Cravat Coal v. Division Mineral Resources, Unpublished Decision (12-26-2006)
Cravat Coal v. Division Mineral Resources, Unpublished Decision (12-26-2006)
Opinion of the Court
OPINION
{¶ 1} Appellant, the Division of Mineral Resources Management, appeals from an Ohio Reclamation Commission decision vacating two civil penalties assessed against appellee, Cravat Coal Company, for violations of Ohio's coal mining laws.{¶ 2} On October 22, 2003, appellant's mineral resources inspector conducted an inspection of appellee's permit D-2131 site, which is a surface coal mining operation located in Harrison County. The inspector noticed a breached diversion ditch where the drainage was not passing through a siltation structure, a violation of R.C.
{¶ 3} On February 18, 2004, appellant's inspector conducted an inspection of appellee's permit D-2183 site, also a surface coal mining operation in Harrison County. The inspector noticed that appellee had improperly cut a trench in the ground so that water in a pit would drain from the mine site into a stream channel, a violation of R.C.
{¶ 4} On July 1, 2004, appellant issued a Civil Penalty Assessment (CPA) to appellee, designated as CPA 12280, in the amount of $600, for NOV 24433. Appellant issued this CPA 252 days after it issued NOV 24433. That same day, appellant issued CPA 12283, in the amount of $900, for NOV 24491. Appellant issued this second CPA 134 days after it issued NOV 24491.
{¶ 5} Appellee filed administrative appeals of the two CPAs. The basis for the appeals was the excessive delay in issuing the CPAs. Appellee did not contest the violations themselves. The Reclamation Commission (Commission) consolidated the two appeals for its review.
{¶ 6} The Commission conducted a hearing on the appeals on January 20, 2005. At the hearing, appellee argued that appellant was untimely in issuing the CPAs because it did not do so until well past the 30-day time frame set out in R.C.
{¶ 7} The Commission ultimately vacated both CPAs. Appellant filed a timely notice of appeal on March 3, 2005.
{¶ 8} Appellant raises two assignments of error. The assignments of error share a common basis in law and fact and, therefore, we will address them together. They state:
{¶ 9} "THE RECLAMATION COMMISSION ERRED WHEN IT VACATED CIVIL PENALTY ASSESSMENTS BECAUSE THE PENALTY ASSESSMENTS WERE DELAYED — A FACTOR NOT AUTHORIZED BY THE GENERAL ASSEMBLY."
{¶ 10} "THE RECLAMATION COMMISSION ERRED WHEN IT FAILED TO FOLLOW ESTABLISHED CASE LAW THAT STATUTES, SUCH AS R.C.
{¶ 11} R.C.
{¶ 12} "Upon the issuance of a notice or order charging that a violation of this chapter has occurred, the chief shall inform the operator within thirty days of the proposed amount of the penalty and provide opportunity for an adjudicatory hearing pursuant to section
{¶ 13} The Commission determined that, in this case, where the statute provided that the chief will act within 30 days, yet the chief did not act for 134 or for 252 days, the chief's action was arbitrary, capricious, or otherwise inconsistent with law. Therefore, it concluded that the issuance of the CPAs was arbitrary, capricious, or otherwise inconsistent with law.
{¶ 14} Appellant argues that the Commission could not rely on R.C.
{¶ 15} This court uses a limited standard of review to review the Commission's order. C. T. Evangelinos v. Div. of Mineral ResourcesMgmt., 7th Dist. No. 03-BE70,
{¶ 16} Under this standard of review, we presume that the agency's or board's actions are valid. Id., citing R.C.
{¶ 17} Additionally, in reviewing the Commission's decision, an appellate court must confine its review to the record certified by the Commission. R.C.
{¶ 18} First, we must address whether appellee's appeal meets the requirements set out in R.C.
{¶ 19} "The person charged with the penalty then shall have thirty days to pay the proposed penalty in full or, if the person wishes to contest either the amount of the penalty or the fact of the violation, file a petition for review of the proposed assessment with the secretary of the reclamation commission pursuant to section
{¶ 20} Thus, the statute appears to provide two grounds for appealing a CPA to the Commission: (1) to contest the amount of the penalty; and (2) to contest the fact of the violation.
