Elmer Julio Perez Mendez d/b/a Julio Perez

Plain-English summary

OSHA issued willful fall-protection and grouped injury-reporting citations after an employee fell approximately eight feet from a residential roof and died. The citations proposed a total penalty of $138,118 and were delivered by certified mail to the address Perez had supplied, where a temporary house guest signed for them. Perez was traveling during the COVID-19 pandemic and filed a notice of contest nearly three weeks after the deadline. The judge found service proper because mailing to the provided address was reasonably calculated to give notice. Perez's travel did not excuse his failure to arrange for important mail to be handled, and the delay remained within his control. Although the Secretary was not prejudiced and Perez acted in good faith after learning of the citations, those factors did not establish excusable neglect. The late contest was dismissed, and the citations and penalties remained a final order.

Decision snapshot

• Cited standard(s): 29 C.F.R. § 1926.501(b)(13), plus fatality and hospitalization reporting requirements described in the citation.
• Outcome: Rule 60(b) relief denied, late notice of contest dismissed, and the $138,118 citation package left in effect.
• Key point: Certified delivery to an employer's supplied address starts the contest period, and absent mail-handling procedures generally do not qualify as excusable neglect.

Full text (OSHRC public release)


Elmer Julio Perez Mendez dba Julio Perez OSHRC Docket No. 20-1083 FRCP 60(b)

United States of America

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

1120 20 th
Street, N.W., Ninth Floor

Washington, DC 20036-3457

Secretary of Labor,

Complainant

v.

OSHRC Docket No.:
20- 1 0 8 3

Elmer Julio Perez Mendez dba Julio Perez,

Respondent.

On Pleadings :

Lydia
J.
Chastain , Esq .

Office of the Solicitor, U.S. Department of Labor,
Atlanta, Georgia

For Complainant

Patrick J. Miller and Dana M. Svendsen,

Sherman & Howard LLC., Denver, Colorado

For Respondent

Before: Administrative Law Judge
Sharon D. Calhoun

DECISION AND ORDER

This matter is before the Occupational Safety and Health Review Commission
(Commission)
on a
Late Notice of Contest
dated
July 15, 2020 ,
from Respondent
Elmer Julio Perez Mendez dba Julio Perez (Perez) ,
which was
received
and docketed
by
the Commission on
July 22, 2020 .

On
August 28 , 2020, Complainant, Secretary of Labor, United States Department of Labor (Secretary) filed a Motion to Dismiss Respondent’s
Untimely
Notice of Contest Pursuant to
Rule § 2200.40 of the Commission’s Rules of Procedure and Rule 60(b) of the Federal Rules of Civil Procedure. On September 8, 2020, Perez filed a
Response to the Secretary’s Motion to Dismiss .

For the
r easons
set forth herein
P erez ’ s
request for r elief pursuant to Rule 60(b)(1)
is
DENIED .

B ACKGROUND

This matter arises out of a n
Occupational Safety and Health Administration (OSHA)
inspection
d uring the period
February 27, 2020 through
April
1 7 , 20 20 .

The inspection was initiated in response to a fatality on the jobsite located at 775 Willow Springs Drive, Mobile, Alabama,
due to
an employee falling approximately 8 feet from the
eave
of the roof to the ground. On June 2, 2020,
OSHA i ssued
a
Citation and Notification of Penalty (Citation)
for one
willful
violation of
the standard found at 19 26 . 501(b)(1 3 ) , alleging
employees engaged in residential construction activities at least six feet from the lower level were not protected by
guardrail systems, safety net systems, personal fall arrest systems, or alternative fall protection measures on or about December 4, 2019 ,
and times prior thereto. OSHA also issued a grouped
o ther-than- s erious Citation alleging that on
or about
December 11, 2019, Perez failed to report a work-related fatality within 8 hours of the death of an employee resulting from a work related incident; and that on or about December 4, 2019, Perez failed to report within 24 hours
a work related incident resulting in
the hospitalization
of the employee who fell from the roof . A penalty in the
total
amount of
$ 138,118.00
w as
proposed for the alleged violation s .

OSHA’s inspection process was changed d ue to the ongoing COVID-19
p andemic . As a result of those changes, the inspection
conducted
by the Compliance Safety and Health Officer (CSHO) was changed. He
did not meet with or present his credentials to Perez and conducted the opening and closing conferences by telephone on April 17, 2020 ( Response,
pps . 11-14;
Exhs . F, unnumbered p. 2 and G, unnumbered
pps .
2, 4).

