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Peabody Coal Co. v. Ferguson

Citations: 140 F.3d 634; 1998 U.S. App. LEXIS 6477; 1998 WL 145246Docket: No. 97-3050

Court: Court of Appeals for the Sixth Circuit; March 31, 1998; Federal Appellate Court

Narrative Opinion Summary

The case involves an appeal by Peabody Coal Company and Old Republic Insurance Company against the decision of an Administrative Law Judge (ALJ) granting black lung benefits to the late Marvin Ferguson, under the Black Lung Benefits Act. Initially, benefits were awarded based on interim presumption standards due to Ferguson's long-term coal mining employment and evidence of pneumoconiosis. Peabody challenged the decision, arguing that Ferguson's death was due to a heart attack, not pneumoconiosis, and contested the rebuttal findings under 20 C.F.R. 727.203(b)(2) and (b)(3). The Benefits Review Board remanded the case for reconsideration of evidence under (b)(2), but upheld the (b)(3) finding. Following a shift in legal standards from a circuit precedent in York, Peabody sought reconsideration. The court ruled that Peabody was entitled to present new evidence under the revised standards, reversing the Board's decision and remanding the case for further proceedings. The Board's denial of a full reevaluation constituted a manifest injustice, requiring the ALJ to reconsider the evidence related to both rebuttal standards.

Legal Issues Addressed

Black Lung Benefits Act and Interim Presumption

Application: In this case, the ALJ initially granted benefits based on interim presumption criteria due to the claimant's lengthy employment in coal mining and medical evidence of pneumoconiosis.

Reasoning: The ALJ initially approved in 1982 based on the interim presumption criteria set out in 20 C.F.R. 727.203.

Due Process in Presenting New Evidence

Application: The court determined that employers must be allowed to present new evidence when the legal standards change, as highlighted in Yeager and Lemar.

Reasoning: Notably, the precedent set in Greer highlighted a shift... making (b)(3) rebuttal easier.

Impact of Circuit Precedent on Rebuttal Standards

Application: The case was influenced by the circuit precedent established in York, which changed the rebuttal standard under (b)(2), requiring the employer to prove non-disability rather than non-total disability due to respiratory issues.

Reasoning: During this process, a circuit precedent from York shifted the rebuttal standard under (b)(2).

Rebuttal Standards Under 20 C.F.R. 727.203(b)(2) and (b)(3)

Application: The court evaluated whether Peabody could rebut the presumption of total disability due to pneumoconiosis, focusing on the standards of rebuttal under (b)(2) and (b)(3).

Reasoning: Peabody argued that the ALJ erred by not considering reports... challenging the rebuttal under 727.203(b)(3).