This consolidated case involves miners who worked for Apogee Coal Company in Kentucky during the 1990s. At that time, Apogee was a subsidiary of Arch Resources, Inc., which chose to self-insure against black lung claims rather than purchase commercial insurance. In 2005, Arch sold Apogee and its associated liabilities to Magnum Coal, which was later acquired by Patriot Coal. When Patriot filed for bankruptcy in 2015, the Department of Labor issued guidance instructing district directors to hold Arch liable for black lung claims that accrued while Arch owned and self-insured Apogee. The miners in these cases applied for benefits between 2015 and 2017. District directors granted the benefits, naming Apogee as the responsible operator and Arch as the responsible insurer. Arch appealed, arguing that the 2005 sale relieved it of the obligation to pay. Administrative law judges and the Benefits Review Board affirmed the directors' decisions, leading to these consolidated petitions for review.
The court reviews the Benefits Review Board's legal conclusions de novo. The petitioners, Arch Resources and Apogee Coal Company, argued that the Board erred in holding Arch liable because it had sold Apogee in 2005. However, the court noted that Arch and Apogee conceded they were making the same arguments based on materially identical facts that the court had already rejected in a published decision two years prior, Apogee Coal Co., LLC v. Director, OWCP (Howard), 112 F.4th 343 (6th Cir. 2024). The court emphasized that this precedent binds it in the current case. Because the arguments were identical and the facts were materially the same, the court found no basis to depart from the prior holding. Consequently, the court determined that Arch remains liable as the responsible insurer under the Black Lung Benefits Act.
The decision confirms that Arch Resources must continue to pay awarded black lung benefits to the miners involved. The district directors' determinations stand as final, and the petitions for review are denied. The ruling reinforces the application of the Black Lung Benefits Act to prevent the shifting of liabilities to the federal government during corporate bankruptcies, ensuring that the original self-insuring parent company remains responsible for claims accrued during its ownership.