Secretary of the Education & Labor Cabinet, Commonwealth of Kentucky v. Sterett Crane and Rigging, LLC

CourtCourt of Appeals of Kentucky
DecidedAugust 9, 2024
Docket2023-CA-1246
StatusUnpublished

This text of Secretary of the Education & Labor Cabinet, Commonwealth of Kentucky v. Sterett Crane and Rigging, LLC (Secretary of the Education & Labor Cabinet, Commonwealth of Kentucky v. Sterett Crane and Rigging, LLC) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Secretary of the Education & Labor Cabinet, Commonwealth of Kentucky v. Sterett Crane and Rigging, LLC, (Ky. Ct. App. 2024).

Opinion

RENDERED: AUGUST 9, 2024; 10:00 A.M. NOT TO BE PUBLISHED

Commonwealth of Kentucky Court of Appeals NO. 2023-CA-1246-MR

SECRETARY OF THE EDUCATION & LABOR CABINET, COMMONWEALTH OF KENTUCKY APPELLANT

APPEAL FROM FRANKLIN CIRCUIT COURT v. HONORABLE PHILLIP J. SHEPHERD, JUDGE ACTION NO. 20-CI-00645

STERETT CRANE AND RIGGING, LLC AND KENTUCKY OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION APPELLEES

OPINION AFFIRMING IN PART AND REVERSING AND REMANDING IN PART

** ** ** ** **

BEFORE: CALDWELL, COMBS, AND EASTON, JUDGES.

COMBS, JUDGE: Appellant, The Secretary of the Education and Labor Cabinet

(the Labor Cabinet), appeals an order of the Franklin Circuit Court entered on

September 19, 2023. The circuit court affirmed portions of a final administrative decision and order of the Kentucky Occupational Safety and Health Review

Commission (the Commission) and reversed others. On appeal, The Labor Cabinet

contends that the court erred by reversing the Commission’s decision with respect

to: (1) its interpretation of a federal regulation requiring participation of an

assembly/disassembly director at certain work sites and (2) a separate federal

regulation governing workplace injury report forms. After our review, we reverse

in part (as to the assembly/disassembly director) and affirm in part (as to injury

reporting forms).

On August 23, 2017, the Labor Cabinet (through the Department of

Workplace Standards) received a referral from the Shepherdsville Fire Department.

The referral pertained to personal injuries sustained by three construction workers

as they prepared a hydraulic mobile crane for use in the expansion of an overpass

on Old Preston Highway in Shepherdsville. As a result of the incident, two of the

construction workers were hospitalized. After an investigation, the Labor

Cabinet’s safety compliance officer proposed citing Sterett Crane & Rigging, LLC,

(Sterett Crane) for violating a number of workplace safety standards. These

violations included: failure to conduct necessary inspections of equipment; failure

to remove damaged equipment (later amended to failure to provide a safe

workplace by replacing worn equipment); failure to have a participating

assembly/disassembly director on site; and failure to have a signal person on site.

-2- These violations were all categorized as serious, and Sterett Crane was to be

assessed penalties totaling $19,600.00. The safety compliance officer also

recommended that Sterett Crane be cited for its failure to post a hand-signal chart

and its failure to complete injury report forms properly. For these violations, an

additional penalty of $1,950.00 was proposed. Sterett Crane contested the

proposals.

Following an administrative hearing conducted in January 2019, a

hearing officer recommended penalties for Sterett Crane’s failure to conduct

necessary inspections; failure to provide a safe workplace by replacing worn

equipment; and failure to post a hand-signal chart. Both parties filed petitions for

review with the Commission.

The Commission reviewed the issues and rendered a final order. It

concluded that Sterett Crane violated safety standards by failing to conduct

necessary inspections of equipment; failing to provide a safe workplace by

replacing worn equipment; failing to ensure participation of an

assembly/disassembly director on site; failing to post a hand-signal chart; and

failing to complete injury report forms properly. It declined to issue a citation for

failure to post a signal person on site. The Commission imposed penalties totaling

$16,650.00. Sterett Crane accepted the Commission’s decision with respect to its

-3- failure to post a hand-signal chart. However, pursuant to the provisions of KRS1

338.031, it filed an appeal to the Franklin Circuit Court with respect to the

remainder of the decision.

