Justia Construction Law Opinion Summaries

Jeffrey Callaghan hired Dunn's Designer Pools (Dunn's), a landscape and pool contractor, to build a pool and spa at his home. Victor Regalado, a Dunn's employee, suffered injuries when he installed a propane fueled pool heater on Callaghan's property. Regalado sued Callaghan for negligence and premises liability. The jury found Callaghan was negligent; the trial court ultimately entered judgment against Callaghan in the amount of approximately $3 million. Callaghan appealed, arguing: (1) the court erred by failing to instruct the jury that a person who hires an independent contractor was not liable for injuries to the contractor's employee unless the hirer's negligent exercise of retained control "affirmatively contributed" to the employee's injury; (2) insufficient evidence supported the jury's verdicts on both premises liability and negligence; (3) Regalado's counsel committed misconduct by urging the jury to base its verdict on protecting the community; (4) the trial court erred by permitting Regalado to recover past wages because Dunn's had continued to pay his salary after the accident; and (5) the jury's award of future medical costs had to be reduced because it was not supported by substantial evidence. Rejecting all of Callaghan's arguments, the Court of Appeals affirmed the judgment. View "Regalado v. Callaghan" on Justia Law

In 2011, Horning won the subcontract for roofing work at the Dayton Veterans Affairs Medical Center. The Davis‐Bacon Act, 40 U.S.C. 3141–43, requires contractors who perform construction for the federal government to pay their workers the “prevailing wage.” Department of Labor regulations at that time set the base rate for a Dayton Sheet Metal Worker at $26.41 per hour; the fringe benefit rate was another $16.82 an hour. The workers were properly classified and received the appropriate base rate. All employees who work at Horning for more than 90 days are eligible for insurance; some receive vacation days. After a year, they become eligible for matching contributions to a 401(k) account. Accountants advised Horning about the amount to deposit into its benefits trust to comply with ERISA and Davis‐Bacon. Horning deducted a flat hourly fee from the paycheck of each Medical Center worker, regardless of whether the employee was eligible for any benefits. The amount did not correspond to the actual monetary value of the benefits each individual employee received. The Union filed a qui tam action under the False Claims Act, 31 U.S.C. 3729–3733, rather than filing under Davis-Bacon. The Seventh Circuit affirmed judgment in favor of Horning. Under the False Claims Act, the Union had to show that Horning knowingly made false statements (or misleading omissions) that were material to the government’s payment decision. The Union did not proffer enough evidence to permit a reasonable jury to conclude that Horning acted with such knowledge. View "Sheet Metal Workers Int'l Assoc. v. Horning Invs., LLC" on Justia Law

William Charles Construction (WCC) entered into a labor agreement with the Illinois Department of Transportation for the “Biggsville” construction project to expand a section of Rt. 34 to four lanes. A jurisdictional dispute between two unions, each claiming the right for their member drivers to operate large trucks involved in the excavation work, was resolved by an arbitrator. Later, a Joint Grievance Committee (JGC) determined, under a subordinated collective bargaining agreement, that WCC owed the Teamsters back pay and fringe benefit contributions ($1.4 million) for having assigned the operation of heavy trucks to the International Union of Operating Engineers rather than the Teamsters. A second JGC award determined that WCC was liable for two days’ back pay for having assigned work to two Teamsters in violation of other Teamsters’ seniority rights. WCC filed a declaratory action under the Labor-Management Relations Act, 29 U.S.C. 185. The court granted the Teamsters summary judgment, finding that WCC filed its complaint outside the statute of limitations. The Seventh Circuit reversed the grant of summary judgment to the Teamsters and dismissed the Teamsters’ counterclaim for enforcement of one of the JGC awards. WCC's challenge to the awards is not barred by the statute of limitations because WCC did not receive notice of their final entry. The greater of the two JGC awards is void because WCC did not agree to arbitration by the JGC. View "William Charles Constr. Co., LLC v. Teamsters Local Union 627" on Justia Law

Baker, an Ohio concrete construction business, subcontracts its work to smaller firms. In 2000, Baker signed a multi-employer collective bargaining agreement (CBA) between the Reinforced Concrete Contractors Association and the Union, covering current employees and employees not yet hired. A prehire CBA is allowed only in the construction industry, 29 U.S.C. 158(f). The CBA renewed automatically. On January 25, 2013, Baker sent the Union a letter, asserting: “Baker’s notice of its intent to terminate the Agreement, including any subsequent successor agreements.” The Union responded: "notice of withdrawal should be made not more than 60 days prior to the termination of the Agreement. The Agreement is in effect … until May 31, 2015, therefore your request was untimely." Baker reiterated that none of its employees perform work covered by the Agreement and that none had performed bargaining unit work covered by the Agreement for at least seven years. The Union filed a grievance. Baker stated that it did not recognize the arbitrator’s authority, but would appear to preserve its position. The arbitrator found Baker in violation of the CBA. The district court vacated the award. The Sixth Circuit affirmed, adopting the single-employee-unit rule; an employer may repudiate statutory and contractual obligations when the employer does not employ anyone within the relevant bargaining unit. View "Baker Concrete Constr., Inc. v. Reinforced Concrete Contractors Ass'n" on Justia Law

