Apogee Coal Co. v. Director, OWCP – Do It For The Caselaw

The Sixth Circuit denies petitions for review, affirming that Arch Resources remains liable for black lung benefits under the Black Lung Benefits Act despite selling its subsidiary in 2005. The court holds that because the petitioners conceded their arguments were identical to those rejected in a 2024 published decision, the prior ruling binds the panel and precludes relief.

This consolidated case involves multiple miners who worked for Apogee Coal Company in Kentucky during the 1990s. At that time, Apogee was a subsidiary of Arch Resources, Inc. Instead of purchasing commercial insurance, Arch self-insured Apogee against black lung claims. In 2005, Arch sold Apogee, along with its black lung liabilities, to Magnum Coal. Three years later, Patriot Coal acquired Magnum and its subsidiaries, including Apogee. When Patriot went bankrupt in 2015, the Department of Labor issued instructions to hold Arch liable as the responsible insurer for black lung claims against Apogee that accrued during the period Arch owned and self-insured the subsidiary. The miners applied for benefits between 2015 and 2017. District directors granted the benefits, naming Apogee the responsible operator and Arch the responsible insurer. Arch appealed, arguing that the 2005 sale terminated its obligation, but administrative law judges and the Benefits Review Board affirmed the directors' decisions.

The Sixth Circuit reviews the Benefits Review Board's legal conclusions de novo. The court addresses whether Arch is liable for benefits owed by Apogee. The petitioners, Arch and Apogee, concede that they are making the very same arguments based on materially identical facts that the court rejected in a published decision two years prior, Apogee Coal Co. v. Director, OWCP (Howard), 112 F.4th 343 (6th Cir. 2024). The court emphasizes that this prior published decision binds the current panel. Because the petitioners acknowledge the identity of the arguments and facts, the court finds no basis to depart from the established precedent. Consequently, the court concludes that it must deny the petitions for review.

Arch Resources must continue paying the black lung benefits owed to the individual miners despite its 2005 sale of Apogee. The decision reinforces the liability of parent corporations that self-insure subsidiaries for black lung claims, even after divestiture, when the specific arguments against such liability have already been settled by binding precedent. No remand instructions are issued as the petitions are simply denied.