Carrier Can't Rescind Coverage for Black Lung Benefits or Use Collateral Estoppel to Avoid Liability

The U.S. 6th Circuit Court of Appeals ruled that an insurance carrier could not rescind its policy to a coal mine operator based on alleged fraud, nor could it avoid liability for a black lung claim based on a prior administrative determination. Case: Karst Robbins Coal Co. v. Director of the Office of Workers’ Compensation Programs, No. 19-3836, 08/07/2020, published. Facts: Marlin Rice worked at a coal mine owned by the Karst Robbins Coal Co. from 1982 until 1983. At that time, Rice was employed by the Karst Robbins Machine Shop Inc., a separate corporate entity that charged KRCC for...