The Secretary mailed t he Citation
by Certified Mail/Return Receipt
and the UPS next day delivery
to Pe rez
at
5404 Forest Park Drive, Mobile, Alabama
(Secretary’s Motion,
p .
2,
Gonzalez
Aff . ¶
8,
and
Exh . A thereto ) . Pursuant to the requirements of the Act, an employer is required to notify the Secretary of its intent to contest (Notice of Contest
or NOC ) a Citation within 15 working days of receipt .
Failure to timely file a N OC
results in the Citation becoming a final order of the Commission by operation of law .

T he Citation
provide d
Perez
had 15 working days from the date of receipt to contest .
T he return receipt shows Pe rez rec eived the Citation on
June 3, 2020 . Therefore, any contest by Pe rez
was to be filed within the contest period, no later than
June 24, 2020 .
Pe rez , however, did not file a contest within the
15-day contest period .

Instead,
five days later,
on June 29, 2020, Perez called the OSHA Area Office requesting an informal conference . Perez
was advised the contest date had passed (Gonzalez
Aff . ¶ 9). Due to Perez’s failure to timely contest,
t he Citation became a
f inal
o rder of the Commission under § 10(a) of the
Occupational Safety and Health
Act
of 1970 , 29 U.S.C. §§ 651-678 (Act) ,
on
June 25, 2020 .

On July 15, 2020, approximately three weeks after the final contest date, Perez filed the late NOC at issue in this proceeding .

DISCUSSION

Perez alleges the NOC was not late because he did not become aware of the Citation until June 19, 2020, at the earliest, when he returned from a trip (NOC). According to Perez, the contest period did not begin to run until he became aware of the Citation.
Perez
also
argues th e Commission lacks jurisdiction because Perez is not an employer within the meaning of the Act
(NOC, Response, pp.
4-7 ) . For the reasons set forth herein, the Court finds Pe rez’s
contest on July 15, 2020 ,
i s a late NOC ,
and
the Commission has jurisdiction to address the late NOC issue .

Sufficiency of Service

It is the Secretary’s burden to establish service of the Citation .
Perez
contends
its contest was not untimely because
the Citation was delivered to
hi s home address,
was
signed for by a temporary
h ouse
guest, and was not
received
by him
until he returned from California where he had traveled to drive his wife hom e. According to
Perez his wife
was
un comfortable flying
due to
the ongoing COVID-19
p andemic
(Response, p. 3). Pe r ez
argues
the temporary house
guest
who signed for the Citation
does not work for him, does not reside at his residence ,
and therefore did not have the
authority to accept service of the Citation
on his behalf. Perez
further
argues he
is
a sole proprietor, and does not maintain a business address, therefore, service of the Citation at his home address was
improper . Basically
Perez argues that because of these circumstances he should not be held responsible for not knowing he had important mail which required timely action in order to protect his interests , either as a sole proprietor allegedly not subject to the jurisdiction of the Commission, or as employer
of the employees at the worksite ,
in
which
case the
Commission
would have
jurisdiction .

Although
the Act
refers only to the penalty, the Commission has consistently held § 10(a) of the Act governs service of citations .
B.J. Hughes, Inc ., 7 BNA OSHC 1471, 1474 n. 6 (No. 76-2165, 1979) .

It requires the Secretary to “notify the employer by certified mail of the penalty…” In
B.J. Hughes , the Commission addressed the Secretary’s obligation under § 10(a), holding,

The test to be applied in determining whether service is proper is whether the service is reasonably calculated to provide an employer with knowledge of the citation and notification of proposed penalty and an opportunity to determine whether to abate or contest.

7 BNA OSHC at 1474 .

Further, the Commission’s holding in
B. J. Hughes
that “[t]he
test to be applied in determining whether service is proper is whether the service is reasonably calculated to provide an employer with knowledge of the citation and notification of proposed penalty and an opportunity to determine whether to abate or contest ” satisfies the due process requirements set
forth by the United States Supreme Court that notice must be “reasonably calculated, under all the circumstances, to apprise interested parties of the pendency of the action and afford them an opportunity to present their objections.” Mulane
v. Cent. Hanover Bank & Trust Co. , 339 U. S. 306, 314 (1950).

