PEOPLE EX REL. DEPT. OF LABOR v. ValdiviaPEOPLE EX REL. DEPT. OF LABOR v. Valdivia
The PEOPLE ex rel. the DEPARTMENT OF LABOR, Plaintiff,
v.
Pedro VALDIVIA, Individually and d/b/a V & A Landscaping, Defendant and Third-Party Plaintiff-Appellant (Pasqualino Divito, Individually and d/b/a Patnick Construction, Inc., Third-Party Defendant-Appellee).
Appellate Court of Illinois, Second District.
*633 Lance C. Ziebell, Lavell Law, Ltd., Palatine, for Pedro Valdivia.
David N. Michael, Joseph P. Bonavita, Gould & Ratner LLP, Chicago, for Pasqualino Divito.
Lisa Madigan, Attorney General, State of Illinois, Destiny R. Woods, Assistant Attorney General, for People ex rel. Illinois Department of Labor.
OPINION
Justice ZENOFF delivered the judgment of the court, with opinion.
¶ 1 The Department of Labor (Department) filed a comрlaint against defendant, subcontractor Pedro Valdivia, individually and doing business as V & A Landscaping (Valdivia), alleging that he violated the Prevailing Wage Act (Prevailing Wage Act or Act) (
¶ 2 I. BACKGROUND
¶ 3 In June 2004, the Village of Woodridge, Illinois, accepted Divito's bid on its "Suburban Estates Water Main Improvements" *634 project. The bid included a cost of $85,638 for "sodding, special." In September 2004, Divito entered into an oral agreement with Valdivia in which Valdivia would install the topsoil and sod for the project for $44,493.75. Valdivia completed his work on the project in November 2004. Valdivia paid his employees his standard wage and overtime rates. Divito paid Valdivia the agreed amount of $44,493.75.
¶ 4 On February 4, 2005, the Department sent Valdivia a letter stating that its audit showed that he failed to pay the prevailing wage to his employees on the project and demanding payment within 10 days on behalf of those employees. Valdivia's attorney responded with letters to both the Department and Divito, disclaiming any liability under thе Prevailing Wage Act and asserting that Divito was liable for the back wages due to his failure to inform Valdivia of the Act's applicability to the project and his failure to post the prevailing wage rates at the jobsite.
¶ 5 On March 15, 2005, the Department sent Divito a letter stating that it would hold him responsible for Valdivia's failure to pay the back wages owed to Valdivia's employees. Divito's attorney responded by letter to the Department disclaiming any liability under the Prevailing Wage Act. On March 29, the Department sent Divito a letter indicating that it had a right to pursue a bond claim on his contractor bond for the project. The Department gave Divito 10 days to respond. Thereafter, the Department made no more contact with Divito.
¶ 6 On October 23, 2009, the Department filed against Valdivia a complaint alleging that Valdivia violated the Prevailing Wage Act by failing to pay the prevailing wage to his employees on the project. It sought payment of back wages of $78,185.55; a statutory penalty of $15,637.11; and statutory punitive damages of $14,386.04.
¶ 7 In addition to filing an answer and affirmative defense, Valdivia filed a two-count, third-party complaint against Divito, alleging that Divito violated section 4 of the Prevailing Wage Act by failing to notify Valdivia that the Act applied and by failing to post the prevailing wage rates on the jobsite (
¶ 8 Divito filed a combined motion to dismiss the third-party complaint pursuant to section 2-619.1 of the Code of Civil Procedure (Code) (
¶ 9 II. ANALYSIS
¶ 10 Valdivia argues that he stated a claim for contribution in count II of his third-party complaint and that the trial court erred in dismissing it. After construing count II as a claim for contribution, the trial court dismissed it for failure to state a claim. A cause of action should not be dismissed for failure to state a cause of action "unless it is clearly apparent that no set of facts can be proved that would entitle the plaintiff to relief." Tedrick v. Community Resource Center, Inc.,
¶ 11 Section 2 of the Contribution Act provides for a right of contribution "where 2 or more persons are subject to liability in tort arising out of the same injury to person or property."
¶ 12 "Tort law * * * applies in situations where society recognizes a duty to exist wholly apart from any contractual undertaking. Tort obligations are general obligations that impose liability when a person negligently, carelessly or purposely causes injury to others." Collins v. Reynard,
¶ 13 Valdivia argues that the Prevailing Wage Act imposes a duty on general contractors and that violation of the Act's requirements subjects a general contractor to liability in tort. The Act requires both general contractors and subcontractors on public-works projects to pay the prevailing wage to their employees.
¶ 14 Valdivia specifically argues that section 4 of the Prevailing Wage Act imposed duties on Divito to notify Valdivia of the Act's applicability to the project and to post the prevailing wage rates at the jobsite. Valdivia asserts thаt Divito's violations of section 4's requirements were the cause of Valdivia's failure to pay his employees the prevailing wage, thus causing the injury suffered by Valdivia's employees. According to Valdivia, therefore, Divito's failure to comply with the Act rendered Divito liable in tort to Valdivia's employees.