At issue in this case was whether truck drivers hauling asphalt cement from a commercial oil refinery to a contractor’s facility are performing “work under a contract” under Minn. Stat. 177.44(1) and, therefore, must be paid prevailing wages. The Minnesota Department of Transportation (MDOT) determined that the construction companies that were awarded contracts to work on state highway projects violated the project contracts by failing to ensure that drivers that assisted in the acquisition and transport of asphalt cement for the projects were paid prevailing wages. Appellants argued that the hauling activities of these drivers did not constitute “work under a contract” under Minn. Stat. 177.44(1) and, alternatively, that the hauling activities were exempt from the prevailing wage requirements under the “commercial establishment exception” in the Prevailing Wage Act. The district courts granted summary judgment to MDOT. The court of appeals affirmed. The Supreme Court reversed, holding that hauling activities must be to, from, or on the site of a public works project to qualify as “work under a contract,” and therefore, the hauling activities in this case did not constitute “work under the contract” subject to the prevailing wage requirements. View "J.D. Donovan, Inc. v. Minn. Dep’t of Transp." on Justia Law

Daniel Stolz worked for a subcontractor on a construction project when he was injured in an accident on the job site. Prior to the accident, Messer had obtained authority from the Ohio Bureau of Workers’ Compensation to act as the self-insuring employer on the project, which gave Messer responsibility for providing workers’ compensation coverage for its own employees as well as the employees of enrolled subcontractors on the project. Stolz brought negligence claims against Messer Construction, the general contractor, and several subcontractors. A federal district court granted summary judgment to Messer as the self-insuring employer but denied summary judgment to the subcontractors, concluding that an enrolled subcontractor on a self-insured construction project is immune from claims made by its own employees but not from those made by employees of other enrolled subcontractors. The federal court then certified a question of state law to the Supreme Court. The Supreme Court answered that subcontractors enrolled in a self-insured construction project plan are immune from tort claims for workplace injuries from employees of other enrolled subcontractors on the same project. View "Stolz v. J & B Steel Erectors, Inc." on Justia Law

Stark, an excavation and paving company, typically handles about 250 jobs per year in central and southern Illinois. The Occupational Safety and Health Administration (OSHA) issued Stark several citations at two worksites in 2008, following inspections. Another OSHA inspection, 17 days later, resulted in a citation for a willful excavation cave-in protection violation. The Secretary proposed penalties of $2000 for the eyewear violation, $35,000 for the spoil piles violation, and $70,000 each for the cave-in protections violations. An ALJ affirmed the citation for the eyewear violation and the $2000 penalty, affirmed the spoil piles violation and awarded a $20,000 penalty, and determined that the cave-in protection violations were serious violations rather than willful violations and imposed a $7,000 penalty for each, for a total penalty of $36,000. The Occupational Safety and Health Review Commission affirmed as to the spoil piles violation and the serious cave-in protection violation, but vacated the eyewear violation. As to the earlier cave-in protection violation, the Commission determined that it should be characterized as willful rather than serious and assessed a penalty of $60,000, for a total penalty of $87,000. The Seventh Circuit denied a petition for review. Stark failed to demonstrate that it had a safety policy that was effectively enforced. View "Stark Excavating, Inc. v. Perez" on Justia Law

This appeal stemmed from the disputed assignment of certain construction work on the Tappan Zee Hudson River Crossing Project. UBC appealed the district court's conclusion that a May 4th arbitration award was not final and that the arbitrator did not exceed his authority by issuing a May 12th arbitration award. Under a heightened standard of deference, the court concluded that it must defer to the arbitrator’s interpretation of Article 10, Section 3(D) of the Project Labor Agreement (PLA) as allowing him to alter the short‐form award when rendering his written opinion. The PLA does not define the term “short‐form,” nor does it specifically require that the second decision echo the result of the first.  The court concluded that, absent any such definitions or provisions, the arbitrator had the authority to interpret Article 10, Section 3(D) as allowing him to change or alter the first award in order to ensure full consideration of the three criteria required under Article 5, Section 8 of the National Plan for the Settlement of Jurisdictional Disputes in the Construction Industry. Accordingly, the court confirmed the May 13th Award and vacated the May 4th Award. View "United Brotherhood of Carpenters v. Tappan Zee Constructors, LLC" on Justia Law

Plaintiff filed suit against his employer, Amtrak, alleging that it discriminated against him because of his race in violation of Title VII of the Civil Rights Act, 42 U.S.C. 2000e et seq., and District of Columbia law. The district court granted summary judgment to Amtrak. After the engine plaintiff was driving passed a stop signal at the rail yard and was forced off the rails by a safety derailer, Amtrak fired him and suspended his engineer certificate. The court affirmed the judgment, concluding that no jury could reasonably conclude based on the evidence in the record that Amtrak was motivated by plaintiff's race to take the adverse actions of which he complains. View "Burley v. Nat'l Passenger Rail Corp." on Justia Law

Wayne Kelly was killed while working at a construction site in Hattiesburg. His family sued, among other defendants, Hanco Corporation, Inc., the general contractor for the project on which Wayne Kelly had been working at the time he died, and American Air Specialists of Mississippi, Inc., the subcontractor that had leased the services of Kelly and his coworkers from Landrum Professional Employer Services, Inc. The Kellys and Hanco/American Air moved separately for summary judgment. The circuit court denied summary judgment to Hanco and American Air. Hanco filed a petition for interlocutory appeal and the Kellys filed a cross-petition for interlocutory appeal. The Supreme Court granted interlocutory appeal and consolidated the cases. After review, the Court affirmed the denial of summary judgment because Hanco waived its exclusive-remedy affirmative defense despite section 71-3-6 of the Mississippi Workers' Compensation Act provided an exclusive remedy to claimants for on-the-job injuries. View "Hanco Corporation v. Goldman" on Justia Law