United States of America, by Raymond J. Donovan, Secretary of Labor, Plaintiff v. Howard Electric Company, A Corporation, 798 F.2d 392, 10th Cir. (1986)

798 F.
2d 392
12 O.S.H. Cas.(BNA) 1985, 1986-1987 O.S.H.D. ( 27,652
UNITED STATES of America, by Raymond J. DONOVAN,

Secretary
of Labor, Plaintiff- Appellee,
v.
HOWARD ELECTRIC COMPANY, a corporation, DefendantAppellant.
No. 85-1144.
United States Court of Appeals,

Tenth Circuit.
Aug. 4, 1986.
Albert B. Wolf (Robert H. Winter, Wolf & Slatkin, with him on brief),
Wolf & Slatkin, Denver, Colo., for defendant-appellant.
Morris R. Parker, Jr. (Francis X. Lilly, Sol. of Labor, Frank A. White,
Associate Sol. for Occupational Safety and Health, Joseph M. Woodward,
Counsel for Appellate Litigation, and Andrea C. Casson, Asst. Counsel for
Appellate Litigation, with him on brief), U.S. Dept. of Labor, Washington,
D.C., for plaintiff-appellee.
Before HOLLOWAY, Chief Judge, TIMBERS* and BALDOCK, Circuit
Judges.
BALDOCK, Circuit Judge.
On September 26, 1983, the United States of America, acting through

Raymond J. Donovan, Secretary of Labor (Secretary), commenced an action in
Colorado federal district court against Howard Electric Co. (Howard). The
action sought collection of a penalty previously assessed by an Administrative
Law Judge (ALJ) in proceedings before the Occupational Safety and Health
Review Commission (Commission). Howard and the Secretary filed cross
motions for summary judgment. Howard contended that the district court did
not have jurisdiction to order payment of the penalty because the Commission
lacked subject matter jurisdiction to assess the penalty. The Secretary argued
that the district court could not review the ALJ's determination of subject
matter jurisdiction and was thus bound by the ALJ's decision. The district court
denied Howard's motion and granted summary judgment in favor of the
Secretary, awarding the Secretary the amount of the penalty as assessed.
Howard appeals this order of the district court. We affirm.
2
On April 1, 1980, the Secretary cited Howard pursuant to 29 U.S.C. Sec.

658(a)1 for violating certain provisions of the Occupational Safety & Health
Act of 1970, 29 U.S.C. Secs. 651-678 (OSHA). The citation directed payment
of an $8000 civil penalty. Howard timely submitted its notice of contest in
accordance with 29 U.S.C. Sec. 659(c), which was served on the Secretary
April 14, 1980. On April 30, 1980, the Secretary filed a motion to stay the
proceeding, pending a determination as to whether criminal action should be
pursued against Howard. The Commission granted the stay, but limited it to a
period of sixty days.
On March 5, 1981, approximately 225 days after the expiration of the

Commission's order, the Secretary filed a motion to indefinitely extend the stay
of proceedings. The Commission granted this motion. On February 1, 1982, the
Commission entered an order requiring the Secretary to report on the status of
this matter, and called for a response within twenty days. Finally, on March 11,
1982, the Secretary responded, filing its motion to vacate the stay order along
with its complaint. 29 C.F.R. Sec. 2200.33(a). The Commission granted the
motion and accepted the complaint. The complaint was filed 596 days after the
Commission's original stay had expired. The Secretary never sought leave to
file a late pleading as required by 29 C.F.R. Sec. 2200.5 because he believed
that the initial stay was to apply indefinitely.
In answering the complaint pursuant to 29 C.F.R. Sec. 2200.33(b), Howard

raised the defense that the Commission did not have jurisdiction over the
subject matter of the proceedings due to the Secretary's failure to file a timely
complaint. The ALJ considered the issue, and concluded that the Commission's
jurisdiction was established when Howard filed its notice of contest, and that
Howard had confused the jurisdictional defense with a defense of an untimely
and unauthorized complaint. The ALJ found that the Commission did have
subject matter jurisdiction, and that the Secretary had not acted in such
purposeful disobedience of Commission rules to warrant dismissal.
The order of the ALJ was mailed to the parties, accompanied by a notice of
decision which advised the parties that the order would become the final order
of the Commission on December 6, 1982, unless a member of the Commission
directed that the order be reviewed. 29 U.S.C. Secs. 659(c) and 661(j). Howard
contends that it never received this mailing, but does not dispute that it received
a copy of the ALJ's order or that it was aware of the Commission review
procedures. Moreover, Howard submitted a timely petition for review of the
ALJ's decision on December 2, 1982, specifically alleging that the ALJ's
decision regarding jurisdiction was erroneous. 29 C.F.R. Sec. 2200.91. No
member of the Commission directed the case for discretionary review, and the
ALJ's decision became a final order of the Commission on December 6, 1982.
29 U.S.C. Secs. 659(c) and 661(j); 29 C.F.R. Secs. 2200.90(b)(3) and
2200.91(d).
6
After the ALJ's decision became the final order of the Commission, Howard
had sixty days in which to obtain judicial review of the decision by the court of
appeals. 29 U.S.C. Sec. 660(a). Howard never pursued such appeal.
On April 13, 1983, the Secretary requested payment of the penalty. Howard
refused. The Secretary filed the action to collect the penalty in federal district
court. 29 U.S.C. Sec. 666(l). Cross motions for summary judgment were filed,
and both Howard and the Secretary stipulated that such motions were
dispositive of the case. In granting the Secretary's motion, the trial judge found
that the ALJ's decision was not subject to collateral attack, and that Howard's
collateral attack amounted to an attempt by Howard to obtain judicial review of
the ALJ's decision by the district court.
Howard argues that the Commission's decision is subject to collateral attack in

