Westmoreland Coal Co. v. Director, Office of Workers' Compensation Programs
696 F. App'x 604
4th Cir.2017Background
- Miner Jackie Fitzwater worked in coal mining (1956–1994); last employed by Lady H Coal Co. (retired July 1, 1994); died in 2008. Widow Patricia Fitzwater filed a survivor BLBA claim in 2009.
- District director identified potentially liable operators and designated Westmoreland (an earlier employer) as the responsible operator after finding Lady H uninsured on Miner’s last day of employment and insolvent following bankruptcy.
- ALJ credited treating physician Dr. Lynn Smith and Dr. William Houser, found Miner had clinical and legal pneumoconiosis and a totally disabling pulmonary impairment, invoked the §718.305 rebuttable presumption of death due to pneumoconiosis, and awarded survivor benefits.
- ALJ found Lady H was not financially capable of assuming liability because its BLBA policy had expired before Miner’s last day and bankruptcy left no enforceable liability; therefore Westmoreland was the responsible operator.
- Benefits Review Board affirmed the ALJ. Westmoreland petitioned for review in the Fourth Circuit, challenging responsible-operator designation and the ALJ’s weighing of medical evidence.
Issues
| Issue | Plaintiff's Argument (Westmoreland) | Defendant's Argument (Mrs. Fitzwater / Director) | Held |
|---|---|---|---|
| Whether Westmoreland was properly designated the responsible operator | Lady H was the miner’s last employer and therefore should be responsible; absence of an in-force policy on last day is not dispositive | District director properly found Lady H uninsured on last exposure day and thus not financially capable; Westmoreland was the most recent potentially liable operator | Court held Westmoreland correctly designated; substantial evidence supported finding Lady H had no coverage on last day and was not financially capable |
| Whether the district director failed to develop evidence re: Lady H’s liability (due process/development claim) | Cites Trace Fork: Labor Dept. ought to have developed evidence of Lady H’s financial capability | Regulations assign burdens; district director met his obligations and §725.495 allocates burdens to operators to prove another operator’s capability | Trace Fork inapplicable; current regulations govern burdens and were followed |
| Whether ALJ’s medical findings established total disability and causation (pneumoconiosis caused death) | ALJ overlooked or mis-weighed favorable contrary evidence; questioned terminology (cor pulmonale) | ALJ credited treating and other supportive physicians and autopsy; gave less weight to contrary opinions because they relied on less evidence | Court found ALJ’s credibility determinations and medical findings supported by substantial evidence; no reversible error |
| Whether CWP Fund conceded Lady H’s financial capability | CWP Fund’s participation equated to concession | CWP Fund only sought party status and reserved right to contest liability | Court held Fund did not concede liability; its reservation defeats concession argument |
Key Cases Cited
- RB&F Coal, Inc. v. Mullins, 842 F.3d 279 (4th Cir. 2016) (explaining responsible-operator concept under BLBA regulations)
- Dehue Coal Co. v. Ballard, 65 F.3d 1189 (4th Cir. 1995) (standard of review for Board decisions)
- Collins v. Pond Creek Mining Co., 468 F.3d 213 (4th Cir. 2006) (reviewing Board legal conclusions de novo)
- Director, OWCP v. Trace Fork Coal Co., 67 F.3d 503 (4th Cir. 1995) (addressing evidence-development and burden issues under earlier regulatory regime)
- Island Creek Coal Co. v. Compton, 211 F.3d 203 (4th Cir. 2000) (distinguishing clinical vs. legal pneumoconiosis)
- Mancia v. Director, OWCP, 130 F.3d 579 (3d Cir. 1997) (discussing cor pulmonale in BLBA context)