OAH 15-1901-19108-2

 

STATE OF MINNESOTA

OFFICE OF ADMINISTRATIVE HEARINGS

 

FOR THE COMMISSIONER OF LABOR AND INDUSTRY

 

Commissioner of Labor and Industry,

 

                    Complainant,

vs.

 

NOR LLC, d/b/a Petra Development Services,

 

                    Respondent.

 

 

 

FINDINGS OF FACT,

CONCLUSIONS,

AND ORDER

 

          A hearing in this matter was held on October 15 and 16, 2008, before Administrative Law Judge Beverly Jones Heydinger, at the Office of Administrative Hearings, 600 North Robert Street, Saint Paul, Minnesota. The hearing record closed upon submission of the last post-hearing memorandum on November 7, 2008. 

          Rory H. Foley, Assistant Attorney General, appeared on behalf of the Commissioner of Labor and Industry, Occupational Safety and Health Administration (Complainant).  Richard G. Jensen, Fabyanske, Westra, Hart & Thomson, P.A., appeared on behalf of NOR LLC, d/b/a Petra Development Services (Respondent).

STATEMENT OF THE ISSUES

          1.       Did the Respondent violate 29 C.F.R. § 1926.850 (a), by failing to obtain an appropriate engineering study prior to performing demolition of a building?

          2.       Did the Respondent violate 29 C.F.R. § 1926.850 (b), by failing to properly shore or brace a basement wall?

3.     Did the Commissioner properly classify the violations as “willful” and properly calculate the penalty for the violations?

          The Administrative Law Judge concludes that the Respondent did violate 29 C.F.R. § 1926.850, subparts (a) and (b), and that the violations were properly characterized as “willful,” and caused or contributed to the death of an employee.  The appropriate penalty for all violations is $50,000.


FINDINGS OF FACT

 

1.               Mohammad Sabri[1] is the owner of NOR LLC, d/b/a Petra Development Services (Respondent), a company that buys property for redevelopment.  Respondent purchased a group of buildings on the southeast corner of Lake Street and Cedar Avenue in Minneapolis, Minnesota, and planned to renovate the buildings to construct a 35,000-square-foot mall at the intersection.[2]

 

2.               On October 5, 2004, a concrete wall collapsed in the basement of a building at 1835 Lake Street, crushing one of the Respondent’s employees.  At the time of the accident, approximately 10:25 a.m., the employee was digging a trench beside the concrete wall in order to install wooden forms to pour a new concrete wall interior to the wall that collapsed.  At the hearing, the building in which the employee was working at the time of the accident was referred to as “Building 5.”

 

3.               On October 7, 2004, the investigators interviewed employees who were present at the time the wall collapsed.  They stated that they had been directed by the foreman to dig a shallow trench and pour a footing for a new wall directly in front of the existing wall.  The victim had been digging that trench at the time of the accident.[3]  This account was corroborated by the foreman, Lhagyal Serdok, at the hearing.[4] 

 

4.               A second employee was 5 to 6 feet away from the victim, constructing forms for the new wall.  A third employee had gone to the first floor of the adjacent building.  When the wall collapsed, the employee in the basement screamed for help, and others rushed to the basement to attempt to lift the concrete wall off of the victim, using boards that were in the basement.[5] 

 

5.               The foreman arrived at approximately 10:30 a.m. and learned of the accident.  He called Mr. Sabri and he directed a person who was with him to call 911.  At 10:43 a.m., the Minneapolis Fire Department received a 911 call.  The Department arrived at 10:49 a.m. and asked everyone to leave the basement.  The victim was not breathing and had no pulse; the Department began efforts to recover the victim and remove him from the site.[6]   Results of the autopsy showed that the cause of death was multiple blunt force crushing injuries.[7]

 

6.               MN OSHA assists the United States Department of Labor with enforcement of OSHA standards.  Among its responsibilities is to investigate worksite accidents.  On the day of the accident, at approximately 1:20 p.m., OSHA investigators, including Michael Bymers,[8] went to the accident site to begin their investigation.  The investigators introduced themselves to Mr. Sabri and to Ilaha Teska, the office manager.  At the time the OSHA inspectors arrived, the victim’s body had been recovered and removed, and two Minneapolis city building inspectors were on the scene and had secured the site to prevent anyone from entering.[9]

 

