Peabody Coal Company v. Howard T. Lowis and Director, Office of Workers' Compensation Programs, United States Department of Labor

Citations: 708 F.2d 266; 1983 U.S. App. LEXIS 27605Docket: 82-1983

Court: Court of Appeals for the Seventh Circuit; May 17, 1983; Federal Appellate Court

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Peabody Coal Company and its insurer, Old Republic Insurance Company, sought judicial review of a Benefits Review Board decision granting benefits for "black lung" disease to Howard Lowis under the Federal Mine Safety and Health Act of 1978. The United States Court of Appeals for the Seventh Circuit reversed the Board's decision. The court's analysis highlighted that Congress enacted the Federal Coal Mine Health and Safety Act of 1969 and its 1977 amendments to enhance miner safety and establish a compensation program for miners disabled or killed by coal workers' pneumoconiosis, defined as chronic lung disease from coal mine employment. The Act places financial responsibility on coal mine operators or their insurance carriers for claims filed post-December 31, 1973, unless a state workers' compensation program is approved, which none have adopted. The Department of Labor was empowered to issue regulations expanding the definition of pneumoconiosis to include various chronic pulmonary diseases related to coal dust exposure. Additionally, the Labor Department's regulations introduced an "interim presumption" for miners with at least ten years of coal mine employment, establishing a rebuttable presumption of total disability or death due to work-related pneumoconiosis if certain medical criteria are met, including medical evidence from chest X-rays, ventilatory studies, blood gas studies, or other medical documentation.

Labor Department regulations allow for the rebuttal of the "interim presumption" regarding claims under a specific subpart. This presumption may be contested if: (1) the individual is currently performing their usual coal mine work or similar gainful employment; (2) evidence shows the individual is capable of doing such work; (3) it is demonstrated that the miner's total disability or death did not result from coal mine employment; or (4) it is established that the miner does not have pneumoconiosis.

Howard Lowis, a former employee of Peabody Coal Company, filed a claim for "black lung" benefits on October 23, 1978. The Department of Labor approved his claim and assigned liability to Peabody Coal, which subsequently denied liability and sought a hearing. An Administrative Law Judge awarded Lowis benefits after a hearing on April 15, 1980, and this determination was upheld by the Benefits Review Board.

Lowis worked for Peabody Coal in Pawnee, Illinois, from December 1966 to October 1978, performing various underground jobs including laborer, roof bolter, and repairman. He described working conditions as dusty, especially when handling coal, and noted that he spent about 50% of his time as a repairman near the face of the mine, where equipment often broke down.

Lowis experienced significant respiratory issues towards the end of his employment at Peabody Coal, including shortness of breath that hindered his ability to walk to his work area. He retired at age 57 on a physician's advice due to these respiratory problems and has remained unemployed since. Despite ongoing respiratory difficulties after retirement, Lowis has a long history of smoking, averaging one pack of cigarettes daily for at least 30 years. 

In support of his claim for black lung benefits, Lowis presented reports from three physicians. Dr. James Foster found no evidence of pneumoconiosis in a January 1, 1979 chest X-ray, noting a small scar or tumor and suggesting emphysema. Dr. Harold Spitz, a certified "B" reader, also found no signs of pneumoconiosis. Dr. William Drake, who conducted a ventilatory study, similarly concluded that Lowis did not have pneumoconiosis but likely had emphysema. 

Dr. Drake's ventilatory test results indicated that Lowis had a forced expiratory volume (FEV) of 1.19 liters, significantly below the normal range of 3.07 liters for someone of his age, weight, and height. His maximum voluntary ventilation (MVV) was measured at 51.0 liters, compared to a normal value of 136.4 liters. These ventilatory test results were sufficient to raise a presumption of pneumoconiosis related to coal mine employment under the relevant legal provision.

