Big Horn Coal Co. v. Sadler Ex Rel. Sadler
Opinion
Big Horn Coal Company petitions this court to review the judgment of the Department of Labor Benefits Review Board ("Board") awarding benefits to Edgar Sadler, a then-living miner, under the Black Lung Benefits Act (BLBA or "the Act"),
Sadler received a total disability diagnosis in 2005, but he did not file the claim at issue here until 2010. Despite that delay, an administrative law judge (ALJ) awarded benefits to Sadler upon finding that "extraordinary circumstances" existed to warrant tolling the statute of limitations. The Board affirmed the ALJ's order. In this petition for review, Big Horn challenges the Board's order in two respects. First, it claims that section 725.308(c) is invalid. Alternatively, it argues that, even if section 725.308(c) is valid, there are no "extraordinary circumstances" here sufficient to justify tolling the statute of limitations. Exercising jurisdiction pursuant to
I. BACKGROUND
The BLBA provides medical and modest monetary benefits to totally disabled coal miners (and their survivors) who suffer from black lung disease-a latent, progressive, and irreversible lung disease caused by breathing too much coal-mine dust. To obtain benefits under the BLBA, a miner must file a timely claim that demonstrates that: "(1) he or she suffers from pneumoconiosis ; (2) the pneumoconiosis arose out of coal mining employment; and (3) the pneumoconiosis is totally disabling."
Energy W. Mining Co v. Oliver
,
Sadler worked as a coal miner in Wyoming for Big Horn from 1953 to 1987. Between 1990 and 2010, Sadler filed three claims for benefits under the BLBA. Big Horn's petition concerns Sadler's third claim, but, in order to understand that claim, it is helpful to review all of Sadler's filings. In 1990, Sadler filed his first claim for black lung benefits, which was denied. Then, in 1994, Sadler filed a subsequent claim as permitted by
Sadler next sought modification of the denial order. The District Director denied Sadler's request in 2001. Sadler appealed, *1320 and his claim was forwarded to the Office of Administrative Law Judges for a hearing. The hearing on Sadler's request for modification was delayed several times between 2001 and 2006 due to continuances sought by both sides. In late August 2005, Sadler requested a continuance because, as his wife explained in a letter to an ALJ overseeing the case, Sadler had been admitted to a hospital for extensive pneumoconiosis testing and it was "too soon for the results to be completed ... to submit" as evidence. Supplemental Appendix (S.A.) at 3. Sadler's request for a continuance was granted.
The next month, in September 2005, the doctor sent Sadler a letter diagnosing him with "[c]oal worker's pneumoconiosis" and further opining that Sadler had "total respiratory disability from performing his last coal mine job of one year's duration." Joint Appendix (J.A.) at 123. Sadler did not submit the diagnosis letter to the ALJ. However, Sadler later testified that he received and read the letter that same month. At this point, the three-year statute of limitations began to run, giving Sadler until September 2008 to file a claim under the BLBA. In 2006, amid more continuances regarding his already-pending claim, Sadler obtained an attorney, Tony Alback, after having been mostly unrepresented since July 1990. It is unclear from the record whether Sadler provided the 2005 doctor letter to Alback.
On June 6, 2008, Alback filed a motion on behalf of Sadler to withdraw Sadler's request for modification of the order denying his 1994 claim for benefits. This motion was filed with Judge William S. Colwell, the ALJ assigned to Sadler's case. The motion indicated that Sadler would be "filing a new claim with the District Director" because Sadler and Alback had determined that it was in Sadler's "best interest to begin the proceeding anew in light of [his] recent medical condition and treatment therefore." J.A. at 64. On June 12, 2008, Judge Colwell conducted a hearing on Sadler's motion to withdraw his request for modification.
At the hearing, Judge Colwell made several statements that are relevant to this appeal. First, Judge Colwell quoted the letter from Alback that explained that Sadler intended to dismiss his claim and file a new one. Then, Judge Colwell explained what he understood the law to permit regarding the withdrawal of claims:
[I]t appears to me that [under Section 725.462] we have the option, if the parties agree to it and wish to do this, is the Claimant may withdraw the modification request, the last modification request .... And if you all decide -- the Claimant decides that there's not sufficient medical evidence at this point to go forward with that, if the Claimant wants to withdraw those issues -- only the request for modification, then I have the authority to do that.