In its order entered September 19, 2023, the circuit court affirmed the

Commission’s decision with respect to the failure of Sterett Crane to conduct the

necessary inspections of equipment and to provide a safe workplace by replacing

worn equipment. It also affirmed the Commission’s penalties of $9800.00 for

these violations. However, the circuit court reversed the Commission’s decision

with respect to the failure of Sterett Crane to post an active assembly/disassembly

director on site and to file proper injury report forms. Consequently, it vacated the

penalties imposed with respect to these alleged violations. The Labor Cabinet has

appealed the reversal of those two issues by the circuit court.

On review, a court may reverse an administrative agency’s decision

only where the agency acted “outside the scope of its authority, if the agency

applied an incorrect rule of law, or if the decision itself is not supported by

substantial evidence on the record.” Dep’t of Labor v. Morel Const. Co., Inc., 359

S.W.3d 438, 442 (Ky. App. 2011). Questions of fact resolved by the

administrative decision are reviewed to determine whether evidence before the

agency “has sufficient probative value to induce conviction in the mind of a

1 Kentucky Revised Statutes.

-4- reasonable person.” Bowling v. Natural Res. & Envtl. Prot. Cabinet, 891 S.W.2d

406, 409 (Ky. App. 1994) (citation omitted). We review questions of law de novo

and afford no deference to the administrative agency’s interpretation. Morel

Const. Co., 359 S.W.3d at 442.

Title 29 § 1926.1400 of the Code of Federal Regulations (CFR) (also

known as the Occupational Safety and Health Act -- or OSHA) governs federal

workplace safety issues relevant to “power-operated equipment, when used in

construction, that can hoist, lower and horizontally move a suspended load.” The

parties agree that the provision applies to mobile cranes like the ones owned by

Sterett Crane and provided for use at the Shepherdsville jobsite.

Provisions of Kentucky’s Occupational Safety and Health Act

(OSHA), KRS Chapter 338, are patterned after their federal counterpart and are

interpreted consistently with federal law. David Gaines Roofing, LLC v. Kentucky

Occupational Safety & Health Review Comm’n, 344 S.W.3d 145 (Ky. App. 2011).

In order to establish a safety violation, the Labor Cabinet must prove the following

elements by a preponderance of the evidence: (1) the applicability of the standard,

(2) the employer’s noncompliance with the terms of the standard, (3) employee

access to the violative condition, and (4) the employer’s actual or constructive

knowledge of the violation. Id. at 148 (citing N & N Contractors, Inc. v.

-5- Occupational Safety & Health Review Comm’n, 255 F.3d 122, 126 (4th Cir.

2001)).

29 CFR § 1926.1404(a)(1) requires that assembly/disassembly of

cranes be “directed by a person who meets the criteria for both a competent person

and a qualified person, or by a competent person who is assisted by one or more

qualified persons.” A “competent person” means one who is capable of identifying

existing and predictable hazards in the surroundings or working conditions which

are unsanitary, hazardous, or dangerous to employees, and who has authorization

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Related

Bowling v. Natural Resources & Environmental Protection Cabinet
891 S.W.2d 406 (Court of Appeals of Kentucky, 1995)
Revenue Cabinet v. Joy Technologies, Inc.
838 S.W.2d 406 (Court of Appeals of Kentucky, 1992)
Executive Branch Ethics Commission v. Stephens
92 S.W.3d 69 (Kentucky Supreme Court, 2002)
Revenue Cabinet, Commonwealth v. Gaba
885 S.W.2d 706 (Court of Appeals of Kentucky, 1994)
Department of Labor v. Morel Construction Co.
359 S.W.3d 438 (Court of Appeals of Kentucky, 2011)

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Secretary of the Education & Labor Cabinet, Commonwealth of Kentucky v. Sterett Crane and Rigging, LLC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/secretary-of-the-education-labor-cabinet-commonwealth-of-kentucky-v-kyctapp-2024.