Dr. Thomas A. Dew, Director of Pulmonary Medicine at St. Luke's Hospital, conducted a comprehensive physical examination of Lowis for Peabody Coal, which included tests of blood pressure, pulse, respiration, and a stethoscopic chest examination, along with blood count and urinalysis reviews, chest X-ray analysis, a ventilatory study, and a blood gas study. The ventilatory study showed an FEV of 1.90 and an MVV of 57.0, sufficient to create a presumption of employment-related pneumoconiosis under Labor Department regulations (a)(2). The blood gas study, which assesses the lung’s oxygen transport ability, yielded a PO2 reading of 66 and a PCO2 reading of 43. These blood gas results did not support a presumption of pneumoconiosis under (a)(3). Despite this, the Administrative Law Judge (ALJ) concluded that Lowis established a presumption of pneumoconiosis based on the ventilatory studies and over ten years of coal mine employment. Peabody Coal and Old Republic challenged this presumption by presenting Dr. Dew's deposition, where he stated that Lowis had moderately severe obstructive lung disease without evidence of pneumoconiosis on his normal chest X-ray. Dr. Dew concluded that while Lowis was totally disabled from mining due to his lung condition, there was no indication that his disease was related to his coal mining exposure, which was relatively short and not associated with hazardous duties.

The individual worked in various capacities over a span of twelve years in the mining industry: two years as a laborer underground, two years as a roof bolter, and eight years as a mechanic. The roof bolting position involved significant exposure, but overall, his exposure was relatively low compared to others in mining. A medical evaluation indicated that he suffers from moderately severe obstructive lung disease primarily due to cigarette smoking, as evidenced by severe pulmonary function impairment. Notably, his chest X-rays showed no signs of coal workers' pneumoconiosis, which is typically characterized by abnormal X-ray findings and preserved pulmonary function. The absence of X-ray abnormalities, coupled with the severe dysfunction in lung performance, supports the conclusion that his lung issues are attributable to smoking rather than occupational exposure. The medical expert emphasized that the diagnosis of coal workers' pneumoconiosis cannot be made in this case due to the normal chest X-ray findings.

Dr. Dew's deposition established that his medical conclusions regarding Lowis's condition were based on comprehensive evaluations, including various medical tests and a thorough physical examination, rather than solely on chest X-ray results. His negative findings regarding pneumoconiosis were supported by Lowis's medical history, work history in mining, ventilatory and blood gas study results, and a history of cigarette smoking. However, the Administrative Law Judge (ALJ) focused narrowly on the X-ray references and disregarded the broader context of Dr. Dew's testimony, violating the requirement to consider all relevant medical evidence in assessing the rebuttal of the presumption of employment-related pneumoconiosis. The ALJ's selective analysis and reliance on his own expertise, rather than that of qualified medical professionals, lacked a valid legal basis. Multiple doctors, including Drs. Foster, Spitz, Drake, and Dew, unanimously concluded that Lowis did not suffer from pneumoconiosis due to coal mine employment, with Dr. Dew attributing Lowis's respiratory issues to cigarette smoking instead. Consequently, the ALJ’s findings were not supported by substantial evidence, leading to the reversal of the Benefit Review Board's order.

The federal government is liable for claims related to coal mine exposure filed before December 31, 1973, but for claims filed after that date, liability exists only if no financially responsible coal mine operator or insurer is available. The legal definition of pneumoconiosis includes both "true or clinical" pneumoconiosis and other respiratory diseases resulting from coal dust exposure, reflecting Congress' intent to provide relief for various disabilities caused by such exposure. A 1982 court decision and a 1976 ruling further support this broadened definition. Additionally, a summary of coal dust exposure by job category indicates that all coal mine workers are considered miners, with those working at the coal face, such as cutting machine operators and their helpers, experiencing the highest dust exposure. Other roles, such as shot firers and loading machine operators, face slightly lower exposure, while workers further from the coal face, like mechanics and electricians, have intermittent exposure to coal dust.

Dr. Foster's medical specialization is not identified in the record, nor is Dr. Drake's. The X-ray in question meets established quality standards, but there is no evidence linking emphysema to coal dust exposure. Current medical literature indicates no reliable evidence supports a significant causal relationship between coal dust and emphysema. A "B" reader, a physician trained to interpret X-rays for pneumoconiosis, is mentioned. Under Section 727.203, miners with at least 10 years of coal mine employment are presumed totally disabled due to pneumoconiosis if specific medical criteria, including ventilatory studies and blood gas studies, are met. These studies must demonstrate certain impairment values to establish this presumption. The alveoli are described as the lung's air cells where gas exchange occurs. The initial determination of the presumption only considers employment duration and ventilatory test results, while other factors, like smoking history, are relevant only to rebutting the presumption.