825 F.3d 274
6th Cir.2016Background
- Mountain States Contractors was hired to build bridges over the Cumberland River; on May 21, 2013 a crane boom cable snapped, the boom collapsed onto a highway, shattered the operator cab glass, and damaged a vehicle; no injuries occurred.
- OSHA investigated and issued three citations; Mountain States contested a willful citation alleging violation of the wire rope inspection standard, 29 C.F.R. § 1926.1413(a)(2)(ii)(A)/(a)(4), for failing to remove a cable with “visible broken wires.”
- Crane operators completed Daily Inspection Forms documenting that the boom cable needed replacement for weeks before the accident; some forms marked the cable for “repair” (which Mountain States policy required be addressed before further operation).
- Annual inspection by the equipment manager noted broken wires but did not "boom down" for a full inspection; replacement cable was ordered but operations continued and the boom cable was not replaced before failure.
- An ALJ found the Secretary proved a prima facie violation (standard applied, requirements not met, employees exposed, employer knew or should have known) and assessed a $60,000 penalty; Mountain States petitioned for review arguing, inter alia, that the ALJ expanded the meaning of "broken," misapplied “competent person,” and improperly imputed knowledge.
- The Sixth Circuit denied review, concluding substantial evidence supported the ALJ’s findings that the cable met Category II ("3 and 6") criteria and that Mountain States had both actual and constructive knowledge.
Issues
| Issue | Plaintiff's Argument (Mountain States) | Defendant's Argument (Secretary of Labor) | Held |
|---|---|---|---|
| Whether the cited wire-rope inspection standard was violated (Category II "visible broken wires") | AL contends ALJ impermissibly broadened "broken" to include "cracked" or "fractured" wires, depriving due process | The evidence (pretrial statements, Daily Inspection Forms, annual inspection notes) shows sufficient "visible broken wires" meeting the 3-and-6 criteria | The court held substantial evidence supports the ALJ’s finding that the boom cable met Category II deficiency and the standard was violated |
| Whether Mountain States had actual knowledge of the hazardous condition | AL argues operators were not supervisors and their knowledge should not be imputed; contest sufficiency of operator testimony | Secretary: foreman and operators (competent persons) documented problems; foreman Shawn Shehane’s knowledge is imputable; operators functionally supervised crane safety | Court held actual knowledge established and imputable to Mountain States (foreman’s knowledge and operators’ functional authority justify attribution) |
| Whether Mountain States had constructive knowledge (reasonable diligence) | AL argues competent-person regime absolves employer unless supervisor knew; company relied on operators so employer lacked constructive knowledge | Secretary: employer failed reasonable diligence—perfunctory annual inspection, no review of Daily Forms, lack of supervisory oversight despite company policy requiring periodic inspections | Court held constructive knowledge established because management failed to exercise reasonable diligence and supervision |
| Whether ALJ’s credibility findings and reliance on pretrial statements were proper | AL claims trial testimony recanted pretrial statements and ALJ improperly relied on those statements | Secretary: ALJ permissibly weighed inconsistencies and demeanor, gave weight to pretrial signed statements and inspection records | Court upheld ALJ credibility determinations as supported by substantial evidence and not patently unreasonable |
Key Cases Cited
- R.P. Carbone Constr. Co. v. Occupational Safety & Health Review Comm'n, 166 F.3d 815 (6th Cir. 1998) (standard of review and substantial-evidence test for OSHRC decisions)
- Danis-Shook Joint Venture XXV v. Sec'y of Labor, 319 F.3d 805 (6th Cir. 2003) (imputing supervisor knowledge to employer)
- Chao v. Occupational Safety & Health Review Comm'n, 540 F.3d 519 (6th Cir. 2008) (definition of substantial evidence)
- Carlisle Equip. Co. v. Sec'y of Labor, 24 F.3d 790 (6th Cir. 1994) (four-part test to establish prima facie OSHA violation)
- First Nat'l Monetary Corp. v. Weinberger, 819 F.2d 1334 (6th Cir. 1987) (deference to ALJ credibility findings when not inherently incredible)
- Donovan v. Capital City Excavating Co., 712 F.2d 1008 (6th Cir. 1983) (OSHA duties and employer liability policy)