7.               The inspectors conducted an investigation of the site, but access to the basement was limited because it was not safe to enter.  Photographs were taken of the adjoining alley and of the basement from the bottom of the basement stairs.  It was apparent that a piece of the concrete wall on the east side of the basement had given way and collapsed on the employee.  The inspectors estimated that the piece of concrete was about 3 feet high, 6 feet wide and 16 inches thick, and weighed about 3,600 pounds.  Dirt and a piece of concrete from the alley fell into the basement when the wall collapsed.[10]

 

8.               As part of its investigation, the investigators attempted to determine if an engineering survey had been completed prior to the commencement of renovation work on Building 5, and, if so, if procedures had been developed to safely conduct the demolition or renovation.  On the afternoon prior to the collapse, Craig Oswell, a structural engineer employed by Ulteig Engineers, had toured Building 5 with Mr. Serdok.  The two discussed the deteriorated condition of the basement wall.  Mr. Oswell told the OSHA investigators that he provided a sketch to the foreman that showed how the trench should be dug.[11]  Mr. Serdok confirmed that he had met with the engineer and received the sketch and that he had given the sketch to the workers, but said that the sketch had been buried in the debris when the building was demolished following the accident.[12]

 

9.               There was no evidence that any shoring or bracing had been installed to prevent the wall from collapsing.[13]  Mr. Serdok confirmed that none had been installed, and he denied that the engineer had told him to shore or brace the wall.[14]

 

10.           Inspection of the basement wall showed cracking, crumbling and moisture, and the floor joists on the east end showed water damage.  The floor joists also showed evidence of charring.  On the east end, newer wood had been added to the ends of the joists as cheaters.  The joists projected part way over the foundation wall, but were not resting on the wall.[15]

 

11.           Mr. Oswell told the investigators that Ulteig Engineers had not performed a survey or drawn up procedures for the demolition or renovation of Building 5 and that he had been on the premises to collect information to complete a proposal.  Correspondence from Ulteig Engineers to Petra Development confirms that information.  On September 9, 2004, Ulteig Engineers had submitted a proposal to conduct a structural review of an existing three-story building at 1825 Lake Street and to design and detail the structural requirements for the proposed renovation of that building.  The proposal addressed only one building.  Ulteig proposed to conduct a structural as-built site inspection, complete structural engineering calculations, and prepare certified structural drawings for the renovation.  The proposal spelled out three phases at a total cost of $5,850.[16]  Ulteig’s proposal matched its invoice dated October 20, 2004, for $5,850.00, for “as-built review and renovation drawings for a remodel of an existing three-story building” at 1825 East Lake Street.[17]

 

12.           On October 9, 2004, following the collapse of Building 5, Ulteig Engineers submitted a proposal to the Respondent to perform the structural engineering design and detailing for the “proposed building complex at the southeast corner of Cedar Avenue and East Lake Street, to replace a series of demolished buildings, incorporate one existing single-story building, and include a new building to connect them all together.”[18]  The proposal stated: 

 

It is our understanding that the following are applicable:  The owner had previously intended to salvage the existing buildings and renovate them as required to form the complex.  The owner has recently decided to demolish the buildings facing Lake Street.  Ulteig has visited the site to view general conditions, materials, and existing site layout. 

 

The proposal included evaluation of the property, completion of structural engineering calculations and preparation of certified structural drawings.  The proposal spelled out three phases at a total cost of $13,000, and it contained a proposed timeline.[19]

 

13.           In a letter dated October 11, 2004, Ulteig Engineers reported the results of its site assessment for the “six buildings of varying construction” and detailed the condition of the buildings.  Attached to the letter is a drawing of the site, identifying the six buildings, including Building #5 and Building #1.  The report included an assessment of Building #1, the building covered by the proposal dated September 9, 2004, pointing out that framing and foundation conditions made its safety questionable.  As for Building 5, it stated: 

 

Building #5 is in a state of collapse.  The east foundation wall has failed, … [t]he remainder of the foundation, as well as the floor slab, floor framing, and roof framing are in a state of near collapse ….  Given its current condition, the building is in immediate need of shoring, however, its condition is such that the actual act of installing it could result in further movement and potential collapse.[20]

 

14.           An invoice from Ulteig Engineers dated November 1, 2004, shows the entire contract amount, and a bill for completion of approximately one third of the contracted work.  The invoice states that the work is for the “Cedar Avenue and East Lake Street Retail Complex, for design and detailing of a commercial retail complex.”[21]

