Drummond Company, Inc. v. Director, OWCP
650 F. App'x 690
11th Cir.2016Background
- James Allred worked as an underground coal miner for Drummond for over 22 years and was a long-time heavy smoker; he developed progressive respiratory impairment and died in 2010.
- Allred filed for black lung benefits in April 2010; he died while a decision was pending and his wife Barbara pursued both his miner’s claim and a survivor claim.
- The ALJ found Allred had ≥15 years coal-mine employment and was totally disabled by a respiratory impairment, triggering the BLBA rebuttable presumption that his disability was due to pneumoconiosis.
- The ALJ concluded Drummond failed to rebut the presumption under either regulatory method (disprove pneumoconiosis or show no part of the disability was caused by pneumoconiosis) and awarded benefits; the BRB affirmed.
- Drummond appealed only arguing the ALJ applied the wrong legal standard when assessing the first method of rebuttal (that the miner did not have legal pneumoconiosis), but did not raise that precise argument before the BRB.
- The Eleventh Circuit denied the petition for review for failure to exhaust administrative remedies, declining to consider the unpresented legal theory.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether employer may challenge ALJ’s legal standard for rebutting presumption of pneumoconiosis under first method | Drummond: ALJ used a “rule-out” standard improperly when assessing whether miner had legal pneumoconiosis, making employer prove no relation to coal-dust exposure at all | Mrs. Allred/BRB: ALJ’s findings supported; employer failed to rebut under applicable standards | Court: Issue not considered because Drummond failed to raise this specific argument before the BRB; petition denied for lack of exhaustion |
| Proper application of § 718.305(d)(1)(ii) (“no part of disability caused by pneumoconiosis”) | Drummond: ALJ misapplied law; employer need only show miner would have been disabled regardless of coal-dust exposure (argues no separate “rule-out”) | BRB: § 718.305(d)(1)(ii) supports a rule-out standard (employer must show pneumoconiosis did not cause any part of disability) | Court: BRB addressed this argument and affirmed ALJ; no reversible error shown on this point |
Key Cases Cited
- Dir., OWCP v. Drummond Coal Co., 831 F.2d 240 (11th Cir.) (administrative objections must be presented to agency before appellate review)
- Sims v. Apfel, 530 U.S. 103 (2000) (discussing administrative issue-exhaustion and when courts require it)
- United States v. L.A. Trucker Truck Lines, Inc., 344 U.S. 33 (1952) (foundational discussion of administrative exhaustion principles)
- Taft v. Ala. By-Products Corp., 733 F.2d 1518 (11th Cir.) (application of administrative exhaustion in BLBA context)
- W. Va. CWP Fund v. Bender, 782 F.3d 129 (4th Cir.) (describing the “rule-out” standard for rebutting presumption)
- Antelope Coal Co. v. Goodin, 743 F.3d 1331 (10th Cir.) (same; discussing employer’s burden to rule out causal contribution of pneumoconiosis)