Metzler v. Arcadian Corporation ( 1997 )


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  •                                REVISED
    United States Court of Appeals,
    Fifth Circuit.
    No. 96-60126.
    Cynthia A. METZLER, Secretary of Labor, Petitioner,
    v.
    ARCADIAN CORPORATION; and Occupational Safety and Health Review
    Commission, Respondents.
    April 28, 1997.
    Petition for Review of a Final Order of the Occupational Safety and
    Health Review Commission.
    Before POLITZ, Chief Judge, and WIENER and STEWART, Circuit Judges.
    STEWART, Circuit Judge:
    Today we interpret the meaning of the General Duty Clause of
    the Occupational Safety and Health Act of 1970 (OSH Act) (29 U.S.C.
    §§ 651-678).    This case presents the question of whether the
    Secretary of Labor (Secretary) was correct when he decided to fine
    Arcadian   Corporation   (Arcadian)   on   a   per-employee   basis   for
    violating the Clause.    The Occupational Safety and Health Review
    Commission (Commission) reversed the Secretary's decision, holding
    that the unit of prosecution under the Clause is the condition that
    poses a hazard to employees, and not the affected employee(s). The
    Secretary filed this petition for review. We deny the petition and
    hold that the General Duty Clause unambiguously provides that the
    violative condition, not the employee, is the unit of prosecution.
    BACKGROUND
    Arcadian Corporation (Arcadian) manufactures fertilizer at a
    1
    plant in Lake Charles, Louisiana.              A terrible accident occurred on
    July 28, 1992.        That day, a urea reactor at the plant exploded,
    scattering the reactor and its contents over a 600-acre area.                 The
    reactor's 19,000 pound steel head was blown 500 feet, and ammonia
    o
    and carbon dioxide, heated to 370                    F, were released into the
    atmosphere.     According to the Secretary, Arcadian had detected
    leaks in the liner of the reactor's pressure vessel prior to the
    explosion and failed to take steps to eliminate the hazard, such as
    shutting down the reactor, implementing a program to monitor the
    vessel's leak detection system, and assuring that critical welds
    were    performed     according     to    industry       standards   and   design
    specifications.       Eighty-seven Arcadian employees were exposed to
    the danger of being struck by flying debris, suffering heat and
    chemical burns, and asphyxiation by toxic gases.
    PROCEDURAL HISTORY
    In   January    1993,    the      Occupational      Health    and   Safety
    Administration (OSHA) cited Arcadian for violations of the OSH Act.
    The Secretary of Labor argued that Arcadian willfully violated the
    OSH Act's General Duty Clause, which requires employers to provide
    a place of employment free from hazards that cause or are likely to
    cause death or serious physical harm to employees.                   29 U.S.C. §
    654(a)(1).    Citation 2, Item 1 alleged that Arcadian had failed to
    provide Mary Poullard Smith with safe employment because the
    catastrophic    explosion      in   the       pressure   vessel   constituted   a
    violation of the General Duty Clause.                    OSHA alleged that the
    violation was willful and proposed a penalty of $50,000 and several
    2
    other corrective measures.1            Items 2 through 87 of Citation 2 were
    identical to Item 1 except for the identity of the employee exposed
    to the hazard.         When all was said and done, Arcadian was assessed
    a penalty of $4,350,000.
    Pursuant to the OSH Act, Arcadian contested the citations
    before an administrative law judge (ALJ) on the ground that the
    unit of prosecution for violating the General Duty Clause is the
    violative condition, not the employee or employees exposed to that
    condition.           After some discovery, Arcadian moved for partial
    summary judgment and requested that Items 2 through 87 be vacated
    and their allegations consolidated with Item 1. The Secretary of
    Labor filed a cross-motion for summary judgment.                At the time the
    motions       were    filed,    the   record    consisted   essentially   of   the
    citations and a deposition transcript of Raymond Donnelly, Director
