Affiliated Construction Trades Foundation v. West Virginia Department of Transportation

713 S.E.2d 809, 227 W. Va. 653, 17 Wage & Hour Cas.2d (BNA) 1786, 2011 W. Va. LEXIS 54, 191 L.R.R.M. (BNA) 2140
CourtWest Virginia Supreme Court
DecidedJune 22, 2011
Docket35742
StatusPublished
Cited by10 cases

This text of 713 S.E.2d 809 (Affiliated Construction Trades Foundation v. West Virginia Department of Transportation) is published on Counsel Stack Legal Research, covering West Virginia Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Affiliated Construction Trades Foundation v. West Virginia Department of Transportation, 713 S.E.2d 809, 227 W. Va. 653, 17 Wage & Hour Cas.2d (BNA) 1786, 2011 W. Va. LEXIS 54, 191 L.R.R.M. (BNA) 2140 (W. Va. 2011).

Opinions

KETCHUM, J.:

The Affiliated Construction Trades Foundation (“ACT”), a division of the West Virginia State Building and Construction Trades Council, AFL-CIO (“Council”), appeals the May 7, 2010, order of the Circuit Court of Kanawha County dismissing its Declaratory Judgment action against the appellees, West Virginia Department of Transportation, Division of Highways (“DOH”) and Nicewonder Contracting, Inc. (“Nicewonder”).

In dismissing ACT’s Declaratory Judgment action, the circuit court concluded that ACT lacked standing to bring the lawsuit because it had not suffered a cognizable harm capable of being redressed by favorable judicial decision. For the reasons set forth in this Opinion, we find that ACT has standing to bring the Declaratory Judgment action, reverse the circuit court, and remand this matter for further proceedings consistent with this Opinion.

I.

Facts and Background

In early 2003, the DOH and the United States Federal Highway Administration (FHWA) were asked to consider a proposal by a local coal operator, Premium Energy. Under the proposal, Premium Energy sought to surface mine an approximate three-mile area where the future King Coal Highway was to be constructed. If granted the permit, Premium Energy would use the excess mining material to construct the roadway [655]*655beds needed for the new highway.1 While Premium Energy’s proposal was being considered, the Mingo County Redevelopment Authority (“Redevelopment Authority”) made it known that it would like to use some of the land adjacent to the proposed three-mile section for commercial development, but that the desired location would require fill and leveling.

A field review of Premium Energy’s proposal was conducted by the DOH and FHWA In the summer of 2003, Premium Energy’s proposal was approved with conditions. Premium Energy would be permitted to surface mine the area, but would be required to use the excess mining material to construct the highway roadbed and also to construct a large flat area adjacent to the new highway that would be used by the Redevelopment Authority for commercial development. Premium Energy agreed to the terms and was issued the necessary permits. Construction on the public highway project and the commercial development site began shortly thereafter.

In the Fall of 2003, Premium Energy proposed expanding the original three-mile project to include slightly more than eleven additional miles of highway construction. This eleven-mile stretch of the King Coal Highway is known as the Red Jacket section. However, unlike the initial three-mile section, Premium Energy indicated that its coal recovery would not be sufficient to offset the entire cost of constructing the Red Jacket section and that the DOH and FHWA would need to fund part of the project. The DOH and FHWA authorized Premium Energy to submit a formal cost proposal for the project.

After receiving Premium Energy’s cost proposal, the DOH and FHWA concluded that the proposal reflected significant savings in the expected cost of constructing the Red Jacket section. On May 6, 2004, the DOH entered into an agreement with Nicewonder — a company that had only shortly before been incorporated, but is nonetheless an affiliated company of Premium Energy — to construct the Red Jacket section of the King Coal Highway. Athough the roadway constitutes a public highway project, the DOH did not seek public bids for either the initial three-mile project or the eleven-mile Red Jacket project. Additionally, the DOH did not include a contract provision requiring Nieewonder to pay the “prevailing wage” to its workers.

On December 2, 2004, ACT filed a declaratory judgment action in the Circuit Court of Kanawha County, West Virginia, against the DOH and Nieewonder. In its petition, ACT alleged that the DOH’s letting of the Red Jacket contract to Nieewonder violated state and federal law. Specifically, ACT alleged that W.Va.Code, 5-22-1 et seq. and 23 USC § 112 required the DOH to seek public bids for the Red Jacket public highway project and, additionally, that W.Va.Code, 21-5A-l et seq. and 40 USC §§ 3141-3144, 3146 required the DOH to include a “prevailing wage” clause in the contract for the Red Jacket project.

On December 27, 2004, the DOH and Nice-wonder removed the action to the United States District Court for the Southern District of West Virginia on the basis of federal question jurisdiction. On August 26, 2005, ACT, by leave of the court, amended its Declaratory Judgment petition to name the United States Department of Transportation, the West Virginia Board of Education, and the Redevelopment Authority as additional defendants.

On September 5, 2007,2 the District Court entered an order finding “unpersuasive [ACT’s] suggestions that a negotiated contract entered into without competitive bidding was not permitted” under federal law. Regarding ACT’s prevailing wage claim, the court “conclude[d] that the agreement’s exemption of Nieewonder from the payment of [656]*656Davis-Bacon wages,3 which was endorsed by the FHWA, was in violation of an unambiguous federal statute” and directed the parties “to brief the appropriate declaratory relief for the failure to comply with the Davis-Bacon Act and include a proposed Judgment Order.”4 Regarding ACT’s state law claims, the District Court held that “[¡Inasmuch as all the federal issues will have been resolved short of trial and inasmuch further as the remaining state law claims involve novel or complex issues not related to federal policy, the court will decline to exercise jurisdiction over the remaining state law claims.”

On December 3, 2007, Nicewonder filed a motion asking the District Court to reconsider its earlier order finding that ACT had standing to raise the Davis-Bacon Act claims. On September 30, 2009,5 the District Court sustained Nieewonder’s motion to reconsider, finding that ACT lacked standing “to sue in its own right or in a representational capacity on behalf of its members for the failure to pay Davis-Bacon Act wages to the laborers who worked on the King Coal Highway project.” In reaching this decision, the Disti’ict Court

eonclude[d] that Congress did not intend to create a private right of action under the Federal-Aid Highway Act for a laborer under a contract that does not contain prevailing wage stipulations. Inasmuch as the laborers could not institute this action on their own behalf, [ACT] cannot do so for them.

The District Court, having so found, reversed its September 5, 2007, order insofar as that order found ACT to have standing to raise the Davis-Bacon Act claims. However, the District Coui’t let stand its findings that the contract awarded to Nicewonder was not in violation of federal law requiring competitive bidding for most public highway projects. Having resolved all federal claims, the District Court dismissed ACT’s petition from its docket and remanded the state law claims back to the Circuit Court of Kanawha County.

Upon remand to the circuit court, Nice-wonder and the DOH immediately filed a motion for Summary Judgment arguing that ACT lacked standing to obtain the declarations sought in its petition. By order dated May 7, 2010, the circuit court granted Nice-wonder’s motion, finding that ACT failed to meet the three-pronged standard for standing established by this Court in Findley v. State Farm Mutual Automobile Insurance Company, 213 W.Va.

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Bluebook (online)
713 S.E.2d 809, 227 W. Va. 653, 17 Wage & Hour Cas.2d (BNA) 1786, 2011 W. Va. LEXIS 54, 191 L.R.R.M. (BNA) 2140, Counsel Stack Legal Research, https://law.counselstack.com/opinion/affiliated-construction-trades-foundation-v-west-virginia-department-of-wva-2011.