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IN THE UNITED STATES COURT OF APPEALS FOR THE FOURTHCIRCUITNo. 12-1294 (L)UNION CARBIDE CORPORATION, Petitionerv.VIRGINIA RICHARDSandDIRECTOR, OFFICE OF WORKERS’ COMPENSATION PROGRAMS, UNITEDSTATES DEPARTMENT OF LABOR,RespondentsNo. 12-1978PEABODY COAL COMPANY, Petitionerv.DIRECTOR, OFFICE OF WORKERS’ COMPENSATION PROGRAMS, UNITEDSTATES DEPARTMENT OF LABOR,andMARY ELLEN MORGAN,RespondentsOn Petitions for Review of Orders of the BenefitsReview Board, United States Department of LaborBRIEF FOR THE FEDERAL RESPONDENTM. PATRICIA SMITHSolicitor of LaborRAE ELLEN JAMESAssociate SolicitorGARY K. STEARMANCounsel for Appellate LitigationBARRY H. JOYNERAttorney, U.S. Department of LaborOffice of the Solicitor, Suite N-2119200 Constitution Avenue, N.W. Washington,D.C. 20210(202) 693-5660Attorneys for the Director, Officeof Workers’ Compensation Programs
TABLE OF CONTENTSPage:TABLE OF AUTHORITIES . iiSTATEMENT OF THE ISSUE . 1STATEMENT OF THE FACTS. 3A. Statutory and Regulatory Background . 31. Relevant Statutory Provisions. 32. Relevant Regulatory Provisions . 8B. Procedural History . 91. Richards . 92. Morgan . 13SUMMARY OF THE ARGUMENT . 16ARGUMENTThe automatic entitlement provisions of BLBA Section932(l), as reinstated by ACA Section 1556, apply to allsurvivors’ claims that satisfy Section 1556’s timelimitations, including subsequent claims. . 19A. Standard of Review . 19B. The plain language of Section 1556 permitsautomatic awards on survivors’ subsequent claims.Even if that language were ambiguous, the Courtshould defer to the Director’s persuasive constructionof the statute. 20i
TABLE OF CONTENTS (cont’d)Page:1. Automatic entitlement applies tosurvivors’ subsequent claims under the plainlanguage of the statute. 202. The Court should defer to the Director’spersuasive interpretation of ACA Section 1556. . 28C. Automatic entitlement in survivors’ subsequentclaims is not precluded by consideration ofCongressional intent. . 30D. Principles of res judicata do not bar awards ofsurvivors’ subsequent claims under Section 1556. . 38CONCLUSION . 54CERTIFICATE OF COMPLIANCE . 55CERTIFICATE OF SERVICE. 56ii
TABLE OF AUTHORITIESCasesPage:Aliff v. Joy Mfg. Co.,914 F.2d 39 (4th Cir. 1990) . 40Allen v. McCurry,449 U.S. 90 (1980) . 49Alvear-Velez v. Mukasey,540 F.3d 672 (7th Cir. 2008) . 41-43, 47Antonioli v. Lehigh Coal and Navigation Co.,451 F.2d 1171 (3d Cir. 1971) . 45Astoria Fed. S & L Ass’n v. Solimino,501 U.S. 104 (1991) . 34B & G Constr. Co. v. Director, OWCP,662 F.3d 233 (3d Cir. 2011) .15, 22, 23, 25, 27Betty B Coal Co. v. Director, OWCP,194 F.3d 491 (4th Cir. 1999) . 52Billlups v. Perry & Hylton, Inc.,2012 WL 1391751, BRB No. 11-0508 BLA(BRB Mar. 29, 2012) (appeal docketed,4th Cir. No. 12-1654) . 51Caldera v. J.S. Alberici Constr. Co.,153 F.3d 1381 (Fed. Cir. 1998). 39Chevron USA, Inc., v. Natural Resources Defense Council, Inc.,467 U.S. 837 (1984) . 20, 28Christenson v. Harris County,529 U.S. 576 (2000) . 19iii
TABLE OF AUTHORITIES (cont’d)Cases:Collins v. Pond Creek Min. Co.,468 F.3d 213 (4th Cir. 2006) . 38Commissioner IRS v. Sunnen,333 U.S. 591 (1984) . 51Dalombo Fontes v. Gonzales,498 F.3d 1 (1st Cir. 2007) . 44Director, OWCP v. Bethlehem Mines Corp.,669 F.2d 187 (4th Cir. 1982) . 25, 31Duhaney v. Att’y Gen’l of the U.S.,621 F.3d 340 (3d Cir. 2010) . 47, 48Estate of Cowart v. Nicklos Drilling Co.,505 U.S. 469 (1992) . 22Federal Land Bank of St. Paul v. Bismarck Lumber Co.,314 U.S. 95 (1941) . 37Federated Dep’t Stores, Inc. v. Moitie,452 U.S. 394 (1982) . 33Grose v. Cohen,406 F.2d 823 (4th Cir. 1969) . 47Keene v. Consolidation Coal Co.,645 F.3d 844 (7th Cir. 2011) . 50Lawlor v. Nat’l Screen Serv. Corp.,349 U.S. 322 (1955) . 40iv