{¶ 21} Appellee's appeal to the Commission meets these requirements. While appellee states in its brief that it did not contest the amount of the fines, in effect, it did. Appellee's basic argument was that appellant should not have issued the CPAs because it failed to abide by the 30-day time limit. Looked at another way, appellee argued that the fines should have been zero dollars based on appellant's tardy issuance of the CPAs. Furthermore, appellee's representative testified at the hearing that appellee's position was that the penalties should be "reduced or waived." (Tr. 54-55). Thus, at the hearing, appellee specifically argued that it was contesting the amount of the penalty, which brings it within the appeal criteria of R.C.
{¶ 22} We must presume that the Commission's decision vacating the CPAs was valid. Buckeye Forest Council v. Division of Mineral ResourcesManagement, 7th Dist. No. 01-BA-18, 2002-Ohio-3010, citing R.C.
{¶ 23} The Commission chose to proceed with appellee's appeal. Thus, it concluded that the appeal was proper and that it had jurisdiction to hear the appeal. Given our standard of review and appellee's argument regarding reduction or waiver of the penalties, we must defer to the Commission's decision on this matter.
{¶ 24} Next, we must move on to consider the merits of appellant's argument. While appellant focuses its argument on whether R.C.
{¶ 25} R.C.
{¶ 26} The Commission did not rule on whether the 30-day requirement set out in the statute was mandatory or directory. Instead, it concluded that under the facts of this case, appellant's lengthy delays of 252 and 134 days in assessing the penalties were arbitrary and capricious. The evidence offered at the hearing supports the Commission's decision.
{¶ 27} As to CPA 12280, Wayne Shalk, appellant's assistant regional manager for the northern region and the person who issued the CPAs, testified as follows:
{¶ 28} "Q. Okay. Why did it take until July 1 of 2004 to assess this penalty?
{¶ 29} "A. The — there was a manpower problem in the southern region. I work for the northern region, and the — when the Division of Mines and Reclamation merged with the Division of Oil and Gas, the new duties were assigned to one of the assistant reginal [sic.] managers in each region. Not too long after the merger took place, one of the assistant managers in the southern region unexpectedly retired. His duties were to help manage the oil and gas program.
{¶ 30} "Q. And which — I'm sorry, which person was this now?
{¶ 31} "A. That — his name — that was Dick Shockley.
{¶ 32} "Q. Okay.
{¶ 33} "A. The other regional — assistant regional manager, Joe Hoerst, was assigned the duties of as — processing the civil penalties assessments. However, his background in the oil and gas program through the day-to-day necessities required him to take on Mr. Shockley's duties in addition to what he was assigned. So the processing of the civil penalty assessments took longer so we developed a large backlog. And in 2004, I started going down to the southern region to help get rid of this old backlog. So that's why it took such a long time to issue the Civil Penalty Assessment." (Tr. 43-44).
{¶ 34} As to CPA 12283, Shalk testified:
{¶ 35} "Q. Okay. Why did — why did it take the Division until July 1, 2004 to assess this penalty? Was this essentially the same reasons as the other one?
{¶ 36} "A. Yes.
{¶ 37} "Q. Okay.
{¶ 38} "A. Lack of manpower causing a backlog in issuing the CPAs." (Tr. 5152).
{¶ 39} Appellant did not deny that it took a long while to issue the penalties to appellee. Instead, appellant attempted to justify the long delay by blaming it on a manpower shortage caused by the retirement of one employee. Given this evidence, it was within the Commission's discretion to conclude that the CPAs should be vacated based on the long delay appellant took to issue them.
{¶ 40} Accordingly, appellant's two assignments of error are without merit.
{¶ 41} For the reasons stated above, the Commission's judgment is hereby affirmed. Waite, J., dissents. See dissenting opinion attached.
DeGenaro, J., concurs in judgment only.
