44 N.E.3d 26
Ind. Ct. App.2015Background
- Wressell worked as a skilled cement mason for R.L. Turner Corp. (RLTC) on two public-construction projects and claimed RLTC failed to pay required hourly fringe benefits under the Indiana Common Construction Wage Act (CCWA).
- Prior appeal reversed summary judgment for RLTC and remanded the fringe-benefit question for trial; trial court later found Wressell was entitled to the mason rates and fringe benefits specified by the CCWA and that RLTC underpaid him $3,852.82.
- The trial court awarded treble (liquidated) damages under Indiana’s Wage Payment Statute and awarded Wressell $99,870 in attorney’s fees after reviewing time records and deducting some hours for unsuccessful work.
- RLTC contested (1) whether the CCWA supports a private cause of action, (2) the trial court’s fringe-benefit findings (including treatment of travel per diem), and (3) the reasonableness/amount of attorney’s fees; Wressell cross-appealed, arguing the court omitted overtime in its damages calculation.
- The Court of Appeals affirmed most rulings (including that fringe-per-diem reimbursement is not a CCWA fringe benefit where it merely reimburses actual travel costs and the fee award was not an abuse of discretion) but found prima facie error for failure to include overtime and remanded for $500.56 in additional wages and $1,001.12 in additional liquidated damages.
Issues
| Issue | Plaintiff's Argument (Wressell) | Defendant's Argument (RLTC) | Held |
|---|---|---|---|
| Can CCWA support a private cause of action? | CCWA enforcement may be pursued privately (as prior precedent allowed). | CCWA text has no express private cause of action; Stampco is questionable. | Court follows precedent permitting private actions under CCWA and declines to overturn Stampco. |
| Were RLTC’s disputed items (e.g., travel per diem) properly excluded from CCWA fringe benefits? | Per-diem/reimbursements should count toward required fringe if they economically benefit employee. | Travel per diem and some administrative costs are not fringe benefits; many items are employer overhead. | Travel per diem that merely reimburses actual travel expense is not a CCWA fringe benefit; trial court’s exclusion affirmed. |
| Did trial court misallocate burden of proof on fringe benefits? | (n/a) | Trial court shifted burden to RLTC to prove benefits were provided. | Court rejects RLTC’s claim; Wressell met initial burden and RLTC had opportunity to prove credits. |
| Were attorney’s fees award and amount reasonable? | Fees are recoverable under Wage Payment Statute for unpaid fringe benefits; fee amount reflects complexity, delay caused by RLTC, and prevailing result. | Fee award excessive relative to recovery; hours and fees suspect; contingency agreement caps fee at 40%. | Fee award upheld as within trial court’s discretion; contingency clause does not limit a court-awarded fee; appellate fees recoverable. |
| Was omission of overtime compensation error? | Overtime hours existed and should have been included in CCWA calculation. | (did not brief on appeal) | Court found prima facie error and remanded for additional overtime damages and corresponding liquidated damages. |
Key Cases Cited
- Stampco Construction Co., Inc. v. Guffey, 572 N.E.2d 510 (Ind. Ct. App. 1991) (recognizing private action under prevailing-wage statute)
- Union Twp. Sch. Corp. v. State ex rel. Joyce, 706 N.E.2d 183 (Ind. Ct. App. 1998) (defining wages broadly to include fringe benefits under CCWA)
- St. Vincent Hosp. & Health Care Ctr., Inc. v. Steele, 766 N.E.2d 699 (Ind. 2002) (purpose of wage-payment fee-shifting is deterrence; attorney’s fees recoverable)
- Burgess v. E.L.C. Elec., Inc., 825 N.E.2d 1 (Ind. Ct. App. 2005) (treatment of fringe benefits under CCWA)
- DePuy Orthopaedics, Inc. v. Brown, 29 N.E.3d 729 (Ind. 2015) (standard that appellate court will not reweigh evidence when reviewing fee awards)