 

15.           Mr. Sabri claimed that there were engineering designs with detailed procedures in place for all of the buildings in the complex, including Building #5, at the time of the accident, but he offered no documents or any witness to support his claim.  No other witness had seen the designs or procedures or could state that the designs and procedures had been provided to the work crew at the time of the accident.  Mr. Serdok received only the sketch that was lost in the collapse.[22] 

 

16.           Mr. Sabri’s claim that the September 9, 2004, proposal from Ulteig Engineers addressed all of the buildings on the corner of Lake Street and Cedar, and that the reference to 1825 Lake Street in that letter was the commonly used descriptor for the entire complex, is not consistent with the contents of Ulteig’s September 9 letter or with the subsequent letters of October 9 and October 11, 2004.

 

17.           Mr. Sabri claimed that there was no bracing or shoring of the collapsed wall because the engineering plans did not call for bracing or shoring, but he offered no supporting documents or testimony. 

 

18.           It is unclear whether the wall collapsed because of the trenching and other work in the basement, or because there was a cavity under the pavement in the adjoining alley.  Donn N. Peterson, a forensic engineer, visited the site on the day of the accident and on October 11, 2004.  In his report, dated October 21, 2004, he described the accident: 

 

At approximately 10:15 a.m., a top portion of the basement east concrete wall collapsed falling inward on [the victim].  A section of asphalt displaced from the adjacent alley and came to rest in the void left by the displaced concrete wall sections and displaced fill material.[23]

 

19.           In his report, Mr. Peterson stated that the displaced section of alley asphalt was approximately two feet wide and fourteen feet long, leaving a hole in the alley surface adjacent to the basement east wall.  He noted that there were several significant cracks in the remaining asphalt alley and that the interior surfaces of the standing concrete walls of the basement were crumbling, cracked and deteriorated.  Much of the displaced fill material beneath the alley was dry and granular, but near an exposed section of pipe, the soil was quite damp, and the floor joists had significant water stains at the east ends.  He also saw evidence of charred wood from a previous fire in the wall.  He concluded that the deteriorated wall, the cracked alley asphalt, and a cavity under the alley, all contributed to the failure of the wall, and that the condition was not easily detected by the building owner or the employees.  However, Mr. Peterson also concluded that the problem, including the cavity, could have been inferred by a knowledgeable person.[24]

 

20.           On March 5, 2005, MN OSHA issued Citations and Notifications of Penalty for eight violations. On March 21, 2005, MN OSHA received the Respondent’s notice of contest, not contesting Citation 2, Item 1, but contesting the other citations and the penalties imposed.  On June 8, 2005, MN OSHA filed and served a Complaint on Respondent, seeking an order affirming the contested citations and penalties for the remaining seven citations.[25] 

 

21.           At the beginning of the contested case hearing, the Respondent dropped its objections to five of the remaining violations: Citation 2, items 2a, 2b, 3, 4a and 4b.  The hearing addressed the remaining two violations, Citation 1, Items 1 and 2.

 

22.           Citation 1, Item 1 alleged a violation of 29 C.F.R. § 1926.850 (a) in that:

 

An engineering survey was not performed by a competent person to determine the conditions of the framing floors and walls and the possibility of unplanned collapse of any portion of the structure prior to permitting employees to start demolition operations.

 

The citation alleged that no survey was performed to determine the condition of the concrete foundation wall prior to the employees starting demolition of the building.  The violation was classified as “willful,” and MN OSHA assessed a penalty of $50,000.00.[26]

 

23.           Citation 1, Item 2 alleged a violation of 29 C.F.R. § 1926.850 (b) in that:  “The walls or floors were not shored or braced where employee(s) were required to work within a damaged structure to be demolished.”  The citation alleged there was no lateral bracing or shoring for the concrete wall, which had sustained damage from fire and water.  The violation was classified as “willful,” and MN OSHA assessed a penalty of $50,000.00.[27]

 

24.           In order to determine the severity level of each violation and the associated penalty, MN OSHA is guided by the MN OSHA Field Compliance Manual.[28]  Exhibit 3a sets forth the steps that MN OSHA used to set the level of hazard and penalty for each violation.[29]

 

25.           A violation may be classified as “willful” if the evidence shows that the employer:

 

(1)            Committed an intentional and knowing violation of the Act; and

(2)            Was aware that a hazardous condition existed and did not make a reasonable effort to eliminate the condition; and

(3)            Was aware that the condition violated a standard or other obligation of the Act, and was aware of the requirements of the standard or other obligation violated.