J.A. at 54. Judge Colwell then stated that if Sadler withdrew his request for modification, the withdrawal would "serve as a denial and that case [would] be over," but Sadler "then would have an opportunity to file a subsequent claim or another claim," and "then there's an opportunity ... to use the more current evidence."
Next, Sadler's attorney announced that it was Sadler's "preference that the existing case, the motion to withdraw, be granted by the Court."
I also believe that he understands that he has now time to gather additional medical evidence -- more current, more recent medical evidence -- and that he knows that he has the opportunity to file another, subsequent claim. ... I will *1321 agree to Claimant's request, to withdraw the modification request.
On June 1, 2010, five years after his total disability diagnosis, Sadler filed pro se a third claim for black lung benefits, the claim that underlies this petition. Sadler submitted his 2005 medical diagnosis letter with that claim, and the District Director awarded benefits to Sadler. The Black Lung Disability Trust Fund ("Trust Fund") then began paying the benefits Sadler was awarded pursuant to the BLBA's interim benefits provision,
Eventually, Big Horn filed a motion to dismiss Sadler's 2010 claim as untimely under the BLBA's three-year statute of limitations. Judge Colwell was again assigned to the case, and he denied Big Horn's motion to dismiss. Judge Colwell agreed that the statute of limitations had run on Sadler's claim because he found that Sadler's total-disability diagnosis was communicated to him in 2005 and yet he waited five years to file his claim. However, Judge Colwell determined that "extraordinary circumstances" existed to warrant the tolling of the statute of limitations. J.A. at 244-45. Regulations interpreting the BLBA's statute of limitations state that it "may not be waived or tolled
except upon a showing of extraordinary circumstances
."
Big Horn appealed the ALJ's award of benefits to the Board, raising, inter alia, the two claims Big Horn raises in its petition to this court: (1) that
The Board held that section 725.308(c) was lawfully promulgated. And it agreed with Judge Colwell that Sadler's good faith reliance on the tribunal's misrepresentation of Sadler's ability to file a new claim justified tolling the statute of limitations as an extraordinary circumstance. As a result, the Board affirmed the ALJ's awards of compensation to Sadler and his surviving widow.
We grant Big Horn's petition for review. We agree with the Board's conclusion that the Secretary validly promulgated section 725.308(c). However, we lack jurisdiction to consider Big Horn's remaining arguments related to whether extraordinary circumstances existed in this case because Big Horn failed to raise those arguments to the Board. Accordingly, we DISMISS the petition and AFFIRM the Board.
II. DISCUSSION
A. Validity of
We are first asked to address whether the Secretary of Labor validly promulgated
To determine whether an agency's regulation is valid under a particular statute, we apply the analysis articulated in
Chevron, U.S.A., Inc. v. Natural Resources Defense Council, Inc.
,
The
Chevron
-deference analysis proceeds in two steps.
Chevron
,
For a construction to be permissible, we need not conclude it was the only one *1323 the agency could reasonably have adopted or that we would have rendered the same interpretation if the question arose initially in a judicial context...We look only to whether the implementing agency's construction is reasonable.
Keller Tank Servs. II, Inc. v. Comm'r of Internal Revenue
,
To determine whether Congress has spoken directly to an issue, we look at both the statute's language and the legislative history.
Chevron
,
The Secretary's interpretation that the BLBA's statute of limitations may be tolled in extraordinary circumstances is reasonable because section 932(f) is nonjurisdictional and therefore subject to a presumption that equitable tolling is permitted.
See
Holland v. Florida
,
First, the BLBA's three-year statute of limitations is nonjurisdictional. In a series of opinions the Supreme Court has "explained time and again that statutes of limitations are
not
always-and, indeed, presumptively are not-jurisdictional."
