Burton v. Drummond Co.
Burton v. Drummond Co.
Opinion of the Court
This matter is before the court on Defendant's Motion to Dismiss. (Doc. # 5). The Motion requires the court to decide whether it has subject matter jurisdiction over Plaintiff's claim and, if so, whether Plaintiff has stated a claim upon which relief can be granted. See Fed. R. Civ. P. 12(b)(1), 12(b)(6). The court concludes the answer to both is yes. Thus, as more fully explained below, Defendant's Motion to Dismiss is due to be denied.
I. Factual and Procedural Background
Plaintiff Verby Burton is the widow of a deceased coal miner, Allan Burton, who Defendant Drummond Company employed to work in its coal mines in Alabama. (Doc. # 1 at ¶¶ 8-12). Allan Burton died in 2015 from coal workers' pneumoconiosis, commonly known as black lung disease. (Doc. # 15 at 9).
Prior to his death, Allan Burton filed a claim for benefits under the Black Lung Benefits Act ("BLBA") with the Department of Labor ("DOL"). (Doc. # 1 at ¶ 13; Doc. # 15 at 4-7). After his death, Verby Burton filed an additional and separate claim for survivor's benefits under the Act. (Doc. # 1 at ¶ 14; Doc. # 15 at 11-12). The DOL granted both Allan and Verby Burton's claims. (Id. at ¶¶ 15-22; Doc. # 15 at 24-55, 91-100). On Allan's claim, the DOL ordered Drummond to (1) pay $12,197.90 in retroactive benefits to Verby (on behalf of Allan) and (2) reimburse the Black Lung Disability Trust Fund $18,897.70 for interim benefits paid to Allan prior to his death. (Doc. # 15 at 54). On Verby's claim, the DOL ordered Drummond to (1) begin paying Verby monthly benefits of $644.50 per month and (2) reimburse the Trust Fund $12,832.40 for interim benefits paid to Verby beginning in April 2015, when the DOL initially determined she was eligible for benefits. (Id. at 99). In its compensation orders, the DOL informed Drummond that "by failing to initiate benefits ... within 10 days of the date payment is due, [Drummond] may be subject to payments of additional compensation of up to 20% of the amount due," pursuant to
Drummond declined to pay the benefits and instead appealed the decisions of the administrative law judges ("ALJs") to the Benefits Review Board. See *1200
The Benefits Review Board eventually affirmed in part and vacated in part the ALJ's decision on Allan Burton's claim and remanded the claim to the ALJ. (Doc. # 15 at 106-12). On remand, the ALJ considered additional medical evidence as required by the Board's decision but again awarded benefits on behalf of Allan Burton. (Id. at 127-37). Drummond then withdrew its appeal of Verby Burton's claim based on its earlier concession that Verby would be automatically entitled to benefits if Allan's claim succeeded. (Id. at 139; Doc. # 5-1 at 3). The DOL's compensation order awarding benefits on Verby Burton's claim (Doc. # 15 at 99-100) became final after Drummond withdrew its appeal. The DOL also issued a new compensation order following the ALJ's decision on remand regarding Allan Burton's claim. (Id. at 142). That compensation order awarded the same benefits as the DOL's first compensation order on Allan Burton's claim-$12,197.90 in retroactive benefits to Verby Burton (on behalf of Allan) and a reimbursement of $18,897.70 to the Black Lung Disability Trust Fund for interim benefits paid to Allan prior to his death. (Id. ). Once the compensation orders became final, Drummond paid all of the benefits listed in the final compensation orders and reimbursed the Trust Fund for compensation it had paid Verby Burton during the pendency of Drummond's appeals. (Doc. # 5-1 at 4).
On May 24, 2018, Verby Burton filed this action against Drummond seeking additional compensation and interest she claims Drummond owes her under the DOL's final compensation orders, pursuant to
II. Federal Black Lung Program Statutory Framework
The federal black lung program derives from several related statutes. In 1969, Congress enacted the Federal Coal Mine Health and Safety Act, Pub. L. No. 91-173,
Under the Black Lung Benefits Act ("BLBA") and its amendments, disabled *1201miners or their surviving dependents may file benefits claims with the Secretary of Labor, who is responsible for processing the claims and awarding benefits where appropriate. See
BLBA claims are first evaluated and adjudicated by a district director within the Department of Labor.
