American Janitorial Services, Inc. v. State

50 Ill. Ct. Cl. 208, 1998 Ill. Ct. Cl. LEXIS 54
CourtCourt of Claims of Illinois
DecidedFebruary 27, 1998
DocketNo. 89-CC-3482
StatusPublished

This text of 50 Ill. Ct. Cl. 208 (American Janitorial Services, Inc. v. State) is published on Counsel Stack Legal Research, covering Court of Claims of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
American Janitorial Services, Inc. v. State, 50 Ill. Ct. Cl. 208, 1998 Ill. Ct. Cl. LEXIS 54 (Ill. Super. Ct. 1998).

Opinion

OPINION

Frederick, J.

This cause is before the Court on Claimant, American Janitorial Service, Inc.’s, verified complaint seeking $3,400,000 from Respondent, State of Illinois, for wrongful termination of a janitorial contract. Claimant seeks $400,000 for loss of income and $3,000,000 for damage to good will. Jurisdiction is pursuant to section 8(b) of the Court of Claims Act. 705 ILCS 505/8(b). (formerly Ill. Rev. Stat., ch. 37, sec. 439.8(b) (1987)).

The complaint alleges that on June 30,1988, Respondent entered into a contract for the provision of janitorial services by Claimant at Respondent’s building at 100 West Randolph Street, Chicago, Illinois (hereinafter referred to as the “building”). A condition of the contract was that Claimant was required to pay its employees compensation equal to the prevailing wage. On December 29, 1988, Claimant received a letter from Director Tristano of the Department of Central Management Services (hereinafter referred to as the “Department”) informing Claimant that its contract was terminated on January 1, 1989, for failure to pay its employees the required prevailing wage. Claimant alleged that it had always paid all of its employees the prevailing wage and that it demonstrated this to Respondent by letter and supporting documentation submitted to the Department of Labor in September of 1988.

A trial was conducted on May 9, 1997, before Commissioner Hanley. Claimant presented three witnesses, namely Fernando Ortiz, an officer of Claimant, and Peg Morsch and Thomas Tocalis, employees of the Department. Respondent presented four witnesses, namely Peg Morsch, Thomas Tocalis, Michael Masterson and Scott Miller, employees of the Department of Labor.

Prior to the commencement of the hearing, Respondent presented a five-page written motion in limine. Claimant objected to the motion, based upon lack of notice and surprise, having received the motion the morning of the hearing. Claimant contended that section 790.200 of the Court of Claims Regulations provides for 15 days for the filing of an objection to a motion.

The purpose of Respondents motion was to prevent Claimant from contesting whether the Department of Labors purported finding that Claimant was not in compliance with the Prevailing Wage Act was correct. The Commissioner ruled that section 790.200 of the regulations does not apply to a motion in limine. The rationale for the ruling was that these motions are generally brought on the eve of trial and are intricately involved in the parties’ trial strategies. The Commissioner believes it critical to determine whether there was a hearing at the Department of Labor and Claimant was afforded an opportunity to participate. Additionally, section 11A of the Prevailing Wage Act (hereinafter referred to as the “Wage Act”) provides for a procedure of notifying contractors who, on two separate occasions, have been determined to have violated the Act. (Ill. Rev. Stat. 1991, ch. 48, par. 39s — 11A.) The contractor then has ten working days to request a hearing by the Department of Labor. The Director sets a hearing within 30 days.

The motion in limine was correctly denied by the Commissioner because Respondent did not establish that the procedures for determining a violation were ever instituted. Claimant was not provided notice of two prior violations and was not afforded an opportunity to invoke its right to a hearing before the Department of Labor.

Claimants Case

Ms. Peg Morsch testified that she was employed as a public service administrator in the Department on all relevant dates. Her duties included the administration of the contract and overseeing the nightly operations of the contract. Ms. Morsch was not involved in the decision to terminate the contract with Claimant. She also received a letter on October 20, 1988, which she understood to mean that Claimant was paying the prevailing wage on a weeldy basis, but the fringe benefits were issued on a separate check.

Ms. Morsch was aware that there was a question being raised in 1988 about Claimant not hiring the employees of the previous janitorial service. She did not have any contact with anyone from “Local 25” and was not aware if other State employees had any such contact.

Ms. Morsch orally notified Claimant that it was not required to employ the employees of the previous contract.1 At the pre-bid conference, Claimant was asked to interview the existing work force as a courtesy; however, their employment was not one of the conditions of the contract. She identified the agreement between the Department and Claimant commencing July 1, 1988, which was Claimant’s Exhibit No. 2.

On cross-examination, Ms. Morsch stated that, on or about October 20, 1988, she became aware that the Department of Labor had determined that Claimant was not in compliance with the Act for a period of time. On redirect examination, she acknowledged that she did not give a copy of the letter she received to Claimant.

Mr. Thomas Tocalis testified that he was employed by Respondent as the building manager of the building in 1988. He identified Claimants Exhibit No. 3 as a letter dated June 30, 1988, sent by him to Ortiz Fernando, transmitting to Claimant a copy of the signed janitorial service contract. He was not aware of any other notice going to Claimant to advise Claimant that it had been awarded the contract. He identified Claimant’s Exhibit No. 2 as the contract between the parties to which the June 30th letter refers. The contract was to commence on July 1, 1988. He could not recall any reason why Claimant was sent notice of the award one day prior to the commencement date.

Mr. Tocalis did not recall receiving a copy of Claimant’s Exhibit No. 4 which was a December 23,1988, letter from the Director of the Respondent stating that the contract was terminated as of January 1, 1989. He did not recall when he first became aware that Claimant’s contract was going to be terminated. He did not know whether Claimant was paying prevailing wage in December of 1988.

Mr. Tocalis also did not recall having seen Claimant’s Exhibit No. 5 which was a December 21, 1988, Department of Labor letter that indicated Claimant had cured any prevailing wage problem. He was not aware of the identity of the person that made the determination to terminate the contract. It was not necessarily part of his duties to be consulted concerning the cancellation of the cleaning service contract for the building. Either the Director’s office or the Bureau of Management’s Springfield office told him that the contract was to be awarded. He believes a decision to terminate the contract would be made by the Director. He also thought that Michael Bartoletti, the Bureau Manager, would be the one to make a recommendation to the Director to terminate the contract.

Mr. Fernando Ortiz testified that he was an officer of Claimant in December of 1988. He identified the following documents:

(a) Claimant’s Exhibit No. 6, Claimant’s bank statement from Metropolitan Bank;

(b) Claimant’s Group Exhibit No. 7, a list of copies of payroll checks for employees working in the building for December 9,1988;

(c) Claimant’s Group Exhibit No.

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Cite This Page — Counsel Stack

Bluebook (online)
50 Ill. Ct. Cl. 208, 1998 Ill. Ct. Cl. LEXIS 54, Counsel Stack Legal Research, https://law.counselstack.com/opinion/american-janitorial-services-inc-v-state-ilclaimsct-1998.