T he Secretary’s service of the
C itation on
Pe rez
meets the test set out in
B.J. Hughes .
The test is one of reasonableness .
In his affidavit, Area Director Gonzalez states the Citation was mailed to the mailing address provided by Perez
(Gonzalez
Aff . ¶ 8) . By mailing the Citation certified mail
addressed to Perez at
the address
h e provided , and
having
receiv ed
confirmation the Citation was
received at that address, the service was
reasonabl y
calculated to provide the employer with the required notification and opportunity to determine whether to abate or contest.

Perez’s assertion that the Citation delivered to his residence was insufficient fails.

Rule 60(b) Relief

An employer who has filed an untimely
NOC
may be granted relief under Rule 60(b) in certain circumstances.
George Harms Constr. Co. v. Chao , 371 F.3d 156 (3d Cir. 2004) .
A late filing may be excused under Rule 60(b)(1) if the final order was entered
as a result of
“mistake, inadvertence, surprise or excusable neglect.” A late filing also may be excused under Rule 60(b)(3)
if the late filing w as
caused by the Secretary’s “deception or failure to follow proper procedures.”
See
Branciforte
Builders ,
Inc. , 9 BNA OSHC 2113, 2116-17 (No. 80-1920, 1981);
B.J. Hughes ,
Inc ., 7 BNA OSHC 1471, 1476 (No. 76-2165, 1979);
Keppel’s Inc. ,
7 BNA OSHC 1442, 1443-44 (No. 77-3020, 1979) . In addition, a late filing may be excused under Rule 60(b)(6), for any other reason that justifies relief, such as when “absence, illness, or a similar disability prevent[s] a party from acting to protect its interests.”
Branciforte
Builders , 9 BNA OSHC at 2117 .
The moving party has the burden of proving it is entitled to relief under Rule 60(b) .
Pe rez
has failed to provide sufficient proof that it is entitled to relie f .

In determining whether the late filing of a N OC
may be found to be due to “excusable neglect” under Rule 60(b)(1), the equitable analysis enunciated by the Supreme Court in
Pioneer
Inv. Services Co. v. Brunswick Associates Ltd. Partnership
507 U.S. 380 (1993)
is applicable.
George Harms Constr. Co., supra .
In
Pioneer
the Court held that “excusable neglect” is determined based upon equitable considerations that take into account all relevant circumstances, and includes consideration of the following factors: (1) the danger of prejudice to the opposing party; (2) the length of the delay and its potential impact on the proceedings; (3) the reason for the delay, including whether it was within the reasonable control of the party seeking relief, and (4)
whether the party seeking relief acted in good faith.
Id.
at 395;
see also Northwest Conduit Corp. ,
18 BNA OSHC 1948, 1951 (No. 97-851, 1999) .
“[N]either a lack of prejudice to the Secretary nor good faith on the part of Respondent in attempting to comply with the statutory filing requirement alone will excuse a late filing.”
Prime Roofing Corp. , 23 BNA OSHC 1329 (No. 07-1409, 2010).

The Commission has held that whether the reason for the delay was within the control of the respondent is a “key factor” in determining the presence of “excusable neglect.” A. S. Ross, Inc.,
19 BNA OSHC 1147 (No. 99-0945, 2000);
See also
Calhar
Constr. ,
Inc ., 18 BNA
OSHC 2151 (No. 98-0367, 2000) .
A party seeking relief under Rule 60(b)(6) “must show ‘extraordinary circumstances’ suggesting that the party is faultless in the delay.”

Where a party is partly to blame for the delayed filing, relief from the final order must be sought under Rule 60(b)(1) and the party’s neglect must be excusable .
See Pioneer Investment Serv. ,
507 U.S. at 393 .
The Commission requires an employer to exercise due diligence before it will find excusable neglect .
Keefe Earth Boring Company, Inc. ,
14 BNA OSHC 2187, 2192 (No. 88-2521, 1991) ;
Craig Mechanical ,
16 BNA OSHC 1763
(No. 92-0372, 1994) .

