Brock v. Cardinal Industries, Inc.

828 F.2d 373, 56 U.S.L.W. 2176
CourtCourt of Appeals for the Sixth Circuit
DecidedSeptember 4, 1987
DocketNo. 86-3094
StatusPublished
Cited by5 cases

This text of 828 F.2d 373 (Brock v. Cardinal Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals for the Sixth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brock v. Cardinal Industries, Inc., 828 F.2d 373, 56 U.S.L.W. 2176 (6th Cir. 1987).

Opinion

CELEBREZZE, Senior Circuit Judge.

The Secretary of Labor (“Secretary”) petitions this court to review a decision of the Occupational Safety and Health Review Commission (“Review Commission” or “Commission”) vacating the Secretary’s citations that were brought against Cardinal Industries, Inc. (“Cardinal”) for violations of the Occupational Safety and Health Act of 1970 (“OSH Act” or “Act”), 29 U.S.C. §§ 651-678 (1982). The Secretary asserts on appeal, and we agree, that the Review Commission erred in concluding that Cardinal was engaged in “construction work” as that term is used in 29 C.F.R. § 1910.12 (1986).1 Accordingly, we reverse the Commission’s decision and remand so that the Commission may consider Cardinal’s alternative objections to the AU’s decision.

Cardinal produces modular housing units at its factory in Columbus, Ohio. The housing units are mass-produced on an assembly line that is comprised of twenty five work stations. The operation begins with the placing of the floor, and the units are then mechanically propelled through the remaining work stations, where the [375]*375walls, ceiling, roof, gypsum, roofing felt, shingles, and other necessary items are added. The completed units come off of the assembly line as essentially finished houses, needing only to be transported to their destinations, affixed to prepared foundations, and hooked up to the utilities. It is undisputed, however, that Cardinal’s employees do not transport or install the finished units.

In March, 1982, the Occupational Safety and Health Administration (“OSHA”) conducted an inspection of Cardinal’s factory in response to an employee complaint and the report of a fatal accident. The OSHA compliance officer observed Cardinal employees working on three elevated platforms without guardrail protection. In addition, the officer witnessed workers on modular unit roofs, which are eight to twelve feet high, again without any safety devices to protect them from falling.2 Based on these observations, the Secretary cited Cardinal for three separate violations of the OSHA general industry guardrail regulation, see 29 C.F.R. § 1910.23(c)(1) (1986), and one violation of the general industry personal protective equipment standard, see 29 C.F.R. § 1910.132(a) (1986), for not requiring employees working atop the unit roofs to wear safety belts and lanyards.

Cardinal contested the citations and the case eventually came before a Review Commission administrative law judge (“AU”). Cardinal contended that che Secretary cited it under the wrong standards, arguing that its operation constituted “construction work” under 29 C.F.R. § 1910.12, and was thus controlled by the construction industry standards in 29 C.F.R. Part 1926. See 29 C.F.R. § 1910.12(a) (1986). The AU concluded, however, “that the nature of Cardinal’s operation is more akin to manufacturing than construction,” and that the Secretary was therefore correct in citing Cardinal under the general industry standards of Part 1910. The AU then affirmed three of the four citations and assessed penalties.

On appeal, a majority of the three-member Review Commission held that in applying section 1910.12, “it is the nature of the work rather than its location that controls.” Based on its factual findings that the tasks performed by Cardinal employees were characteristic of construction work and that Cardinal’s “primary function” was construction, the Commission majority held that the nature of Cardinal’s work was “construction,” and not manufacturing, for purposes of section 1910.12. Consequently, the majority found that the Secretary’s citations were preempted by specifically applicable construction industry standards in Part 1926,3 and vacated the citations. In dissent, Commissioner Rader, insisted that the term “construction work necessarily implies some direct and tangible connection or relationship with the physical site or location of the structure.” Because all of Cardinal’s operations occur off-site, Commissioner Rader would have affirmed the AU’s conclusion that Cardinal was not engaged in “construction work” under section 1910.12. The Secretary’s timely petition to review the Commission’s order ensued. See 29 U.S.C. § 660(b) (1982).

The Secretary contends on appeal that the Review Commission erred in its legal conclusion that, in applying section 1910.12, “it is the nature of the work rather than its location that controls.” According to the Secretary, for an employer to be engaged in “construction work” under section 1910.-12, the employer’s operation must have some connection to the construction site. The issue for our review, therefore, is whether the Commission correctly interpreted the regulation. If the Commission’s interpretation is erroneous, its application [376]*376of the incorrect standard to the facts of this case must be reversed as “arbitrary, capricious, an abuse of discretion, or not otherwise in accordance with law.”4 5 U.S.C. § 706(2)(A) (1982); see Brock v. L.R. Willson & Sons, Inc., 773 F.2d 1377, 1382-83 (D.C.Cir.1985); Donovan v. A. Amorello & Sons, Inc., 761 F.2d 61, 62-66 (1st Cir.1985); Usery v. Hermitage Concrete Pipe Co., 584 F.2d 127, 131-34 (6th Cir.1978). See also Bowman Transp., Inc. v. Arkansas-Best Freight Sys., Inc., 419 U.S. 281, 285, 95 S.Ct. 438, 441, 42 L.Ed.2d 447 (1974) (agency action is “arbitrary and capricious” if not based on consideration of the relevant factors). For the reasons that follow, we agree with the Secretary that the Commission erred in interpreting the regulation.

The Occupational Safety and Health Act of 1970, 29 U.S.C. §§ 651-678 (1982), was enacted “to assure so far as possible every working man and woman in the Nation safe and healthful working conditions.” 29 U.S.C. § 651(b) (1982); see Whirlpool Corp. v. Marshall, 445 U.S. 1, 11-13, 100 S.Ct. 883, 890-91, 63 L.Ed.2d 154 (1980).

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828 F.2d 373, 56 U.S.L.W. 2176, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brock-v-cardinal-industries-inc-ca6-1987.