TABLE OF AUTHORITIES (cont’d)Cases:Page:Lisa Lee Mines v. Director, OWCP,86 F.3d 1358 (4th Cir. 1996) (en banc) . 34Ljutica v. Holder,588 F.3d 119 (2d Cir. 2009) . 44Lovilia Coal Co. v. Harvey,109 F.3d 445 (8th Cir. 1997) . 32Maldonado v. U.S. Att’y Gen’l,664 F.3d 1369 (11th Cir. 2011) . 43Marvel Characters, Inc., v. Simon,310 F.3d 280 (2d Cir. 2002) . 44, 45Meekins v. United Transportation Union,946 F.2d 1054 (4th Cir. 1991) . 47Ohio Valley Environmental Coalition v. Arcoma Coal Co.,556 F.3d 177 (4th Cir. 2009) . 39, 40Peabody Coal Co. v. Morgan,98 Fed. Appx. 966 (4th Cir. Jun. 9, 2004) . 13Pittston Coal Group v. Sebben,488 U.S. 105 (1988) . 17, 31-33, 41Pothering v. Parkson Coal Co.,861 F.2d 1321 (3d Cir. 1988) . 6RAG American Coal Co. v. OWCP,576 F.3d 418 (7th Cir. 2009) . 52Richards v. Union Carbide Corp.,25 BLR 1-31 (BRB 2012) . 11, 15v
TABLE OF AUTHORITIES (cont’d)Cases:Page:Shuff v. Cedar Coal Min. Co.,967 F.2d 977 (4th Cir. 1992) . 6Skidmore v. Swift & Co.,323 U.S. 134 (1944) . 20, 28, 29Smith v. Guest,16 A.3d 920 (Del. 2011) . 45Stacy v. Olga Coal Co.,24 BLR 1-207 (BRB 2010) . 23Talley v. Mathews,550 F.2d 911 (4th Cir. 1977) . 26, 31West Virginia CWP Fund v. Stacy,671 F.3d 378 (4th Cir. 2011), cert. den. 133 S.Ct. 127(Mem.) (2012) . 2-4, 7, 11, 15, 16, 19, 21, 23, 24, 28, 29, 46Wolf Creek Collieries v. Robinson,872 F.2d 1264 (6th Cir.1989) . 39United States Constitution:Amendment V . 52Statutes:Affordable Care Act,Pub. L. No. 111-148 (2010)§§§§1556 . 2, 3, 6, 7, 11-17, 19-23, 26, 28-31, 35-38, 45, 461556(a) . 71556(b) . 7, 301556(c) . 21-25, 27, 30vi
TABLE OF AUTHORITIES (cont’d)Statutes:Page:Black Lung Benefits Act,30 U.S.C. §§ 901-944 (2006 & Supp. IV 2010) (unlessotherwise C.§§ 901-44 . 1§ 901 (1970) . 4§ 901(a) (1976 and Supp. III 1979) . 5§ 921 (1970) . 4§ 921(c)(4) . 7, 24§ 921(c)(4) (1982) . 6§ 921(c)(4) (1976) . 6§ 922(a)(2) (1976 and Supp. III 1979) . 5§ 922(a)(2) (1970). 4§ 932(l) . 5-8, 19, 21-26, 29-30, 34-35, 45-46, 51, 53§ 932(l) (1982) . 5§ 932(l) (1976 and Supp. III 1979) . 5Black Lung Benefits Act,Pub. L. No. 92-303, 86 Stat. 150 (1972) . 3, 5, 25, 31Black Lung Benefits Amendments of 1981,Pub. L. 97-119, 95 Stat. 1635 (1981) . 4, 5, 6Black Lung Benefits Reform Act of 1977,Pub. L. No. 95-239, 92 Stat. 95 (1978) . 4, 5, 25, 31Black Lung Benefits Revenue Act of 1977,Pub. L. No. 95-227, 92 Stat. 11 (1978) . 3vii
TABLE OF AUTHORITIES (cont’d)Regulations:Page:Title 20, Code of Federal Regulations (2012) (unless otherwisenoted)20 C.F.R. § 718.202 . 10, 1420 C.F.R. § 718.205 . 10, 14, 24, §§§§§§725.201(a)(2)(ii) (1984) . 6725.202(d) . 8725.212 . 4, 8, 35725.213(b)(2). 27725.218 . 4, 8, 35725.222 . 4, 8, 35725.301(d) . 27725.309 . 12, 14, 15, 38725.309(c) . 36725.309(d) . 2, 8-10, 14, 36725.309(d)(3). 10, 11, 35725.309(d)(5). 12, 35, 53725.495 . 1725.503(c) . 12725.545(a). 27725.545(c) . 2720 C.F.R. § 726.203(a). 5020 C.F.R. § 802.406 . 14viii
TABLE OF AUTHORITIES (cont’d)Other:Page:156 Cong. Rec. S2083-84 (daily ed. Mar. 25, 2010) . 3665 Fed. Reg. 79968 (Dec. 20, 2000) . 965 Fed. Reg. 79973 (Dec. 20, 2000) . 3577 Fed. Reg. 19456-19478 (Mar. 30, 2012) . 877 Fed. Reg. 19468 (Mar. 30, 2012) . 877 Fed. Reg. 19477-78 (Mar. 30, 2012) . 2977 Fed. Reg. 19478 (Mar. 30, 2012) . 8Sen. Rept. No. 95-209 (1977), reprinted in H. Comm. onEducation and Labor, 96th Cong., Rep. on Black Lung BenefitsReform Act and Black Lung Benefits Revenue Act of 1977(Comm. Print 1979) . ?pubID 201210&RIN 1240-AA04(Department of Labor Regulatory Agenda) . 8James Wm. Moore et al.,Moore’s Federal Practice (3d ed. 2008) . 39, 41Wright, Miller & Cooper,Federal Practice and Procedure (2d ed. 2002) . 49ix