the district court because the decision is based upon the jurisdiction of the
Commission, and thus goes to the validity of the Commission's order. Howard
contends that the district court may rule on the Commission's jurisdiction,
because if the Commission's exercise of jurisdiction was improper2 , the penalty
assessment was void and cannot be enforced. We disagree.
" [T]he mode of challenging an agency's jurisdictional decision is by direct

attack. Callanan Road Co. v. United States, 345 U.S. 507, 512, 73 S.Ct. 803,
806, 97 L.Ed. 1206 [1953]. A party may not collaterally attack the validity of a
prior agency order in a subsequent proceeding." McCulloch Interstate Gas
Corp. v. Federal Power Comm'n, 536 F.2d 910, 913 (10th Cir.1976). In the
present case, as in McCulloch, the appellant was given a direct, exclusive
means by which to gain judicial review of the agency's jurisdictional
determination in the court of appeals, but failed to pursue that remedy.
10
The district court action provided for in 29 U.S.C. Sec. 666(l)3 is a collection
procedure only, while the determination of violation and penalty is left to the
administrative process. Mohawk Excavating, Inc. v. Occupational Safety and
Health Review Commission, 549 F.2d 859, 863-64 (2nd Cir.1977). "[N]either
the fact of the violation nor the propriety of the penalty assessed may be
retried" in the district court action. Atlas Roofing Co., Inc. v. Occupational
Safety and Health Review Commission, 430 U.S. 442, 447, 97 S.Ct. 1261,
1265, 51 L.Ed.2d 464 (1977). The statutory framework setting forth the
applicable administrative process allows for a resolution of all issues at the
Commission level, with the opportunity for judicial review exclusively in the
court of appeals. 29 U.S.C. Secs. 659(c) and 660(a); Brennan v. Occupational
Safety and Health Review Commission, 502 F.2d 30, 32 (5th Cir.1974). The
special review statute (29 U.S.C. Sec. 660(a))4 which vests jurisdiction to
review Commission orders in the court of appeals precludes the exercise of
original jurisdiction by other courts in all cases covered by the special review
statute. Investment Company Institute v. Board of Governors of the Federal
Reserve System, 551 F.2d 1270, 1279 (D.C.Cir.1977).
11
In the present case, the jurisdictional determination was made by the

