Insituform Technologies, Inc. v. Employment Appeal Board

728 N.W.2d 781, 21 OSHC (BNA) 1911, 2007 Iowa Sup. LEXIS 20, 2007 WL 490918
CourtSupreme Court of Iowa
DecidedFebruary 16, 2007
Docket05-0740
StatusPublished
Cited by19 cases

This text of 728 N.W.2d 781 (Insituform Technologies, Inc. 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
Insituform Technologies, Inc. v. Employment Appeal Board, 728 N.W.2d 781, 21 OSHC (BNA) 1911, 2007 Iowa Sup. LEXIS 20, 2007 WL 490918 (iowa 2007).

Opinion

WIGGINS, Justice.

The sewer-relining accident causing the Iowa occupational safety and health (IOSH) bureau to cite Insituform Technologies, Inc. for nine serious violations and eleven willful violations of the IOSH standards is the same accident described in City of Des Moines v. Employment Appeal Board, 722 N.W.2d 183, 187-88 (Iowa 2006). As a result of that accident, two people died and five people were seriously injured. The IOSH bureau proposed $38,250 in penalties for the nine serious violations and $770,000 in penalties for the eleven willful violations for a total of $808,250 in penalties.

Insituform filed a notice of contest to the citation and the matter was transferred to the employment appeal board (Board). The Board assigned the matter to an administrative law judge (ALJ) for a hearing. The ALJ applied the general industry permit-required confined spaces standards, as found in 29 C.F.R. section 1910.146. He affirmed most of the penalties, but modified, dismissed, and combined some of the others. The ALJ reduced the penalties from $808,250 to $158,000.

Insituform appealed the decision of the ALJ to the Board. The Board adopted the ALJ’s findings of fact and the ALJ’s determination that the general industry permit-required confined spaces standards rather than the construction employment standards applied to the work done by Insituform. The Board disagreed with the ALJ’s dismissal of some violations and his reduction of the penalties. The Board reinstated all but one of the serious violations and all but one of the willful violations and assessed a total penalty of $733,750.

Insituform filed a petition for judicial review. The district court affirmed the Board’s decision applying the general in *787 dustry permit-required confined spaces standards rather than the construction employment standards. However, the district court reinstated the ALJ’s assessment and grouping of the violations and penalties. The total penalty assessed against Insituform by the district court was $158,000.

Insituform, the Board, and the commissioner appealed the decision of the district court. We transferred the case to the court of appeals. Relying on its decision in City of Des Moines v. Employment Appeal Board, No. 04-1768, 2006 WL 127955, at *4-*5 (Iowa Ct.App. Jan.19, 2006), the court of appeals held the general industry permit-required confined spaces standards were not applicable. The court of appeals then dismissed all but two of the serious violations and all of the willful violations because the commissioner based these violations on the general industry permit-required confined spaces standards. The court of appeals affirmed the district court’s combination of the penalties for the remaining serious violations reducing the total penalty to $4500.

The Board and the commissioner sought further review, which we granted.

I.Issues.

There are four issues on appeal: (1) whether the Board erred in applying the general industry permit-required confined spaces standards to the work done by Insi-tuform; (2) whether the application of these standards is constitutional; (3) whether substantial evidence supports the Board’s determination that Insituform violated the standards; and (4) whether the district court erred in combining the civil penalties assessed by the Board.

II. Scope of Review.

The Iowa Administrative Procedure Act governs a district court’s review of administrative action. IBP, Inc. v. Harpole, 621 N.W.2d 410, 414 (Iowa 2001) (citing Iowa Code § 17A.19(8)). When reviewing the decision of the district court’s judicial review ruling, we determine if we would reach the same result as the district court in our application of the Iowa Administrative Procedure Act. City of Des Moines, 722 N.W.2d 183, 189-90 (Iowa 2006). If a decision of the agency is incorrect under a ground specified in the Act, and a party’s substantial rights have been prejudiced, the district court may reverse or modify an agency’s decision. Iowa Code § 17A.19(10) (2001). As we discuss each issue raised on appeal, we will note the applicable scope of review.

III. Analysis.

A. Whether the Board erred in applying the general industry permit-required confined spaces standards to the work done by Insituform. Because the legislature gave the labor commissioner the authority to interpret the IOSH standards, we will only reverse the agency’s interpretation of its standards if it is “irrational, illogical, or wholly unjustified.” City of Des Moines, 722 N.W.2d at 193-94 (citing Iowa Code §§ 17A.19(10)(Z), (ll)(c)).

In City of Des Moines, we agreed with the Board’s interpretation that in order to determine whether the general industry permit-required confined spaces standards or the construction employment standards apply, the Board must determine, on a case-by-case basis, whether the task being performed is maintenance or repair. 1 Id. *788 at 194. If the Board determines the task is maintenance, then the general industry permit-required confined spaces standards apply. Id. If the Board determines the task is repair, then the construction employment standards apply. Id. We also stated, “[i]f the question is close as to whether the work constitutes repair or maintenance, the agency should apply the standards that provide more protection to the employees, depending on the hazard.” Id. In the present case, the ALJ found the general industry permit-required confined spaces standards applied to the sewer-relining project, and interpreted these standards using the same analysis as we did in City of Des Moines. The Board adopted these findings as its own. Because the ALJ, and hence the Board, employed the proper analysis to interpret the applicable standards, the Board’s interpretation was not irrational, illogical, or wholly unjustifiable. Accordingly, we will not reverse the Board’s interpretation.

As a case-by-case analysis of the facts is necessary to determine whether the work being performed is maintenance or repair, it is necessary for us to determine if substantial evidence supports the Board’s analysis and finding that the work done in the sewer was maintenance. If substantial evidence supports the Board’s findings, these findings are binding on us. United Fire & Cas. Co. v. St. Paul Fire & Marine Ins. Co., 677 N.W.2d 755, 759 (Iowa 2004).

In

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728 N.W.2d 781, 21 OSHC (BNA) 1911, 2007 Iowa Sup. LEXIS 20, 2007 WL 490918, Counsel Stack Legal Research, https://law.counselstack.com/opinion/insituform-technologies-inc-v-employment-appeal-board-iowa-2007.