    of   OSHA's     Office     of    General    Industry   Compliance   Assistance.
    Donnelly provided uncontradicted evidence that the number 87 was a
    "multiplier" which represented the number of employees exposed to
    a single hazardous condition.              He admitted that Arcadian was only
    required to correct the condition once, not 87 times.
    The ALJ sided with Arcadian, holding that Arcadian's failure
    to properly inspect and maintain the reactor was a single course of
    conduct that could support only one violation of the General Duty
    1
    29 U.S.C. § 666(a) provides that "[a]ny employer who
    willfully or repeatedly violates the requirements of section 5 of
    this Act [i.e., the General Duty Clause] ... may be assessed a
    civil penalty of not more than $70,000 for each violation, but not
    less than $5,000 for each willful violation." In 1990, Congress
    increased the fine from $10,000 to $70,000 and added the $5,000
    minimum penalty for willful violations.
    3
    Clause.     The Occupational Safety and Health Review Commission
    (Commission) affirmed the ALJ. In a 2-1 decision, the majority
    concluded that the General Duty Clause unambiguously provided that
    employers   should   be    fined       on   a   per-violation,    rather   than a
    per-employee, basis.            Four reasons justified the Commission's
    conclusion.    First, the majority argued that issuing identical
    abatement orders for each employee exposed to the same hazard would
    increase administrative and legal costs and would be inconsistent
    with congressional intent.         Second, according to the majority, the
    General Duty Clause referred to employees as a group, rather than
    as individuals;      the phrase "each of his employees" in § 654(a)
    merely refers to all employees as opposed to some.                     Third, the
    majority viewed the Secretary's interpretation of the General Duty
    Clause as a departure from previous practices, which had allowed
    separate citations for each individual hazard but not for each
    exposed employee.       This approach was unreasonable, concluded the
    Commission, because the Secretary had not explained the reason for
    his departure from earlier practice.                  Finally, the Commission
    concluded   that   it     did    not    owe     deference   to   the   Secretary's
    interpretation of the General Duty Clause because the Commission
    viewed itself as the final adjudicator of the OSH Act and because
    the statutory authority to assess penalties rested squarely with
    the Commission.
    The Chairman of the Commission dissented.               He argued that the
    Commission had upheld violation-by-violation citations in other
    cases, including per-employee citations, under various OSH Act
    4
    standards.         In his opinion, the permissibility of such citations
    depends on the language of the cited provision.               He concluded that
    the Secretary's interpretation was compatible with the Act and did
    not conflict with the plain language of the General Duty Clause.
    The   Chairman         also    stated    that      although     the    Secretary's
    interpretations of the OSH Act are not generally entitled to
    deference from the Commission, deference was due here because
    "whether and how to cite under [the General Duty Clause] relates
    directly to the Secretary's prosecutorial discretion and goes to
    the heart of his enforcement authority."
    The Commission ultimately remanded the case to the ALJ to
    provide the Secretary an opportunity to amend the citations.                  The
    Secretary,     however,       declined   to   do   so.    The    ALJ   thereafter
    reentered an order vacating Items 2-87 and severing them from the
    rest of the case.             The order became the final order of the
    Commission, and the Secretary filed this petition for review.
    DISCUSSION
    I. STANDARD   OF   REVIEW
    We begin with the now-familiar two-step process for reviewing
    an administrative agency's interpretation of a statute.                  Our guide
    is the Supreme Court's decision in Chevron, U.S.A., Inc. v. Natural
    Resources Defense Council, Inc., 
    467 U.S. 837
    , 
    104 S. Ct. 2778
    , 
    81 L. Ed. 2d 694
    (1984), in which the Court held that we must first