P erez
contends
he
is entitled to relief under Rules 60(b)( 1 ) , 60(b)(4)
and 60(b)(6)
of the Federal Rules of Civil Procedure .
For relief pursuant to Rule 60(b)(4) ,
P erez
asserts
the Citation was
improper ly
serv ed and he did not receive notice of the Citation until June 19, 2020 at the earliest. A s shown
above,
however,
the Court finds
service of the Citation was proper .

Further, the Court finds the Commission has jurisdiction to address the late NOC issue presented in this case, contrary to Perez’s assertion it does not. As
set forth by
l ongstanding
Commission
precedent , the Court
has the authority under
§
1 0(a) to
determine whether Pe rez
is entitled to relief from the final order .
Gulf & W. Food Prods. Co. , 4 BNA OSHC 1436, 1439 (No. 6804, 1976) (consolidated) .

P erez
should have had adequate mail handling procedures to ensure important items
we re received .
The Secretary was under no obligation to request signature by a specific person a t Perez’s business location .
Nor is it the Secretary’s responsibility to identify the person who signed the return receipt. Relief pursuant to Rule 60(b)(4) is not warranted .

In seeking
relief pursuant to
Rule 60(b)(6) , which provides for
relief
for any reason that justifies it , Pe rez a gain relies on its claim that the Citation was improperly served .
As the Court has determined the service was proper, relief pursuant to Rule 60(b)(6) fails .
Relief is
not warrant ed under 60(b)(6) where, as here,
Perez’s
mail handling procedures are such
that the mail
was not properly routed to ensure he would be made aware of
important mail
so that it could be handled timely .

In addition to contending the service of the Citation was improper, Perez asserts
the ongoing COVID-19
p andemic resulted in circumstances beyond his
reasonable
control which warrant a finding of excusable neglect under Rule 60(b)(6). He asserts that due to the COVID-19
pandemic he was away from his residence when the Citation was received. He seeks consideration for this since
OSHA
changed its inspection procedures due to the pandemic. Changes which obviously were to protect both the CSHO and the employer. Perez asserts due to OSHA’s changed procedures
OSHA d id not follow procedural and statutory requirements
of
provid ing
in person opening and closing conferences and produc ing
the CSHO’s credentials during the inspection . Although the pandemic may have caused Perez to be away from his residence, the pandemic does not justify his failure to establish mail handling procedures which would ensure he had been apprised of receipt of the Citation. A conversation before his trip
to California ,
or a simple
telephone call, text or email to his temporary house guest could easily have taken place
to
discuss how to handle mail and
to find out about any mail that had been received. Perez’s
claim
provides insufficient basis for the Court to conclude the reason for the delay was not under
his
control . Perez
has not
shown “extraordinary circumstances” suggesting it is faultless in the delay” as required for relief under Rule 60(b)(6) .

T he Court finds
Pe rez
failed to exercise due diligence and was simply negligent in failing to file
the
contest before the expiration of the contest period .
The Commission has long held an employer’s mere carelessness or negligence, even by a layperson, in failing to timely file a Notice of Contest does not amount to “excusable neglect” that would justify relief under
Rule 60(b) .
Acrom
Constr. Serv. , 15 BNA OSHC 1123, 1126 (No. 88-2291, 1991) . Neither
the record evidence nor
Pe rez ’s explanations for its late filing show deception or a failure to follow proper procedures on behalf of the Secretary .
Instead, the record shows Pe rez
had inadequate mail handling procedures .
The record does not demonstrate
Pe rez had
any procedures in place
regarding what
wa s to be done when
certified mail
wa s received .
The delay was within
Pe rez’ s control.
Commission precedent for denying relief where untimely filings were due to faulty mail handling procedures have been upheld by the D.C. Circuit in
David E. Harvey Builders, Inc. v. Sec'y of Labor , 724 F.
App'x
7, 9 (D.C. Cir. 2018) (unpublished)
(citations omitted) .

Where timely response was within the employer’s reasonable control, the Commission has denied
relief even to petitions filed only one or two days late,  see  Sec’y of Labor v. Villa Marina Yacht Harbor, Inc. , 19 BNA OSHC 2185, 2186-87 (2003) (one day late);  see also Sec’y of Labor v. A.W. Ross, Inc. , 19 BNA OSHC 1147, 1148-49 (2000) (11 days late). The Commission “has consistently denied relief” under Rule 60(b)(1) “to employers whose procedures for handling documents were to blame for untimely filings.”  Sec’y of Labor v. NYNEX , 18 BNA OSHC 1944, 1946-47 (1999) (citation omitted).