Dissenting Opinion
{¶ 42} I must respectfully dissent from the majority opinion in this appeal. The Appellant, Division of Mineral Resources Management ("Division"), has appealed the decision of the Ohio Reclamation Commission ("Commission") vacating two civil penalties assessed against Appellee, Cravat Coal Company ("Cravat Coal") for violations of R.C. Chapter 1513, Ohio's coal mining laws. There is no dispute among the parties that Cravat Coal committed the two statutory violations, and that the Division had and has authority to issue Civil Penalty Assessments ("CPAs") for those violations. Cravat Coal appealed the two CPAs to the Commission on the grounds that the penalties were not issued within 30 days from the date Cravat Coal was notified of the violations, as set forth in R.C. §
{¶ 43} The facts of this case are undisputed. The sole issue in this appeal has to do with the significance and effect of the delay in time by the Division in issuing the two CPAs.
{¶ 44} I agree with the majority that the standard of review that this Court uses to review a reclamation commission's order is a limited one, and that we should affirm the order unless it is arbitrary, capricious, or otherwise inconsistent with law. R.C. §
{¶ 45} The statute at issue in this case, R.C. §
{¶ 46} "(3) Upon the issuance of a notice or order charging that a violation of this chapter has occurred, the chief shall inform theoperator within thirty days of the proposed amount of the penalty and provide opportunity for an adjudicatory hearing pursuant to section
{¶ 47} The interpretation of the time provisions in R.C. §
{¶ 48} R.C. §
{¶ 49} The statute provides two grounds for appealing a CPA to the Commission: a) to contest the amount of the penalty; and b) to contest the fact that there was a violation. Cravat Coal did not raise either of these two issues as grounds on appeal. Both CPAs were appealed solely on the grounds that the Division was without authority to issue each CPA after the 30-day time limit found in the statute had expired. Appellee's brief on appeal states quite explicitly that it has not and is not contesting that the violations occurred and that it, "did not, is not, and will not contest the amount of the penalties." (Appellee's brief, p. 7.) Since there are no other grounds permitted by statute for appealing the CPAs to the Commission, and because Cravat Coal clearly does not assert either of the only two grounds for appeal as listed, the logical conclusion is that the Commission had no jurisdiction to hear or decide this administrative appeal.
{¶ 50} The right to an appeal to the Commission is created by statute, and the statutory requirements governing an administrative appeal must be strictly followed in order to effectuate the appeal. See, e.g.,Manfredi Motor Transit Co. v. Limbach (1988),
{¶ 51} The Ohio Supreme Court has found certain aspects of R.C. §
{¶ 52} The statutory restrictions on the types of issues that may be appealed to the Commission are consistent with other types of administrative appeals. Workers' compensation cases provide the most obvious examples of highly restricted administrative appeals: "The claimant or the employer may appeal an order of the industrial commission made under division (E) of section
{¶ 53} Other types of administrative decisions allow no right of appeal whatsoever: "The determination by STRS and its retirement board, STRB, of whether a person is entitled to disability retirement benefits is reviewable by mandamus because R.C.