Barnes v. United States
,
Second, it was reasonable for the Secretary to interpret the BLBA to allow the limitations period to be tolled in extraordinary circumstances because the Supreme Court has stated that nonjurisdictional federal statutes of limitations are "normally subject to a 'rebuttable presumption' in
favor
'of equitable tolling,' "
Holland
,
And, in
United States v. Beggerly
,
By way of contrast, the BLBA's statute of limitations here is not as emphatic as was the language under review in
Brockamp
. Neither would application of equitable tolling here affect the "substance" of a BLBA claimant's claim as it did in
Brockamp
; it affects only their ability to bring the claim. Moreover, in contrast to the twelve-year limitations period at issue in
Beggerly
, the BLBA's three-year limitations period is not particularly long. And unlike the subject matters at issue in both
Brockamp
and
Beggerly
-
tax collection and land claims-the BLBA's purpose is remedial and therefore naturally invites the application of equitable principles,
see
Bridger
,
We affirm the Board's legal conclusion that section 932(f) is entitled to deference by this court.
B. Big Horn Failed to Exhaust Arguments Against Equitable Tolling and Accordingly We Lack Jurisdiction to Consider this Claim on the Merits
Big Horn next asks us to reverse the Board's conclusion that Sadler's reliance on Judge Colwell's statements at the 2008 hearing constituted extraordinary circumstances justifying tolling the statute of limitations. To support its claim that extraordinary circumstances did not exist here, Big Horn argues to us that Sadler and his attorney concealed the 2005 medical report from Judge Colwell such that it was not in the record before him during the 2008 hearing. Big Horn asserts that, as a result, Judge Colwell's statements that Sadler could refile and Sadler's reliance on those statements cannot rise to the level of an extraordinary circumstance because "[t]he ALJ's advice to the claimant at the 2008 hearing was
correct
" based on the record before him. Pet. Br. at 32 (emphasis added). Big Horn further argues that, without knowledge of the 2005 medical report, Judge Colwell had no duty "to remind the claimant and his lawyer to read their files and see if they may have within these documents a medical determination of total disability."
4
We do not have jurisdiction to consider these legal arguments because Big Horn failed to exhaust them before the Board.
McConnell v. Dir., Office of Workers' Comp. Programs, U.S. Dep't of Labor
,
None of the respondents in this case raise issue-exhaustion as an affirmative defense, but we are required to consider it sua sponte because of
McConnell
's holding, by which we are bound, that in the BLBA context issue-exhaustion is a jurisdictional requirement. There may be some question about the long-term viability of
McConnell
describing the exhaustion requirement as jurisdictional in light of subsequent Supreme Court authority advising against the "profligate use" of that label.
Sebelius v. Auburn Reg'l Med. Ctr.
,
III. CONCLUSION
For the foregoing reasons, we DISMISS Big Horn's petition and AFFIRM the decision of the Benefits Review Board.
Effective August 31, 2018, paragraph 725.308(c) was redesignated as 725.308(b).
"Any claim for benefits under this section shall be filed within three years of the discovery of total disability due to pneumoconiosis or, in the case of death due to pneumoconiosis, the date of such death." Pub. L. 91-173, § 422(f),
Big Horn also argues, as it did before the ALJ and the Board, that attorney negligence cannot justify tolling the statute of limitations. However, the ALJ explained in his order denying Big Horn's motion for reconsideration that his grant of equitable tolling was not based on Alback's errors. J.A. at 276. Acknowledging that, the Board declined to address the issue. Because attorney negligence does not underlie either the ALJ's or the Board's decision, we do not address it.
The statute governing our jurisdiction over BLBA appeals does not contain
any
language to suggest that issue-exhaustion is a jurisdictional prerequisite to our hearing an appeal.
See
Reference
- Full Case Name
- BIG HORN COAL CO., Petitioner, v. Sylvia SADLER, Widow of O/B/O Edgar Sadler, Deceased; Director, Office of Workers' Compensation Programs, United States Department of Labor, Respondents.
- Cited By
- 6 cases
- Status
- Published