Commission as a necessary part of its decision to assess the penalty against
Howard. Such decision was reviewable by the court of appeals upon a timely
filed petition seeking review. 29 U.S.C. Sec. 660(a). Thus, judicial examination
of the jurisdictional decision in this case is covered by 29 U.S.C. Sec. 660(a),
and the district court has no jurisdiction to examine the decision rendered by
the Commission. Cf. United States v. McBride, 788 F.2d 1429, 1432-33 (10th
Cir.1986) (holding improper a collateral attack of an unappealed FAA
suspension order in the district court enforcement action). Congress did not
provide the district courts with the authority to entertain collateral attacks upon
Commission decisions, and allowing such an exercise of authority in the
context of a 29 U.S.C. Sec. 666(l) collection action would effectively
circumvent the exclusive, statutorily-created procedures and allow judicial
review of Commission decisions by the district courts.
12
Likewise, this court is now without jurisdiction to grant the relief Howard
requests. The provisions of 29 U.S.C. Sec. 660(a) allow this court to review
Commission orders if such orders are appealed within sixty days following the
date they become final. Clearly, appeal was not taken within the sixty-day
period. The sixty-day limitation on filing the appeal is jurisdictional, and
Howard's failure to file an appeal within that period precludes this court from
now reviewing the Commission's order. Consolidated-Andy, Inc. v. Donovan,
642 F.2d 778, 779 (5th Cir.1981); Midway Industrial Contractors, Inc. v.
Occupational Safety and Health Review Commission, 616 F.2d 346, 347 (7th
Cir.1980); Hoerner Waldorf Pan American Bag Co., Inc. v. Occupational
Safety and Health Review Commission, 614 F.2d 795, 796 (1st Cir.1980).
13
Howard's argument that it was prejudiced because it never received the notice
of decision as mailed by the ALJ is meritless. It is undisputed that Howard
received a copy of the order, knew the proper procedures for appealing to the
Commission, and did in fact timely lodge such an appeal. Howard was not
prejudiced by any failure to receive the notice of decision.
14
Howard also raises other arguments questioning the preclusive effect of the
Commission's decision in the district court proceeding. However, because we
hold that the district court did not have jurisdiction to examine the propriety of
the penalty assessment, we need not address those arguments.
15
AFFIRMED.
The Honorable William H. Timbers, United States Senior Circuit Judge for the
Second Circuit, sitting by designation
All statutory references are to the United States Code, 1982 edition. Since
certain subsections of the original Occupational Safety and Health Act of 1970
amended statutes in various titles of the Code, these subsections were omitted
from the statutes codified under title 29. As a result, various cases and
compilation services have chosen to redesignate some of the title 29
subsections. This redesignation is not reflected in the United States Code, 1982
edition
We note that it was the filing of the notice of contest by Howard that invoked
the jurisdiction of the Commission. 29 U.S.C. Sec. 659(c); Donovan v.
International Union, Allied Industrial Workers, 722 F.2d 1415, 1418 (8th
Cir.1983); Asarco, Inc., 80 OSHARC 99 A/3, 8 BNA OSHC 2156, 1980 CCH
OSHD p 24,838 (No. 79-6850, 1980). The filing of a complaint is not mandated
by the statutory grant of jurisdiction, but is simply a procedural rule
promulgated by the Commission pursuant to 29 U.S.C. Sec. 661(g). The
complaint and answer are filed simply to formulate the issues to be resolved by
the Commission. Asarco, Inc., 80 OSHARC 99 A/3, 8 BNA OSHC 2156, 1980
CCH OSHD p 24,838 (No. 79-6850, 1980). "Failure to file any pleading
pursuant to these rules when due, may, in the discretion of the commission or
the judge, constitute a waiver of the right to further participation in the
proceedings." 29 C.F.R. Sec. 2200.38. Thus, although the Secretary's delay in
filing could have resulted in a dismissal of the Secretary and his claims, such
dismissal would result from the exercise of the Commission's discretion and not
from any jurisdictional defect

The cases cited by Howard to support its contention that the filing requirements
are mandatory and that failure to follow these requirements should result in
dismissal of the action simply rely on the Commission's discretion in
dismissing an action for failure to comply with the procedural rules. See
Asarco, Inc., 80 OSHARC 99 A/3, 8 BNA OSHC 2156, 1980 CCH OSHD p
24,838 (No. 79-6850, 1980); TRG Drilling Corp., 81 OSHARC 108/D10, 10
BNA OSHC 1268, 1981 CCH OSHD p 25,837 (No. 80-6008, 1981). These
cases do not indicate that failure to follow the procedural rules by the Secretary
as a litigant will strip the Commission of its statutory grant of jurisdiction
which was invoked by Howard's notice of contest.
3
29 U.S.C. Sec. 666(l) provides that:

Civil penalties owed under this chapter shall be paid to the Secretary for deposit
into the Treasury of the United States and shall accrue to the United States and
may be recovered in a civil action in the name of the United States brought in
the United States district court for the district where the violation is alleged to
have occurred or where the employer has its principal office.
29 U.S.C. Sec. 660(a) provides in part:

Any person adversely affected or aggrieved on an order of the Commission
issued under subsection (c) of section 659 of this title may obtain a review of
such order in any United States court of appeals for the circuit in which the
violation is alleged to have occurred or where the employer has its principal
office, or in the Court of Appeals for the District of Columbia Circuit, by filing
in such court within sixty days following the issuance of such order a written
petition praying that the order be modified or set aside.

United States of America, by Raymond J. Donovan, Secretary of Labor, Plaintiff v. Howard Electric Company, A Corporation, 798 F.2d 392, 10th Cir. (1986)

Uploaded by

Copyright:

Available Formats

United States of America, by Raymond J. Donovan, Secretary of Labor, Plaintiff v. Howard Electric Company, A Corporation, 798 F.2d 392, 10th Cir. (1986)

Uploaded by

Document Information

Original Description:

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

United States of America, by Raymond J. Donovan, Secretary of Labor, Plaintiff v. Howard Electric Company, A Corporation, 798 F.2d 392, 10th Cir. (1986)

Uploaded by

Copyright:

Available Formats

798 F.

UNITED STATES of America, by Raymond J. DONOVAN,

United States Court of Appeals,

On September 26, 1983, the United States of America, acting through

On April 1, 1980, the Secretary cited Howard pursuant to 29 U.S.C. Sec.

On March 5, 1981, approximately 225 days after the expiration of the

In answering the complaint pursuant to 29 C.F.R. Sec. 2200.33(b), Howard

Howard argues that the Commission's decision is subject to collateral attack in

" [T]he mode of challenging an agency's jurisdictional decision is by direct

In the present case, the jurisdictional determination was made by the

from any jurisdictional defect

29 U.S.C. Sec. 666(l) provides that:

29 U.S.C. Sec. 660(a) provides in part:

You might also like