    apply traditional principles of statutory construction to determine
    congressional intent.           
    Id. at 842,
    104 S.Ct. at 2781.            "If the
    intent of Congress is clear," wrote the Court, "that is the end of
    5
    the matter;         for the court, as well as the agency, must give effect
    to the unambiguously expressed intent of Congress."                      
    Id. at 843,
    104 S.Ct. at 2781.              Second, assuming the plain language of the
    statute        is   ambiguous      (i.e.,   susceptible       of   two    reasonable
    interpretations) or silent on the matter at issue, "the question
    for the court is whether the agency's answer is based on a
    permissible construction of the statute."                 Id.;see United Servs.
    Auto. Ass'n v. Perry, 
    102 F.3d 144
    , 146 (5th Cir.1996).
    II. IS   THE   GENERAL DUTY CLAUSE AMBIGUOUS?
    A. Principles of Statutory Construction
    Step       one   of   Chevron   requires   us   to   apply      "traditional
    principles of statutory construction" to determine whether Congress
    expressed a clear intent with regard to the meaning of the General
    Duty Clause.          "In a statutory construction case, the beginning
    point must be the language of the statute, and when a statute
    speaks with clarity to an issue[,] judicial inquiry into the
    statute's meaning, in all but the most extraordinary circumstances,
    is finished."         Estate of Cowart v. Nicklos Drilling Co., 
    505 U.S. 469
    , 475, 
    112 S. Ct. 2589
    , 2594, 
    120 L. Ed. 2d 379
    (1992).                      When we
    evaluate the terms of a statute, the Supreme Court has cautioned us
    to abide by a "fundamental principle of statutory construction
    (and, indeed, of language itself) that the meaning of a word cannot
    be determined in isolation, but must be drawn from the context in
    which it is used."             Deal v. United States, 
    508 U.S. 129
    , 132, 
    113 S. Ct. 1993
    , 1996, 
    124 L. Ed. 2d 44
    (1993);             see also Babbitt v. Sweet
    Home Chapter of Communities for a Great Oregon, --- U.S. ----, ----
    6
    , 
    115 S. Ct. 2407
    , 2411, 
    132 L. Ed. 2d 597
    (1995).             As such, a term is
    not ambiguous, even though the term may be susceptible to different
    interpretations, when "all but one of the meanings is ordinarily
    eliminated by context."           
    Deal, 508 U.S. at 131-32
    , 113 S.Ct. at
    1996. At the same time, "a statute must, if possible, be construed
    in such fashion that every word has some operative effect."                 United
    States v. Nordic Village, Inc., 
    503 U.S. 30
    , 36, 
    112 S. Ct. 1011
    ,
    1015, 
    117 L. Ed. 2d 181
    (1992);         United States v. Rodriguez-Rios, 
    14 F.3d 1040
    ,   1044   (5th    Cir.1994)     (en   banc).         Finally,   "[i]n
    ascertaining whether the agency's interpretation is a permissible
    construction of the language, a court must look to the structure
    and language of the statute as a whole."           National R.R. Passenger
    Corp. v. Boston and Maine Corp., 
    503 U.S. 407
    , 417, 
    112 S. Ct. 1394
    ,
    1401, 
    118 L. Ed. 2d 52
    (1992).
    B. The General Duty Clause
    Section 654(a) of the OSH Act, known as the General Duty
    Clause, states simply:
    (a) Each employer—
    (1) shall furnish to each of his employees employment and
    a place of employment which are free from recognized
    hazards that are causing or likely to cause death or
    serious physical harm to his employees;
    (2) shall comply with occupational safety and health
    standards promulgated under this Act.
    29 U.S.C. § 654(a)(1), (2) (emphasis added). Before addressing the
    arguments of the parties, we find it helpful to place the Clause in
    proper    context.    It     is    well-settled   that     the    Secretary   has
    essentially two weapons in its arsenal of enforcement.                First, the
    7
    Secretary may issue a citation for violations of specific standards
    promulgated (through rulemaking) by the Secretary.   Alternatively,
    where the Secretary has not promulgated standards, he may rely on
    the General Duty Clause as a "catchall provision."   Pratt & Whitney
    Aircraft, Div. of United Technologies Corp. v. Secretary of Labor,
    
