22-1232
4th Cir.Apr 21, 2023Background
- DGS Construction, LLC (doing business as Schuster) subcontracted on the MGM Grand project; Whiting-Turner had a Project Labor Agreement (PLA) and a Project Manual with an S.3 wage schedule mirroring DLLR (state) rates.
- S.3 listed a Basic Hourly Rate and a Fringe Benefit Payment (paid only where workers took cash in lieu of in-kind benefits) but did not state whether fringe payments applied to overtime hours; Schuster paid no fringe on overtime.
- Mario Amaya and Jose Gonzalez (and a proposed class of ~1,600 workers who took cash in lieu) sued alleging violations of the Maryland Wage Payment and Collection Law (MWPCL) and unjust enrichment; the district court granted summary judgment on the MWPCL claim but allowed the unjust enrichment claim to proceed to trial.
- At trial the jury found Schuster unjustly enriched by withholding fringe payments on overtime; the district court denied Schuster’s Rule 50 motions; Schuster appealed, and plaintiffs conditionally cross-appealed the MWPCL summary judgment.
- The Fourth Circuit affirmed: it held the evidence supported unjust enrichment, and it found no abuse of discretion in the district court’s evidentiary rulings or jury instructions; the panel therefore left the MWPCL summary-judgment ruling undisturbed.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sufficiency of evidence for unjust enrichment (elements: benefit, knowledge, inequity) | Amaya/Gonzalez: class conferred a monetary benefit by working without overtime fringe; Schuster knew/benefitted and it is inequitable to retain savings | Schuster: no legal entitlement to overtime fringe; evidence insufficient to prove the three elements | Court: Affirmed—viewing evidence in plaintiffs’ favor, there was sufficient proof of benefit, Schuster’s knowledge/appreciation, and inequity to support verdict |
| Jury instructions & motion in limine (admission of S.3 testimony) | Plaintiffs: instructions tracked Maryland unjust-enrichment law; S.3 is probative of expectations and inequity | Schuster: jury charge was incomplete (didn’t account for at-will employment); S.3 testimony should be excluded as contradictory to summary-judgment ruling | Court: No abuse of discretion—instructions were correct and covered requested points; S.3 testimony was admissible to show expectations and equity |
| Cross-appeal on MWPCL summary judgment | Plaintiffs (conditional): district court erred in granting summary judgment on MWPCL | Schuster: summary judgment proper because no express promise under Project Manual incorporated state-law obligations | Court: Did not reach merits because unjust-enrichment verdict was affirmed; therefore summary-judgment ruling stands |
Key Cases Cited
- Hill v. Cross Country Settlements, LLC, 936 A.2d 343 (Md. 2007) (sets Maryland unjust-enrichment elements and principles)
- County Comm’rs of Caroline Cnty. v. J. Roland Dashiell & Sons, Inc., 747 A.2d 600 (Md. 2000) (unjust enrichment as remedy where no enforceable contract)
- Dolan v. McQuaide, 79 A.3d 394 (Md. Ct. Spec. App. 2013) (unjust-enrichment analysis where defendant’s benefit and plaintiff’s services disputed)
- Amaya v. DGS Constr., LLC, 278 A.3d 1216 (Md. 2022) (state-court decision cited regarding entitlement arguments)
- Reeves v. Sanderson Plumbing Prods., Inc., 530 U.S. 133 (2000) (deference to jury credibility determinations)
- Ward v. AutoZoners, LLC, 958 F.3d 254 (4th Cir. 2020) (standards for refusing a requested jury instruction)
- First Union Commercial Corp. v. GATX Capital Corp., 411 F.3d 551 (4th Cir. 2005) (standard of review for Rule 50 motions)
