Caterpillar, Inc. v. Herman

154 F.3d 400, 1998 WL 531354
Court of Appeals for the Seventh Circuit·Decided August 25, 1998·No. No. 97-3488·Published·Cited by 2 cases

Opinion

POSNER, Chief Judge.

Before us is a petition to review an order by the Occupational Safety and Health Review Commission finding that Caterpillar committed two violations of the Occupational [402]*402Safety and Health Act at a- plant in East Peoria in which it manufactures earth-moving equipment — one a “willful” violation and the other a “repeated” one — and assessing penalties of $10,000 and $12,000 respectively. Caterpillar does not contest the violations, but merely the characterizations that we have placed within quotation marks. The maximum penalty for a willful or repeated violation — $70,000 — is ten times the maximum penalty for a merely “serious” violation. 29 U.S.C. §§ 666(a), (b).

The allegedly willful violation involves a machine called a “track press,” which presses heavy steel links together horizontally on a table-like surface to form a chain. In a part of the process known as “indexing,” the movement of the moving parts of the machine exposes a three-inch-square hole in the table into which debris can fall that will impede the operation of the machine. If a worker reaches into the hole to remove the debris without stopping the machine, he may get his fingers caught and crushed in the machinery. To prevent this, Caterpillar placed an “index cover” over the hole, but the cover got damaged in the operation of the machine and was removed, leaving the hole exposed. After an OSHA inspection in August 1993, Caterpillar reprogrammed the machine so that it would stop automatically, unless the operator had both hands on the controls; and this solved the problem. The finding of willfulness was based on evidence that Caterpillar had been aware of the problem since February and had failed to do anything about it.

The hole in its unprotected form constituted a “pinch point” or “nip point” in violation of an OSHA regulation. 29 C.F.R. § 1910.212(a)(1). Whether it was a willful violation depended on whether it resulted from a conscious disregard of the regulation, or was merely careless. United States v. Ladish Malting Co., 135 F.3d 484, 490 (7th Cir.1998); Caterpillar Inc. v. OSHRC, 122 F.3d 437, 440 (7th Cir.1997); McLaughlin v. Union Oil Co., 869 F.2d 1039, 1047 (7th Cir.1989); Ensign-Bickford Co. v. OSHRC, 717 F.2d 1419, 1422 (D.C.Cir.1983). The distinction is similar to that in tort law between recklessness and negligence, on which see, e.g., AMPAT/Midwest, Inc. v. Illinois Tool Works Inc., 896 F.2d 1035, 1041-42 (7th Cir.1990); Saba v. Compagnie Nationale Air France, 78 F.3d 664, 668-70 (D.C.Cir.1996). If Caterpillar (which is to say its managers or supervisors, whose knowledge, Caterpillar does not deny, is imputed to the company) knew about the violation and could have corrected it but failed to do so, then the violation was willful. Caterpillar’s principal argument is that it didn’t know the index cover had come off. Cf. OSHA Field Operations Manual, ch. IV(B)(3), Occupational Safety & Health Reporter, Reference File, p. 77:2509-10 (Feb. 2, 1994). The argument raises a simple question of fact, and since the Commission’s resolution of it was supported by substantial evidence, that is the end of our consideration. 29 U.S.C. § 660(a); Martin v. OSHRC, 499 U.S. 144, 148, 155, 111 S.Ct. 1171, 113 L.Ed.2d 117 (1991); Caterpillar Inc. v. OSHRC, supra, 122 F.3d at 439-40.

The allegedly repeated violation presents a more difficult question. The statute does not define “repeatedly violates.” Read naturally, as in Bethlehem Steel Corp. v. OSHRC, 540 F.2d 157, 162 (3d Cir.1976), the term implies more than two violations but not necessarily of a similar character. But the term has been more commonly interpreted to mean (1) two or more violations of the same safety standard, provided that the violations are substantially similar, e.g., P. Gioioso & Sons, Inc. v. OSHRC, 115 F.3d 100, 103 n. 2 (1st Cir.1997); D & S Grading Co. v. Secretary of Labor, 899 F.2d 1145, 1147 (11th Cir.1990), or (2) simply two or more substantially similar violations, Reich v. D.M. Sabia Co., 90 F.3d 854, 860 (3d Cir.1996) (overruling Bethlehem), or (3) either two or more violations of the same specific standard (subject to rebuttal if the violations are not substantially similar) or two or more substantially similar violations of different standards. Dun-Par Engineered Form Co. v. Marshall, 676 F.2d 1333, 1337 and n. 2 (10th Cir.1982); Secretary of Labor v. Potlatch Corp., 1979 WL 61360 at *3-4 (O.S.H.R.C. Jan. 22, 1979). (2) and (3) amount to the same thing, except for the burden of proof; (1) is narrower.

There is another wrinkle. In its Field Operations Manual, a detailed statement of [403]*403enforcement policy, OSHA tells its staff not to issue a citation for a repeated violation unless there was a previous violation within three years. Ch. IV(B)(5)(d)(1), Occupational Safety & Health Reporter, supra, Reference File, p. 77:2512. Whether this is intended as an interpretation of the statute or is merely an attempt to establish enforcement priorities, and if the former what weight a reviewing court should give it, are unclear, see Martin v. OSHRC, supra, 499 U.S. at 157, 111 S.Ct. 1171, but also irrelevant in this ease. In 1991 Caterpillar was cited for a violation of a safety standard, closely related to (in fact part of the same regulation as) the “nip point” standard violated by the track press, aimed at guarding the operator from the normal hazards of the machine. 29 C.F.R. § 1910.212(a)(3)(ii). So the three-year requirement is met.

It would be nice if OSHA would make clear what it thinks a repeated violation is. Then Chevron deference would click in, Martin v. OSHRC, supra, 499 U.S. at 152, 111 S.Ct. 1171 (the court in Dun-Par erred in thinking that it is the Commission, and-therefore Potlatch, to which deference is owed), and the confusion over the meaning of “repeatedly” would be dissipated. The Field Operations Manual takes a position similar to that of Potlatch

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Caterpillar, Inc. v. Herman, 154 F.3d 400, 1998 WL 531354 (7th Cir. 1998).

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