Anthony Crane Rental, Inc. v. Robert B. Reich, Secretary of Labor

70 F.3d 1298, 315 U.S. App. D.C. 86, 1996 CCH OSHD 30,953, 17 OSHC (BNA) 1447, 1995 U.S. App. LEXIS 33460, 1995 WL 703640
CourtCourt of Appeals for the D.C. Circuit
DecidedDecember 1, 1995
Docket95-1021
StatusPublished
Cited by28 cases

This text of 70 F.3d 1298 (Anthony Crane Rental, Inc. v. Robert B. Reich, Secretary of Labor) is published on Counsel Stack Legal Research, covering Court of Appeals for the D.C. Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Anthony Crane Rental, Inc. v. Robert B. Reich, Secretary of Labor, 70 F.3d 1298, 315 U.S. App. D.C. 86, 1996 CCH OSHD 30,953, 17 OSHC (BNA) 1447, 1995 U.S. App. LEXIS 33460, 1995 WL 703640 (D.C. Cir. 1995).

Opinion

Opinion for the Court filed by Circuit Judge WALD.

WALD, Circuit Judge:

This is a case about a crane — -and about whether the company that leased the crane can be held accountable for the crane’s failure to meet safety standards promulgated under the Occupational Safety and Health Act (“OSH Act”). In this case, Anthony Crane Rental (“ACR”), a company which leases and services cranes, appeals a decision of the Occupational Safety and Health Review Commission (“Commission”), penalizing it for violations of the safety standards for cranes used in construction. ACR argues that because it merely leased the crane to another company and was not engaged in construction work, it should not be held liable under the Occupational Safety and Health Administration (“OSHA”) construction safety standards. The Secretary of Labor argues, and the Commission ruled, that because ACR leased the crane, created or had control over the hazards at issue, serviced the crane, and performed work “integral” to the construction project, it can be held accountable under the OSH Act.

We agree, but only in part, and affirm those citations for which there was a specific finding that ACR’s repairman was exposed to the hazard. With respect to those hazards for which there was no specific finding that an ACR employee was exposed, we decline at this juncture to accede to the Secretary’s urging that we adopt the “multi-employer” doctrine, under which an employer can be penalized for exposing employees of other employers to a hazard. Rather than applying this broad doctrine for the first time in this circuit on the basis of the record before us, we vacate the citations in this second category and remand so that the Commission may clarify whether in these ambiguous situations ACR’s repairman was in fact exposed to the hazards. We also vacate another citation, where it is unclear that anyone was exposed to the hazard, and similarly remand for clarification. Accordingly, we affirm in *1301 part, vacate in part, and remand the matter to the Commission.

I. Background

Anthony Crane Rental operates a facility in West Mifflin, Pennsylvania, which leases, services, and maintains cranes. In 1990, ACR leased a number of cranes to subcontractors engaged in construction at the Greater Pittsburgh International Airport construction project; among these cranes was the equipment at issue here, a conventional truck crane leased to Mid-West Conveyor Construction Services (“Mid-West”).

ACR leased most of the cranes under an “owner operated” lease, where it supplied the crane, the crane operator and oiler, and all fuel, maintenance services, and insurance for the crane. However, the crane here was leased pursuant to what ACR calls a “bare rental” lease, the terms of which called for the lessee, Mid-West, to provide the operator and oiler, and arrange for any maintenance or repairs. Though free to hire any company it wished to perform repairs, Mid-West chose ACR to do the servicing on the crane.

The crane was delivered to Mid-West on October 8, 1990. The following day, Jeff Paisley, one of ACR’s field mechanics, visited the worksite in response to a complaint about the lowering capability of the crane. He diagnosed the problem, and returned on October 11 to repair it. On October 26, Paisley responded to a request by a Mid-West employee to check the crane because it was not swinging properly. Paisley fixed the problem that day.

Later that day, the boom of the crane collapsed, killing the crane’s oiler. After the accident, OSHA investigated the worksite and cited ACR for numerous violations of the construction safety standards for cranes, though none of the alleged violations was related to the fatal accident. OSHA proposed that ACR be fined $82,200 for its violations of § 5(a)(2) of the OSH Act, 29 U.S.C. § 654(a)(2), and its construction industry regulations, 29 C.F.R. § 1910.12.

At the hearing before an Administrative Law Judge (“ALJ”), ACR disputed the factual existence of many of the violations, and argued that because it had leased the crane pursuant to a bare-rental lease, it could not be held liable for OSH Act violations. The ALJ agreed that some of the violations had not been established, but found ACR responsible for others. In addition, the ALJ determined that ACR’s activities were sufficiently “integral” to the construction project to justify a finding that ACR was engaged in “construction” within the OSHA regulations. See Secretary of Labor v. Anthony Crane Rental, Inc., OSHRC Docket No. 91-0556 (Mar. 12, 1993) (“ALJ Decision”).

The specific violations found by the ALJ were:

(1) Exhaust Pipe Insulation: The exhaust pipe and muffler of the crane, which get hot during operation, were not insulated or otherwise protected from contact. 29 C.F.R. § 1926.550(a)(10). (Citation No. 1, item 1).
(2) Fire Extinguisher: There was no fire extinguisher in the cab of the crane. Id. § 1926.550(a)(14)(i). (Citation No. 1, item 2).
(3) Inspection Records: Although the crane was inspected within a year of its rental to Mid-West, ACR did not maintain written records of the inspection. Id. § 1926.550(a)(6). (Citation No. 2, item 2(e)).
(4) Improperly Adjusted Components: There were four separate violations of 29 C.F.R. § 1926.550(b)(2):
(a) Boom hoist racket pawls — These devices are intended to prevent the crane’s boom from falling if the brake should slip. They were bent and not functioning properly. (Citation No. 2, item 3(c), instance 1).
(b) Hoist drum power down — This mechanism can help prevent a load from falling, and was not functioning properly. (Citation No. 2, item 3(c), instance 2).
(c) Boom cable shroud cover — The rain cover for the cable was not properly adjusted, and might eventually have caused the cable to spool improperly, leading to the boom snapping. (Citation No. 2, item 3(e), instance 3).
*1302 (d) Tail shaft governor — This device prevents excessive wear on the machinery. The crane was delivered with the device disconnected. (Citation No. 2, item 3(c), instance 4).
(5) Modifications & Use of Unapproved Replacement Parts: ACR added several parts to the ratchet pawl assemblies without the crane manufacturer’s approval, which could result in part of the boom assembly tearing out of the machine. Id. § 1926.550(a)(16), (b)(2). (Citation No. 2, items 5(a) and 5(b)).

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Bluebook (online)
70 F.3d 1298, 315 U.S. App. D.C. 86, 1996 CCH OSHD 30,953, 17 OSHC (BNA) 1447, 1995 U.S. App. LEXIS 33460, 1995 WL 703640, Counsel Stack Legal Research, https://law.counselstack.com/opinion/anthony-crane-rental-inc-v-robert-b-reich-secretary-of-labor-cadc-1995.