Largo v. El Paso Natural Gas Co.

7 Navajo Rptr. 147
CourtNavajo Nation Supreme Court
DecidedJuly 21, 1995
DocketNo. A-CV-30-93
StatusPublished

This text of 7 Navajo Rptr. 147 (Largo v. El Paso Natural Gas Co.) is published on Counsel Stack Legal Research, covering Navajo Nation Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Largo v. El Paso Natural Gas Co., 7 Navajo Rptr. 147 (navajo 1995).

Opinions

OPINION

Opinion delivered by

YAZZIE, Chief Justice.

This is an appeal from a September 23, 1993 decision of the Navajo Nation Labor Commission (“Commission”) which found appellant El Paso Natural Gas Company (“El Paso”) in violation of the Navajo Preference in Employment Act (“NPEA”) with respect to appellees Thomas Largo, Gary Miller and Roy Largo (“claimants”). The appeal presents essentially the same facts as those in our prior decision in Largo v. Gregory & Cook, Inc., 7 Nav. R. 111 (1995). The issues of law raised in the two appeals are different.

I

El Paso is a Delaware corporation which is authorized to do business within the Navajo Nation. In 1991, it contracted with Great Plains Pipeline Construction, Inc. and Gregory & Cook, Inc. to undertake pipeline construction for the North Region Expansion Project in the Navajo Nation. El Paso was required to comply with federal regulations for testing and certification of pipeline welders hired to perform the contracts. The testing of prospective welders was administered by El Paso’s employees.

The testing regulations establish technical standards for failure if certain welding defects are present upon a visual inspection and no additional test is required. Welders who passed were hired, and those who failed were not. El Paso effectively had control over hiring by Great Plains Construction, Inc. and Gregory & Cook, Inc. through the tests.

[148]*148The Commission found that El Paso’s welding test exceeded federal regulatory requirements in that all welders were required to take the test regardless of current certification. If a welder fails the test, the regulations permit retesting if in the joint opinion of El Paso and the contractor, the welder failed for conditions beyond his or her control. If a welder had subsequent training, retesting was also allowed. There was no minimum requirement for the training, and it could include work experience, practice or other welding.

On November 20, 1991, Thomas Largo held a valid welding certificate from El Paso, but did not have a certificate for the North Region Expansion Project. Neither Roy Largo nor Gary Miller held a current El Paso certificate. Each claimant took the welding test on November 20, 1991 to work for Great Plains Pipeline Construction, Inc.

The El Paso tester did not give a full explanation of the welding procedure to be tested, and the claimants were not provided with either written policies or an oral summary of the specifics of the test. They were tested separately from non-Navajo applicants.

The test procedure requires the use of “line-up clamps” to avoid weld defects. The claimants were not given clamps because none were available. They also were not provided with the required “welder’s helper” which assures uniformity of temperature to avoid defects.

Each claimant was disqualified after a visual inspection of his work, and was not permitted to finish the weld. Neither radiograph nor destructive testing was used to confirm the soundness of the test welds. The three claimants were disqualified solely on the basis of visual inspection, and no objective measures were used.

Thomas Largo and Gary Miller also failed a December 20,1991 retest administered by El Paso employees. The test coupons, which are the items used for the welding test, were not kept by El Paso. The coupons of other, non-Navajo employees were kept. Largo and Miller were failed without measurements which are required by the federal regulations El Paso relies upon.

Following the results of the second test, the claimants and other Navajos complained to the Office of Navajo Labor Relations. El Paso agreed to reevaluate the welding test coupons, but they could not be found. El Paso then agreed to retesting with the use of an x-ray to assess the weld in lieu of visual inspection. The agreement set the standards for how future tests would be administered.

The claimants applied for work with Gregory & Cook in January 1992, but were denied the right to a test by El Paso’s inspector. Following another complaint to the Office of Navajo Labor Relations, El Paso again agreed to allow the claimants to retest in February 1992 in conjunction with another phase or loop of the North Region Expansion Project. In the meantime, several less experienced Navajo welders were tested in early January, 1992.

All three claimants were tested on March 18, 1992 by an independent inspector, and all passed. However, they were not hired because the available positions had been filled. The successful completion of the test, using objective standards, [149]*149shows that if the test had been done properly in November 1991, it is more than likely that the claimants would have received their certificates and employment.

Following a hearing on September 23, 1993, the Commission ruled that El Paso’s conduct in testing violated the Navajo Preference in Employment Act, and this appeal followed,

II

The record and briefs raise these issues:

1. Whether the Navajo Nation Labor Commission erred when it found that El Paso was an “employer” within the meaning of the NPEA?

2. Whether the Commission erred in refusing to grant a motion to dismiss?

3. Whether the Commission erred in refusing to find that the federal regulations preempted the NPEA as to these claims?

4. Whether the Commission erred in making its findings of fact, in refusing to make the findings offered by El Paso, or failed to make findings that show El Paso’s causal fault?

5. Whether the Commission erred in its award of damages?

III

El Paso asserts it is not an “employer” within the meaning of the NPEA because it is not the entity which hired or fired employees. Under the Act, an “employer” includes all persons, firms, associations, corporations, the Navajo Nation and all its agencies and instrumentalities, who engage the services of any person for compensation, whether as employee, agent, or servant.” NPEA, Sec. 3(2).1 There is no question that El Paso is a “corporation” for the purposes of the definition. It did not engage the claimants’ services for compensation, because they would be paid by the contractors who hired them. Given the administration of the test by El Paso, which effectively controlled employment, was it an “employer” under the Act?

El Paso was permitted to enter the Navajo Nation through permissions granted to construct and maintain pipelines.2 It is a foreign corporation which is authorized to do business within the Navajo Nation. While Great Plains Pipeline or Gregory & Cook were to be the claimants’ actual employers, and while El Paso did not actually hire, supervise or pay the claimants, it had ultimate oversight and control over their work. By virtue of retaining control over testing, it was a gatekeeper for employment.

In Carroll v. Associated Musicians of New York, 183 F. Supp. 636, 638

[150]*150(D.N.Y. 1960), the court construed similar provisions of the National Labor Relations Act. It concluded that the term “employer” is determined by the actual relations of the parties.

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7 Navajo Rptr. 147, Counsel Stack Legal Research, https://law.counselstack.com/opinion/largo-v-el-paso-natural-gas-co-navajo-1995.