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B & G Construction Co. v. Director, Office of Workers' Compensation Programs
2011 U.S. App. LEXIS 21631
| 3rd Cir. | 2011
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Background

  • Campbell sought survivor's benefits under the Black Lung Benefits Act as amended by PPACA; the Board awarded derivate benefits under 30 U.S.C. § 932(l) retroactively; Campbell’s claim was filed after 2005 and pending on/after PPACA enactment; prior law required proof that pneumoconiosis caused death unless 932(l) automatic continuation applied; ALJ denied Campbell, Board reversed; B&G challenged constitutional validity of 932(l) as amended and the interpretation of sections 921–922 in light of 932(l); majority held 932(l) as amended controls and directs automatic continuation of benefits to eligible survivors; Petitioner contested under due process and takings theories; court denied petitions and Campbell awarded survivor benefits

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether §1556 restored §932(l) to pre-1981 form automatically. Campbell (through Board) argues 932(l) automatic; no death-causation proof required. B&G argues §932(l) conflicts with §922 and §901 requiring death causation; must prove death due to pneumoconiosis. Yes; §1556 reinstates automatic continuation for eligible survivors.
Does §1556 violate procedural due process? No, reasonable fit; eliminates need to prove causation where survivor was eligible. Yes, irrebuttable presumption deprives employer of opportunity to present evidence. No; statute survives due-process scrutiny under Turner Elkhorn framework.
Does §1556 violate substantative due process? Remapping benefits to dependents irrespective of death cause furthers the Act’s purpose. No rational basis; contradicts purpose of causation requirement. No; rational basis supported by Congress’ policy of compensating dependents.
Is §1556 a taking under the Fifth Amendment? Unfair liability on coal industry; retroactive and aggregating burden. Not a taking; regulation spreads costs proportionally; no physical confiscation. Not a taking; factors favor upholding the regulation.
Does §932(l) conflict with §901, §921, §922 after PPACA? Ambiguity; §932(l) supersedes causation requirements. Conflict persists; §932(l) reconciled by PPACA text and purpose. Court harmonizes by interpreting 932(l) as controlling for eligibility without requiring death-causation proof.

Key Cases Cited

  • Turner Elkhorn Mining Co. v. Dir., OWCP, 428 U.S. 1 (U.S. 1976) (irrebuttable presumptions and retroactivity upheld for lifetime compensation)
  • Mancia v. Dir., OWCP, U.S. DOL, 130 F.3d 579 (3d Cir. 1997) (survivor eligibility and causation standards under pre- and post-1981 amendments)
  • Pothering v. Parkson Coal Co., 861 F.2d 1321 (3d Cir. 1988) (early interpretation of §932(l) pre-1982 automatic continuation)
  • Helen Mining Co. v. Dir., OWCP, 924 F.2d 1269 (3d Cir. 1991) (historical context of the Act and liberalization in 1972 amendments)
  • In re National Ass’n of Home Builders v. Defenders of Wildlife, 551 U.S. 644 (U.S. 2007) (statutory interpretation and guidance on implied repeals and legislative history)
  • Beach Communications, Inc., 508 U.S. 307 (U.S. 1993) (requiring rational basis for classifications under due process)
  • Turner Elkhorn Mining Co. v. Dir., OWCP, 428 U.S. 1 (U.S. 1976) (premiums, retroactivity, and compensation goals under the Act)
Read the full case

Case Details

Case Name: B & G Construction Co. v. Director, Office of Workers' Compensation Programs
Court Name: Court of Appeals for the Third Circuit
Date Published: Oct 26, 2011
Citation: 2011 U.S. App. LEXIS 21631
Docket Number: 10-4179
Court Abbreviation: 3rd Cir.