767 S.E.2d 267
W. Va.2014Background
- Seven petitioners, electricians, sued Eastern Electric for Prevailing Wage Act (PWA) and Wage Payment and Collection Act (WPCA) violations on multiple WV public works projects.
- Work on the 2007-2009 Department of Administration contract included demolition and reconstruction on State facilities, with bids at non-prevailing wage rates and no explicit prevailing wage clause in the contract.
- In 2009, the WV Division of Labor audited State Building 74 and determined prevailing wages should have been paid; Eastern Electric halted the contract in May 2009.
- Eastern Electric allegedly relied on State assurances that prevailing wages were not applicable; petitioners learned of the discrepancy and filed suit in July 2011.
- Circuit Court granted summary judgment in favor of Eastern Electric on all PWA questions except the statute of limitations, and dismissed WPCA claims; petitioners appealed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| What statute of limitations governs PWA claims? | Petitioners—five years applies. | Eastern Electric—two-year limit (55-2-12). | PWA claims accrue under five-year implied-contract limitations. |
| Is the ‘honest mistake or error’ defense applicable to PWA liability? | Evidence supports a genuine, good-faith defense and material fact questions exist. | Honest mistake bars recovery under the PWA. | Summary judgment on the defense improper; remanded for fact-finding. |
| Whether WPCA claims were properly dismissed as duplicative or exclusive remedy? | WPCA provides independent wage-recovery rights; petitioners should proceed there. | WPCA is not available where PWA governs; dismissal proper. | WPCA claim properly dismissed. |
Key Cases Cited
- State ex rel. Tucker Cnty. Solid Waste Auth. v. West Virginia Div. of Labor, 222 W.Va. 588 (2008) (PWA wage requirement applies to all workers on public works)
- Lucas v. Moore, 172 W.Va. 101 (1983) (five-year implied-contract limitations for WPCA-like claims)
- McCourt v. Oneida Coal Co., Inc., 188 W.Va. 647 (1992) (distinguishes tort vs. contract limitations for statutory actions)
- Williams v. Precision Coil, Inc., 194 W.Va. 52 (1995) (summary judgment standard; rational fact-finder guidance)
- Lusardi Construction Co. v. Labor Commissioner, 824 P.2d 643 (Cal. 1992) (contractor liable despite public authority's mischaracterization of applicability)
- Ohio Asphalt Paving, Inc. v. Ohio Dept. of Indus. Rel., 63 Ohio St.3d 512 (1992) (contractor may bear responsibility even if public authority failed to fix rates)
- Conrad v. Charles Town Races, Inc., 206 W.Va. 45 (1999) (WARN Act back pay not wages under WPCA)