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

CourtCourt of Appeals of Washington
DecidedFebruary 27, 2023
Docket83782-6
StatusPublished

This text of Seattle Bulk Shipping Inc., V. Department Of Labor And Industries (Seattle Bulk Shipping Inc., V. Department Of Labor And Industries) 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.

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Seattle Bulk Shipping Inc., V. Department Of Labor And Industries, (Wash. Ct. App. 2023).

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 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/. 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.

2 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/. 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.”

3 For the current opinion, go to https://www.lexisnexis.com/clients/wareports/. 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.

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