    649 F.2d 96
    , 98 (2d Cir.1981).   Courts have held that enforcement
    through the application of standards is preferred because standards
    provide employers notice of what is required under the OSH Act.
    See, e.g., Usery v. Marquette Cement Manufacturing Co., 
    568 F.2d 902
    , 905 n. 5 (2d Cir.1977) ("The standards presumably give the
    employer superior notice of the alleged violation and should be
    used instead of the general duty clause whenever possible.").
    In this case, it is undisputed that the Secretary did not
    promulgate standards which would have governed the accident at the
    Arcadian plant, and so the case was brought under the General Duty
    Clause.    We must decide how far the Secretary may go in enforcing
    the Clause, for it is clear that a per-employee unit of prosecution
    carries far heavier penalties than a per-violative-condition unit
    of prosecution.2   After carefully considering the arguments of the
    parties, we proceed no further than step one of the Chevron
    analysis and conclude that the Clause is not ambiguous because it
    provides that a violative condition, not an employee, is the proper
    unit of prosecution for a General Duty Clause violation.      Three
    2
    If Arcadian had been fined on a per-violative-condition
    basis, a $70,000 fine could have been the maximum penalty assessed
    against Arcadian. 29 U.S.C. § 666(a). By contrast, because the
    Secretary applied a per-employee formula, Arcadian was fined
    $4,500,000.
    8
    justifications support our conclusion.
    1. The Plain Meaning of the General Duty Clause
    First, a plain reading of the Clause reveals that its focus
    is on an employer's duty to prevent hazardous conditions from
    developing in the employment itself or the physical workplace.
    Indeed, the central thrust of § 654(a)(1) concerns "recognized
    hazards" that cause or may cause "death or serious physical harm to
    ... employees." Subsection (a)(2)—the enforcement provision of the
    Clause—is consistent with this interpretation.                 It suggests that
    employers      must   "comply    with    occupational      safety     and    health
    standards promulgated" by the Secretary. Section 652(8) defines an
    "occupational safety and health standard" as "a standard which
    requires    conditions,     or   the    adoption   or    use   of   one     or   more
    practices, means, methods, operations, or processes, reasonably
    necessary or appropriate to provide safe or healthful employment
    and   places    of    employment."       (Emphasis      added).      Thus,       taken
    together, subsections (a)(1) and (a)(2) of the General Duty Clause
    are exclusively focused on an employer's duty to prevent hazardous
    conditions from developing, either in employment or the place of
    employment.
    Our conclusion is reinforced by examining the elements the
    Secretary must prove in a General Duty Clause prosecution. Seizing
    on the plain terms of the Clause, courts (including our own) have
    held that the Secretary must prove three elements:                  "(1) that the
    employer failed to render its workplace "free' of a hazard which
    was (2) "recognized' and (3) "causing or likely to cause death or
    9
    serious physical harm.' "   National Realty & Constr. Co. v. OSHRC,
    