 

It is not necessary that the violation be committed with a bad purpose or an evil intent to be deemed willful.  It is sufficient that the violation was deliberate, voluntary or intentional as distinguished from inadvertent, accidental or ordinarily negligent.[30]

 

26.           In reviewing a violation to determine if it is willful, MN OSHA:

 
must ascertain that the employer had specific knowledge of the standard, or its requirements, or of the particularly hazardous working conditions to which the employees were exposed.  The action or lack of action by the employer who has specific knowledge defines the degree of the willfulness.[31]

 

The Field Compliance Manual directs MN OSHA to consider a variety of evidence,[32] and several factors applied to each violation.[33]

 

27.           Respondent had no written evidence that an engineering survey had been performed.  Respondent’s failure to obtain the required engineering study was a willful violation, contributing to the death of Respondent’s employee, because Respondent was in the construction business and knew of the requirement to obtain an engineering survey.  Mr. Sabri acknowledged at the hearing that an engineering study was required.  The hazardous condition of the basement, including the damage from fire and water and poor condition of the joists, was apparent from visual inspection.  The site foreman had directed the employees to begin work on the inside wall.  There was no evidence that the site foreman or employees had been specifically trained to work in a damaged basement.[34]

 

28.           Respondent required its employees to work in a damaged basement without shoring or bracing of the wall.  Respondent’s failure to shore or brace the basement walls prior to beginning restoration was a willful violation, contributing to the death of Respondent’s employee.[35]  It was apparent from visual inspection that the structure had been damaged by fire and water.  As a company with experience in the construction business, the Respondent knew that expert advice was needed to determine whether shoring or bracing was required before commencing work on the basement. The site foreman acknowledged that he did not have the training or background to read engineering drawings or know when shoring or bracing a wall was required, that he knew the basement wall had deteriorated, and that he toured the basement with an engineer to get direction.  He also acknowledged that he had directed the employees to begin construction of the new concrete wall and had provided them with a hand sketch showing where to dig.[36]

 

29.           The Field Compliance Manual guides the determination of the appropriate fine for violations.  The assigned severity level for each offense was “F,” which applies to injuries resulting in death.  The employee exposure was rated “2” because 2 to 10 employees were exposed to the hazard during their ordinary work assignment.  The employee proximity was rated “2” because the employee was in the hazard area during the normal work assignment.  The duration of the hazard was rated “1” because the exposure was between 10% and 50% of the normal work day, and rated “0” for no adverse work conditions or violations of the same standard.[37]  On the matrix, the unadjusted penalty was $5000, with a multiplier of “10” for the factors above.[38] 

 

30.           The unadjusted penalty may be modified to reflect other factors outlined in the Manual.  In this instance MN OSHA applied a credit of 55% because the Respondent had fewer than 25 employees.[39]   The Manual sets out a separate method of calculation for willful violations.  In such instances, the severity factor is high but a greater size credit is applied, an 80 percent reduction for companies of 10 or fewer employees.[40]  Respondent had fewer than 10 employees.    

 

31.           Based on the factors in the penalty matrix, the fine for Citation 1, Item 1 and Citation 1, Item 2, would be $10,000 for each of the two violations. 

 

32.           The fines for the uncontested citations were as follows:  Citation 2, Item 1, no penalty; Citation 2, Item 2a, $900.00;  Citation 2, Item 2b, no penalty; Citation 2, Item 3, $2250.00; Citation 2, Item 4a, $1350.00; Citation 2, Item 4b, no penalty.  The total penalty for the citations that were not contested is $4,500.

 

33.           Thus, based on the matrix and uncontested penalties, the penalties total $24,500.

 

34.           Pursuant to Minn. Stat. § 182.666, subd. 2a, the minimum total nonnegotiable fine to be assessed for all citations connected to the death of an employee, if there is a willful violation, is $50,000, regardless of the penalty calculation derived from the Field Compliance Manual matrix.[41] 

 

35.           Any Finding of Fact more properly termed as a Conclusion is hereby adopted as a Conclusion.

 

Based upon the foregoing Findings of Fact, the Administrative Law Judge makes the following:

 

CONCLUSIONS

 

1.               The Commissioner of Labor and Industry and the Administrative Law Judge have jurisdiction in this matter pursuant to Minn. Stat. §§ 182.661, subd. 3, and 14.50. 

