Martinez Melgoza & Associates, Inc. v. DEPARTMENT OF L & I

106 P.3d 776
CourtCourt of Appeals of Washington
DecidedFebruary 8, 2005
Docket53388-6-I
StatusPublished

This text of 106 P.3d 776 (Martinez Melgoza & Associates, Inc. v. DEPARTMENT OF L & I) is published on Counsel Stack Legal Research, covering Court of Appeals of Washington primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Martinez Melgoza & Associates, Inc. v. DEPARTMENT OF L & I, 106 P.3d 776 (Wash. Ct. App. 2005).

Opinion

106 P.3d 776 (2005)

MARTINEZ MELGOZA & ASSOCIATES, INC., Appellant,
v.
DEPARTMENT OF LABOR & INDUSTRIES, Respondent.

No. 53388-6-I.

Court of Appeals of Washington, Division 1.

January 10, 2005.
Publication Ordered February 8, 2005.

*777 Douglas Hales, Olympia, WA, for Appellant.

Bourtai Hargrove, Olympia, WA, for Respondent.

AGID, J.

Martinez Melgoza and Associates (MMA) worked as an asbestos consultant on a Port of Seattle asbestos abatement project. The Department of Labor and Industries (L & I) cited MMA for unsafe asbestos work practices and conditions in violation of the Washington Industrial Safety and Health Act (WISHA), and the Board of Industrial Insurance Appeals (BIIA) affirmed. MMA now appeals the superior court's order affirming the BIIA's decision, arguing that as a consultant, it is not subject to penalties for WISHA violations. But a business entity that controls a jobsite may be liable for safety violations, and substantial evidence shows that, in practice, MMA controlled the jobsite. We affirm.

FACTS

In 1999, Host Marriott, an airport concessions company, began remodeling concession areas in the north and south satellites of the SeaTac International Airport. The project required interior demolition and asbestos abatement, so the Port of Seattle contracted with several companies to coordinate the asbestos removal. It contracted with Argus Pacific, an asbestos consultant, to design the project, with asbestos abatement contractor Long Services Corporation to remove the asbestos from the north satellite, and with FS & GS Services to remove the asbestos from the south satellite.

After the project began, Host Marriott significantly increased the scope of work and shortened the completion schedule, requiring the Port to contract with five more asbestos abatement contractors. The Port also contracted with project designer Argus Pacific to provide asbestos support services.

MMA provided asbestos consulting services to the Port under three separate contracts. The first contract was between the Port and MMA. The second was between the Port and LinWorks Environmental Services *778 under which MMA acted as a sub-consultant. The third contract was between the Port and Argus Pacific, with MMA again acting as a sub-consultant. According to these contracts, MMA was to provide professional and technical assistance and "work through the Asbestos Program Manager to ensure a quality project within regulatory compliance, time and cost guidelines." MMA's duties included facility surveys, bulk sampling, air sampling, project inspection and coordination, project monitoring, cost estimates, emergency response, compliance guidance, and analysis services. MMA was also to maintain a monitoring, analysis, and inspection log. The contracts granted ultimate responsibility for all decision-making to the Port's Asbestos Program Manager and Project Engineer.

Because Host Marriott drastically reduced the time to complete the project,[1] the asbestos abatement employees had to work double and triple shifts. MMA monitored the work on all shifts, and MMA employees were present at all hours. Because the project was so rushed, MMA allegedly reduced the frequency and thoroughness of its inspections, authorized the contractors to stop working before all asbestos-containing material was removed, and instructed the contractors to work without proper safeguards. After the abatement project was completed, the general construction contractor began its work and found asbestos debris in various places. Asbestos abatement contractors returned to the site to clean up the remaining asbestos, but because they were behind schedule, MMA again allegedly instructed them to perform their work without the required safeguards.

In April 1999, a project employee filed a complaint with L & I alleging unsafe asbestos work practices and conditions at the airport. In October 1999, after inspecting the project sites, L & I cited MMA for seven violations of WISHA regulations. These violations involved: (1) allowing, and even directing, the employees to perform asbestos-related work without required safeguards; (2) directing abatement workers to leave asbestos materials in wall cavities; (3) failing to fully inspect all areas; (4) failing to ensure that all areas were adequately encapsulated; (5) failing to demonstrate that clearance samples were taken as required; and (6) failing to institute the necessary quality assurance programs. L & I categorized these violations as willful and imposed a $63,000 fine against MMA. L & I cited MMA, rather than other contractors on the site, because MMA was the on-site asbestos abatement consultant and project agent for the Port and thus had the authority to and responsibility for ensuring that appropriate asbestos abatement procedures were followed.

MMA appealed the citation to the BIIA. In August 2002, the BIIA affirmed the citation but reduced three of the violations from willful to serious and imposed a total penalty assessment of $38,700. In October 2003, the King County Superior Court affirmed the BIIA's decision. MMA appeals, arguing that it cannot be held liable for WISHA violations.

DISCUSSION

In its Decision and Order, the BIIA stated that despite the contractual language assigning the ultimate responsibility for the project to the Port's Asbestos Program Manager, the realities of the workplace indicated that MMA

had the authority to exercise control and did, in fact, exercise sufficient control over the work processes in fact to be held liable for safety violations. [MMA] exercised considerable control over the subcontractors and in the exercise of this authority, directed and/or encouraged the violation of safety and health rules....

This statement is a finding of fact, although the BIIA did not label it as such. And while MMA does not specifically challenge any of the BIIA's findings of fact, it does challenge the BIIA's conclusion that MMA may be held liable for safety violations. Thus we assume that MMA is challenging a factual finding made by the BIIA. We review the BIIA's *779 findings of fact for substantial evidence and must determine whether its conclusions of law are appropriate based on its factual findings.[2] Substantial evidence is "`evidence in sufficient quantum to persuade a fair-minded, rational person of the truth of a declared premise.'"[3]

WISHA requires that all employers furnish a workplace free of recognized hazards[4] and authorizes L & I to cite any employer that fails to do so.[5] Any entity that engages in any business and employs one or more employees is an employer for WISHA purposes.[6] MMA argues that it is not an employer under WISHA because it was merely a consultant with limited duties. But the evidence shows that MMA exercised a great deal of control over the worksite and may therefore be liable under the multi-employer worksite doctrine.

The multi-employer worksite doctrine arose in the context of the federal Occupational Safety and Health Act (OSHA) and has been adopted by most of the federal courts that have considered it, including the Ninth Circuit Court of Appeals.[7] Under the doctrine, "an employer who controls or creates a worksite safety hazard may be liable under [OSHA] even if the employees threatened by the hazard are solely employees of another employer."[8] OSHA delineates employers' duties, stating that each employer

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