{¶ 54} The fact that Appellee was not permitted, by statute, to appeal the delay in issuing the CPA does not mean that Appellee was without recourse. If Appellee had determined that time was of the essence in receiving a response from the Division, Appellee could have requested a prompt answer from the Division, or could have filed a writ of procedendo in order to force the Division to issue a response. A writ of procedendo is often the only legal device available to compel a public official to perform a duty after a deadline has passed. See, e.g.,State ex rel. Bunting v. Haas,
{¶ 55} There is no indication in the record that Appellee asked the Division to issue the CPAs in a timely manner or that Appellee filed a writ of procedendo to compel the issuance of the CPAs. We have recently ruled that a party who could have filed a writ of procedendo and did not has effectively waived the right to appeal any error arising out of the delay in proceedings: "The failure to seek the writ of procedendo during the pendency of the decision precludes the complaining party from challenging the delay on appeal after the decision is made."El-Mahdy v. Mahoning Nat. Bank, 7th Dist. No. 04 MA 41,
{¶ 56} The jurisdictional issue in this case overlaps to a certain extent the Division's first assignment of error. The Division contends that the Commission was limited to a very narrow scope of review and should have restricted itself to examining the two appealable issues listed in R.C. §
{¶ 57} Appellant acknowledges that R.C. §
{¶ 58} This exception to the general rule has been reaffirmed numerous times by the Ohio Supreme Court, as in the recent case of State ex rel.Ragozine v. Shaker,
{¶ 59} "'As a general rule, a statute providing a time for the performance of an official duty will be construed as directory so far as time for performance is concerned, especially where the statute fixes the time simply for convenience or orderly procedure.' " Id. at ¶ 13, quoting State ex rel. Jones v. Farrar (1946),
{¶ 60} The statute at issue in Ragozine stated that a trial court "shall" hold a hearing within a specified number of days after the filing of a complaint seeking the removal of a public officer. Although the trial court had missed the statutory deadline, the Ohio Supreme Court concluded that the deadline in the statute was directory, not mandatory, and that the trial court's failure to meet the statutory deadline did not deprive it of jurisdiction to hear the case.
{¶ 61} There is nothing in R.C. §
{¶ 62} Appellant's next argument is that the Commission conducted its review based on factors not found in R.C. §
{¶ 63} The Division cites a case from this Court, C. T. Evangelinosv. Div. Of Mineral Resources Mgmt., 7th Dist. No. 03 BE 70,
{¶ 64} During the fourth year of the permit, the new mining company filed to renew the permit for another five years, and this renewal was retroactively granted 17 months later.
{¶ 65} After the permit was renewed, the owner of the land who had granted the mining rights filed an appeal to the Commission challenging the validity of the renewed mining permit. The landowner argued, in part, that the Division was required by R.C. §
{¶ 66} The Commission concluded that the statute in question did not establish a penalty for the Division's failure to act within 60 days, and that "[t]he Division's apparent disregard of time deadlines, while frustrating to both citizens and permittees, is simply not grounds for permit denial under the statute." Id. at ¶ 79. We agreed with the Commission's interpretation of the statute and affirmed their decision.
{¶ 67} The Evangelinos holding is completely consistent with our analysis in the instant case. Similar to our holding inEvangelinos, I would also conclude in this appeal that there are no statutory consequences set forth if the Division issues a CPA after the 30-day deadline, and thus, that the CPAs were validly issued even after 134 and 252 days. Appellee would have us further address the reasonableness of the delay, but as I stated earlier, Appellee has no right to appeal this issue since it does not pertain to the amount of the penalty or the fact of the violation itself. Thus, "reasonableness" should not be an issue.
{¶ 68} Even if the record did not clearly reflect, in my opinion, that the matter should have been dismissed on jurisdictional grounds, I would still reverse the decision of the Commission and reinstate the fines. The record reflects that Cravat Coal did not assert or prove that they were harmed by the delay in issuing the CPAs. Cravat Coal obviously knew that some sort of penalty would be forthcoming because it admitted from the beginning that it committed the violations. It was also to their advantage to ignore the fact that no CPAs were being issued because the delay allowed Cravat Coal to keep using the funds that would be needed to pay the fines that were ultimately imposed.
{¶ 69} The decision of the majority concerns me, also, because of the precedent it sets. The record clearly indicates that the delay in issuing the CPAs was due to a manpower shortage in the Division of Mineral Resources. If there is a manpower shortage, then it is likely there will be further delays in issuing CPAs, and further challenges to the validity of other CPAs based merely on how long it took to issue each CPA. It would appear that the best way to thwart the enforcement efforts of the Division is for mining companies to violate as many regulations as possible, thus overwhelming the Division with work and ensuring that no CPAs will be issued in a timely fashion.
{¶ 70} I am persuaded by Appellant's arguments and would vacate the order of the Commission based on its lack of subject matter jurisdiction to hear the issue raised by Appellee in the administrative appeal. Therefore, I must dissent from the majority opinion in this case.
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