Baldwin Farms v. State

CourtSuperior Court of Rhode Island
DecidedDecember 15, 2008
DocketC.A. No. PC 07-4700
StatusPublished

This text of Baldwin Farms v. State (Baldwin Farms v. State) is published on Counsel Stack Legal Research, covering Superior Court of Rhode Island primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Baldwin Farms v. State, (R.I. Ct. App. 2008).

Opinion

DECISION
Before the Court is an administrative appeal from the Department of Labor and Training (DLT), finding that the Plaintiff, Baldwin Farms Inc., (Plaintiff) must pay the prevailing wage to its workers, plus interest and a civil penalty, pursuant to G.L. 1956 § 37-13-1 etseq.1 The Plaintiff filed a timely appeal. Jurisdiction is pursuant to G.L. 1956 §§ 37-13-15(c) and 42-35-15.

I
Facts and Travel
The Plaintiff was the lowest bidder for a contract with the Rhode Island Resource and Recovery Corporation (RIRRC). The Plaintiff entered into an agreement with Defendant in December of 2003 until September of 2004, for $300,000, with the option for two, one year renewals. Thereafter, RIRRC and Plaintiff renewed the agreement until some time in February 2005, for an additional $115,000. The parties agreed on the increase in price because they encountered more work than previously anticipated in the original agreement. *Page 2

The Plaintiff became involved in this particular agreement because the RIRRC sent out Information for Bids (IFB) titled "Hay Bale Installation and Erosion Control." The minimum equipment listed in the IFB consisted of a backhoe, excavator, dozer, loader, dump truck, and vibratory compactor. (IFB at 3.) The RIRRC also held a pre-bid meeting at which bidders could ask any questions to clarify the information in the IFB. At that meeting, a representative from the RIRRC was available to answer questions. The Plaintiff alleges he and another person asked if prevailing wages were going to apply to this project, and the representative stated that this was a maintenance project only. (Tr. of Hearing at 41, Dec 15, 2006.) Baldwin Farms went forward with the agreement with the RIRRC, paying its employees a wage other than the prevailing wage.

Baldwin Farms worked pursuant to the necessary specifications in the IFB. These included but were not limited to:

• Sediment pond dredging

• Removal of sediment from swales and drainage benches

• Restabalization of swales and drainage benches

• Removal of old haybales, sediment, waste, or any other miscellaneous debris

• Regrading in areas where old haybales exist prior to installation of new haybales

• Installation of erosion blankets and/or mulch, Miscellaneous re-grading of areas for drainage purposes

• Installation and removal of turbidity curtains (silt booms)

• Slope stabilization

• Supply and installation of rip rap, if necessary

• Cleaning and drainage of draining culverts

• Resetting and /or replacement of temporary erosion controls

• Miscellaneous erosion repairs and control installation. (IFB at 2.)

In February of 2005, Daniel Crosby, an employee of Baldwin Farms, filed a complaint in the prevailing wages unit of the DLT. He claimed he was not being paid the prevailing wage and this project fell into the "prevailing wage" category. *Page 3

In response to the complaint, Baldwin Farms requested information to clarify that this was not a prevailing wage project. William Anderson, Engineering Manager of the RIRRC, responded in a letter stating that this was a maintenance project only and not subject to the prevailing wage. (Letter to Baldwin Ex. D at 1.) However, this letter was substantially identical to the internal memo that was sent to Mr. Stern, the executive counsel to the Department of Administration, by a law student. Mr. Stern had requested that the law student do some research to find out if this project fell under the prevailing wage statute.

Ms. Lisa Tirocchi, the Prevailing Wage Division Investigator, concluded that this project fell into the prevailing wage category and that the Plaintiff failed to pay the prevailing wage. (Tr. at 18-19, Dec. 15, 2006.) She then took into account the employees' description of their work and determined the difference between the wage the employees had been paid and the prevailing wage, plus the required 12% interest, set forth in G.L. 1956 § 37-13-14.1(a).

The Plaintiff appealed this decision by the Prevailing Wage Board. In conformity with the administrative procedures act, § 37-13-14.1(a), a DLT — appointed Hearing Officer listened to the case at hand in four separate hearing dates on July 14, 2006; December 15 and 31 2006; and February 16, 2007. The Hearing Officer listened to the testimony of a number of relevant people including Mr. Baldwin, owner and President of Baldwin Farms; Ms. Tirocchi, the Prevailing Wage Division Investigator; three employees who worked on the project for Baldwin Farms; Ms. Sherry Mulhearn, the Executive Director of the RIRRC; and Mr. Brian Stern, former executive counsel for the DOA. All who had knowledge of the project admitted that it involved grading, repair and *Page 4 alteration. However, they disagreed as to the definition of construction and whether this was a construction project or a maintenance project. Mr. Baldwin and Ms. Mulhearn argued that this project was only a maintenance project (Tr. at 42, 72, 88, Dec. 15, 2006) while Ms. Tirrochi and the former employees stated that this project was a construction project. (See id. at 19-20; Tr. at 57, 60, 65, Jul. 14, 2006.)

The hearing officer, in a written decision on April 20, 2007, found that this was a public works project. He further found that the contract exceeded $1000, this project did involve construction-even if it was labeled a maintenance project, and the Plaintiff was required to pay the prevailing wage even though neither the IFB nor the performance contracts denominated this project as such. (Admin. Decision at 4-5.) Accordingly, the hearing officer ruled that the Plaintiff's employees were entitled to the prevailing wage. In that same written decision, the Hearing Officer also found that the Plaintiff must pay a civil penalty of one time the total amount due pursuant to § 37-13-14.1(b).

The Plaintiff thereafter appealed the decision in accordance with the APA, and the three person appellate board upheld the first decision. The Plaintiff timely made an appeal to this Court pursuant to § 37-13-15(c) and § 42-35-15.

II
Standard of Review
This Court's review of a final agency decision is governed by § 42-35-15(g). The subsection provides as follows:

The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact. The court may affirm the decision of the agency or remand the case for further proceedings, or it may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

*Page 5

(1) In violation of constitutional or statutory provisions;

(2) In excess of the statutory authority of the agency;

(3) Made upon unlawful procedure;

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Bluebook (online)
Baldwin Farms v. State, Counsel Stack Legal Research, https://law.counselstack.com/opinion/baldwin-farms-v-state-risuperct-2008.