Justia Construction Law Opinion Summaries
Articles Posted in Labor & Employment Law
Affiliated Constr. Trades v. W. Va. Dep’t of Transp.
In 2003, the Division of Highways (DOH) let out a public highway construction contract to Nicewonder Contracting. The Affiliated Construction Trades Foundation (ACT) filed a declaratory judgment action against the DOH and Nicewonder, alleging that the construction contract violated state and federal law because the DOH did not seek public bids for the project and there was no prevailing wage clause in the contract. Upon remand from the district court, the circuit court granted Nicewonder's motion for summary judgment, finding ACT lacked standing. The Supreme court reversed, holding that the appropriate standard to determine if an organization has representative standing to sue on behalf of its members is when the organization proves that (1) at least one of its members would have standing to sue in their own right; (2) the interests it seeks to protect are germane to the organization's purpose; and (3) neither the claim asserted nor the relief requested requires the participation of individual members in the lawsuit. The Court found that ACT met all three prongs and thus had representative standing to seek the declarations contained in its petition.
Ryals v. Lathan Company, Inc.
Petitioner Willard Ryals appealed a trial court's order enforcing a creditor's judgment against him in favor of Respondent Lathan Company, Inc. (Lathan). In 2004, Lathan sued Ryals Construction Company for breach of a construction sub-contract. The contract called for Ryals to obtain workers' compensation insurance for the project. Lathan claimed it made an advance payment for the insurance. When Ryals failed to get the insurance, Lathan sued. No one appeared on behalf of Ryals on the trial date. A default judgment was entered on behalf of Lathan. Two years later, Lathan tried to collect on its default judgment by serving a post-judgment discovery request on Ryals Construction. The request went unanswered. Lathan filed a motion for sanctions, naming "Ryals Real Estate," Willard Ryals and Ryals Construction Company. Through counsel, Willard Ryals moved to strike the motion for sanctions which the trial court granted. Lathan then amended its complaint to substitute Willard Ryals with fictitious parties. Rather than re-allege the allegations of its first complaint, Lathan sought to hold Ryals Real Estate and Willard Ryals liable as alter egos for the judgment it held against Ryals Construction Company. After a bench trial, the trial court determined that Lathan's amended complaint did not technically substitute Willard Ryals and Ryals Real Estate for fictitiously named parties in the original complaint; it added them and asserted a new cause of action. The court found that Willard Ryals and Ryals Construction were liable for the creditor judgment. Willard Ryals appealed, arguing that the trial court lacked jurisdiction over Lathan's amended complaint. Upon careful consideration of the trial court record and the applicable legal authority, the Supreme Court dismissed the case as void: "The trial court's attempt to treat Lathan's amended complaint as a new action was in words only and was not sufficient to commence a new action." Accordingly, the trial court did not have jurisdiction to enter its judgment against Willard Ryals and Ryals Real Estate.
Williams v. Leone & Keeble, Inc.
Petitioner and Washington resident Delbert Williams was employed by an Idaho employment agency. The agency regularly sent him to work for Pro-Set Erectors, an Idaho construction subcontractor. In 2007, Pro-Set was hired by Respondent Leone & Keeble (L&K), a general contractor. L&K is a Washington company. Later that year, Petitioner was injured on the job. He filed a claim with the Idaho State Insurance Fund, who accepted his claim and issued workers' compensation payments. In late 2008, the payments stopped. Petitioner filed suit against L&K in Washington, but the trial court dismissed his petition citing lack of jurisdiction over Petitioner's Idaho workers' compensation claim. Upon review of the applicable legal authority, the Supreme Court found that the trial court did have jurisdiction over Petitioner's claim: "our courts below...seem to have given deference to opinions of the Idaho courts" instead of applying Washington law. L&K argued that because Petitioner received benefits from Idaho, he was barred from bringing the same claim in Washington. Petitioner's claim was allowed under the Washington Industrial Insurance Act, which fell under the jurisdiction of Washington courts. The Court reversed the decision of the lower courts and remanded Petitioner's case for further proceedings.
PSY-ED Corp., et al. v. Klein, et al.
Plaintiff filed a complaint against defendants alleging defamation, violation of G.L. c. 93A, 11, civil conspiracy, and tortious interference with contractual and business relations and defendants filed counterclaims. At issue, among others, was whether actions taken by an employer against a former employee could violate G.L. c. 151B, 4(4), and (4A), sections of the antidiscrimination law that respectively prohibited retaliation and interference with a protected right. The court held that an employer or other person could be liable to a former employee under these sections for retaliatory or interfering conduct that occurred after the employment relationship had terminated. The court also affirmed in part and reversed in part the remaining issues in case.