Metzler v. Arcadian Corporation

CourtCourt of Appeals for the Fifth Circuit
DecidedJune 2, 1997
Docket96-60126
StatusPublished

This text of Metzler v. Arcadian Corporation (Metzler v. Arcadian Corporation) is published on Counsel Stack Legal Research, covering Court of Appeals for the Fifth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Metzler v. Arcadian Corporation, (5th Cir. 1997).

Opinion

REVISED United States Court of Appeals,

Fifth Circuit.

No. 96-60126.

Cynthia A. METZLER, Secretary of Labor, Petitioner,

v.

ARCADIAN CORPORATION; and Occupational Safety and Health Review Commission, Respondents.

April 28, 1997.

Petition for Review of a Final Order of the Occupational Safety and Health Review Commission.

Before POLITZ, Chief Judge, and WIENER and STEWART, Circuit Judges.

STEWART, Circuit Judge:

Today we interpret the meaning of the General Duty Clause of

the Occupational Safety and Health Act of 1970 (OSH Act) (29 U.S.C.

§§ 651-678). This case presents the question of whether the

Secretary of Labor (Secretary) was correct when he decided to fine

Arcadian Corporation (Arcadian) on a per-employee basis for

violating the Clause. The Occupational Safety and Health Review Commission (Commission) reversed the Secretary's decision, holding

that the unit of prosecution under the Clause is the condition that

poses a hazard to employees, and not the affected employee(s). The

Secretary filed this petition for review. We deny the petition and

hold that the General Duty Clause unambiguously provides that the

violative condition, not the employee, is the unit of prosecution.

BACKGROUND

Arcadian Corporation (Arcadian) manufactures fertilizer at a

1 plant in Lake Charles, Louisiana. A terrible accident occurred on

July 28, 1992. That day, a urea reactor at the plant exploded,

scattering the reactor and its contents over a 600-acre area. The

reactor's 19,000 pound steel head was blown 500 feet, and ammonia o and carbon dioxide, heated to 370 F, were released into the

atmosphere. According to the Secretary, Arcadian had detected

leaks in the liner of the reactor's pressure vessel prior to the

explosion and failed to take steps to eliminate the hazard, such as

shutting down the reactor, implementing a program to monitor the

vessel's leak detection system, and assuring that critical welds

were performed according to industry standards and design

specifications. Eighty-seven Arcadian employees were exposed to

the danger of being struck by flying debris, suffering heat and

chemical burns, and asphyxiation by toxic gases.

PROCEDURAL HISTORY

In January 1993, the Occupational Health and Safety

Administration (OSHA) cited Arcadian for violations of the OSH Act.

The Secretary of Labor argued that Arcadian willfully violated the

OSH Act's General Duty Clause, which requires employers to provide

a place of employment free from hazards that cause or are likely to

cause death or serious physical harm to employees. 29 U.S.C. §

654(a)(1). Citation 2, Item 1 alleged that Arcadian had failed to

provide Mary Poullard Smith with safe employment because the

catastrophic explosion in the pressure vessel constituted a

violation of the General Duty Clause. OSHA alleged that the

violation was willful and proposed a penalty of $50,000 and several

2 other corrective measures.1 Items 2 through 87 of Citation 2 were

identical to Item 1 except for the identity of the employee exposed

to the hazard. When all was said and done, Arcadian was assessed

a penalty of $4,350,000.

Pursuant to the OSH Act, Arcadian contested the citations

before an administrative law judge (ALJ) on the ground that the

unit of prosecution for violating the General Duty Clause is the

violative condition, not the employee or employees exposed to that

condition. After some discovery, Arcadian moved for partial

summary judgment and requested that Items 2 through 87 be vacated

and their allegations consolidated with Item 1. The Secretary of

Labor filed a cross-motion for summary judgment. At the time the

motions were filed, the record consisted essentially of the

citations and a deposition transcript of Raymond Donnelly, Director

of OSHA's Office of General Industry Compliance Assistance.

Donnelly provided uncontradicted evidence that the number 87 was a

"multiplier" which represented the number of employees exposed to

a single hazardous condition. He admitted that Arcadian was only

required to correct the condition once, not 87 times.

The ALJ sided with Arcadian, holding that Arcadian's failure

to properly inspect and maintain the reactor was a single course of

conduct that could support only one violation of the General Duty

1 29 U.S.C. § 666(a) provides that "[a]ny employer who willfully or repeatedly violates the requirements of section 5 of this Act [i.e., the General Duty Clause] ... may be assessed a civil penalty of not more than $70,000 for each violation, but not less than $5,000 for each willful violation." In 1990, Congress increased the fine from $10,000 to $70,000 and added the $5,000 minimum penalty for willful violations.

3 Clause. The Occupational Safety and Health Review Commission

(Commission) affirmed the ALJ. In a 2-1 decision, the majority

concluded that the General Duty Clause unambiguously provided that

employers should be fined on a per-violation, rather than a

per-employee, basis. Four reasons justified the Commission's

conclusion. First, the majority argued that issuing identical

abatement orders for each employee exposed to the same hazard would

increase administrative and legal costs and would be inconsistent

with congressional intent. Second, according to the majority, the

General Duty Clause referred to employees as a group, rather than

as individuals; the phrase "each of his employees" in § 654(a)

merely refers to all employees as opposed to some. Third, the

majority viewed the Secretary's interpretation of the General Duty

Clause as a departure from previous practices, which had allowed

separate citations for each individual hazard but not for each

exposed employee. This approach was unreasonable, concluded the

Commission, because the Secretary had not explained the reason for

his departure from earlier practice. Finally, the Commission

concluded that it did not owe deference to the Secretary's

interpretation of the General Duty Clause because the Commission

viewed itself as the final adjudicator of the OSH Act and because

the statutory authority to assess penalties rested squarely with

the Commission.

The Chairman of the Commission dissented. He argued that the

Commission had upheld violation-by-violation citations in other

cases, including per-employee citations, under various OSH Act

4 standards. In his opinion, the permissibility of such citations

depends on the language of the cited provision. He concluded that

the Secretary's interpretation was compatible with the Act and did

not conflict with the plain language of the General Duty Clause.

The Chairman also stated that although the Secretary's

interpretations of the OSH Act are not generally entitled to

deference from the Commission, deference was due here because

"whether and how to cite under [the General Duty Clause] relates

directly to the Secretary's prosecutorial discretion and goes to

the heart of his enforcement authority."

The Commission ultimately remanded the case to the ALJ to

provide the Secretary an opportunity to amend the citations. The

Secretary, however, declined to do so.

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