    489 F.2d 1257
    , 1265 (D.C.Cir.1973).3    Plainly, the Secretary need
    not prove that a particular employee in fact was exposed to a
    hazardous condition.4   Consistent with the OSH Act generally, the
    mere fact that a recognized hazardous condition exists and is
    "likely to cause" death or serious physical harm constitutes a
    sufficient showing that an employer has breached the General Duty
    Clause.5    See, e.g., Whirlpool Corp. v. Marshall, 
    445 U.S. 1
    , 12,
    3
    Accord Kelly Springfield Tire Co., Inc. v. Donovan, 
    729 F.2d 317
    , 320-21 (5th Cir.1984); Teal v. E.I. DuPont de Nemours & Co.,
    
    728 F.2d 799
    , 804 n. 6 (6th Cir.1984); Baroid Div. of NL Indus.,
    Inc. v. OSHRC, 
    660 F.2d 439
    , 444 (10th Cir.1981); Pratt & Whitney
    Aircraft, Div. of United Technologies Corp. v. Secretary of Labor,
    
    649 F.2d 96
    , 98 (2d Cir.1981); St. Joe Minerals Corp. v. OSHRC,
    
    647 F.2d 840
    , 844 (8th Cir.1981); Babcock & Wilcox Co. v. OSHRC,
    
    622 F.2d 1160
    , 1164 (3d Cir.1980); Magma Copper Co. v. Marshall,
    
    608 F.2d 373
    , 375 (9th Cir.1979); Georgia Elec. Co. v. Marshall,
    
    595 F.2d 309
    , 321 (5th Cir.1979); Champlin Petroleum Co. v. OSHRC,
    
    593 F.2d 637
    , 640 (5th Cir.1979); Marshall v. L.E. Myers Co., 
    589 F.2d 270
    , 271 (7th Cir.1978); Empire-Detroit Steel Div., Detroit
    Steel Corp. v. OSHRC, 
    579 F.2d 378
    , 383 (6th Cir.1978); Titanium
    Metals Corp. v. Usery, 
    579 F.2d 536
    , 540 (9th Cir.1978); Usery v.
    Marquette Cement Manufacturing Co., 
    568 F.2d 902
    , 909 (2d
    Cir.1977);    Getty Oil Co. v. OSHRC, 
    530 F.2d 1143
    , 1145 (5th
    Cir.1976). We have added a fourth element, namely, that the hazard
    must be preventable. Georgia Elec. 
    Co., 595 F.2d at 321
    ; Getty
    
    Oil, 530 F.2d at 1145
    .
    4
    See, e.g., Champlin Petroleum 
    Co., 593 F.2d at 640
    ("It is
    the Secretary's burden to show that demonstrably feasible measures
    would materially reduce the likelihood that such injury as that
    which resulted from the cited hazard would have occurred."); see
    also 
    Teal, 728 F.2d at 804
    ("The protection from exposure to
    serious hazards is the primary purpose of the general duty clause
    ...." (second emphasis added)); Babcock & Wilcox 
    Co., 622 F.2d at 1165
    (rejecting the contention that the General Duty Clause
    required proof that a specific employee would likely suffer harm).
    5
    Courts have held that a hazardous condition is "likely to
    cause death or serious physical harm to ... employees" if the
    Secretary presents evidence "that a practice could eventuate in
    serious physical harm upon other than a freakish or utterly
    10
    