 

2.               The Commissioner of Labor and Industry gave Respondent proper notice of the hearing and fulfilled all relevant substantive and procedural requirements of statute and rule.

 

3.               The Respondent is an employer, as defined in Minn. Stat. § 182.651, subd. 7.

 

4.               The Complainant has the burden to establish by a preponderance of the evidence the occupational safety and health violation charged and the appropriateness of the penalty proposed.

 

5.               Citation 1, Item 1, alleged a violation of  29 C.F.R. § 1926.850 (a), which provides: 

 

Prior to permitting employees to start demolition operations, an engineering survey shall be made, by a competent person, of the structure to determine the condition of the framing, floors, and walls, and possibility of unplanned collapse of any portion of the structure.  Any adjacent structure where employees may be exposed shall also be similarly checked.  The employer shall have in writing evidence that such a survey has been performed. 

 

The Complainant has demonstrated by a preponderance of the evidence that Respondent violated 29 C.F.R. § 1926.850 (a) by having no engineering survey of the structure and no written evidence that such a survey had been performed and that the violation was willful and contributed to the death of an employee.

 

6.               Citation 1, Item 2, alleged a violation of 29 C.F.R. § 1926.850 (b), which provides:  “When employees are required to work within a structure to be demolished which has been damaged by fire, flood, explosion, or other cause, the walls or floor shall be shored or braced.”  The Complainant has demonstrated by a preponderance of the evidence that Respondent violated 29 C.F.R. § 1926.850 (b) by failing to properly shore or brace a basement wall damaged by fire and water and that the violation was willful and contributed to the death of an employee. 

 

7.               The Complainant failed to show that the appropriate penalty for each of the two individual items was $50,000.  Respondent demonstrated that with the appropriate credit for the small size of the employer, the appropriate penalty for each of the two individual violations calculated under the penalty matrix was $10,000.[42]

 

8.               The total fine for the uncontested citations is $4,500.00.[43]

 

9.               The minimum penalty to be assessed for all citations connected to the death of an employee is $50,000 if there is a willful violation that causes or contributes to the employee’s death.[44]  Because the Complainant has demonstrated that the Citation 1, Items 1 and 2, caused or were connected to the death of an employee and were willful, the minimum penalty should be $50,000.

 

Based upon the foregoing Conclusions, the Administrative Law Judge makes the following:

 

ORDER

 

IT IS HEREBY ORDERED that:

 

1.               Citation #1, Items 1 and 2, of the Citation and Notification issued to NOR LLC d/b/a Petra Development Services are AFFIRMED.

 

2.               The appropriate penalty for all violations related to the death of Respondent’s employee on October 5, 2004, at the worksite at Lake Street and Cedar Avenue in Minneapolis, Minnesota, is $50,000.

 

3.               The Respondent shall immediately pay a total penalty of $50,000 to the Minnesota Department of Labor and Industry at the following address:

 


Department of Labor and Industry

Minnesota OSHA Compliance

443 Lafayette Road North

St. Paul, MN  55155

 

 

 

Dated:  December 8, 2008

 

                                                                

s/Beverly Jones Heydinger

BEVERLY JONES HEYDINGER

Administrative Law Judge

 

Reported:  Digitally recorded

 

 

NOTICE

 

          Pursuant to Minn. Stat. § 182.661, subd. 3,[45] this Order is the final decision in this case.  Under Minn. Stat. §§ 182.661, subd. 3, and 182.664, subd. 5, the employer, or any party, may appeal this Order to the Minnesota Occupational Safety and Health Review Board within 30 days following service by mail of this Order.

 

 

MEMORANDUM

 

          The Complainant has the burden to demonstrate by a preponderance of the evidence that the two alleged uncontested violations occurred, that the violations were willful, as that term is defined for OSHA enforcement, and that the Complainant correctly calculated the appropriate penalty for all violations related to the accident at Respondent’s worksite on October 5, 2004.  The Complainant has demonstrated that the violations occurred, that they were willful and caused or contributed to the death of an employee, but Complainant misapplied the statutory language that set the minimum penalty for the violations. 

