Puget Sound Power & Light Co.

Plain-English summary

OSHA cited Puget Sound Power & Light under the general duty clause and proposed a $600 penalty. The parties stipulated that the case involved legitimate factual and legal disputes, the company would withdraw its contest, and it would pay $550 without admitting a violation. The judge approved the agreement as the Commission's final order. After review submissions revealed a misunderstanding between the parties about the stipulation's meaning, both the record and the Secretary's request supported further proceedings. The Commission set aside approval and remanded the case for a hearing.

Decision snapshot

• Cited standard(s): 29 U.S.C. § 654(a)(1)
• Outcome: The $550 no-admission settlement was set aside and the case remanded for further proceedings.
• Key point: Settlement was inappropriate when the parties disagreed about the agreement's meaning and the underlying dispute required a hearing.

Full text (OSHRC public release)

Puget Sound Power & Light Co., Docket No.15

UNITED STATES OF AMERICA

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

SECRETARY OF LABOR,

Complainant,

v.

OSHRC DOCKET NO. 15

PUGET SOUND POWER & LIGHT CO.,

Respondent.

ORDER OF REMAND

January 28, 1972

Before MORAN, Chairman; VAN NAMEE and BURCH, Commissioners

BURCH, COMMISSIONER:

This matter is before the Review Commission pursuant to a Direction for Review which I
issued on November 23, 1971.

Respondent and the Secretary through their respective counsel had entered into a
stipulated withdrawal. The Hearing Examiner issued an order approving such disposition.

By the terms of the stipulation the parties agreed, inter alia, that this case embraced
legitimate issues of law and fact including the amount, if any, of the proposed penalty.
Respondent agreed to withdraw its notice of contest and pay the agreed sum of $550 ‘in lieu of’
the proposed penalty of $600. Respondent’s agreement to settlement of this dispute was not
deemed to be an admission or adjudication of the violation charged and the settlement and
consequent disposition of this case was not to be considered an adjudication of a violation of the
Act.

Pursuant to the Commission’s invitation (issued subsequent to the Commission’s
Direction for Review) Respondent submitted a ‘Memorandum of Undisputed Facts and Points
and Authorities in Support of Examiner’s Decision’ and the Secretary submitted a ‘Petition for
Remand.’

Having reviewed the record in this case, including the representations and arguments of
the Respondent and the Secretary, it is apparent that a hearing is appropriate.

The Commission subscribes to the principle that settlements are to be encouraged.
However, the issues raised in Respondent’s memorandum make the disposition of this case by
settlement at this time inappropriate. The misunderstanding that arose between the parties
concerning the interpretation of the stipulated agreement persuades the Commission to grant the
Secretary’s motion, and it is therefore ORDERED that the Hearing Examiner’s recommended
decision and order be set aside and this case be remanded to a Hearing Examiner for further
proceedings not inconsistent with this order.

UNITED STATES OF AMERICA

OCCUPATIONAL SAFETY AND HEALTH REVIEW COMMISSION

SECRETARY OF LABOR,

Complainant,

v.

OSHRC DOCKET NO. 15

PUGET SOUND POWER & LIGHT CO.,

Respondent.

November 12, 1971

WISE, JUDGE, OSAHRC:

The parties, through their respective counsel, hereby agree and stipulate as follows:

I. On July 9, 1971, a citation was issued by the Director of the Occupational Safety and
Health Administration of the Department of Labor to Puget Sound Power & Light Company (the
‘Company’) alleging a violation of Section 5(a)(1) of the Occupational Safety and Health Act of
1970 (the ‘Act’) and a proposed penalty in the amount of $600 was assessed on July 12, 1971.

II. The Company filed a notice of intent to contest this citation, and requested a hearing
before the Occupational Safety and Health Review Commission, on the ground that the citation
has no legal or factual foundation and that no penalty should be imposed.

III. The parties agree that this is a disputed matter with legitimate issues of law and fact
on both sides including the amount, if any, of the proposed penalty.

IV. The parties have agreed to settle this action by the Company withdrawing its notice
of intent to contest the citation, which shall remain outstanding, and paying the agreed sum of
$550 in lieu of the proposed penalty of $600.

V. The Company’s action in settling this dispute is no admission or adjudication of a
violation of Section 5(a) of the Act, and this settlement and consequent disposition of this action
will not be considered to be an adjudication of a violation of the Act for any purpose whatsoever.

VI. This settlement promotes and is consistent with the provisions of the Act, and the
Commission may enter an order consistent with its terms.

ORDER

It is ORDERED that the foregoing stipulation is consistent with the provisions of the Act
and it shall be accepted and adopted by the Commission. Further, it shall be deemed the final
order of the Commission and not subject to review by any court or agency within the meaning of
Section 10(a) of the Act, and that no cost shall be assessed.