Zurz v. 770 West Broad Aga, L.L.C.
192 Ohio App. 3d 521
| Ohio Ct. App. | 2011Background
- DOC appeals summary judgment for appellees on prevailing-wage claim regarding a leased project at 770 West Broad Street, Columbus.
- AGA leased the property to the state for use by the Department of Rehabilitation and Correction, with AGA to construct and pay for specified improvements (the project).
- Section XI(C) of the lease requires compliance with prevailing-wage provisions; no public funds were spent on the project.
- Trial court granted summary judgment, holding prevailing-wage law inapplicable due to lack of public funds, and DOC appealed.
- This court held that the project qualifies as a public improvement under R.C. 4115.03(C) and that lack of public funds does not defeat applicability, reversing and remanding for further proceedings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Does the project qualify as a public improvement under RC 4115.03(C) first sentence? | DOC argues the lease-driven renovation was for a public authority and thus a public improvement. | APPellees contend Northwestern limits application to funded projects, undermining public-improvement status. | Yes; project is a public improvement under the first sentence. |
| Does lack of public funds preclude prevailing-wage applicability? | Lack of funding does not defeat the project’s status as a public improvement. | Northwestern controls, requiring public funds for prevailing-wage applicability unless funded on a public improvement. | No; lack of public funds does not preclude application. |
| Does Northwestern control or conflict with Episcopal Retirement Homes/U.S. Corr. Corp.? | Northwestern cannot overrule priorOhio Supreme Court precedent; read in context it does not bar application. | Northwestern provides the controlling framework that funds trigger wage applicability. | Northwestern is read in context; does not overrule earlier precedents; project remains a public improvement and wage law applies. |
Key Cases Cited
- Episcopal Retirement Homes, Inc. v. Ohio Dept. of Indus. Relations, 61 Ohio St.3d 366 (1991) (defines 'public improvement' and animating-force/benefit test)
- U.S. Corr. Corp. v. Ohio Dept. of Indus. Relations, 73 Ohio St.3d 210 (1995) (applies public-improvement test to leased renovations)
- Northwestern Ohio Bldg. & Constr. Trades Council v. Ottawa Cty. Improvement Corp., 122 Ohio St.3d 283 (2009) (holds Northwestern law regarding public funds and public improvements)