Various procedural and other provisions contained in the Longshore and Harbor Workers' Compensation Act ("LHWCA"),
Section 914(f) provides additional compensation for BLBA beneficiaries when an operator fails to timely pay an award, unless the operator appeals the award and obtains an order staying payment. Section 914(f) states:
If any compensation, payable under the terms of an award, is not paid within ten days after it becomes due, there shall be added to such unpaid compensation an amount equal to 20 per centum thereof, which shall be paid at the same time as, but in addition to, such compensation, unless review of the compensation order making such award is had as provided in [33 U.S.C. § 921 ] and an order staying payment has been issued by the Board or court.
Notably, § 914(f) does not contain an independent enforcement mechanism. It *1202does not, for instance, create a private right of action authorizing a BLBA beneficiary to sue in federal court to collect 20 percent additional compensation. This is where § 921(d) comes into play.
Section 921(d) provides a private cause of action for BLBA beneficiaries to enforce a final benefits award in federal court. Section 921(d) states:
If any employer ... fails to comply with a compensation order making an award, that has become final, any beneficiary of such award or the deputy commissioner making the order, may apply for the enforcement of the order to the Federal district court for the judicial district in which the injury occurred .... If the court determines that the order was made and served in accordance with law, and that such employer or his officers or agents have failed to comply therewith, the court shall enforce obedience to the order by writ of injunction or by other proper process, mandatory or otherwise, to enjoin upon such person and his officers and agents compliance with the order.
Plaintiff's claim presents the court with two issues. The first is whether a BLBA beneficiary who is owed 20 percent additional compensation under § 914(f) may obtain that additional compensation directly through an action in federal court under § 921(d) to enforce a final compensation order, or whether such a beneficiary must first obtain a supplemental order from the DOL awarding it the 20 percent additional compensation. The second is whether a BLBA beneficiary has a right to additional compensation under § 914(f) where a responsible operator failed to timely pay compensation owed under the terms of an award but the Trust Fund timely paid the compensation in the operator's stead.
III. Analysis
Drummond argues Ms. Burton's claim should be dismissed because this court lacks subject matter jurisdiction over it and because Ms. Burton has failed to state a claim upon which relief can be granted. See Fed. R. Civ. P. 12(b)(1), 12(b)(6). For the reasons explained below, the court concludes both that it has subject matter jurisdiction and that Ms. Burton has stated a claim.
A. The Court Has Subject Matter Jurisdiction Over Ms. Burton's Claim
Drummond makes three arguments to support its Rule 12(b)(1) motion to dismiss: that Ms. Burton lacks Article III standing, that no federal statute confers subject matter jurisdiction over Ms. Burton's claim, and that Department of Labor regulations deprive this court of jurisdiction over Ms. Burton's claim. The court disagrees, and addresses each argument in turn.
1. Ms. Burton Has Article III Standing
Drummond argues Ms. Burton lacks Article III standing because she was timely paid all benefits owed to her under the BLBA, either by Drummond or the Trust Fund, and thus has suffered no injury in fact. But that is obviously wrong. Ms. *1203Burton's claimed injury in this lawsuit is not that she failed to receive the benefits she was initially awarded by the DOL but that she has failed to receive the 20 percent additional compensation she has a right to under § 914(f). Assuming Ms. Burton has a right to additional compensation under § 914(f) (an issue the court will return to below), there is no doubt that Drummond's failure to pay her that additional compensation creates Article III standing. See Via Mat Int'l S. Am. Ltd. v. United States ,
2. Ms. Burton's Claim Is Properly Brought Under
Drummond's second argument is a closer call. Drummond argues the court lacks subject matter jurisdiction over Ms. Burton's claim because § 921(d) only authorizes district courts to enforce "a compensation order making an award, that has become final."
Drummond is correct that § 921(d) only authorizes district courts to enforce existing final compensation orders issued by the DOL; it does not authorize district courts to make their own independent awards of benefits under the BLBA. That much is explicit in the statute's text, which provides that a BLBA beneficiary "may apply for the enforcement of the order to the [appropriate] Federal district court."