David E. Harvey Builders, Inc. v. Sec'y of Labor , 724 F.
App'x
7, 9 (D.C. Cir. 2018) (unpublished). Here, the NOC was
nearly 3 weeks
late, and
w as entirely to blame on
Perez’s
ineffective or absent
mail-handling procedure s .

B ecause Perez was
to blame for the delayed filing
and he has not established his
neglect
is
excusable , relief pursuant to Rule 60(b)(1) also is not warranted.

As set forth above, in addition to control, t he Court must also consider t he danger of prejudice to the opposing party; the length of the delay and its potential impact on the proceedings; and whether the party seeking relief acted in good faith.

Danger of Prejudice

The Secretary
does not a ssert it would be prejudiced because of the delay . Therefore, the Court finds the Secretary is not prejudiced by the late filing.
However, a lack of prejudice to the Secretary ,
alone, will not excuse a late filing .
Prime Roofing Corp ., 23 BNA OSHC 1329 (No. 07-1409, 2010).

L ength of Delay and Impact on Proceedings

The nearly 3-week
delay in contesting
would not
adversely impact
the Commission’s proceedings .

Good Faith

P erez asserts he acted in good faith by filing his contest within fifteen working days of his becoming aware of the Citation. The Act requires fifteen working days of receipt, not awareness. Nonetheless the Court finds Perez
did make a good faith effort to comply.

However, as noted above,
good faith in attempting to comply with the statutory filing requirement alone will
not
excuse a late filing . Prime Roofing Corp ., 23 BNA OSHC 1329 (No. 07-1409, 2010).

The Court has considered the factors required by
Pioneer.
Despite the lack of prejudice to the Secretary
and
that the d elay
w ould not adversely affect the Commission proceedings,
Perez ’s
control of the delay in timely filing the NOC
is
determinative
in that it
was in control of its mail handling procedures which resulted in the NOC not being timely filed.

Meritorious Defense

In addition to the factors set forth in
Pioneer,
an employer also must establish the presence of a meritorious defense for Rule 60(b)(1) relief.
Northwest Conduit Corp . ,
18 BNA OSHC 1948 (No. 97-851, 1999) .
A meritorious defense is one that is valid at law with respect to the underlying action .
Park Nursing Center, Inc., v. Samuels,
766 F.2d 261, 264 (6 th
Cir. 1985) .
The presence of a meritorious defense is “satisfied with minimal allegations that the employer could prove a defense if given the opportunity.” Jackson Assoc. of Nassau , 16 BNA OSHC 1261, 1267 (No. 91-0438, 1993) .

As a meritorious defense, Pe rez alleges that as a sole proprietor with no employees it was not
an
employer on the jobsite. T he Court finds Pe rez
has established the minimum requirement necessary for a meritorious defense .

Perez asserts the Commission lacks jurisdiction because it is not an employer. The Court does not address
here
the issue of whether Perez is an employer under the Act , a s the Commission’s jurisdiction
in a late NOC proceeding
is limited under
§
10(a) to
determining whether Perez is entitled to relief from the final order.
Gulf & W. Food Prods. Co. ,
supra. Perez
has not established a basis for Rule 60(b) relief.

Having considered
all
factors enunciated in
Pioneer,
relief from the Final Order in this matter is
not
warranted .
P erez ’s control over the delay
is
determinative .

FINDINGS OF FACT AND CONCLUSIONS OF LAW

The foregoing decision constitutes the Findings of Fact and Conclusion of Law in accordance with Rule 52(a) of the Federal Rules of Civil Procedure.

ORDER

Therefore, f or the reasons set forth herein,
P erez’ s
request for relief
pursuant to Rule s
60(b)(1) , 60(b)(4) and 60(b)(6)
is
HEREBY
DENIED .
The
f inal
o rder for the Citation
remains in effect and is her e by
AFFIRMED . Further, t he Secretary’s Motion to Dismiss
Perez’s NOC as untimely
is hereby
GRANT ED.

SO
ORDERED.

/s/_________   

Dated: September 30, 2020

Washington, DC

Sharon D. Calhoun

Administrative Law Judge, OSHR C

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