City of Des Moines v. Employment Appeal Board

722 N.W.2d 183, 21 OSHC (BNA) 1720, 2006 Iowa Sup. LEXIS 130, 2006 WL 2788527
CourtSupreme Court of Iowa
DecidedSeptember 29, 2006
Docket04-1763
StatusPublished
Cited by20 cases

This text of 722 N.W.2d 183 (City of Des Moines v. Employment Appeal Board) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
City of Des Moines v. Employment Appeal Board, 722 N.W.2d 183, 21 OSHC (BNA) 1720, 2006 Iowa Sup. LEXIS 130, 2006 WL 2788527 (iowa 2006).

Opinion

WIGGINS, Justice.

The Iowa labor commissioner filed a complaint against the City of Des Moines (City) for two serious violations of the general industry Iowa occupational safety and health (IOSH) standards for permit-required confined spaces in connection with two deaths and five injuries occurring to the employees of a contractor while working on a sewer-relining project for the City. The employment appeal board found the City committed the two serious violations and assessed a total penalty of $9000. The City sought judicial review of the appeal board’s decision. The district court reversed the decision of the appeal board. The appeal board and the labor commissioner appealed the district court’s decision. We transferred the case to our court of appeals. The court of appeals affirmed the district court’s decision. The appeal board and labor commissioner then sought further review, which we granted.

On further review, we find (1) the commissioner did not violate Iowa Code section 17A.8 (2001) when he used federal interpretations, of the United States occupational safety and health administration (OSHA) standards as a guide in interpreting those standards; (2) the City’s due process rights were not violated when the commissioner and the appeal board relied on the federal interpretations of the OSHA standards; (3) the appeal board was correct in its interpretation of the general industry permit-required confined spaces standards (29 C.F.R. section 1910.146); (4) substantial evidence supports the appeal board’s conclusion that the general industry permit-required confined spaces standards were applicable to this sewer project; (5) the appeal board properly determined that the City was a “host employer” under 29 C.F.R. section 1910.146(c)(8)®, (iii); and (6) substantial evidence supports the appeal board’s decision that the City committed two serious violations.

In view of these conclusions, we vacate the decision of the court of appeals, reverse the district court’s decision, and remand the case to the district court for an entry of judgment upholding the employment appeal board’s decision.

I. Background Facts and Proceedings.

Upon receiving a notice from the Iowa department of natural resources (DNR) of *188 the presence of raw sewage in Dean’s Lake, the City contracted with Insituform Technologies USA, Inc. to reline a portion of its sewer. Before receiving this notice, the City did not have any plans to work on the sewer. In July 2002, fumes from unidentified sewer gases overcame Insitu-form workers inside the City-owned sewer line. Two workers collapsed inside the sewer and drowned in pooling water. Five other workers were seriously injured in the incident.

The City’s plan for the sewer project called for a sanitary sewer renovation using a cured-in-place pipe liner, sewer cleaning, reconnecting sewer services, bypass pumping, and other related items. The plan required Insituform to insert a liner within an existing sewer pipe, expand the liner within the pipe, and cure it in place with heat. Insituform was also required to install fillets to reduce the sharp angles in the sewer and increase the liner’s strength.

Prior to the start of this project, the City developed procedures relating to sewer entry consistent with the IOSH general industry standards for permit-required confined spaces. Insituform had a similar confined spaces entry plan for its employees.

A pre-construction meeting was held between City officials and Insituform representatives before work began in the sewer. At that meeting, the City did not discuss its permit-required confined spaces procedures with Insituform. From the start date of the actual work in the sewer to the date of the fatal accident, the City had an inspector at the work site virtually every day.

After the accident, the Iowa division of labor services occupational safety and health bureau investigated the circumstances surrounding the accident. After completing its investigation, the bureau cited the City for two serious violations. The first violation was based on 29 C.F.R. section 1910.146(c)(8)®, as incorporated in Iowa’s administrative rules, for the City’s failure to inform Insituform that the sewer contained permit spaces and that permit space entry is allowed only through compliance with a permit space program. See Iowa Admin. Code r. 875 — 10.20(88). The City was also cited for a violation of the provisions in 29 C.F.R. section 1910.146(c)(8)(iii), as incorporated in Iowa’s administrative rules, for its alleged failure to apprise Insituform of what precautions and procedures the City implemented to protect employees in or near permit spaces where Insituform personnel would be working. See id. The citation proposed a penalty of $4500 for each violation, or $9000 in total.

The City contested the citation. The commissioner filed a complaint with the employment appeal board. An administrative law judge presided over the hearing on the complaint. In addition to offering testimony and exhibits at the hearing, the parties stipulated that the City did not perform the actions required in 29 C.F.R. section 1910.146(c)(8)®, (iii).

The administrative law judge entered a decision and proposed order affirming the violations concluding (1) the commissioner’s reliance on federal interpretations of its OSHA standards in deciding what violations may have occurred did not amount to rulemaking in violation of Iowa Code section 17A.3; (2) the safety and health regulations for general industry promulgated under 29 C.F.R. part 1910 apply to the work in the sewer, rather than the safety and health regulations for construction employment promulgated under 29 C.F.R. part 1926; and (3) the City was a “host employer” under 29 C.F.R. section 1910.146(c)(8). The judge disagreed with the determination that the violations were *189 serious violations, amended the violations to other than serious violations, and reduced the penalty to a total of $2500.

The City appealed the decision to the employment appeal board. The appeal board issued a decision and final order agreeing with the administrative law judge’s decision as to the violations, but found the violations to be serious violations and reinstated the $9000 penalty.

The City petitioned the district court for judicial review. The district court reversed the appeal board’s decision and voided the penalty. The court concluded the commissioner’s reliance on the federal OSHA documents constituted an abuse of discretion and unlawful rulemaking, the work performed by Insituform was not governed by the general industry safety and health regulations promulgated under 29 C.F.R. part 1910, and the City was not a “host employer” under 29 C.F.R. section 1910.146(c)(8).

The appeal board and the commissioner appealed. We transferred the case to our court of appeals.

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Bluebook (online)
722 N.W.2d 183, 21 OSHC (BNA) 1720, 2006 Iowa Sup. LEXIS 130, 2006 WL 2788527, Counsel Stack Legal Research, https://law.counselstack.com/opinion/city-of-des-moines-v-employment-appeal-board-iowa-2006.