The dispute centered on whether Rhino or its successor, Wildcat, should bear liability for miner Robert Rule’s benefits under the Black Lung Benefits Act.
Rule worked for Rhino from 2012 to 2014 and then for Wildcat from January to October 2015 before retiring. The district director designated Rhino as the responsible operator, concluding that Wildcat had not employed Rule for a cumulative period of one year.
The district director’s decision did not address Wildcat’s financial capability or include a required Coverage Statement verifying the absence of insurance records.
The Fourth Circuit held that Wildcat satisfied the one-year employment requirement under 20 C.F.R. § 725.101(a)(32) by working at least 125 days, as established in the court’s recent decision in Baldwin.
The court further held that because the district director did not issue a Coverage Statement finding Wildcat financially incapable, 20 C.F.R. § 725.495(d) created a presumption that Wildcat was financially capable of assuming liability.
Rhino met its burden to displace itself as the responsible operator by relying on this unrebutted presumption.
Because the district director incorrectly designated Rhino, DOL regulations prohibit shifting liability to Wildcat on remand.
Consequently, the Fourth Circuit vacated the Board’s order and directed the Black Lung Disability Trust Fund to pay Rule’s benefits.