OSHRC ALJ decision Docket 93-0129 Decided July 26, 1993 Modified Judge Edwin G. Salyers

Action Craft, Inc.

Penalties reduced for eight manufacturing violations

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This order from 1993 bound only the parties to this case; it isn't precedent. Ezel answers your situation under the current OSHA standards and Commission precedent, with citations.

Currency note: this decision dates from 1993
The OSHA standards may have been amended, penalty amounts have been adjusted, and later Commission or court decisions may have changed the analysis since then. Treat this page as historical context, not current compliance advice. Verify the current standard before relying on any specific rule, threshold, or penalty mentioned here.
Final order, not Commission precedent
This decision by an OSHRC Administrative Law Judge became a final order of the Commission because no Commissioner directed review (29 U.S.C. § 661(j)). It binds the parties but is not binding precedent in other cases. The full text below is from the official OSHRC release.
About this page: The plain-English summary and decision snapshot below were written by Ezel based on the official OSHRC release. The full text is the Commission's own document.
Read the official release (oshrc.gov)

Plain-English summary

Action Craft manufactured small fishing boats with about 18 employees at a facility in Cape Coral, Florida. OSHA cited eight serious conditions involving storage-area load limits and railings, dispensing flammable liquids, a modified forklift, and guarding on a cylinder machine, bandsaw, and bench grinder. The company did not dispute the factual conditions and limited its contest to the penalties. Its argument that OSHA had not previously told it about the requirements failed because employer knowledge concerns awareness of the facts, not prior knowledge of the regulation. The ALJ affirmed all eight items. He reduced each proposed $375 penalty to $200 because the company was small, had no prior inspection history, cooperated fully, corrected every condition promptly, showed a commitment to safety, and faced financial difficulty. The total penalty was reduced from $3,000 to $1,600.

Decision snapshot

  • Cited standard(s): 29 C.F.R. §§ 1910.22(b)(1), 1910.23(c)(1), 1910.106(e)(2)(iv)(V), 1910.106(e)(6)(ii), 1910.178, 1910.212(a)(1), 1910.213(i)(1), and 1910.215
  • Outcome: All eight serious items were affirmed, but the total proposed penalty was reduced from $3,000 to $1,600.
  • Key point: An employer need not know the wording of an OSHA standard to have knowledge of visible workplace conditions that violate it.

Full text (OSHRC public release)

/diGbY UNITED STATES OF AMERICA
OCCUPATIONAL SAFETY AND HEALTH RE.VIEW COMMISSION
One Lafayette Centre
1120 20th Street, N.W. - 9th Floor
Washington, DC 20036-3419

                                                                                     FAX:
                                                                                     COM (202) 60&5060
                                                                                     Ers (202) 6064050



      SECRETARY      OF LABOR
                       Complainant,
               v.                                                    OSHRC DOCKET
                                                                     NO. 93-0129
     ACTION CRAFT, INC.
                   Respondent.


                           NOTICE OF DOCKETING
                    OF ADMINISTRATIVE LAW JUDGE’S DECISION
          The Administrative Law Judge’s Report in the above referenced case was
     docketed with the Commission on June 24, 1993. The decision of the Judge
     will become a final order of the Commission on July 26, 1993 unless a
     Commission member directs review of the decision on or before that date. ANY
     PARTY DESIRING REVIEW OF THE JUDGE’S DECISION BY THE
     COMMISSION MUST FILE A PETITION FOR DISCRETIONARY REVIEW.
     Any such etition should be received by the Executive Secreta       on or before
     July 14, 1B93 in order to ermit sufficient time for its review. 7 ee
     Commission Rule 91, 29 8 .F.R. 2200.91.
        All further pleadings or communications       regarding this case shall be
     addressed to:

                            Executive Secretary
                            Occupational Safety and Health
                             Review Commission
                            1120 20th St. N.W., Suite 980
                            Washington, D.C. 20036-34 19
     Petitioning parties shall also mail a copy to:

                            Daniel J. Mick, Esq.
                            Counsel for Regional Trial Liti ation
                            Office of the Solicitor, U.S. DO5
                            Room S4004
                            200 Constitution Avenue, N.W.
                            Washington, D.C. 20210
     If a Direction for Review is issued by the Commission, then the Counsel for
     Regional Trial Litigation will represent the Department of Labor. Any party
     havmg questions about review rights may contact the Commission’s Executive
     Secretary or call (202) 606-5400.