 

The Complainant substantiated each of the alleged violations.  First, the Respondent failed to have written evidence that an engineering survey had been performed before work began on Building 5.  Mr. Sabri claimed that he had hired Ulteig Engineers in September 2004 to conduct engineering surveys of all of the properties in the complex at Lake Street and Cedar Avenue and that the proposed complex was referred to as 1825 Lake Street in its entirety.  Even if the complex was colloquially referred to as 1825 Lake Street, it is plain from the language of the September 9, 2004, Ulteig Engineers’ proposal that it was addressing the condition of only one building, the three-story building at the 1825 Lake Street address, and not the entire complex.  There was no documentary evidence that a survey had been performed for 1825 Lake Street or Building 5, and no witness testified that one had been performed.  The only shred of evidence was testimony that Craig Oswell, the Ulteig engineer on site the day prior to the accident, had given Mr. Serdok a hand-drawn sketch that illustrated how to dig a trench to build a reinforcing wall in the basement of Building 5.  Mr. Sabri’s testimony demonstrated that he knew that an engineering survey was required, and his foreman acknowledged that he had no survey and had sent employees into the basement to begin building the trench and construct forms to pour concrete without such a survey.

 

Mr. Sabri claimed that Mr. Oswell may have been protecting his own self-interest by denying that he had completed an engineering study.  However, regardless of what Mr. Oswell may have said to Mr. Serdok or to the investigator, the Respondent was unable to provide any written evidence of an engineering survey or drawings to back up its claims. The lack of any such documents supports the statements made by Mr. Oswell and Mr. Serdok that there was no engineering study.  A hand-drawn sketch of one portion of the basement is not “written evidence of a survey,” as the applicable regulations require.

 

Mr. Sabri claimed that he hired engineers to tell him what to do because he is not an engineer and that he directed his employees to do what the engineers told them.  As Mr. Serdok acknowledged, he was not an engineer and was not competent to read engineering surveys and drawings.  On the day prior to the accident, it is undisputed that the Respondent called an engineer to the building site. Mr. Serdok recognized that the basement was deteriorated and showed the damage to the engineer.  If the foreman was not competent to determine whether shoring or bracing was needed, Respondent as the employer had a duty to retain someone who could make the determination.  In defense of the second alleged violation, Mr. Sabri claimed that Mr. Oswell told the foreman how to dig a trench beside the existing, crumbling wall, and how to place forms to pour a new wall, but did not direct the foreman to install shoring and bracing.  Mr. Sabri claimed that the hand-drawn sketch did not include shoring or bracing and thus, the Respondent concluded that none was required.  However, given the testimony of both Mr. Sabri and Mr. Serdok that they were not competent to make that determination, the Respondent was required to retain someone who was.    

 

Mr. Oswell told the inspectors that, at the time of the visit, he was collecting information to develop Ulteig Engineer’s proposal for an engineering survey, and that he had clearly stated during his visit that bracing and shoring of the wall was required.  Mr. Serdok could not recall that Mr. Oswell had discussed shoring and bracing the wall, but he acknowledged that he had not seen any engineering survey of the site or formal drawings.

 

Regardless of whether Mr. Oswell told Mr. Serdok that shoring and bracing was needed, the condition of the basement, with obvious evidence of fire and water damage, would alert a competent person that shoring and bracing was required.   Respondent failed to have either a competent employee assess the basement and arrange for the necessary shoring and bracing or to obtain an engineering survey.  It is insufficient to claim that an admittedly incompetent employee did not know that shoring or bracing was required or to rely on the alleged representation of a person who had not completed an engineering survey.  Contrary to Respondent’s assertion, digging a trench to pour a new wall does not support, shore or brace the old wall.     

 

The OSHA investigator, Mr. Bymers, disagreed with Mr. Peterson’s conclusion that there was a cavity under the alley that contributed to the collapse of the wall.  However, the actual cause of the wall collapse is not material to this proceeding, since Mr. Peterson agreed that a knowledgeable person could have inferred the problem from the condition of the alley pavement.  Also, Mr. Peterson noted the damaged, deteriorated condition of the basement, including water damage and charring.  Thus, Mr. Peterson’s report supports both of the violations.