It is also true that § 914(f) does not create a private cause of action by which BLBA beneficiaries may enforce their right to additional compensation under that statute. The statute grants BLBA beneficiaries a substantive right to additional compensation under certain circumstances, but it creates no mechanism to enforce that right. See
Finally, it is also undisputed in this case that the DOL has not issued any order awarding Ms. Burton the 20 percent additional compensation she seeks under § 914(f). The only final compensation orders the DOL has issued in this case are its final order on Verby Burton's claim for survivor's benefits
*1204(though they did state Ms. Burton would be eligible for § 914(f) additional compensation if Drummond failed to timely pay her benefits). (Doc. # 15 at 99-100, 142).
However, it does not follow from these premises that Ms. Burton may not collect any additional compensation owed to her under § 914(f) through a § 921(d) action in federal court. To understand why this is so, one must pay careful attention § 914(f)'s text. Section 914(f) does not give a beneficiary the right to an additional award of benefits equal to 20 percent of the compensation that was not timely paid under a previous award. (Were that the case, a BLBA beneficiary would be required to seek a supplemental order from the DOL granting it that additional award before seeking to enforce the award through a § 921(d) action in federal court.) Rather, § 914(f) simply increases the amount of compensation owed under an existing award of benefits. See
The two final compensation orders Ms. Burton seeks to enforce in this case are the final orders issued on Ms. Burton's survivor claim and Mr. Burton's disability claim. The DOL issued its final compensation order on Ms. Burton's claim on December 15, 2016 and ordered Drummond to pay Ms. Burton monthly compensation in a specified amount and to reimburse the Trust Fund for interim payments it made to Ms. Burton. (Doc. # 15 at 99). That compensation was "payable under the terms of an award,"-namely, the December 15, 2016 final compensation order. See
Thus, once Drummond was late in paying Ms. Burton the compensation it owed her under the December 29, 2015 and December *12055, 2016 compensation orders, the language of § 914(f) operated to add 20 percent additional compensation to the amount Drummond owed. This was purely by operation of law, and it is of no consequence that the DOL's final orders do not themselves award Ms. Burton additional compensation under § 914(f). Indeed, § 914(f) does not by its terms require any action by the Secretary to make its increase in the amount of compensation owed effective. Rather, the statute simply "add[s] to" an operator's outstanding debt 20 percent additional compensation as soon as the debt is ten days past due.
3. Department of Labor Regulations Do Not Divest This Court of Jurisdiction Over Ms. Burton's Claim
Finally, Drummond also argues that the BLBA's implementing regulations required Ms. Burton to obtain a supplemental order awarding additional compensation under § 914(f) before bringing this action. Specifically, Drummond points to the regulation codified at
The court notes that
But whatever the import of
B. Ms. Burton Has Stated a Claim for Relief
Drummond also argues this case should be dismissed because Ms. Burton has failed to state a claim upon which relief can be granted. See Fed. R. Civ. P. 12(b)(6). Specifically, Drummond claims Ms. Burton has no right to additional compensation under § 914(f) because she was timely paid all of the compensation owed *1206to her.
Section 914(f) provides for additional compensation "[i]f any compensation, payable under the terms of an award, is not paid within ten days after it becomes due."
Section 914(f)'s use of the passive-voice phrase "is not paid" complicates what would otherwise be a straightforward exercise in statutory interpretation. As the inimitable grammarian Bryan Garner has explained, the passive voice often "fails to say squarely who has done what" making it "a prime source of unclarity." Bryan A. Garner, Garner's Modern American Usage 592 (2d ed. 2003). Here, § 914(f)'s passive-voice phrase "is not paid" invites the question, not paid by whom ? Does § 914(f) mandate additional compensation when "compensation, payable under the terms of an award" is not paid by anyone ? Or does it require additional compensation whenever an award is not paid by the responsible operator , even if some other entity (like the Trust Fund) does pay the benefits? The statute does not expressly say one way or the other.
