Dixie Fuel Co. v. Director, Office of Workers' Compensation Programs
820 F.3d 833
| 6th Cir. | 2016Background
- Claimant Arlis Hensley, a former coal miner (13 years), filed his third Black Lung claim (2006); prior claims in 1990 and 2003 were denied or unsuccessful.
- Administrative Law Judge (ALJ) awarded benefits in 2010 after finding total disability and, on remand from this court, again found pneumoconiosis based on combined evidence (x-rays, medical opinions, CT scans, biopsy, treatment records).
- X-ray evidence: multiple films from 1990–2009 with mixed readings; ALJ gave greater weight to dually qualified readers and found the most recent x-rays either positive or in equipoise, supporting pneumoconiosis.
- Biopsy and CT scans showed a right‑lung mass and granulomatous inflammation; biopsy was deemed non‑diagnostic/limited, and CT reports did not expressly diagnose pneumoconiosis.
- Medical opinions conflicted: some treating physicians and Dr. Baker diagnosed pneumoconiosis; Drs. Dahhan and Rosenberg attributed findings to rheumatoid lung disease or other causes but agreed patient was disabled. The ALJ discounted some opinions for inadequate reasoning and found overall evidence supports pneumoconiosis causing total disability.
- The Benefits Review Board affirmed the ALJ on remand; Petitioners (Dixie Fuel and insurer) appealed to the Sixth Circuit, which denied review and upheld the award.
Issues
| Issue | Petitioners' Argument | Respondent/Director's Argument | Held |
|---|---|---|---|
| 1) Whether ALJ’s failure to rule on admission of Dr. Wheeler’s July 28, 2008 x‑ray reading was reversible error (harmless error) | ALJ/Board relied on DOL bulletin and denied admission without proper APA process; this prejudiced Dixie | Substituting Wheeler’s reading would not change that the most recent x‑rays were positive or in equipoise; omission was harmless | Harmless error; Board’s conclusion that substitution wouldn’t alter outcome upheld |
| 2) Whether the Board misapplied law‑of‑the‑case by refusing to revisit prior determinations on remand | Dixie: law‑of‑the‑case inapplicable because issues were not resolved by prior remand | Board: prior panel’s remand was limited; several issues were previously decided and not reopened absent new basis | Board properly invoked law‑of‑the‑case for issues not raised anew; several objections waived by failure to press them here |
| 3) Whether ALJ impermissibly reweighed medical literature (took official notice of articles) to discredit Dr. Rosenberg (APA/judicial‑notice problem) | ALJ acted as expert, relied on outside internet research without giving parties opportunity under 5 U.S.C. §556(e) | ALJ permissibly evaluated credibility, consulted articles cited by Dr. Rosenberg, and Petitioners were aware of the articles; any procedural lapse was harmless | ALJ did not impermissibly play expert; taking official notice harmless where parties knew the sources and were not prejudiced |
| 4) Whether ALJ improperly discounted biopsy and CT evidence when finding pneumoconiosis | Biopsy and CT scans were negative/neutral and should have rebutted pneumoconiosis finding | Biopsy was limited/non‑diagnostic and CT reports did not address pneumoconiosis; negative biopsy/CT do not conclusively rebut x‑ray/medical evidence | ALJ reasonably treated biopsy as non‑probative and CT as minimal probative value; did not err in weighing these against x‑ray/medical opinions |
| 5) Whether ALJ applied correct causation standard for disability (pneumoconiosis must be a substantial contributing cause) | ALJ applied a lenient or inconsistent standard contrary to Arch on the Green | ALJ quoted proper regulatory standard and reasonably found the disease to be a substantially contributing cause based on combined medical opinions | Held that ALJ applied the correct standard and had substantial evidence to find pneumoconiosis substantially contributed to total disability |
Key Cases Cited
- Dixie Fuel Co., LLC v. Dir., Office of Workers’ Comp. Programs, 700 F.3d 878 (6th Cir. 2012) (prior panel remand requiring ALJ to weigh all § 718.202(a) evidence together)
- Cent. Ohio Coal Co. v. Dir., Office of Workers’ Comp. Programs, 762 F.3d 483 (6th Cir. 2014) (elements of entitlement under Black Lung Benefits Act)
- Big Branch Res., Inc. v. Ogle, 737 F.3d 1063 (6th Cir. 2013) (standard of review for Board/ALJ factual findings)
- Arch on the Green, Inc. v. Groves, 761 F.3d 594 (6th Cir. 2014) (clarified standard that pneumoconiosis must be a substantial contributing cause of disability)
- Brandywine Explosives & Supply v. Dir., Office of Workers’ Comp. Programs, 790 F.3d 657 (6th Cir. 2015) (ALJ credibility determinations and reasoned explanation standard)
- Sunny Ridge Mining Co., Inc. v. Keathley, 773 F.3d 734 (6th Cir. 2014) (ALJ may discount medical opinion when internal inconsistencies undermine reasoning)