Justia Construction Law Opinion Summaries

Plaintiffs appealed the dismissal of their complaint challenging a number of agreements entered into by the City of New York with respect to labor conditions on certain City construction projects. Plaintiffs argued that the agreements regulated the labor market and were therefore preempted by the National Labor Relations Act, 29 U.S.C. 151-169. The court found the project labor agreements in this case materially indistinguishable from agreements the Supreme Court found permissible under the market participation exception to preemption in Building and Construction Trades Council of Metropolitan District v. Associated Builders and Contractors of Massachusetts/Rhode Island Inc. Because the City acted as a market participant and not a regulator in entering the agreements, its actions fell outside the scope of NLRA preemption. Therefore, the court affirmed the judgment of the district court. View "The Building Industry Electric Contractors Assoc., et al. v. City of New York et al." on Justia Law

This case arose when a real estate developer hired HOD to act as general contractor for the construction of two multi-family residences. HOD entered into a subcontract with Well Built for the masonry work. At issue was whether a general contractor acted as a joint employer of masonry workers, who were employed by one of its subcontractors, thereby owing unpaid wages to the subcontractor's workforce. The court held that the Board erred as a matter of law in relying on the federal six-factor test in Zheng v. Liberty Apparel Co., Inc. in reaching its determination of joint employment. Because the Board's factual findings indicated nothing more than that the usual contractor/subcontractor relationship existed between HOD and Well Built during the three-month period that Well Built's principal, Martin Bruten, was on the job, the court need not resort to federal precedent to resolve the issue. In any event, even if the court were to apply the Zheng test, the court would hold that HOD was not a joint employer of Well Built's employees. Accordingly, the judgment of the Appellate Division should be reversed and the matter remitted with directions to remand to the Board for further proceedings. View "Matter of Ovadia v Office of the Indus. Bd. of Appeals" on Justia Law

OSHA fined the employer, a public works contractor, $33,700 for violations of safety regulations relating to the excavation of a trench. The “cave-in” provision, 29 C.F.R. 1926.652(a)(1) requires protective measures, such as shoring or trench boxes, for excavations at least five feet deep and in potentially unstable soil; other rules require inspections by a competent person, and specific egress measures, 29 C.F.R. 1926.650-652. An ALJ confirmed the fine and the Occupational Safety and Health Review Commission upheld the decision. The First Circuit denied review. An employer can be charged with constructive knowledge of a safety violation that supervisory employees know or should reasonably know about. The employer did not provide any documentary evidence of safety inspections. Substantial evidence supported the decision. View "P. Gioioso & Sons, Inc. v. Occupational Safety & Health Admin." on Justia Law

In 2006, Developer-Appellee 500 James Hance Court, LP entered into a construction management agreement with Contractor Gorman Construction Company, Inc., pertaining to the erection of a building at 500 James Hance Court, situated within the Oaklands Corporate Center in Exton, Chester County. According to the agreement, the contemplated, 68,000-square-foot structure was to be used as an elementary charter school, and the project was denominated "Collegium Charter School." Soon after the lease and related contracts were executed, the Bureau of Labor Law Compliance notified the School that it was investigating the project to determine whether prevailing wages were required. In this regard, the Bureau explained that charter school construction was treated the same as a traditional school project (re: public works project) for prevailing wage purposes. If the project's phases could be bifurcated, both the school and Appellee would be responsible. The issue between the parties centered on who was ultimately responsible for compliance with the prevailing wage law: the contractor or the school. The Commonwealth Court had found no evidence that the charter school had any role in determining space and performance goals for the project, and therefore the school was responsible for compliance. But upon review, the Supreme Court concluded that the Board’s determination that the lease was a disguised construction contract for the building as a whole, was based on legal error and essential findings which lacked substantial evidentiary support. Facially, the project was rationally divisible according to major phases of shell and fit-out construction. As to the shell, Appellees established the private character of the funding. Furthermore, in terms of economic reality, Appellees presented a prima facie case that Developer's only relationship with the School was per a bona fide pre-development lease. The Bureau failed to go forward with sufficient evidence to the contrary to overcome this prima facie case, and as such, affirmed the Commonwealth Court. View "500 James Hance Ct. v. Pa. Prevailing Wage Appeals Bd." on Justia Law

Plaintiff commenced a lawsuit against 96 Rockaway, LLC, Novalex Contracting Corp., and T-Construction Co., Inc., alleging among other things, violations of Labor Law 240(a) and 241(6). Discovery and a third-party action ensued. T-Construction moved for summary judgment, seeking dismissal of the complaint, and all cross-claims against it. 96 Rockaway and Novalex cross-moved for identical relief. Supreme Court granted defendants' motions, and dismissed plaintiff's complaint in its entirety. The Appellate Division reversed so much of Supreme Court's order as granted defendants' motions for summary judgment dismissing plaintiff's claims, denied the motions, and reinstated those claims. The court held that, given that Labor Law 240(1) should be construed with a common sense approach to the realities of the workplace at issue, defendants were entitled to summary judgment dismissing that claim. Plaintiff's Labor Law 241(6) cause of action, predicated on a violation of 12 NYCRR 23-1.7(b)(1)(i), failed for similar reasons. Accordingly, the order of the Appellate Division was reversed. View "Salazar v Novalex Contr. Corp." on Justia Law