 

The Complainant justified its determination that the violations were willful.  As the photos show, the hazardous condition of Building 5 was obvious, and the Respondent’s employees were directed to enter the basement and dig a trench next to the wall.  The Respondent was ordinarily engaged in the construction, renovation and rehabilitation of buildings and is presumed to know the applicable OSHA standards.  Mr. Sabri’s testimony demonstrated that he was aware of the requirement to obtain an engineering study and also demonstrated that he was aware that his foreman had little knowledge of the applicable OSHA requirements.  The testimony also demonstrated that Respondent was aware of the deteriorated condition of the basement in Building 5.  The Respondent offered no testimony that its employees had been trained to handle demolition or remodeling safely.  Rather, Mr. Sabri testified that he told his employees to do what the engineers directed, and then failed to retain engineers to provide clear, written direction.  Each of these facts supports the Complainant’s determination that both violations were willful.

 

          Several of the citations were ultimately uncontested and total $4500.  MN OSHA assessed a fine of $50,000 for each of the two contested citations, relying upon the language of Minn. Stat. § 182.666, subd. 2a (a), which states that if any  willful violation “contributes to the death of an employee, the minimum total non-negotiable fine which shall be assessed for all citations connected to the death of an employee is $50,000.”[46]  The Respondent’s interpretation, that the total minimum penalty for all the citations is $50,000, rather than $50,000 for each willful violation, is consistent with the specific wording of the statute.  The Complainant contends that “all citations” should be read to mean “each citation,” but it has not offered any authority for this position, and that interpretation is not logical.  The Respondent’s reading is both logical and consistent with the plain meaning of the words in the statute.  There may be circumstances, as in this case, where there were a number of violations, but the total penalty for all of them, calculated individually, does not rise to $50,000.  It is reasonable that the Legislature would have intended that any accident leading to the death of an employee and involving willful conduct should result in a fine of at least $50,000.

 

          The Complainant has made no attempt to argue that it had a basis to depart from the minimum required fine.  In some cases, there could be extenuating circumstances that would warrant such a departure, or there may be cases where the total fines for all citations involving a fatality would exceed $50,000.  The statute would permit such upward departures.  However, in this case, no such arguments were made, and the total for the violations individually does not exceed $50,000.  The most straightforward interpretation of the statute, applying its plain meaning, limits the appropriate fine in this case to $50,000.

 

B. J. H.



[1] In the investigative report, the owner was listed as Hamoudi Sabri.

[2] Testimony (Test.) of Mohammad Sabri.  A sketch of the buildings is attached to Ex. 12.

[3] Ex. 4.

[4] At the time of the accident and investigation, Mr. Serdok was known as Dhindar Lama.

[5] Ex. 4.

[6] Id.

[7] Id. at 3.

[8] Mr. Bymers is an experienced civil engineer.  Ex. 1.

[9] Ex. 3; Test. of Michael Bymers.

[10] Ex. 3 at 4, photos at 12, 16, 24, 25, 27, 28, 30, 34; Ex. 4.

[11] Ex. 4.

[12] Test. of Serdok.

[13] See Ex. 3, photos at 27, 28, 34, 39, 40.

[14] Test. of Serdok.

[15] Ex. 4 at 2; Ex. 3, photos at 36, 37, 39.

[16] Ex. 8.

[17] Ex. 16.

[18] Ex. 7.

[19] Id.

[20] Ex. 12.

[21] Ex. 17.

[22] Test. of L. Serdok; Test. of M. Bymers.

[23] Ex. 19.

[24] Id.

[25] Attachment to the Notice and Order for Prehearing Conference, issued August 9, 2007.

[26] Complaint, Ex. A, attached to the Notice and Order for Prehearing Conference.

[27] Id.

[28] Ex. 14.

[29] Id.

[30] Ex. 14 at IV-12-13 (emphasis in original).

[31] Ex. 3a at 3; Ex. 14 at IV-12.

[32] Ex. 14 at IV-13.

[33] Ex. 3a at 3 and 6.

[34] Test. of M. Bymers; Ex. 19; Ex. 14 at IV-13.

[35] Ex. 3a at 5-6.

[36] Test. of L. Serdok.

[37] Ex. 14 at VI 1-7.

[38] Ex. 3a at 3 and 6.

[39] Ex. 14 at VI 8-9.

[40] Ex. 14 at VI 16-17.

[41] See also Ex. 14 at VI-17.

[42] Compare Ex. 14, VI-9 (55% credit) and VI-17 (80% credit) for small employers.

[43] Complaint dated June 8, 2005, attached to Notice and Order for Prehearing Conference, dated August 9, 2007.

[44] Minn. Stat. § 182.666, subd. 2a; Ex. 14 at VI-18.

[45] References are to 2008 Minnesota Statutes.

[46] See also, Ex. 14 at VI-18.