    100 S. Ct. 883
    , 890-91, 
    63 L. Ed. 2d 154
    (1980);                Mineral Indus. &
    Heavy Constr. Group v. OSHRC, 
    639 F.2d 1289
    , 1294 (5th Cir. Unit A
    1981);      Illinois    Power    Co.   v.    OSHRC,   
    632 F.2d 25
    ,   28     (7th
    Cir.1980);    Richard S. Morey, Comment, The General Duty Clause of
    the Occupational Safety and Health Act of 1970, 86 HARV. L.REV. 988,
    994 (1973).      If it were otherwise—if proof that a particular
    employee was exposed to a hazard is not required under standards
    promulgated by the Secretary, but is required for General Duty
    Clause violations—we would produce the anomalous result that the
    "catchall" provision of the OSH Act (the General Duty Clause)
    provides less protection for employees (because actual employee
    exposure must be shown) than the more narrow regulatory framework
    constructed by the Secretary.
    The Secretary argues that if Congress intended to create a
    single duty running to employees in the aggregate, then Congress
    "could have omitted the words "each of' in the general duty clause,
    for   those   words    serve    no   purpose    unless   they   mean     that    the
    employer's duty runs to each individual employee rather than to
    employees as a group."         We simply cannot accept this construction
    implausible concurrence of circumstances...." National 
    Realty, 489 F.2d at 1265
    n. 33; accord Kelly 
    Springfield, 729 F.2d at 325
    ;
    Illinois Power 
    Co., 632 F.2d at 28
    . Actual knowledge on the part
    of the employer is not required; rather, "the question is whether
    the hazard is recognized by the industry of which [the employer] is
    a part." 
    Brennan, 494 F.2d at 463
    ; accord Kelly 
    Springfield, 729 F.2d at 323
    ; Pratt & 
    Whitney, 649 F.2d at 101
    . Thus, the "likely
    to cause death or serious physical harm" aspect of the General Duty
    Clause violation does not require the Secretary to prove that
    particular, identifiable employees in fact were exposed to a
    hazardous condition. It is the dangerous condition itself that
    gives rise to a violation of the Clause.
    11
    of the Clause.       First, we have not read "each of" out of the
    General Duty Clause.        In the context of the Clause as a whole, with
    its principal (if not exclusive) focus on hazardous conditions,
    "each of" simply means that an employer's duty extends to all
    employees, regardless of their individual susceptibilities (i.e.,
    age or pregnancy).      Second, if we were to accept the Secretary's
    view that an employee is the proper unit of prosecution for a
    General Duty Clause violation, we would be compelled to conclude
    that, despite Arcadian's alleged egregious violation of the Clause,
    if a particular employee had not in fact been exposed to the
    hazardous condition at the Arcadian plant, Arcadian would not have
    violated   the    General    Duty   Clause.     Such   a   result   is   flatly
    inconsistent with the OSH Act's central purpose of protecting
    workers from hazardous conditions in employment and the workplace,
    regardless of whether a particular employee has in fact been
    injured or exposed to a hazard.            See, e.g., Whirlpool 
    Corp., 445 U.S. at 12
    , 100 S.Ct. at 890-91;       Mineral 
    Indus., 639 F.2d at 1294
    ;
    Babcock & Wilcox 
    Co., 622 F.2d at 1165
    (interpreting the General
    Duty Clause);     Morey, 86 HARV. L.REV. at 988, 991.
    The Secretary also argues that if the General Duty Clause does
    not run to each employee, we would be undermining the deterrence
    function of the OSH Act generally and the General Duty Clause in
    particular.      "The congressional intent that civil penalties serve
    as a meaningful deterrent will not be fulfilled," argues the
    Secretary, " if a single $70,000 penalty is the most that can be
    assessed against a large employer who willfully exposes numerous
    12
    employees to a known hazard in violation of the general duty
    clause."       Because we have concluded that an employer's duty under
    the Clause is to avoid hazardous conditions, the Secretary's
    argument is best addressed to Congress rather than this court.                              As
    we said in our en banc decision in Mississippi Poultry Ass'n, Inc.
    v. Madigan, 
    31 F.3d 293
    (5th Cir.1994) (en banc) (opinion of
    Wiener, J.), "[p]olicy choices are for the political branches, and
    Congress is the supreme branch for making such choices."                             
    Id. at 299
    (citing Chevron ).                 In 1990, Congress increased the civil
    penalty      for    General       Duty   Clause     violations        from    $10,000      per
    violation to $70,000, and added a $5,000 minimum penalty for
    willful       violations.           It   is    simply      not   our     place      in     the
    constitutional scheme to ignore the plain meaning of the Clause and
    offer our own free-wheeling policy judgment about the proper
    monetary deterrence for a General Duty Clause violation.
    2. The General Duty Clause in Context
    Second,      our    construction       of    the    General      Duty      Clause    is
    consistent with other provisions of the OSH Act. Section 666(a)
    provides that an employer "may be assessed a civil penalty of not
    more than $70,000 for each violation."                    (Emphasis added).         Because
    violations of the Clause are considered "serious,"6 we look to §
    666(k),       which       (like    §     652(8))     speaks      of     "condition[s],"
    "practices," "means," "methods," "operations," and "processes."
    Here       again,   Congress       focused     on    the    presence         of   hazardous
    conditions as a "violation" for purposes of assessing the maximum
    6
    See Pratt & 
    Whitney, 649 F.2d at 98
    .
    13
    $70,000 penalty.         Therefore, it must logically follow that a
    violation     of       the      General      Duty     Clause     must     carry
    per-violative-condition penalties, and not per-employee penalties.
    By contrast, the Secretary's position that the employee is the
    unit of prosecution for General Duty Clause enforcement actions
    runs counter to § 652(8) of the OSH Act. Section 652(8) permits the
    Secretary   to     promulgate    standards      governing   "conditions"    and
    "practices"      of    employment     and    within   the   workplace.      See
    International Union, UAW v. Occupational Safety & Health Admin.,
    
