Michael H. HOLLAND, et al., Appellees, v. BIBEAU CONSTRUCTION COMPANY, A Corporation, Appellant, Valley Services, Inc., A Corporation, Appellee.
No. 13-7093.
United States Court of Appeals, District of Columbia Circuit.
Argued Oct. 14, 2014. Decided Dec. 16, 2014.
As the case falls squarely within the principles of Industrial Cogenerators, we lack jurisdiction to review the orders. As the parties have neither briefed nor argued the question of review in the district court under the
The petition for review is
Dismissed.
Kathleen B. Burns argued the cause for appellees. With her on the briefs were David W. Allen and Larry D. Newsome.
Before: ROGERS, GRIFFITH and WILKINS, Circuit Judges.
ROGERS, Circuit Judge:
The Coal Industry Retiree Health Benefit Act of 1992 (“the Coal Act“),
I.
The history of the Coal Act is well documented elsewhere. See, e.g., Eastern Enterprises v. Apfel, 524 U.S. 498, 118 S. Ct. 2131, 141 L. Ed. 2d 451 (1998); Holland v. Williams Mountain Coal Co., 256 F.3d 819, 821 (D.C. Cir. 2001); Penn Allegh Coal Co., Inc. v. Holland, 183 F.3d 860, 861-62 (D.C. Cir. 1999). From the turn of the 20th century until the 1940s, health care for coal miners was largely provided by “company doctors” in rural settings where care was often deficient. The efforts of their union, the United Mine Workers of America (“UMWA“), to obtain better health care proved unsatisfactory, and a nationwide strike was called in 1946. The strike ended when the UMWA president, John L. Lewis, and the Secretary of Interior, Julius Krug, agreed to fund miners’ health care and pensions through national trust funds. Similar trust funds were part of collective bargaining agreements between miners and coal mine operators signed in 1947 and 1950.
In 1974, Congress enacted the Employee Retirement Income Security Act (“ERISA“),
Valley Services, Inc., operated a strip mine in Wyoming County, West Virginia, beginning in the late 1960s. Ovila Bibeau, the owner of Bibeau Construction, Inc., acquired Valley Services in 1975. Valley Services was a signatory to the 1974 and 1978 collеctive bargaining agreements. It ceased operations in 1979, and by 1982 had paid off its debts and dissolved. A number of other mining companies also ceased operations in the 1980s. See Penn Allegh Coal, 183 F.3d at 861. To address the resulting shortfall in funding for miners’ health care and pensions, the Secretary of Labor appointed a commission to conduct a study of health care in the coal industry and develop a “solution for assuring that orphan retirees ... will continue to receive promised medical care.” Report of the Coal Advisory Comm‘n on UMWA Retiree Health Benefits 2 (1990). Based on the Commission‘s recommendations, Congress enacted the Coal Act, which mandated the creation of the UMWA 1992 Benefit Plan to pay health care benefits and collect premiums from former employers and their successors. See
The Coal Act requires a “last signatory operator“—defined as “a signatory to a coal wage agreement” who was a retiree‘s “most recent coal industry employer,”
The Coal Act incorporates ERISA‘s enforcement scheme, providing that “[t]he provisions of [
[When] judgment in favor of the plan is awarded, the court shall award the plan—(A) the unpaid contributions, (B) interest on the unpaid contributions, (C) an amount equal to the greater of [interest or contractual liquidated damages, if less than 20% of unpaid contributions], (D) reasonable attorney‘s fees and costs of the action, to be paid by the defendant, and (E) such other legal or equitable relief as the court deems appropriate.
One of Valley Servicеs’ employees was Arthur Marcum, whose benefit premiums
The district court granted summary judgment to the Plan for premiums that became due after May 15, 2001. Holland v. Valley Services, Inc., 612 F. Supp. 2d 75, 79 (D.D.C. 2009). Ruling that Bibeau‘s laches defense was unavailable under the Coal Act, the district court explained that a new cause of action accrued as each monthly premium became due. See id. at 79-80. The district court initially rejected as time-barred all premiums due before 2001, but upon granting the Plan‘s motion to amend, calculated the limitations period by counting back six years from the date the complaint was filed, to 2000. Holland v. Valley Services, Inc., 845 F. Supp. 2d 220, 223-24 (D.D.C. 2012). The district court awarded damages for the period February 1, 2000 through March 15, 2012, leaving to the parties to resolve damages that had accrued since March 15, 2012 and any other future liabilities. Order, May 23, 2013. Bibeau appeals, and our review of the grant of summary judgment is de novo, see CarrAmerica Realty Corp. v. Kaidanow, 321 F.3d 165, 170 (D.C. Cir. 2003).