¶ 15 Divito initially responds that Valdivia forfeited his argument that Divito owed a duty to Valdivia's employees, because he neither alleged such a duty in his third-party complaint nor argued to the trial court that such a duty existed. See In re Marriage of Holthaus,
¶ 16 Divito further responds that the posting requirement was not in effect in October and November 2004, when the underlying plaintiffs were underpaid. The 2004 version of the Prevailing Wage Act included two section 4s. One reflected amendment by Public Acts 93-15, § 905 (eff. June 11, 2003) and 93-16, § 5 (eff. Jan.1, 2004), which were identical and added the posting requirement. The other reflected amendment by Publiс Act 93-38, § 5 (eff. June 1, 2004), which added the notice requirement. The language of section 5 of Public Act 93-38 did not include the language adding the posting requirement. However, because the notice and posting requirements do not irreconcilably conflict, we give effect to both. See
¶ 17 We now address Valdivia's argument that failure to comply with the notice requirement of section 4 of the Prevailing Wage Act subjected Divito to liability in tort to Valdivia's employees because the lack of notice caused Valdivia not to pay the prevailing wage. Section 4 of the Act requires both general contraсtors and subcontractors to pay the prevailing wage to all those "employed by them" on a public-works project.
¶ 18 In Cement Masons, the plaintiffs were fringe-benefit-funds administrators who sued defendant, the general contractor on a public-works project, for its subcontractor's failure to pay the prevailing wage. Cement Masons,
¶ 19 Under the Prevailing Wage Act, Valdivia's employees were entitled to payment of the prevailing wage from Valdivia, regardless of Divito's notice to Valdivia. Accordingly, section 4's notice requirement could not have created any duty owed by Divito to Valdivia's employees, let alone one sounding in tort. See Sackville Construction,
¶ 20 Valdivia also maintains that section 4's requirement that a general contractor post the prevailing wages for the various crafts at the jobsite is for the benefit of all of the workers on a public-works project and, therefore, it created a duty owed by Divito to Valdivia's employees. Section 4 requires a general contractor to "post, at a location on the project site of the public works that is easily accessible to the workers engаged on the project, the prevailing wage rates for each craft or type of worker." Pub. Act 93-16, § 5 (eff.Jan.1, 2004). Although the posting requirement conceivably is for the benefit of the employees, the required posting merely informs the employees of what the prevailing wage rates are, not that they are entitled to receive them. Moreover, as discussed above, the intent to ensure that workers employed in public works are paid the prevailing wage simply does not sound in tort, because it has nothing to do with the prevention of personal injury or property damage. See Rommel,
¶ 21 In support of his proposition that the posting requirement created a duty, Valdivia relies solely on Brockman. In Brockman, the State filed a complaint against the owner-operators of a landfill for violations of the Illinois Environmental Protection Act (Ill.Rev.Stat.1979, Ch. 111½, ¶ 1001 et seq.). Brockman,
¶ 22 The court's conclusion in Brockman that the Environmental Protection Act created a tort duty is consistent with the concept of a tort itself. Brockman, like the cases mentioned above in which courts *639 found statutory tort duties, involved the legislature's intent to prevent personal injury or property damage, specifically to prevent injury to persons and harm to the environment from hazardous substances. See Brockman,
¶ 23 Valdivia's argument that a recent amendment to the Prevailing Wage Act compels a different conclusion is not convincing. The Act was amended, effective January 1, 2010, to require a general contractor to pay the penalties that would otherwise be imposed on a subcontractor, if the general contractor failed to notify the subcontractor of the Act's applicability.
¶ 24 Valdivia finally argues that the equities compel the conclusion that hе be permitted to seek contribution because otherwise Divito will be unjustly enriched and Valdivia will be unfairly burdened with the total cost of the back wages owed plus penalties. Contribution is based on principles of equity. Doyle,
¶ 25 Valdivia's argument that Divito will be unjustly enriched if he is not subject to cоntribution is purely speculative. It is premised on the facts that Divito's bid to the Village included a cost of $85,638 for "sodding, special," while under his contract with Valdivia for sodding, he paid only $44,493.75. Superficially, these facts might suggest unfairness; indeed, the trial court stated that the equities favored Valdivia. Nonetheless, to the extent that the parties entered into a contract[1] for the $44,493.75 price, the theory of unjust enrichment really has no relevancе. See People ex rel. Hartigan v. E & E Hauling, Inc.,
¶ 26 We are also not convinced that, absent a claim for contribution, Valdivia will be unfairly burdened with the total cost of the back wages owed plus penalties. Valdivia was statutorily obligated to pay the prevailing wage, regardless of notice of the Act's applicability. See Sackville Construction,
¶ 27 Based on the foregoing reasons, we affirm the judgment of the circuit court of Du Page County.
¶ 28 Affirmed.
Justices HUTCHINSON and BIRKETT concurred in the judgment and opinion.
NOTES
Notes
[1] Paragraph 7 of Valdivia's affirmative defense asserts that the parties "entered into an oral agreement." Paragraph 9 alleges that Valdivia performed all of his obligations "under said contract."