RB&F Coal, Inc. v. Mullins

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RB&F seeks relief from the Benefits Review Board's holding that RB&F is responsible for the payment of benefits to Turl Mullins, a coal miner, and survivor's benefits to his widow under the Black Lung Benefits Act (BLBA), 30 U.S.C. 901 et seq. At issue is whether RB&F or another operator is liable for the claim. The court concluded that Wilder is not a “responsible operator” for the purposes of the BLBA. The court explained that a mine operator cannot be the responsible operator if it is financially incapable of assuming liability. In this case, it is undisputed that Wilder is bankrupt and is itself incapable of assuming liability. It is also undisputed that Wilder’s insurance company, Rockwood, is insolvent and is incapable of assuming liability. The court need not reach the preemption issue because the VPCIGA is not an insurer for this claim and is not covered by the BLBA. Under DOL regulations, the liability for Mullins’s claim falls to the “potentially liable operator” that most recently employed the miner. Since Wilder cannot be found to be a “potentially liable operator” under 20 C.F.R. 725.494, the liability properly falls to the miner’s next most recent employer, RB&F. The court need not address RB&F's claim regarding the regulatory burden-shifting analysis because the burden of proof was irrelevant to the outcome of this case. Accordingly, the court affirmed the Board's decision. View "RB&F Coal, Inc. v. Mullins" on Justia Law