BOARD OF COM'RS OF COUNTY OF ALLEN v. Jones

457 N.E.2d 580, 26 Wage & Hour Cas. (BNA) 921, 1983 Ind. App. LEXIS 3703
CourtIndiana Court of Appeals
DecidedDecember 15, 1983
Docket3-1282A347
StatusPublished
Cited by10 cases

This text of 457 N.E.2d 580 (BOARD OF COM'RS OF COUNTY OF ALLEN v. Jones) is published on Counsel Stack Legal Research, covering Indiana Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
BOARD OF COM'RS OF COUNTY OF ALLEN v. Jones, 457 N.E.2d 580, 26 Wage & Hour Cas. (BNA) 921, 1983 Ind. App. LEXIS 3703 (Ind. Ct. App. 1983).

Opinion

GARRARD, Judge.

This is an appeal from an order granting an injunction against the Board of Commissioners of Allen County ("Board").

The controversy began April 16, 1982. The Board was preparing to award contracts for the demolition of thirty-four structures in Allen County. As the execu *582 tive agency for the county, the Board is authorized to award contracts for county improvements. 1; IC 36-2-2-1; IC 86-2-8.5-IC 36-2-3.5-4(b)(9) and (10). The demolition contracts involved public works subject to the provisions of the Prevailing Wage Statute, IC 5-16-7-1 to IC 5-16-7-5. 1 IC 5-16-7-1 describes "prevailing wage" and the procedure for its ascertainment:

"Any firm, individual, partnership or corporation which is hereafter awarded a contract by this state, or by any political subdivision thereof, or by a municipal corporation, for the construction of any public work, and any subcontractor thereon, shall be required to pay for each class of work on such project a scale of wages which shall in no case be less than the prevailing scale of wages being paid in the immediate locality for such class of work as hereinafter to be determined. For the purpose of ascertaining what the prevailing wage scales are in such immediate locality, the awarding governmental agency, prior to advertising for such contract, shall set up a committee of three (8) persons; one (1) representing labor, to be named by the president of the state federation of labor; one (1) representing industry, to be named by the awarding agency, and a third member to be named by the governor. As soon as appointed said committee shall meet and shall fix and determine in writing as follows: A classification of the labor to be employed in the performance of the contract for such project, into three (8) classes: skilled, semiskilled and unskilled labor, and the wage per hour to be paid each of such classes: Provided, That the rate of wages so to be fixed and determined shall not exceed the prevailing wage scales being at the time paid in such locality for such class of work: Provided further, That the provisions of this chapter shall not apply to contracts let by the department of highways for the construction of highways, streets and bridges. The provisions of IC 8-138-5-8 do apply on state highway projects. Such determination shall be made and filed with such awarding agency at least two (2) weeks prior to the date fixed for such letting, and a copy thereof shall be furnished upon request to any person desiring to bid on such contract. Said schedule shall be open to the inspection of the public. If such committee fails to act and to file such determination at or before the time hereinbefore provided, the awarding agency shall make such determination, and its finding shall be final. It shall be a condition of such contract that the successful bidder and all of his subcontractors shall comply strictly with such determination made as above provided. None of the provisions of this section, however, shall be interpreted as permitting the payment of wages for skilled, semiskilled or unskilled labor on any such public project in this state the letting of which is subject to the provisions hereof which are less than the minimum provided for in the applicable national code of fair competition, or regional agreement approved by the president of the United States if there be any such: Provided further, That the provisions of this chapter shall not apply to any such public projects in this state the letting of which would otherwise be subject to the provisions hereof, and which are to be paid for in whole or in part with funds granted by the federal government, unless the depart *583 ment of the federal government making such grant shall consent in writing that the provisions of this chapter shall be applicable to such project."

A committee was created: Sue Stone, an employee of the Division of Labor, was the governor's appointee. Fred Rice, business manager of the Allen County Building Trades Council, was the AFL-CIO's representative. There was a third member representing the Board. The committee met on April 16, 1982. Stone presided. The Board's representative presented three letters. The letters were from three county demolition contractors, Earth Construction & Engineering, Inc., Martin Enterprises, Inc., and Griffin Enterprises, Inc. Each letter set forth the wage rates used in demolition projects. The rates were presented as being representative of the rates prevailing in the area. Rice submitted wage scales being paid in the area "pursuant to privately-negotiated collective bargaining agreements."

Stone concluded that Rice's submission most accurately represented the prevailing wage for area construction workers. Al though she considered the contractors' letters, she found each inapposite: Earth Construction's rates were from a two year old contract and, as such, dated. Martin Enterprises' rates were from a State Highway Department project. Since the Highway Department is not subject to the prevailing wage statute, Stone found this submission inapplicable. And Griffin Enterprises' submission was based upon what it considered "rates ... more realistic ... than the union wages ... which we [now] pay." Based partly upon her knowledge of wages in the construction industry and "partly upon the personal knowledge that this same wage scale had been paid on numerous other public work projects in the locality," Stone adopted Rice's submitted wage rates. Rice concurred. The remaining member of the committee, the Board's appointee, voted against adopting Rice's wage rates.

On April 23, 1982 the Board met and declared the prevailing wage adopted by the committee void. According to the Board, the wage was void for several reasons:

1. It was not concurred upon by all three (8) committee members.
There was no basis in fact for "[the] determination, ... making [it] arbitrary and capricious."
The committee failed to comply with the Indiana "Open Door Law."
4. The statute is unconstitutional.

The Board then proceeded to establish its own wage determinations for the demolition projects. The Board's wage determinations were made "a part of the specifications for the demolition projects" and included in the advertisements for bids.

On May 14, 1982 several parties joined in filing a complaint for "temporary restraining order, preliminary and permanent injunction and declaratory judgment." The plaintiffs were three Allen County labor organizations and Ernie Jones, in his capacity as president of the Indiana AFL-CIO. The complaint sought to prevent the Board from awarding contracts based upon the Board's prevailing wage. In this regard, the complaint asked that the Board be enjoined from awarding any contracts for demolition, and asked that the Board's wage determination be declared "null, void, and ... in violation of IC 5-16-7-1." The Board answered, and raised as an affirmative defense its contention that IC 5-16-7-1 was unconstitutional. The Board also counterclaimed. It asserted that the committee met "and continues to meet in violation of the Indiana 'Open Door Law' IC 5-14-1.5-1 et seq." Therefore, the Board asked "that all decisions made by the prevailing wage committee ... [in meetings] in violation of the Indiana 'Open Door Law' be declared void, and ...

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Board of Commissioners v. Northeastern Indiana Building Trades Council
954 N.E.2d 937 (Indiana Court of Appeals, 2011)
Town of Chandler v. Indiana-American Water Co.
892 N.E.2d 1264 (Indiana Court of Appeals, 2008)
City of South Bend v. Kimsey
751 N.E.2d 805 (Indiana Court of Appeals, 2001)
Stampco Const. Co., Inc. v. Guffey
37 Cont. Cas. Fed. 76,176 (Indiana Court of Appeals, 1991)
Samuels v. State
505 N.E.2d 120 (Indiana Court of Appeals, 1987)
Poore v. State
501 N.E.2d 1058 (Indiana Supreme Court, 1986)
North Township Advisory Board v. Mamala
490 N.E.2d 725 (Indiana Supreme Court, 1986)

Cite This Page — Counsel Stack

Bluebook (online)
457 N.E.2d 580, 26 Wage & Hour Cas. (BNA) 921, 1983 Ind. App. LEXIS 3703, Counsel Stack Legal Research, https://law.counselstack.com/opinion/board-of-comrs-of-county-of-allen-v-jones-indctapp-1983.