Baldwin Metals Co. v. Donovan

642 F.2d 768, 9 BNA OSHC 1568, 9 OSHC (BNA) 1568, 1981 U.S. App. LEXIS 14334
CourtCourt of Appeals for the Fifth Circuit
DecidedApril 13, 1981
DocketNos. 79-2548, 79-2870
StatusPublished
Cited by14 cases

This text of 642 F.2d 768 (Baldwin Metals Co. v. Donovan) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baldwin Metals Co. v. Donovan, 642 F.2d 768, 9 BNA OSHC 1568, 9 OSHC (BNA) 1568, 1981 U.S. App. LEXIS 14334 (5th Cir. 1981).

Opinion

GOLDBERG, Circuit Judge:

In Marshall v. Barlows, Inc., 436 U.S. 307, 98 S.Ct. 1816, 56 L.Ed.2d 305 (1978), the Supreme Cartographer placed us on the Constitutional highway governing the validity of search warrants issued for OSHA1 investigations. Although this is the Fifth Circuit’s first trip along this road, possible routes and destinations have been mapped out by four of our sister circuits.2 Because we believe that the geodetics proposed by the First, Third and Eighth Circuits provide the better approaches, we now number ourselves among the mapmakers sanctioning these routes.

I. Beginning the Journey: Checking the Rearview Mirror

Prior to 1978, it was thought that section 8(a) of the Occupational Safety and Health Act of 19703 authorized warrantless searches by OSHA officials. See Secretary of Labor v. Chromalloy American. Corp., OSHRC No. 77-2788, 7 OSHC (BNA) 1547 (Rev.Comm’n July 17, 1979). Problems associated with reviewing the validity of OSHA search warrants never arose, since there was no need to obtain a warrant in order to conduct an OSHA search. However, once the Supreme Court in Barlows, supra,' held that the authorization of warrantless OSHA searches was unconstitutional, the courts were forced to decide when and where challenges to the OSHA search warrants were to be litigated.

The problem of reviewing the validity of OSHA search warrants was especially troublesome when Occupational Safety and Health Review Commission (OSHRC) proceedings had already been initiated. In such cases, tension was created between district court review of federal magistrates and the time-honored doctrine of exhaustion of administrative remedies. Since the warrants are issued by federal magistrates, and since review of magistrates’ decisions is ordinarily entrusted to the district court,4 the federal district courthouse would seem to be the best place to litigate the validity of OSHA warrants. However, once the administrative process has begun, the exhaustion of administrative remedies doctrine would preclude judicial review until a final agency decision is rendered. Since OSHRC decisions are directly appealable to the circuit courts of appeals, judicial review of a warrant’s validity would not take place until the appellate stage, thereby totally bypassing district court review of the magistrate’s decision to issue a warrant. With these conflicting policies and rules of law in mind, we begin our journey through the OSHA enforcement process.

II. A Drive Through Baldwin Metals and Mosher Steel

The consolidated appeals before us present strikingly similar cases in which the pertinent facts are virtually undisputed. No. 79-2548 involves Baldwin Metals Co. (“Baldwin”) of Dallas, Texas. In November 1978, OSHA officials attempted to investigate safety conditions at Baldwin’s plant and were refused admission. They subsequently applied for and were granted an [771]*771inspection warrant issued by a United States Magistrate for the Northern District of Texas. The OSHA officials returned to the plant armed with the warrant and were allowed to enter.5 Based upon the evidence uncovered during the search, OSHA citations were issued against Baldwin in January 1979. Baldwin subsequently filed a complaint in district court seeking a declaration that the warrant was unconstitutional, an order suppressing the use of any evidence obtained pursuant to the warrant, and an injunction prohibiting OSHA from taking further action based on the allegedly unconstitutional search. In addition, in order to prevent any immediate OSHA action, Baldwin asked for a preliminary injunction seeking essentially the same relief. The district court granted the preliminary injunction and this appeal followed.

No. 79-2870 involves Mosher Steel Co. (“Mosher”) and its plant in San Antonio, Texas. On November 27, 1978, OSHA officials, having already obtained an inspection warrant, attempted to search Mosher’s plant but were not permitted entry. Two days later the officials returned, and were allowed to enter over the protests of Mosh-er’s representatives.6 The officials conducted a search of the premises, and issued citations based on the evidence seized during the search. Mosher filed a complaint in federal district court seeking a declaration that the warrant was unconstitutional, an order suppressing the use of any evidence obtained pursuant to the warrant, and an injunction prohibiting OSHA from taking further action based on the allegedly unconstitutional search. The district judge granted the declaratory and injunctive relief requested by Mosher, and this appeal followed.

The issue presented in both cases is whether a federal district court may properly declare an OSHA search warrant to be invalid, and may enjoin the use of evidence seized pursuant to the warrant, before a final administrative decision has been rendered. We now examine this issue, first in light of the exhaustion of remedies doctrine, and then in light of the exercise of equitable jurisdiction.

III. The First Stop Along the Road: Trouble With the Exhaust System

Any examination of the exhaustion of administrative remedies doctrine should begin with the classic pronunciation by the United States Supreme Court that “no one is entitled to judicial relief for a supposed or threatened injury until the prescribed administrative remedy has been exhausted.” Myers v. Bethlehem Shipbuilding Corp., 303 U.S. 41, 50-51, 58 S.Ct. 459, 463, 82 L.Ed. 638 (1938); see McClendon v. Jackson Television, Inc., 603 F.2d 1174 (5th Cir. 1979); In re Restland Memorial Park, 540 F.2d 626 (3d Cir. 1976); Barnes v. Chatterton, 515 F.2d 916 (3d Cir. 1975). However, the rule has numerous exceptions and exhaustion of remedies is not required in all circumstances. See, e. g., Weyerhaeuser, supra; Cerro Metal Products v. Marshall, 620 F.2d 964 (3d Cir. 1980); Rhodes v. United States, 574 F.2d 1179 (5th Cir. 1978); American Federation of Government Employees, Local 1668 v. Dunn, 561 F.2d 1310 (9th Cir. 1977). In the cases at bar we must thus determine whether the policies behind the exhaustion of remedies rule would be served by requiring exhaustion, and whether any exception to the exhaustion rule applies to the facts before us.

The reasons for the exhaustion of administrative remedies doctrine include protecting administrative autonomy, deferring to agency expertise, facilitating judicial review through creation of a factual record by the agency, and conserving the time and energy of the courts since the judicial controversy may be mooted if the [772]

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642 F.2d 768, 9 BNA OSHC 1568, 9 OSHC (BNA) 1568, 1981 U.S. App. LEXIS 14334, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baldwin-metals-co-v-donovan-ca5-1981.