    938 F.2d 1310
    , 1316 (D.C.Cir.1991).            As such, the Secretary cannot
    set a unit of prosecution because, in most cases, a unit of
    prosecution      has   nothing   to    do    with   employment   or   workplace
    practices or conditions. An employee could be a unit of violation,
    however, only if the regulated condition or practice is unique to
    the employee (i.e., failure to train or remove a worker).                  See,
    e.g., Hartford Roofing, 17 BNA OSHC 1361 (No. 92-3855, 1995)
    (dictum).     It would therefore be anomalous for us to hold that
    per-employee penalties, generally unavailable for violations of
    OSHA standards, are always available for violations of the General
    Duty Clause—especially in light of the fact that courts have
    consistently held that standards are the preferred enforcement
    mechanism and that the General Duty Clause serves as an enforcement
    tool of last resort.7
    7
    See, e.g., Reich v. Montana Sulphur & Chemical Co., 
    32 F.3d 440
    , 445 (9th Cir.1994) ("OSHA contemplates that the Secretary will
    promulgate specific safety standards to insure safe and healthful
    working conditions.... The general duty clause applies when there
    are no specific standards.' ") (quoting Donovan v. Royal Logging
    14
    3. The General Duty Clause and Penalty Assessment
    Finally, our interpretation of the Clause properly recognizes
    the respective roles played by the Secretary and the Commission in
    penalty assessment. It is well-settled that the Commission has the
    exclusive authority to assess penalties once a penalty proposed by
    the Secretary is contested.8      It is also well-established that in
    assessing a penalty, the Commission is guided by the four criteria
    provided in § 666(j).   In particular, the Commission must "giv[e]
    due consideration to the appropriateness of the penalty with
    respect to [1] the size of the business of the employer being
    charged, [2] the gravity of the violation, [3] the good faith of
    the employer, and [4] the history of previous violations."                29
    U.S.C. § 666(j).   When appropriate, the Commission includes the
    number of   employees   exposed   to    a   hazardous   condition   in   its
    Co., 
    645 F.2d 822
    , 829 (9th Cir.1981)), cert. denied, --- U.S. ----
    , 
    115 S. Ct. 1355
    , 
    131 L. Ed. 2d 213
    (1995); Pratt & 
    Whitney, 649 F.2d at 98
    ;    
    Usery, 568 F.2d at 905
    n. 5;     cf.   R.L. Sanders
    Roofing Co. v. OSHRC, 
    620 F.2d 97
    , 101 (5th Cir.1980) ("If the
    Secretary is concerned about employees' falling from the edge of a
    flat roof, he should promulgate a regulation that specifically
    addresses that hazard rather than seek to impose liability on
    employers under the general duty clause for failure to protect
    against it.").
    8
    29 U.S.C. § 666(j) ("The Commission shall have authority to
    assess all civil penalties provided in this section ...." (emphasis
    added)); § 659(a) (stating that the Secretary's penalty is merely
    a "propos[al]"); § 659(c) ("If an employer notifies the Secretary
    that he intends to contest a citation ... [t]he Commission shall
    thereafter issue an order ... affirming, modifying, or vacating the
    Secretary's citation or proposed penalty ...." (emphasis added));
    see Donovan v. Oil, Chem., & Atomic Workers Int'l Union & Its Local
    4-23, 
    718 F.2d 1341
    , 1346, 1347 (5th Cir.1983), cert. denied, 
    466 U.S. 971
    , 
    104 S. Ct. 2344
    , 
    80 L. Ed. 2d 818
    (1984); Long Mfg. Co. v.
    OSHRC, 
    554 F.2d 903
    , 908 (8th Cir.1977); California Stevedore &
    Ballast Co. v. OSHRC, 
    517 F.2d 986
    , 988 (9th Cir.1975).
    15
    analysis of prong two of the § 666(j) inquiry.9                             See J.A. Jones
    Constr.      Co., 15 BNA OSHC 2201, 2214, 1991-93 CCH OSHD ¶ 29,964, p.
    41,033 (No. 87-2059, 1993);                  Kus-Tum Builders, Inc., 10 BNA OSHC
    1128, 1132, 1981 CCH OSHD ¶ 25,738, p. 32,107 (No. 76-2644, 1981).
    Our       holding      that        the     General       Duty     Clause      contemplates
    per-violative-condition              as     opposed        to   per-employee       units     of
    prosecution goes hand-in-hand with the Commission's authority to
    adjust      (up   or   down)        penalties       depending     upon      the    number   of
    employees      injured        or    exposed    to    a     hazardous     condition.         By
    contrast, if we were to agree with the Secretary's construction of
    the General Duty Clause and hold that OSH Act penalties for
    violations of the Clause should be fixed on a per-employee basis,
    we would be usurping the Commission's statutorily ordained power to
    assess "all" penalties.                  29 U.S.C. § 666(j).          This we decline to
    do.
    CONCLUSION
    Finding       that      the    General        Duty     Clause    of    the    OSH     Act
    unambiguously provides that a hazardous condition is the proper
    unit of prosecution, we DENY the Secretary's petition for review
    and AFFIRM the decision of the Commission.
    9
    The Secretary conceded this point at oral argument.
    16
    

