Byrge v. Premium Coal Co., Inc et al, No. 3:2016cv00136 - Document 36 (E.D. Tenn. 2018)
Court Description: ORDER denying 33 Motion to Alter Judgment. Signed by Magistrate Judge C Clifford Shirley, Jr on 2/5/18. (JBR)
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in error. It appears that they are asserting that the Court should rely on § 725.502(b), but the Court did rely on this regulation, in addition to others. See [Doc. 31 at note 7]. Further, as noted above, Defendants’ argument does not change the Court’s underlying opinion. Finally, with respect to Defendants’ argument regarding SSA administering interim payments, Plaintiff disputes Defendants’ allegation. See [Doc. 35 at 5] (“The Social Security Administration does not manage payment of claims like Mr. Byrge’s that arise under “Part C” of the Black Lung Benefits Act.”). 1 Regardless, even if true, the Court agrees with Plaintiff that this is not a reason to justify Defendants’ failure to pay benefits when they became due. The Court reiterates that when the ALJ issued his decision and filed it with the district director, the order granting benefits became effective, and Defendants had to start paying benefits shortly thereafter, see 20 C.F.R. § 725.502(b), or request a stay pending appeal. They did neither. See also 20 C.F.R. § 725.502(a) (explaining that benefits become due after the issuance of an “effective order” and notwithstanding a motion to reconsider or an appeal, “except that benefits shall not be considered due where the payment of such benefits has been 1 To the extent that Defendants argue that such practice does not make sense, this is an argument to be made to the legislative branch, and not the judiciary. 7 stayed by the Benefits Review Board or appropriate court”). Accordingly, Defendants’ argument is not well taken. 3. Court’s Analysis Defendants assert that claims under the BLBA and Longshore Act are different, primarily because black lung claims are filed long after the claimant has left employment. Defendants assert that the presence of the Trust Fund eliminates the potential loss of wages, unlike claims under the Longshore Act. Defendants argue that 20 C.F.R. § 725.502 recognizes that benefits shall become “due” after the issuance of an effective order but that the actual compensation order that triggers payments is issued by the district director pursuant to § 725.502(b)(2). Defendants continue that the payment scheme for black lung benefits requires a set of calculations based on dates of a claimant’s employment, the applicate rates, the number of dependents and augmentees, potential offsets and the costs of medical and indemnity benefits to be reimbursed. Defendants assert that this is not a ministerial calculation that can be done simply because an ALJ has decided that a claimant is entitled to benefits. As mentioned above, in its Memorandum Opinion, the Court previously explained, “When the ALJ issued his decision granting benefits, the Defendants were not required to immediately start paying some unknown amount.” [Doc. 31 at 15]. The Court continued that under § 725.502(b)(2) the district director has thirty days to compute the amount and notify the parties. [Id.]. Further, Defendants argue, “To trigger any obligation under Section 14(f), the ALJ in Byrge’s case would have had to provide the information that the district director set out in his October 28, 2015 letter. It is only with that information that defendants would know what was due.” [Doc. 33-1 at 12-13]. The Court finds this argument meritless. As Plaintiff has emphasized in her brief, the information in the October 2015 letter is not materially different than the March 8 4, 2013 letter, by the district director. Instead, the only difference is that in 2015, Defendants owed more money to the Trust Fund because they did not pay Mr. Byre during their many appeals. To be sure, the Court has again reviewed the March 4, 2013 letter. [Doc. 17-2]. The letter states that Defendants shall provide monthly benefits to the claimant beginning February 2013 (check to be issued March 15, 2013) at the rate of $938.30. [Id.]. In addition, the letter states that the operator shall reimburse the Trust Fund in the sum of $21,580.90 for the interim benefits paid to the claimant from April 2011 through February 2013. [Id.]. Further, the letter states that the Defendants shall pay the claimant retroactive benefits from June 2010 through March 2011 in the amount of $9,383.00. [Id.]. Finally, the letter explains that the employer may be subject to a 20% penalty of the amount due for the failure to pay such amount and that an appeal does not stay the penalty, unless an order staying payments has been issued by the Board or Court. [Id.]. The Court finds Defendants’ allegation that they did not know the amount that was due, as they claim in their brief, is wholly misleading, given that the district director calculated such amount in March 2013. V. CONCLUSION Accordingly, for the reasons explained above and for the reasons stated in this Court’s Memorandum Opinion [Doc. 31], Defendants’ Motion to Alter or Amend Judgment [Doc. 33] is DENIED. IT IS SO ORDERED. ENTER: s/ C. Clifford Shirley, Jr. United States Magistrate Judge 9
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