                                             FOR THE COMbkfSSION


     Date: June 24, 1993

DQCKET NO. 93-0129
NOTICE IS GIVEN TO THE FOLLOWING:

Daniel J. Mick, Esq.
Counsel for Regional Trial Litigation
Office of the Solicitor, U.S. DOL
Room S4004
200 Constitution Ave., N.W.
Washington, D.C. 20210

Ms. Bobbye D. Spears
Re ional Solicitor
Of&e of the Solicitor, U.S. DOL
Suite 339
1371 Peachtree Street, N.E.
Atlanta, GA 30309

Mr. John Guard, Vice-President
Action Craft, Inc.
2603 Andalusia Boulevard
Cape Coral, FL 33909

Edwin G. Salyers
Administrative Law Jud e
Occupational Safety an cf Health
Review Commission
Room 240
1365 Peachtree Street, N.E.
Atlanta, GA 30309 3119

00106492754:04
UNITED STATES OF AMERICA
OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION
1365 PEACHTREE STREET, NE., SUITE 240
ATLANTA, GEORGIA 30309-3 119

PHONE FAX
COM (404)347-4197 COM (404) 347-0113
FTS (404) 347-4197 f=Ts (404) 347-0113

SECRETARY OF LABOR, ..

                   Complainant,                             ..
                                                            ..

                   v.                                       ..      OSHRC Docket No. 93429
                                                            ..

ACTION CRAIT, INC., ..
.
.
Respondent. ..

APPEARANCES:

      Stephen Alan Clark, Esquire                                   Mr. John E Guard
         Office of the Solicitor                                      Vice-President
         U. S. Department of Labor                                    Action Craft, Inc.
         Fort Lauderdale, Florida                                     cape Coral, Florida
               For Complainant                                              For Respondent Ro Se

Before: Administrative Law Judge Edwin G. Salyers

                                        DECISION AND ORDER


      The respondent,         Action Craft, Inc., manufactures small draft fishing boats at a facility

in Cape Coral, Florida. It employs approximately eighteen people in this manufacturing
operation.
On June 18, 1992, Compliance Officer S. J. Martin inspected respondent’s operation
under the provisions of the Occupational Safety and Health Act (29 U.S.C. 5 651, et seq.).
During the course of this inspection, Martin observed conditions which he believed
constituted violations of the standards promulgated under the Act and on September 24,
1992, the Secretan: * issued a serious citation comprised of the following eicht items:’

     Item 1

     A violation of 29 C.F.R. 8 1910.22(b)(l) resulting from respondent’s failure to post

load limit signs in a storage area located above the restroom and breakrooms in
respondent’s facility.

     Item 2

     A violation of 29 C.F.R. 0 1910.23(c)(l)            for respondent’s      failure to guard with

standard railings the open sides of the overhead storage area to protect employees from fall
hazards.

     Item 3

     A violation of 29 C.F.R. 9 1910.106(e)(2)(iv)(V)             for respondent’s    failure to use an

approved self-closing valve on containers from which flammable liquids were dispensed.

     Item 4

     A violation of 29 C.F.R. 0 1910.106(e)(6)@) for respondent’s failure to electrically

interconnect the nozzle and the container when dispensing flammable liquids from 5%gallon
drums.

     Item 5

     A violation of 29 C.F.R. 8 1910.178 for operating a powered industrial truck which

had been modified by adding extensions to the forks without the manufacturer’s approval.

     Item 6          -

     A violation of 29 C.F.R. 0 1910.212(a)( 1) for respondent’s failure to provide guarding

on the ingoing nip points of a cylinder machine.

’ Respondent was also issued two “other” items which were not contested and have become final orders of
the Review Commission.