These cases involve claims for survivors’ benefits under theBlack Lung Benefits Act (BLBA), 30 U.S.C. §§ 901-44, filed byVirginia E. Richards (No. 12-1294) and Mary Ellen Morgan (No. 121978). Department of Labor (DOL) administrative law judges (ALJs)awarded the claims, and the Benefits Review Board affirmed. UnionCarbide Corporation and Peabody Coal Company have petitioned forreview of the Board’s decisions on Mrs. Richards’ and Mrs. Morgan’sclaims respectively. 1 By order of November 9, 2012, the Courtconsolidated these cases for purposes of appeal.STATEMENT OF THE ISSUEIn addition to lifetime disability benefits for coal miners, theBLBA provides survivors’ benefits to certain of their dependents.Prior to 1982, eligible dependents of a miner who had been awardedbenefits on a lifetime claim were automatically entitled to survivors’benefits after the miner’s death. Congress eliminated automaticsurvivors’ benefits in 1982, after which survivors were generallyNeither Union Carbide nor Peabody contests that it is the partyliable for paying benefits on the respective claims. See 20 C.F.R. §725.495.1
eligible for benefits only by proving that pneumoconiosis caused theminer’s death. In 2010, Congress enacted Section 1556 of theAffordable Care Act (ACA), Pub. L. No. 111-148 § 1556 (2010), andrestored automatic survivors’ benefits for claims filed after January1, 2005, and pending on or after March 23, 2010.Mrs. Richards and Mrs. Morgan filed pre-ACA claims forsurvivors’ benefits shortly after the deaths of their respectivehusbands, who had received lifetime disability awards. Both claimswere denied. Mrs. Richards filed a subsequent claim in 2009, andMrs. Morgan filed one in July 2010, following the ACA’s restorationof automatic entitlement. See 20 C.F.R. § 725.309(d) (a“subsequent” claim is a claim filed more than one year after thefinal denial of a previous claim). ALJs awarded the new claimsbased on the automatic-entitlement provision of ACA Section 1556,and the Board affirmed those decisions.There is no question that the ACA’s restoration of automaticsurvivors’ benefits applies to survivors’ original claims. This Courtso held in West Virginia CWP Fund v. Stacy, 671 F.3d 378, 381-82(4th Cir. 2011), cert. den. 133 S.Ct. 127 (Mem.) (2012), and neitherUnion Carbide nor Peabody contends otherwise. Rather, the issue2
now before the Court is:Does ACA Section 1556’s reinstatement of automatic benefitsapply to survivors’ subsequent claims?STATEMENT OF THE FACTSThe issue presented in these appeals is both legal andprocedural in nature. Thus, we will summarize the relevantstatutory and regulatory provisions, as well as the proceduralhistories of the claims.A. Statutory and Regulatory Background1. Relevant Statutory Provisions“The black lung benefits program was enacted in 1969 toprovide benefits for miners totally disabled due at least in part topneumoconiosis arising out of coal mine employment. . . . Thestatute, now known as the [BLBA], also provides survivors’ benefitsfor miners’ dependents.” Stacy, 671 F.3d at 381. The statute hasbeen substantially amended over the years. 2 As a result, theIn addition to the 2010 amendments at issue here, the BLBA wassignificantly amended in 1972, 1977, and 1981. See Black LungBenefits Act, Pub. L. No. 92-303, 86 Stat. 150 (1972); Black LungBenefits Revenue Act of 1977, Pub. L. No. 95-227, 92 Stat. 11(cont’d . . .)23