II.
As a threshold matter, the court must determine whether it has subject-matter jurisdiction of this appeal. See Citizens for the Abatement of Aircraft Noise, Inc. v. Metro. Wash. Airports Auth., 917 F.2d 48, 53 (D.C. Cir. 1990), aff‘d, 501 U.S. 252 (1991). This court‘s jurisdiction extends to “appeals from all final decisions of the district courts....”
The district court‘s Order of May 23, 2013 directed Bibeau to pay $241,227.21 for the period February 1, 2000 through March 15, 2012 for unpaid contributions, interest, liquidated damages, attorney‘s fees, and costs. For the pеriod after March 15, 2012 the district court ordered:
[T]he parties shall confer in good faith to resolve in accordance with this Order any remaining damages issues, including any necessary recalculation of unpaid premiums, interest, liquidated damages,
attorney‘s fees, and costs that have accrued since March 15, 2012 and any other liabilities that may accrue going forward.
Id. Further, if “the parties desire to have a magistrate judge assigned to assist with the resolution of the remaining calculation of damages or for settlement рurposes, the parties shall file a ... Joint Motion for Appointment of a Mediator.” Id. (internal quotation marks omitted). The district court set a daily interest payment of $13.12 to be applied to the remaining calculations.
In Brown Shoe Co. v. United States, 370 U.S. 294, 82 S. Ct. 1502, 8 L. Ed. 2d 510 (1962), which involved a government antitrust challenge to the merger of two manufacturers and sellers of shoes, the Supreme Court held that a district court order requiring divestiture was “final” under
Not all damages calculations under
Given the mechanical nature of the remaining calculations, the danger of “[r]epetitive judicial consideration of the same question[s],” id. at 309, appears remote at best, and any danger that the remaining calculations will produce an appealable issue is no greater than was true in Brown Shoe. The Order of May 23, 2013 is thus sufficiently final for this court to have subject-matter jurisdiction under
III.
The defense of laches bars a suit filed within the statute of limitations when a plaintiff unreasonably delays filing suit and the defendant is prejudiced. See Nat‘l R.R. Passenger Corp. v. Morgan, 536 U.S. 101, 121-22, 122 S. Ct. 2061, 153 L. Ed. 2d 106 (2002).
The Coal Act requires coal operators and “any related person” to pay for miners’ health care in monthly installments.
Liability under the Coal Act works in a similar way. The responsibility of the employer (or “any related person“) is to “make [Plan] contributions,”
Because the claims that the district court ordered Bibeau to pay were timely filed, the doctrine of laches cannot bar the suit under thе Supreme Court‘s recent instruction in Petrella, 134 S. Ct. 1962. In that case, the Supreme Court held that laches were unavailable as a defense to copyright infringement claims filed within the three-year statute of limitations,
The circumstances of Petrella are analogous to Bibeau‘s. There, the infringing movie studio had used a copyrighted screenplay under аssignment from the author. When the author died, “renewal rights reverted to his heirs, who could renew the copyrights unburdened by any assignment previously made by the author.” Id. at 1971. The remaining heir, see id. at 1971 n.8, renewed the copyright in 1991 and sued in 2009, decades after the screenplay was copyrighted (initially in 1963) and the movie was released (in 1980). See id. at 1970-71. Citing Bay Area Laundry, the Court held that the infringement cause of action reaccrued with each act of infringement. See id. at 1969. Under the
The Court in Petrella distinguished the cases on which Bibeau relies. For example, the Court distinguished the Title VII “hostile-work-environment claims” in Morgan, 536 U.S. at 121-22, that are “cumulative in effect and extend[] over long periods of time,” where a laches defense was allowed, from “discrete wrongs, all of them occurring within a federal limitations period,” like the copyright infringement claims before it. Petrella, 134 S. Ct. at 1975 n.16; see id. at 1970 n.7. The Court also addressed a suggestion in Bay Area Laundry, 522 U.S. at 205, that an employer facing MPPAA withdrawal liability could raise a laches defense in arbitration if the plan trustees “failed to comply with their ‘as soon as practicable’ responsibility.” The Court noted that the
Of the two circumstances identified in Petrella in which delay might still serve as a defense when a claim is filed within the statute of limitations, see Petrella, 134 S. Ct. at 1967 & n.1, both cоncerned equitable relief, which is not at issue here. The Coal Act damages awarded by the district court were legal (not equitable) and mandatory.
