Tuesday, May 09, 2006

MSHA vs. LLC's

In response to MSHA's recent interpretive bulletin on LLC's, the following memo came in from Ellen Smith at Mine Safety & Health News:

"Last month, we asked MSHA a Compliance Corner question about the status of LLCs and whether 110(c) status would apply to "agents" in LLCs. This question came up in November, and there was some discussion as to whether agents of LLCs would be treated like those of a "partnership" whereas 110(c) liability would not apply, according to an old FMSHRC decision, Pyro Mining Co. In Pyro, FMSHRC held that § 110(c) personal liability applies only to agents of corporations and not to employees of a partnership composed of two corporations, and actions against a maintenance foreman and production manager who worked for Pyro Mining Co. were dismissed. MSHA’s argument that such a literal interpretation of § 110(c)’s coverage thwarts the Mine Act’s purpose of protecting miners was rejected. The Commission stated in Pyro that, “On its face,” § 110(c) applies only to agents of operators that are corporations and there is no legislative intent to expand the section’s coverage. Donald Guess, Docket Nos. KENT 91-1340 et al., 15 FMSHRC 2440 (Dec. 13, 1993), 1 MSHN 16, D-10 (Jan. 14, 1994), 2 MSHN 193 (April 7, 1995)."

So there you have it. Your comment?