Seattle Bulk Shipping Inc., V. Department Of Labor And Industries

Court of Appeals of Washington·Decided February 27, 2023·No. 83782-6·Published

Opinion

NOTICE: SLIP OPINION

(not the court’s final written decision)

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IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

SEATTLE BULK SHIPPING, INC., No. 83782-6-I

Appellant,

DIVISION ONE

v.

PUBLISHED OPINION

DEPARTMENT OF LABOR AND INDUSTRIES,

Respondent.

COBURN, J. — This is a Washington Industrial Safety and Health Act (WISHA) case. The Department of Labor and Industries (Department) issued citations for multiple willful, serious, and general violations and penalties against Seattle Bulk Shipping, Inc. (SBS). SBS contends that the Department improperly issued citations under chapter WAC 296-56 because SBS’s facility is not a “marine terminal” under WAC 296-56-099. SBS also contends that grain- handling standards under WAC 296-00-005 do not apply because SBS did not store grain. Lastly, SBS argues that the decisions upholding the willful or failure to abate citations should be reversed because the investigating compliance officer did not follow the Department’s internal compliance manual. Because the Department improperly cited SBS as a marine terminal, we reverse the violations under chapter WAC 296-56. We otherwise affirm.

Citations and pincites are based on the Westlaw online version of the cited material

No. 83782-6-I/2

FACTS

SBS is a bulk transfer business that leases property from the City of Seattle on Harbor Island. The facility handles transloading commodities, mostly grain and ethanol transfers. Workers transfer grain from railroad cars to shipping containers and from shipping containers to railroad cars using a yard hostler. 1 The transfer is made through the use of a pit, storage towers, and conveyor belts. Workers also transfer ethanol and sometimes diesel fuel from railroad cars to petroleum trucks through connections to a pump with hoses. SBS is responsible for transloading cargo at its facilities for its customers and arranging for truck operators to transport the cargo between the SBS facility and a marine terminal. SBS is not involved in transferring cargo onto or off of a vessel. Port of Seattle terminals are not SBS’s clients or customers. SBS’s clients are the ones who are responsible for exporting or importing the cargo before or after it passes through SBS’s facility. About 90 percent of the cargo SBS handles travels through Terminal 18, which is a few blocks away from SBS’s facility.

In December 2014, an SBS employee fell into a grain pit and broke three ribs. After the accident, the Department initiated a safety inspection at SBS, resulting in citation and notice number 317617686 issued in June 2015. The citation alleged 4 willful, 11 serious, and 1 general WISHA violations, and assessed a total penalty of $218,450. The citation included 9 violations under chapter WAC 296-56. This chapter directs employers to “protect employees from hazards associated with marine terminals.” WAC 296-56-600.

1 A powered industrial truck used for moving heavy material, such as grain.

No. 83782-6-I/3

In January 2015, the Department decided it was appropriate for the marine and dock division to also conduct an industrial hygiene inspection. That inspection resulted in a second citation, number 317934962, also issued on June 2015. This citation alleged 2 willful, 2 failure to abate, 30 serious, and 18 general WISHA violations with a total penalty of $206,400. This citation included 5 violations under chapter WAC 296-56.

One serious violation derived from SBS’s failure to have an eyewash station on site under WAC 296-800-15030. 2 The Department advised that the deadline for SBS to correct this violation was July 1, 2015. After the abatement deadline passed, SBS requested to stay its abatement pending appeal on August 6. The Board of Industrial Insurance Appeals (Board) denied the request to stay the abatement on September 22 and reminded SBS that it was obligated to correct the violation in accordance with WAC 296-900-150. That rule addresses certifying violation corrections and lists “comply with correction due dates” as an employer responsibility. WAC 296-900-150(3).

The Department was under the impression that SBS had ceased operations, but when the Department learned that SBS had not, the Department conducted a follow-up inspection in January 2016. That citation alleged two serious failure to abate violations and four serious violations resulting in a

2

Specifically, the citation stated the “employer did not provide an emergency eyewash station for employees performing ethanol transfer operations where there is potential for an employee’s eyes to be exposed to a strong irritant (ethanol). Strong irritants can cause serious eye injuries.”

No. 83782-6-I/4

$448,200 penalty. One failure to abate violation concerned SBS’s failure to ensure an approved emergency eyewash onsite under WAC 296-800-15030.

SBS appealed all three citations to the Board. The Board held an administrative hearing, and SBS argued below as it does now on appeal that it did not fall within the WISHA rule’s definition of “marine terminal,” so it should not have been cited for violations under the marine terminal standard. The Board’s industrial appeals judge (IAJ) rejected that argument and issued a proposed decision and order affirming but modifying nearly all of the cited violations and their respective penalties. SBS filed a petition for review from the proposed decision that the Board granted. In January 2021, the Board issued its final decision, rejecting SBS’s argument that its facility did not qualify as a marine terminal and affirming a majority of the violations. The Board also rejected the argument and affirmed the citations as modified. In finding of fact 15, the Board found,

From December 17, 2014, to June 17, 2016, Seattle Bulk Shipping’s bulk material handling facility on Harbor Island was contiguous with wharves, bulkheads, quays, piers, docks, and other berthing locations, and it included areas and structures associated with the primary movement of cargo or materials from vessel to shore or from shore to vessel, and which were devoted to receiving, handling, consolidating, and loading or delivery of waterborne shipments.

The Board cited to the definition of “marine terminal” under WAC 296-56 and explained,

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