Speed Mining, Inc. v. Federal Mine Safety & Health Review Commission

528 F.3d 310, 2008 U.S. App. LEXIS 12424, 2008 WL 2358005
CourtCourt of Appeals for the Fourth Circuit
DecidedJune 11, 2008
Docket07-2090
StatusPublished
Cited by20 cases

This text of 528 F.3d 310 (Speed Mining, Inc. v. Federal Mine Safety & Health Review Commission) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fourth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Speed Mining, Inc. v. Federal Mine Safety & Health Review Commission, 528 F.3d 310, 2008 U.S. App. LEXIS 12424, 2008 WL 2358005 (4th Cir. 2008).

Opinion

Affirmed by published opinion. Judge WILKINSON wrote the opinion, in which Judge KING and Senior Judge KISER joined.

OPINION

WILKINSON, Circuit Judge:

Speed Mining, Inc. (“SMI”), an owner-operator of a coal mine in West Virginia, petitions for review of a final decision of the Federal Mine Safety and Health Review Commission. SMI argues that it was wrongly cited for violations committed by an independent contractor it had engaged, because the Secretary of Labor lacks the authority to cite an owner-operator for an independent contractor’s violations. In the alternative, SMI contends that the Secretary abused her discretion in issuing the citations.

We reject both of SMI’s arguments. It is settled law in this and other circuits that the Secretary possesses the discretionary authority to cite owner-operators, independent contractors, or both for safety violations committed by independent contractors. Moreover, there are no manageable standards in the Mine Act that enable us to review the Secretary’s discretionary exercise of her enforcement authority.

I.

A.

Congress enacted the Federal Mine Safety and Health Act, 30 U.S.C. §§ 801- *312 964 (the “Mine Act”), in order to protect the mining industry’s “most precious resource — the miner.” 30 U.S.C. § 801(a) (2000). To that end, the Mine Act directs the Secretary of Labor, acting through the Mine Safety and Health Administration (“MSHA”), to develop and promulgate “mandatory health and safety standards” for the mining industry. See id. § 811.

In order to ensure compliance with these safety standards, the Act further directs the Secretary to inspect mines, see id. § 813(a), and issue citations to any mine “operators” the Secretary believes have “violated [the Mine Act], or any mandatory health or safety standard, rule, order, or regulation promulgated pursuant to [the Mine Act],” id. § 814(a). The Secretary is also required to propose and assess civil penalties against any operators who violate the Act or MSHA standards. See id. §§ 815, 820(a).

An operator may contest a citation or civil penalty before the Federal Mine Safety and Health Review Commission (the “Commission”). See id. §§ 815(d), 823. The Commission is an independent agency responsible for adjudicating disputes arising under the Mine Act. See id. § 823. The Commission appoints administrative law judges (“ALJs”) to review claims in the first instance in trial-like administrative hearings, see id. § 823(d)(1), and the Commission exercises discretionary appellate review over ALJ decisions, see id. § 823(d)(2)(A)®. Any person “adversely affected or aggrieved” by the Commission’s decision may then seek judicial review in the Court of Appeals of either the D.C. Circuit or the circuit where the violation is alleged to have occurred. Id. § 816(a)(1).

B.

Speed Mining, Inc., owns and operates American Eagle Mine (“the Mine”), an underground coal mine in Dry Branch, West Virginia. In 2004, SMI engaged Cowin and Company, Inc. (“Cowin”), to sink an elevator shaft at the Mine. SMI did not check Cowin’s history with regard to employee injuries or mine safety violations, even though such data was readily available on MSHA’s website. In fact, Cowin’s injury rate was substantially above — four to ten times higher than — the national average for the eight preceding years.

SMI’s contract with Cowin gave the latter almost complete discretion to sink the shaft as it saw fit. To this end, the contract stated that Cowin was an “independent contractor” and not an “agent” of SMI, and that Cowin “maintainfed] complete control at all times over its employees and any Subcontractors, Vendors, or others working under” Cowin’s supervision. Moreover, the contract granted Cowin “full power and authority to select the means, manner, and method of [its performance] without control or direction by” SMI. Cowin was also responsible for complying with “all laws, rules, orders, and regulations, federal, state, and local,” applicable to the sinking of the mine shaft.

In August 2004, Cowin began constructing the elevator shaft. On August 31, September 2, and September 13, a MSHA official inspected Cowin’s shaft-sinking site. Each time, the inspector found violations of MSHA safety standards. Over this two week period, the inspector issued four citations to Cowin.

On the same dates, the MSHA inspector also visited an electrical substation at the Mine. SMI had retained American Electrical, Inc. (“AEI”), another independent contractor, to install equipment at the substation. On August 31, the inspector discovered that AEI had violated a MSHA regulation, and he thus issued AEI a citation. The inspector also twice determined *313 that SMI had failed to provide hazard training for AEI employees, despite being compelled to do so under MSHA regulations. See 30 C.F.R. § 46.12 (2007). The inspector cited SMI for these violations.

On September 29, 2004, an accident occurred at Cowin’s shaft-sinking site: a crane hoist failed and, as a result, a six-ton bucket fell and landed next to the mine shaft opening. Although no one was seriously injured during the accident, the free-falling bucket presented a severe safety risk. If the bucket had fallen a few feet to the side (over the mine shaft), it would have seriously injured, and possibly killed, the five Cowin employees working in the shaft at the time of the accident.

After investigating the accident, MSHA determined that six violations of MSHA safety standards had occurred: failure to correct defects in the crane; failure to adequately train the crane operator; failure to comply with the MSHA-approved shaft sinking plan (two separate violations); failure to remove the crane from service, despite the fact that two safety switches were not functional; and failure to perform an adequate pre-operational check on the crane. The Secretary thus issued both Cowin and SMI citations for each of these six violations. The citations received by Cowin and SMI were nearly identical in every respect, except for the fact that SMI was charged with a lower degree of negligence.

SMI subsequently contested the citations arising from the crane hoist accident. Before an ALJ, SMI claimed that the Secretary abused her discretion in citing SMI “for violations for which an independent contractor alone was responsible.” SMI’s arguments were largely based on the Commission’s decision in Twentymile Coal Co., 27 FMSHRC 260 (2005). In Twentymile, the Commission held that the Secretary abused her discretion in citing an owner-operator for violations committed by an independent contractor.

Relying on this decision, the ALJ agreed with SMI and held that the Secretary had abused her discretion in citing SMI in connection with the September 29, 2004 accident. The Secretary subsequently appealed the ALJ’s decision.

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528 F.3d 310, 2008 U.S. App. LEXIS 12424, 2008 WL 2358005, Counsel Stack Legal Research, https://law.counselstack.com/opinion/speed-mining-inc-v-federal-mine-safety-health-review-commission-ca4-2008.