Thomas E. Perez v. Loren Cook Company

803 F.3d 935, 2015 CCH OSHD 33,481, 25 OSHC (BNA) 1689, 2015 U.S. App. LEXIS 17767, 2015 WL 5932887
CourtCourt of Appeals for the Eighth Circuit
DecidedOctober 13, 2015
Docket13-1310
StatusPublished
Cited by6 cases

This text of 803 F.3d 935 (Thomas E. Perez v. Loren Cook Company) is published on Counsel Stack Legal Research, covering Court of Appeals for the Eighth Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thomas E. Perez v. Loren Cook Company, 803 F.3d 935, 2015 CCH OSHD 33,481, 25 OSHC (BNA) 1689, 2015 U.S. App. LEXIS 17767, 2015 WL 5932887 (8th Cir. 2015).

Opinions

SHEPHERD, Circuit Judge.

Following an industrial accident, the Secretary of Labor (Secretary)1 determined that the Loren Cook Company (Loren Cook) violated 29 C.F.R. § 1910.212(a)(1), which requires barrier guards on certain industrial equipment. The Secretary imposed a $490,000 fine against Loren Cook. An Administrative Law Júdge (ALJ) rejected the Secretary’s interpretation of section 1910.212(a)(1) and vacated the fine. The Occupational Safety and Health Review Commission (Commission) adopted the ALJ’s decision as its own. The Secretary petitioned this court for review of the Commission’s order. A divided panel of this court granted the petition for review and reversed the Commission’s order. In granting Loren Cook’s petition for rehearing en banc, we vacated the panel decision. We now deny the Secretary’s petition for review and affirm the Commission’s order.

I.

Loren Cook is an industrial manufacturer of air circulating equipment. Loren Cook uses lathes, which are industrial turning machines used to form and mold metal discs, in its manufacturing process. Lathes operate by holding heavily lubricated pieces of metal that rotate rapidly, allowing the lathe operator to apply tools to shape the metal into individual workpieces. Lathes vary in size depending on the size of the workpiece being produced. In May 2009, a Loren Cook lathe operator was killed when a 12-pound rotating metal workpiece broke free from the lathe, flew out of his machine, and struck him in the head. The lathe ejected the workpiece at a speed of 50 to 70 miles per hour and, after the workpiece struck the operator in the head, it traveled along the floor at least another 20 feet before crashing into metal shelving.

In November 2009, the Secretary - conducted an investigation of the industrial accident and issued two citations against Loren Cook. Relevant to this appeal, one citation found seven violations of 29 C.F.R. § 1910.212(a)(1) for failure to employ barrier guards to protect workers from ejected workpieces. Section 1910.212(a)(1) provides:

Types of guarding. One or more methods of machine guarding shall be provided to protect the operator and other employees in the machine area from hazards such as those created by point, of operation, ingoing nip points, rotating parts, flying chips and sparks. Examples of guarding methods are — barrier guards, two-hand tripping devices, electronic safety devices, etc.

The Secretary determined that Loren Cook’s failure to employ barrier guards to prevent the ejection of a'workpiece from this kind of catastrophic breakdown of a lathe violated section 1910.212(a)(1). The Secretary assessed Loren Cook a fine of $70,000 for each violation of this section, resulting in a total fine of $490,000.

[938]*938Loren Cook sought review from an ALJ, who, after conducting a 20-day hearing and compiling an extensive record, concluded that section 1910.212(a)(1) did not apply to the conduct for which the Secretary cited Loren Cook. The ALJ reasoned that section 1910.212(a)(1) focuses on point-of-contaet risks and risks associated with the routine operation of lathes, such as flakes and sparks, but does not contemplate the catastrophic failure of a lathe that would result in .a workpiece being thrown out of the lathe. The ALJ thus vacated the citation the Secretary issued against Loren Cook. The Commission adopted the unmodified recommendation of the ALJ. The Secretary subsequently petitioned our court for review of the Commission’s final order pursuant to 29 U.S.C. § 660(b).

II.

We' review a petition seeking review of a Commission order under a deferential standard pursuant to the Administrative Procedures Act, upholding the Commission’s factual findings if they are “supported by substantial evidence on the record considered as a whole,” and upholding the Commission’s legal conclusions ‘.‘unless they are arbitrary, capricious, an abuse of discretion, or otherwise not in accordance with law.” Solis v. Summit Contractors, Inc., 558 F.3d 815, 823 (8th Cir.2009) (internal quotation marks omitted). The Commission adopted the ALJ’s order finding section 1910.212(a)(1) does not address catastrophic failures of lathes resulting in the ejection of workpieces and instead only considers routine risks of operation. The Secretary argues this was in error because the Secretary’s interpretation of its own regulation is entitled to considerable deference and the ALJ failed to afford the Secretary’s interpretation such deference.

Applying Seminole Rock2 deference, we generally afford substantial deference to the Secretary’s interpretation of his own regulations. See Thomas Jefferson Univ. v. Shalala, 512 U.S. 504, 512, 114 S.Ct. 2381, 129 L.Ed.2d 405 (1994); Martin v. Occupational Safety & Health Review Comm’n, 499 U.S. 144, 150-51, 111 S.Ct. 1171, 113 L.Ed.2d 117 (1991). But deference to the Secretary’s interpretation is only appropriate when both the interpretation itself and the manner in which the Secretary announces the interpretation are reasonable. See Martin, 499 U.S. at 157-58, 111 S.Ct. 1171.

[939]*939The Supreme Court has identified several circumstances under which a court should not afford deference to an agency’s interpretation of its own regulation. First, deference to an agency’s interpretation is inappropriate when the interpretation is “ ‘plainly erroneous or inconsistent with the regulation.’ ” Auer v. Robbins, 519 U.S. 452, 461, 117 S.Ct. 905, 137 L.Ed.2d 79 (1997) (quoting Robertson v. Methow Valley Citizens Council, 490 U.S. 332, 359,109 S.Ct. 1835, 104 L.Ed.2d 351 (1989)). Second, deference is also inappropriate “when there is reason to suspect that the agency’s interpretation ‘does not reflect the agency’s fair and considered judgment on the matter in question.’ ” Christopher v. SmithKline Beecham Corp., — U.S. -, 132 S.Ct. 2156, 2166, 183 L.Ed.2d 153 (2012) (quoting Auer, 519 U.S. at 462, 117 S.Ct. 905). This may be evidenced by an agency’s current position conflicting with prior interpretations, by an agency’s use of the position as nothing more than a litigating position, or by the use of the interpretation as a post hoc rationalization for a prior action. Id. at 2166.

Finally, deference ds inappropriate when an agency’s new interpretation of its own regulation results in unfair surprise. Id. at 2167. In declining to afford deference to the Department of Labor’s interpretation of one of its regulations, the Christopher Court noted that giving the interpretation deference would “impose potentially massive liability on [the regulated entity] for conduct that occurred well before that interpretation was announced.” Id.

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803 F.3d 935, 2015 CCH OSHD 33,481, 25 OSHC (BNA) 1689, 2015 U.S. App. LEXIS 17767, 2015 WL 5932887, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thomas-e-perez-v-loren-cook-company-ca8-2015.