IV.
Bibeau also contends that the district court erred in awarding interest and liquidated damages for the period prior to the Plan‘s December 2004 notice of Bibeau‘s payment obligations. Because the remedial provisions of the Coal Act are mandatory, we find no error, much less an abuse of discretion, by the district court. See Kifafi v. Hilton Hotels Retirement Plan, 701 F.3d 718, 725 (D.C. Cir. 2012); Brayton v. Office of the U.S. Trade Representative, 641 F.3d 521, 524 (D.C. Cir. 2011) (quoting Kickapoo Tribe v. Babbitt, 43 F.3d 1491, 1497 (D.C. Cir. 1995)).
A.
Under the Coal Act,
Bibeau‘s reasons for contending the district court erred are unavailing. Bibeau maintains that it owes interest only on delinquent contributions, and that it “could not have been delinquent in payments to the Plan until it was provided notice of its obligation and failed to pay.” Reply Br. 22-23; see Appellant‘s Br. 39-41. The remedial provision,
Similarly, in relying on the phrase in the Coal Act that liability shall apply “in the same manner as ... withdrawal liability,”
Bibeau‘s reliance on Huber v. Casablanca Industries, Inc., 916 F.2d 85 (3d Cir. 1990) (overruled on other grounds in Milwaukee Brewery Workers’ Pension Plan v. Jos. Schlitz Brewing Co., 513 U.S. 414, 115 S. Ct. 981, 130 L. Ed. 2d 932 (1995)), is misplaced. Huber involved an arbitrator‘s denial of pre-notice interest on withdrawal liability, and the Third Circuit reasoned that “[t]here is no inequity in this result, as the delay in making the demand was attributable to the Fund.” Id. at 99-100. The еquity of an arbitration award is not at issue in the instant case. Further, in Huber, the interest was calculated under
Moreover, ordering Bibeau to pay pre-notice interest does not create the unfairness that Bibeau suggests in maintaining that “the loss of the use of money which interest aims to protect properly falls on the 1992 Plan,” Appellant‘s Br. 43, because Bibeau “had no way of knowing it had an obligation to pay premiums to the 1992 Plan until it received notice of the Plan‘s claim,” Reply Br. 24. Interest merely equalizes the time value of money, making the same amount similarly valuable when paid at different times. See Motion Picture Ass‘n of America, Inc. v. Oman, 969 F.2d 1154, 1157 (D.C. Cir. 1992); Oklahoma Aerotronics, Inc. v. United States, 943 F.2d 1344, 1348 (D.C. Cir. 1991). Bibeau does not challenge the correctness of the interest rate, which should therefore have made it indifferent between paying one amount in the past and the same amount plus interest at a later date.
B.
Bibeau‘s challenge to the award of liquidated damages flounders on the plain text of
Bibeau emphasizes that the Plan initially demanded it pay premiums back to 1993, far overstating its actual liability, and maintains that the Coal Act “does not address a situation where” the initial demand overstates the liability. Appellant‘s Br. 47. The text of
Alternatively, Bibeau maintains that the district court should not have awarded liquidated damages for the pre-notice period because it “could not have been delinquent in any obligation to the Plan” before it received notice. Appellant‘s Br. 48. This argument fails for the same reason it failed as to pre-notice interest. Bibeau further maintains that awarding liquidated damages for the pre-notice period would “reward[] the Plan” for its delay in notifying Bibeau of its obligations and for overstating the amount that was owed. Id. Bibeau does not suggest that the Plan intentionally delayed notification, and the Plan gave Bibeau an opportunity to pay its obligations before filing suit. Bibeau fails to demonstrate any error by the district court in adhering to the plain text of
Accordingly, we affirm the judgment and the May 23, 2013 Order on damages.
Stephen D. METZ, Appellant, v. BAE SYSTEMS TECHNOLOGY SOLUTIONS & SERVICES INC., Appellee.
No. 13-7154.
United States Court of Appeals, District of Columbia Circuit.
Argued Oct. 3, 2014. Decided Dec. 16, 2014.