A passive-voice construction like "is not paid" can mean that the actor -- here, the one who does the paying -- is either unimportant or unknown. See Garner, supra , at 593. But the passive voice need not and does not always mean that the identity of the relevant actor is indeterminate or unimportant. "To the contrary, despite the passive voice, [a text's] grammatical and structural logic often point to particular, identifiable ... actors." Nicholas Quinn Rosenkranz, The Objects of the Constitution ,
Just as a nearby constitutional provision clarified the meaning of Article I, Section 9's passive-voice prohibition on bills of attainder in Barron , § 914(f)'s surrounding statutory context similarly clarifies its meaning. That context reveals that § 914(f) supplies additional compensation whenever compensation due under an award is not timely paid by the responsible operator , even if some other entity (like the Trust Fund) does in fact timely pay the benefits. Several features of § 914(f)'s statutory context dictate this conclusion.
First, the text of § 914(f) itself suggests that additional compensation is available whenever a responsible operator fails to timely pay an award of benefits. The statute speaks of compensation that is "payable under the terms of an award" and "is not paid within ten days after it becomes due."
Second, it is important to remember that § 914(f) was originally enacted as part of the Longshore and Harbor Workers' Compensation Act ("LHWCA") in 1927, and only some forty years later (in 1969) incorporated by reference into Title IV of the Federal Coal Mine Health and Safety Act. See Pub. L. No. 91-173, § 422(a),
*1208Had Congress simultaneously incorporated § 914(f) into the BLBA and created the Black Lung Disability Trust Fund, there might be an argument that Congress changed the meaning of § 914(f) without changing its words. Such an argument would go as follows: By creating the Trust Fund, which compensates BLBA beneficiaries when responsible operators fail to do so, Congress established another entity potentially responsible for paying BLBA benefits that simply was not present under the LHWCA. Under the LHWCA, it was perfectly reasonable to read § 914(f)'s phrase "[i]f any compensation ... is not paid" to mean "if any compensation is not paid by the responsible employer "-since the responsible employer was the only entity that had any business paying compensation under the LHWCA. But since Congress has now established another entity potentially responsible for paying BLBA benefits (the Trust Fund), § 914(f)'s phrase "[i]f any compensation ... is not paid" should arguably (in the BLBA context) be understood to mean "if any compensation is not paid by the responsible employer or the Trust Fund. "
But this is all merely academic because Congress did not simultaneously incorporate § 914(f) into the BLBA and create the Black Lung Disability Trust Fund. To be sure, those two events were separated by some eight years. Congress incorporated § 14(f) of the LHWCA (codified as amended at
Nor can there be any argument that the creation of the Trust Fund in 1977 silently changed the meaning of § 914(f) in BLBA cases. On this silent-amendment theory, the creation of the Trust Fund would have relieved operators of significant liability under § 914(f), since they would never be liable for additional compensation so long as the Trust Fund timely paid benefits in their stead. But the statute creating the Trust Fund refutes that theory by providing that "nothing in this section shall affect the rights, duties, or liabilities , of any operator in proceedings under [
*1209"above the speculative level." Bell Atl. Corp. v. Twombly ,
IV. Conclusion
After careful review, the court concludes that Defendant's Motion to Dismiss (Doc. # 5) is due to be denied. An Order consistent with this Memorandum Opinion will be entered.
DONE and ORDERED this October 12, 2018.
"Compensation order" is defined by the LHWCA as "[t]he order rejecting the claim or making the award."
The DOL issued its last order on Verby Burton's claim on December 5, 2016 (Doc. # 15 at 99-100), and the order became final (at the latest) on October 22, 2017 (30 days after Drummond withdrew and dismissed its appeal of the claim).See
The DOL issued its last order on Allan Burton's claim on October 5, 2017 (Doc. # 15 at 142), and it became final on November 4, 2017. See
Though LHWCA provisions refer to this official as the "deputy commissioner," the Department of Labor has renamed this official the district director.
Drummond also argues that the Secretary of Labor unlawfully departed from § 914(f) in promulgating
Title
Reference
- Full Case Name
- Verby BURTON v. DRUMMOND COMPANY INC.
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- 2 cases
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- Published