under 30 U.S.C. § 933(d)(1).

Little case law exists which interprets 30 U.S.C. § 933, and the case law that does exist fails to address what statute of limitations applies to section 933. Moreover, the Court could not find any case law discussing an appropriate statute of limitations for the BLBA, except in regards to 30 U.S.C. § 934. Consequently, the Court looks to the ease of Wilson v. Garcia, 471 U.S. 261, 105 S.Ct.

Free access — add to your briefcase to read the full text and ask questions with AI

Metzler v. Tackett & Manning Coal Corp., 958 F. Supp. 307, 1997 U.S. Dist. LEXIS 4667, 1997 WL 174729 (E.D. Ky. 1997).

958 F. Supp. 307 (Metzler v. Tackett & Manning Coal Corp.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related