Document Info

Docket Number: 96-60126

Filed Date: 6/2/1997

Precedential Status: Precedential

Modified Date: 12/21/2014

Authorities (34)

Baroid Division of Nl Industries, Inc. v. Occupational ... , 660 F.2d 439 ( 1981 )

9-osh-casbna-1554-1981-oshd-cch-p-25329-pratt-whitney , 649 F.2d 96 ( 1981 )

mineral-industries-heavy-construction-group-brown-root-inc-v , 639 F.2d 1289 ( 1981 )

w-j-usery-jr-secretary-of-labor-v-marquette-cement-manufacturing , 568 F.2d 902 ( 1977 )

United Services Automobile Association v. William J. Perry, ... , 102 F.3d 144 ( 1997 )

8-osh-casbna-1317-1980-oshd-cch-p-24485-the-babcock-wilcox , 622 F.2d 1160 ( 1980 )

Kelly Springfield Tire Company, Inc. v. Raymond J. Donovan, ... , 729 F.2d 317 ( 1984 )

United States v. Rodriguez-Rios , 14 F.3d 1040 ( 1994 )

Mississippi Poultry Association, Inc. v. Edward R. Madigan, ... , 31 F.3d 293 ( 1994 )

Raymond J. Donovan, Secretary of Labor v. Oil, Chemical, ... , 718 F.2d 1341 ( 1983 )

7-osh-casbna-1343-1979-oshd-cch-p-23567-georgia-electric , 595 F.2d 309 ( 1979 )

7-osh-casbna-1241-1979-oshd-cch-p-23487-champlin-petroleum , 593 F.2d 637 ( 1979 )

8-osh-casbna-1559-1980-oshd-cch-p-24573-r-l-sanders-roofing , 620 F.2d 97 ( 1980 )

Getty Oil Company v. Occupational Safety and Health Review ... , 530 F.2d 1143 ( 1976 )

6-osh-casbna-1693-1978-oshd-cch-p-22813-empire-detroit-steel , 579 F.2d 378 ( 1978 )

9-osh-casbna-1646-1981-oshd-cch-p-25376-st-joe-minerals , 647 F.2d 840 ( 1981 )

Long Manufacturing Co., N. C., Inc. v. Occupational Safety &... , 554 F.2d 903 ( 1977 )

Illinois Power Company v. Occupational Safety and Health ... , 632 F.2d 25 ( 1980 )

Richard J. Teal and Tina Teal v. E.I. Dupont De Nemours and ... , 728 F.2d 799 ( 1984 )

6-osh-casbna-2159-1978-oshd-cch-p-23217-ray-marshall , 589 F.2d 270 ( 1978 )

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