An employee of the general contractor on a construction site was allegedly injured by the negligent act of the employee of a subcontractor who carried no workers' compensation insurance. Plaintiff, the injured party, brought a common-law action against Defendants, the uninsured subcontractor and its employee, the alleged tortfeasor. The Defendants filed a plea in bar, asserting that the Virginia Workers' Compensation Act was Plaintiff's sole remedy. The circuit court held that Defendants' failure to carry workers' compensation insurance deprived them of the protections afforded by the Act because they were not participants in the statutory workers' compensation system. The court denied the plea in bar, permitting the action to go forward, but certified the case for an interlocutory appeal. The Supreme Court reversed the judgment appealed from and entered final judgment dismissing the case, holding that the circuit court erred in denying Defendants' plea in bar because Defendants were entitled to the exclusivity protection provided by the Act notwithstanding their lack of workers' compensation insurance. View "David White Crane Serv. v. Howell" on Justia Law

Miguel Rivera, a fifteen-year-old unauthorized alien, sought workers' compensation benefits from Abel Verdon Construction for injuries sustained when he fell through a hole in the second floor of a home that Verdon was constructing. The ALJ found Rivera to be Verdon's employee and awarded Rivera partial disability benefits. The Workers' Compensation Board affirmed Rivera's partial disability award. The court of appeals affirmed, rejecting Verdon's argument that the Immigration Reform and Control Act (IRCA) preempts the application of Ky. Rev. Stat. 342, which provides workers' compensation coverage to employees without regard to the legality of the employment relationship, to this claim based on the claimant's status as an unauthorized alien. The Supreme Court affirmed, holding that an employment relationship existed between Rivera and Verdon and that the IRCA does not preempt a workers' compensation law that covers unauthorized aliens. View "Abel Verdon Constr. & Acuity Ins. v. Rivera " on Justia Law

Drivers, employed by the concrete company, were represented by the union and went on strike after their collective bargaining agreement expired. The company announced that it no longer recognized the union as the drivers' representative and contacted the drivers directly to employ them individually on new terms. A few resigned from the union and returned to work. The strike settled and more returned, on terms less favorable than the previous agreement. The union filed charges with the NLRB. The district court issued an injunction under section 10(j) of the National Labor Relations Act, 29 U.S.C. 160(j), ordering the company to stop certain unfair labor practices pending a final decision by the NLRB. The Seventh Circuit affirmed. The concrete company does not qualify under section 8(f) as an employer engaged primarily in the building and construction industry, that would not be subject to some unfair labor practice restrictions in section 8(a) and would be entitled to withdraw recognition from the union. The court properly found the company's practices to be destructive to the union’s organizational efforts and that the union had established irreparable harm. View "NLRB v. Irving Ready-Mix, Inc." on Justia Law

Plaintiff, an electrician working on a construction project site, brought a personal injury suit against defendants asserting claims under Labor Law 200, 240(1), and 241(6), and common law negligence. At issue was whether defendants-property owners (property owners) were entitled to common law indemnification from defendant-general contractor (general contractor). The court held that the general contractor's demonstrated lack of actual supervision and/or direction over the work was sufficient to establish that it was not required to indemnify the property owners for bringing about plaintiff's injury. The court also held that the property owner's vicarious liability could not be passed through the general contractor, the non-negligent, vicariously liable general contractor with whom they did not contract. Therefore, the court held that, under the facts and circumstances, the property owners were not entitled to common law indemnification from the general contractor. View "McCarthy, et al. v. Turner Construction, Inc." on Justia Law

Wayne Nocar, who was doing construction work on a house, died after falling through a stairwell opening in a floor that C&M Builders had built. Kelly Strub sued C&M on behalf of her son, alleging negligence in the death of Nocar. The trial court determined the C&M was not negligent. On appeal, the intermediate appellate court held (1) C&M owed a duty to Nocar to comply with the Maryland Occupational Safety and Health Act (MOSHA), and (2) C&M's motion for judgment asserting the evidence showed that Nocar assumed the risk of his fatal injury as a matter of law was properly denied by the lower court. The Court of Appeals reversed, holding (1) an employer does not owe a duty under MOSHA to provide a safe workplace to a person who is not his employee after the employer has left the worksite and has no control over worksite conditions, and (2) where it is clear that any person in Nocar's position must have understood the danger of falling, the issue of assumption of the risk may be decided by the court rather than the jury. Thus the issue should have been decided in C&M's favor by the lower court on C&M's motion. View "C&M Builders, L.L.C. v Strub" on Justia Law