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917 F.3d 1198
10th Cir.
2019
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Background

  • Claimant Tony Kourianos worked ~27 years as a coal miner and filed a Black Lung Benefits Act (BLBA) claim; OWCP identified Hidden Splendor as the responsible operator and Rockwood is Hidden Splendor’s insurer.
  • Hidden Splendor initially contested liability but later accepted the responsible-operator designation before the district director and reiterated that concession before the ALJ; Rockwood sought to withdraw that stipulation at the ALJ hearing.
  • Medical record: normal X-rays and pulmonary function tests; arterial blood gas tests (at Price, UT, ~5,566 ft) produced an exercise PO2 of 59 (PCO2 33) which qualifies as “impairing” under Appendix C for the 3,000–5,999 ft band.
  • Three physicians: Dr. Gagon (examined claimant) diagnosed chronic bronchitis, found exertional hypoxemia and concluded claimant cannot perform his usual (fire-boss) work; Drs. Zaldivar and Selby (record reviewers) attributed findings largely to smoking/altitude and disputed disability.
  • ALJ found claimant totally disabled, applied the 15‑year presumption (claimant worked >15 years), and held Hidden Splendor liable; BRB affirmed. Rockwood petitioned for review challenging (1) denial of withdrawal of the responsible-operator stipulation and (2) the disability/entitlement finding.

Issues

Issue Plaintiff's Argument Defendant's Argument Held
Whether ALJ abused discretion by denying Hidden Splendor/Rockwood leave to withdraw its stipulation that Hidden Splendor was the responsible operator Kourianos (and Director): Employer conceded before district director; withdrawal denied properly because employer failed to timely raise the issue Rockwood: Stipulation should be withdrawable because evidence (job duties) showed claimant didn’t work as a miner for a year; issue was newly revealed at ALJ hearing Denial affirmed — employer’s liability was reasonably ascertainable earlier and it waived challenge by not timely contesting before the district director; ALJ properly applied 20 C.F.R. § 725.463(b)
Whether substantial evidence supports ALJ’s finding of total respiratory disability and application of 15‑year presumption Kourianos: Exercise arterial blood gas produced a qualifying PO2 under Appendix C; Dr. Gagon’s exam/opinion ties impairment to coal-dust exposure and inability to perform usual work Rockwood: PO2 was normal for Price altitude and physicians who reviewed records tied impairment to smoking/altitude, so no disability caused by pneumoconiosis Affirmed — ALJ properly relied on qualifying Appendix C blood-gas result and credited Dr. Gagon’s opinion over record-reviewers; substantial evidence supports total disability and therefore application of the 15‑year presumption; employer failed to rebut disease, causation, or disability-causation presumptions

Key Cases Cited

  • Antelope Coal Co. v. Goodin, 743 F.3d 1331 (10th Cir. 2014) (BLBA framework and presumption discussion)
  • Energy West Mining Co. v. Estate of Blackburn, 857 F.3d 817 (10th Cir. 2017) (elements to obtain BLBA benefits and burden-shifting under presumptions)
  • Consolidation Coal Co. v. Dir., OWCP, 864 F.3d 1142 (10th Cir. 2017) (application of 15‑year presumption and legal/clinical pneumoconiosis)
  • Andersen v. Dir., OWCP, 455 F.3d 1102 (10th Cir. 2006) (legal pneumoconiosis concept)
  • Erie Boulevard Hydropower, LP v. FERC, 878 F.3d 258 (D.C. Cir. 2017) (agency bound by its own regulations)
  • Hansen v. Dir., OWCP, 984 F.2d 364 (10th Cir. 1993) (substantial-evidence review of ALJ medical credibility determinations)
  • Killman v. Dir., OWCP, 415 F.3d 716 (7th Cir. 2005) (weight to physician who addressed claimant’s actual work duties)
  • Consolidation Coal Co. v. Dir., OWCP (Burris), 732 F.3d 723 (7th Cir. 2013) (stipulations bind parties on responsible-operator issues)
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Case Details

Case Name: Rockwood Cas. Ins. Co. v. Dir., Office of Workers' Comp. Programs
Court Name: Court of Appeals for the Tenth Circuit
Date Published: Mar 5, 2019
Citations: 917 F.3d 1198; No. 18-9520
Docket Number: No. 18-9520
Court Abbreviation: 10th Cir.
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    Rockwood Cas. Ins. Co. v. Dir., Office of Workers' Comp. Programs, 917 F.3d 1198