requirements to secure survivors’ benefits have changed over time.See Stacy, 671 F.3d at 681-82.Prior to 1982, a deceased miner’s qualifying dependents 3 couldobtain survivors’ benefits by showing that the miner’s death wascaused by pneumoconiosis or that the miner had been awardedtotal-disability benefits during his lifetime. See, e.g., 30 U.S.C.§§ 901, 921, 922(a)(2) (1970). The survivors of such awardedminers were automatically entitled to benefits even ifpneumoconiosis played no role in the miners’ deaths.4 See 30U.S.C. § 922(a)(2) (1970).Congress reinforced the right to automatic survivors’ benefitsin the 1972 and 1977 amendments to the BLBA. See Pub. L. No.(. . . cont’d)(1978); Black Lung Benefits Reform Act of 1977, Pub. L. No. 95239, 92 Stat. 95 (1978); Black Lung Benefits Amendments of 1981,Pub. L. 97-119, 95 Stat. 1635 (1981).To qualify for survivors’ benefits, a claimant also must satisfy theprogram’s relationship and dependency requirements. See20 C.F.R. §§ 725.212, .218, .222. There is no dispute that bothMrs. Richards and Mrs. Morgan satisfy these requirements.3Automatic benefits have also been described as “derivativebenefits” or “unrelated death benefits.”44
92-303, 86 Stat. 150 (1972) and Pub. L. No. 95-239, 92 Stat. 95(1978), codified as 30 U.S.C. §§ 901(a), 922(a)(2), 932(l) (1976 &Supp. III 1979). Of particular relevance, Congress enacted Section932(l), which provided:In no case shall the eligible survivors of a miner who wasdetermined to be eligible to receive benefits under thistitle at the time of his death be required to file a newclaim for benefits, or refile or otherwise revalidate theclaim of such miner.Pub. L. No. 95-239, 92 Stat. 95, 100 (1978).In 1981, Congress prospectively eliminated automatic benefitsfor the survivors of any miner who had not yet filed a claim. Thischange was effected by appending a limiting clause to 30 U.S.C. §932(l), which then provided:In no case shall the eligible survivors of a miner who wasdetermined to be eligible to receive benefits under thissubchapter at the time of his or her death be required to file anew claim for benefits, or refile or otherwise revalidate theclaim of such miner, except with respect to a claim filed underthis part on or after the effective date of the Black Lung BenefitsAmendments of 1981 [December 31, 1981].Pub. L. 97-119, 95 Stat. 1635, 1644 (1981), codified as 30 U.S.C.§ 932(l) (1982) (new clause emphasized). Consequently, unless aminer was awarded benefits in a disability claim filed beforeJanuary 1, 1982, his dependents were not entitled to automatic5
benefits. See 20 C.F.R. § 725.201(a)(2)(ii) (1984); Pothering v.Parkson Coal Co., 861 F.2d 1321, 1328 (3d Cir. 1988). Rather, theycould receive survivors’ benefits only after proving thatpneumoconiosis actually contributed to the miner’s death. SeeShuff v. Cedar Coal Min. Co., 967 F.2d 977, 980 (4th Cir. 1992).The 1981 amendments also tightened the BLBA’s eligibilityrequirements by eliminating three statutory presumptions,including one known as the fifteen-year presumption. Under it,workers who had spent at least fifteen years in underground coalmines and suffered from a totally disabling respiratory orpulmonary impairment were rebuttably presumed to be totallydisabled by pneumoconiosis, to have died due to pneumoconiosis,and to have been totally disabled by the disease at the time ofdeath. 30 U.S.C. § 921(c)(4) (1976). As with Section 932(l), the1981 amendments limited Section 921(c)(4) to claims filed beforeJanuary 1, 1982. Pub. L. No. 97-119, 95 Stat 1635, 1643 (1981),codified as 30 U.S.C. § 921(c)(4) (1982).There things stood until 2010, when Congress once againamended the BL
Jan 14, 2013 · in the united states court of appeals for the fourth circuit. no. 12-1294 (l) union carbide corporation, petiti
