Peabody Coal Co. v. Spese

117 F.3d 1001
CourtCourt of Appeals for the Seventh Circuit
DecidedJune 27, 1997
DocketNos. 95-1687, 95-1709
StatusPublished
Cited by30 cases

This text of 117 F.3d 1001 (Peabody Coal Co. v. Spese) 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
Peabody Coal Co. v. Spese, 117 F.3d 1001 (7th Cir. 1997).

Opinion

DIANE P. WOOD, Circuit Judge.

Coal miners seeking benefits under the Black Lung Benefits Act, 30 U.S.C. §§ 901-945, often file an initial application that is unsuccessful and then try again some years later. In this case, we consider what evidence a miner must produce to win the right to proceed on his second or subsequent claim. In so doing, we discuss the scope of our decision in Sahara Coal Co. v. Director, OWCP, 946 F.2d 554 (7th Cir.1991), which we believe has been misunderstood in some quarters. In addition, we must also decide when a later-filed claim merges with an earlier claim, under 20 C.F.R. § 725.309(c), one of the Director’s regulations implementing the Act. The answers to these two questions determine the fate of the application before us, which has been in litigation in one form or another by the miner (and later his widow) for more than twenty years.

I

Although the background facts were set forth in the panel’s opinion, Peabody Coal Co. v. Spese, 94 F.3d 369 (7th Cir.1996) (Spese I), for the sake of convenience we review the essential points here. John Spese, the miner, had worked as a mechanic repairing and maintaining coal trucks at a surface mine operated by Northern Illinois Coal Company, which Peabody Coal Company later acquired. (For convenience, we refer to his employer as “Peabody” without distinguishing it from its predecessor.) By the time he was laid off in February 1976, as a result of Peabody’s decision to close the mine, Mr. Spese had worked for the company for 40 years. Two months after his retirement, Mr. Spese filed his first claim for black lung benefits. As part of his application, he underwent a battery of tests, including a physical examination, a chest x-ray, and a pulmonary function examination.

At that time, the Department of Labor (DOL) evaluated black lung applications under 20 C.F.R. Part 727, which the DOL describes as “claimant favorable.” This regulation was issued under the 1977 amendments to the Black Lung Benefits Act (BLBRA), in which Congress allowed the DOL to establish interim criteria for evaluating black lung claims until it was able to issue permanent regulations for those claims. The interim criteria could be no more restrictive than the criteria that had applied to claims filed by June 30, 1973, under earlier legislation administered by the former Department of Health, Education, and Welfare (HEW). See 30 U.S.C. § 902(f)(2); Pauley v. BethEnergy Mines, Inc., 501 U.S. 680, 688, 111 S.Ct. 2524, 2529, 115 L.Ed.2d 604 (1991); Pittston Coal Group v. Sebben, 488 U.S. 105, 110, 109 S.Ct. 414, 418, 102 L.Ed.2d 408 (1988). In taking this step, Congress apparently wanted to continue the “prompt and vigorous processing of the large backlog” of black lung claims that the HEW’s lenient interim presumptions (as opposed to HEW’s more stringent permanent regulations) had been designed to facilitate. See Pittston Coal, 488 U.S. at 116, 109 S.Ct. at 421.

Using the Part 727 interim criteria, DOL denied Mr. Spese’s claim on April 30, 1979, explaining that he did not qualify because the evidence in his claim did not show that he had pneumoconiosis. In the denial letter, DOL advised Mr. Spese that he had 60 days to submit additional evidence or to request a hearing on the denied claim, and one year to submit proof that his condition had changed or that a mistake was made in denying his claim. Mr. Spese neither appealed the adverse decision nor asked DOL to reconsider it.

Instead, on December 18, 1981, Mr. Spese filed a second claim for black lung benefits, coupled with a request that his first claim be reopened. DOL refused to reopen the 1976 claim, but it processed his second application. Because the second .claim was filed after March 31, 1980, the effective date of DOL’s permanent black lung regulations found in 20 C.F.R. Part 718, the claims examiner from DOL’s Office of Workers’ Compensation Programs, Coal Mine Division, evaluated it under Part 718. The claims examiner denied the second claim on May 6, 1982, because a second round of medical tests, including a second chest x-ray, again showed no signs of pneumoconiosis. This time, Mr. Spese asked for a formal hearing before an Administrative Law Judge, which took place nearly four years later on April 4, 1986. Prior to that [1004]*1004hearing, in 1985, he had undergone a third x-ray. Unlike the earlier two, the 1985 x-ray was read as positive for pneumoconiosis. Confronted for the first time with a positive x-ray, at the hearing Peabody asked the ALJ to keep the record open so that it could submit its own interpretation of the image. In the end, however, it never did so, nor did it offer any other supplemental evidence that might have refuted the 1985 x-ray.

On November 19, 1986, ALJ Richard Hud-dleston issued a decision ruling in Mr. Spese’s favor. The first question he addressed was whether the 1981 claim was a “duplicate” of the 1979 claim, such that the later claim merged into the earlier one under the terms of 20 C.F.R. § 725.309(c). That regulation states, in part:

A Claimant who filed a claim for benefits under Part B of title IV of the Act or Part C of Title IV of the Act, before March 1, 1978, and whose claim(s) are pending or have been finally denied, who files an additional claim under this part, shall have the later claim merged with any earlier claim subject to review under Part 727 of this subchapter. If an earlier claim subject to review under Part 727 of this subchapter has been denied after review, a new claim under this part shall also be denied, on the grounds of the prior denial unless the Deputy Commissioner determines that there has been a material change in conditions or the later claim is a request for modification and the requirements of § 725.310 are met.

Interpreting the first sentence of the regulation, ALJ Huddleston concluded that Mr. Spese’s 1981 claim should be merged into his 1976 claim, because the latter claim, which had been subject to review under Part 727, had been filed before 1978 and it had been “finally denied.” The merger meant two important things for Mr. Spese’s claim: first, it would entitle him to an earlier date for the beginning of his benefits, and second, it would entitle him to have the entire record reviewed under the more lenient criteria of Part 727. Applying the second sentence of § 725.309(c) quoted above, the ALJ concluded that the 1985 x-ray, along with a pulmonary exam dated February 17, 1982, demonstrated a “material change in conditions” that justified consideration of the second claim. On the merits, the ALJ awarded Mr. Spese benefits dating back to April 1976, based on the “interim presumption” of 20 C.F.R. § 727

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

Related

Phil-Insul Corp. v. Airlite Plastics Co.
854 F.3d 1344 (Federal Circuit, 2017)
Hancock v. Illinois Central Sweeping LLC
73 F. Supp. 3d 932 (N.D. Illinois, 2014)
Arkansas Coals, Inc. v. Albert Lawson
739 F.3d 309 (Sixth Circuit, 2014)
Baker, Mitzi v. Potter, John E.
175 F. App'x 759 (Seventh Circuit, 2006)
U.S. Steel Mining Company v. Director, OWCP
386 F.3d 977 (Eleventh Circuit, 2004)
Cannelton Industries, Inc. v. Frye
93 F. App'x 551 (Fourth Circuit, 2004)
Zeigler Coal Company v. OWCP
Seventh Circuit, 2002
Consolidation Coal Co. v. Kramer
305 F.3d 203 (Third Circuit, 2002)
Freeman United Coal Mining Co. v. Herman E. Summers
272 F.3d 473 (Seventh Circuit, 2001)

Cite This Page — Counsel Stack

Bluebook (online)
117 F.3d 1001, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peabody-coal-co-v-spese-ca7-1997.