                                                   2

Item 7

      A violation    of 29 C.F.R. 5 1910.213(i)(l)    for respondent’s failure to enclose with

guarding the non-working portions of the blade of a bandsaw used in its manufacturing
process.

      Item 8

      Aviolation    of 29 C.F.R. 8 1910.215 for respondent’s failure to properly guard a bench

grinder in the woodshop area.

      The Secretary proposes a penalty of $375 for each of the above described violations.

      On October 8,1992, the respondent filed its notice of contest limited to the penalties

assessed for each of the above described items. By letter dated October 17, 1992,

respondent again indicated an intent to contest the penalties but raised some question as to

whether the charge with respect to item 2 (the guarding of the open sides of the storage

area) was proper. In an undated answer to the complaint received by the Review

Commission on December 16, 1992, respondent raised a defense that it lacked knowledge

of any of the alleged violations contained in the citation.

      This matter came on for hearing before the undersigned           in Tampa, Florida, on

May 6, 1993. Mr. John E. Guard, an officer of respondent corporation, represented the

respondent acting pro se.

      Since it did not appear that respondent was disputing the factual allegations set forth

in the body of the citation, this circumstance was verified by the court at the hearing (Tr.

14-27).

                                               3

Respondent’s principal defense at the hearing was that respondent lacked knowledge

that my of the items charged
L constituted a vi&km of the cited standxd~. Rq~&n:

urged that it had not been furnished notice of the
I requirements by the Occupational Safety

and Health Administration prior to the inspection. This defense, of course, is untenable

since the Secretary is not required to advise employers of the Act’s requirements prior to

making an inspection. The knowledge element of a charge relates to an awareness of the

facts which constitute a violation of the standard and not the employer’s knowledge of the

standard’s requirements. Shaw Corzstruction, Inc., 6 BNA OSHC 1341, 1978 CCH OSHD

ll 22,524 (No. 3324, 1978). Since all of the items cited were in plain view, the respondent

should have known of these conditions or could have attained such knowledge through the

exercise of reasonable diligence. Waker TowingCorp., 14 BNA OSHC 2072, 1991 CCH

OSHD ll 29,239 (No. 87-1359, 1991).

   The sole issue in this case is whether or not the penalties proposed by the Secretary

are appropriate under the circumstances of this case. In determining penalties, the Review

Commission is required by section 17(j) of the Act to give due consideration to the size of

the business of the employer, the gravity of the violations, the good faith of the employer,

and the history of previous violations. These factors were initially considered by the

compliance officer in arriving at the proposed penalties (Tr. 37.38), and full allowances were

granted except in the case of good faith.

   The Review Commission is the final arbiter in determining            appropriate     penalties.

Nacirema OperatingCo., 1 BNA OSHC 1001, 1971-73 CCH OSHD li 15,032 (No. 4, 1972).

While the Secretary’s penalties were computed according to the guidelines set forth in the

                                                4

agency’s operating procedures, this court believes, upon consideration of the full

circumstances, that a further reduction of penalties is approp+t~.

    Respondent       is a small company and has not been previously                investigated    by the

Secretary. The compliance officer reported that respondent cooperated fully during the

course of the inspection and immediately corrected all items brought to its attention (Exhs.

R-1 thru R-11; Tr. 39). This court was impressed with the sincerity of respondent during the

hearing and believes that respondent is fully committed to an effective safety program. It

is also indicated that this company has suffered financial setbacks and is struggling to survive

under the current economic conditions (See Exhs. R-16 thru R-22). In view of these

circumstances, this court believes a penalty of $200 for each of the cited items is appropriate

and this amount will be assessed.

    The foregoing will constitute the findings of fact and conclusions of law in accordance

with Rule 52 of the Federal Rules of Civil Procedure.

                                            ORDER


    Based upon the foregoing, it is hereby ORDERED:
    Serious Citation No. 1, items 1 through 8, are affirmed and a total penalty of $1,600

is assessed. .

                                                           /s/ Edwin G. Salvers
                                                     EDWIN G. SALYERS
                                                     Judge

Date: June 14, 1993

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