Brandt Construction Co. v. Ludwig

878 N.E.2d 116, 376 Ill. App. 3d 94
CourtAppellate Court of Illinois
DecidedSeptember 21, 2007
Docket3-06-0393
StatusPublished
Cited by18 cases

This text of 878 N.E.2d 116 (Brandt Construction Co. v. Ludwig) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Brandt Construction Co. v. Ludwig, 878 N.E.2d 116, 376 Ill. App. 3d 94 (Ill. Ct. App. 2007).

Opinions

JUSTICE McDADE

delivered the opinion of the court:

Defendant, Arthur Ludwig, Director of the Illinois Department of Labor, appeals from an order of the circuit court of Rock Island denying his motion to dismiss plaintiff Brandt Construction Company’s complaint for declaratory and injunctive relief. Defendant also appeals from the circuit court’s order granting Brandt’s motion for summary judgment. Upon review, we affirm in part, reverse and vacate in part, and remand this matter for further proceedings.

FACTS

The Complaint

On January 16, 2004, Brandt filed a complaint for declaratory and injunctive relief against the Director of the Department of Labor (Department). According to counts I through IV of its complaint, between December 2002 and June 2003, Brandt had performed four construction jobs under the contracts with certain cities — Rock Island, Moline and Milan (Cities). With respect to each job, the complaint alleged that sometime after the contract date, the Department raised the prevailing rate of hourly wages applicable to Brandt’s employees but that Brandt was not given notice of the increase. As a result of the lack of notice, Brandt failed to pay its employees at the prevailing wage. Brandt alleged that it had received letters from a Department labor conciliator directing it to pay accrued back wages and penalties, setting forth the amounts owed for each job — approximately $23,190 in back wages and $4,638 in penalties in total for all four jobs.

Brandt contended that the Prevailing Wage Act (Act) (820 ILCS 130/0.01 et seq. (West 2004)) required the Cities to provide Brandt with actual notice of an increase in the prevailing wage rate. Brandt argued that the Cities failed to comply with this statutory requirement. Based on this alleged failure, Brandt sought a declaration for each job that Brandt “does not owe the [Department] or [Brandt] employees any back wages resulting from the increased wage rates and [Brandt] does not owe any penalties, interest or liquidated damages.” Brandt also sought an injunction (in count VI), asking the court to enjoin the Department from collecting back wages or other monies for the relevant construction jobs.

Another count of the complaint (count V) alleged that, with respect to two additional construction jobs for the City of Moline, the Department was auditing Brandt’s payroll records. Brandt alleged that once the audits were completed, it expected the Department to take the position that Brandt had failed to pay the prevailing wage rate for these jobs as well. Reiterating its lack-of-notice defense, Brandt sought declaratory and injunctive relief prohibiting the Department from collecting unpaid wages or penalizing Brandt for noncompliance relating to these two Moline jobs.

Department’s Motion to Dismiss

On February 24, 2004, the Director of the Department moved to dismiss Brandt’s complaint. The Department argued that the case was premature as the Department had not initiated any proceedings to debar Brandt from other public works jobs; that Brandt failed to exhaust its administrative remedies; and that Brandt was improperly seeking a declaration of nonliability for past conduct. Brandt contested the Department’s motion. Upon hearing argument, the circuit court entered an order dismissing Brandt’s complaint, finding that “the action is premature and without exhaustion of administrative remedies.”

Brandt’s Motion for Reconsideration

On October 8, 2004, Brandt filed a motion asking the circuit court to reconsider its dismissal order and reinstate the complaint. The Department opposed the motion. Following argument, the circuit court entered an order granting Brandt’s motion to reconsider and reinstating all but count V of Brandt’s complaint. The court determined that the Department’s letters directing Brandt to pay unpaid wages and penalties were “sufficient to demonstrate an actual controversy for the purposes of a declaratory judgment action.” However, the court sustained the dismissal of count V of the complaint, which described two additional jobs the Department was still investigating, observing that “[mjatters under investigation do not rise to a ‘controversy’ for the purpose of declaratory relief.”

Additionally, the court determined that Brandt need not exhaust its administrative remedies, but instead could properly maintain its declaratory judgment action. The court observed that while administrative agencies are given wide latitude in resolving factual issues, this case presents “a question of law for the Court to decide, the answer [to] which could foreclose needless litigation.” Thus, the court reversed its earlier dismissal order and directed the Department to answer Brandt’s complaint. The court also temporarily enjoined the Department from commencing proceedings against Brandt for alleged violations of the Act.

Subsequent Proceedings

The Department answered the complaint and Brandt filed a motion for permanent injunction on April 5, 2006. Brandt maintained that the Department should be permanently enjoined from pursuing any “administrative or legal remedy” against Brandt due to the Cities’ failure to give Brandt actual notice of increases in the prevailing wage.

On April 20, 2006, Brandt filed a motion for summary judgment. Brandt contended that the Act requires public bodies to provide actual notice to contractors of prevailing wage increases, but that the Cities “did not provide Brandt with a notice that prevailing wage rates increased after the contracts were let to Brandt.” Brandt relied on the testimony from certain Brandt representatives (who denied receiving actual notice) and testimony from various representatives of the Cities (who acknowledged not sending such notice). Based on the claimed lack of actual notice, Brandt argued that “it did not have [an] obligation to pay revised rates, penalties and interest.”

On April 25, 2006, the circuit court held a hearing on Brandt’s pending motions. While the Department filed a response opposing Brandt’s motion for a permanent injunction, it requested additional time to respond to the summary judgment motion because that motion raised an additional issue — the sufficiency of notice by ordinance— that was not raised in the permanent injunction motion and therefore had not been addressed in the Department’s response. The court denied the Department’s request for an extension.

After hearing argument, the court granted both Brandt’s motion for a permanent injunction and its motion for summary judgment. It stated in pertinent part:

“Actually, there’s no facts at all to indicate that [Brandt] got actual notice. *** The statute required notice, they didn’t get it. And that’s a very, very narrow issue of law.”

The court followed its oral ruling with a written order entered the same day. The court determined that, under the Act, the Cities were required to notify Brandt of increases in the prevailing wage but failed to provide adequate statutory notice. The court determined that neither “publication on the [Department] website” nor “passage of an ordinance by a municipality or other governmental body” satisfied the “notification requirement contemplated by statute.” Specifically, the court stated:

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Brandt Construction Co. v. Ludwig
878 N.E.2d 116 (Appellate Court of Illinois, 2007)

Cite This Page — Counsel Stack

Bluebook (online)
878 N.E.2d 116, 376 Ill. App. 3d 94, Counsel Stack Legal Research, https://law.counselstack.com/opinion/brandt-construction-co-v-ludwig-illappct-2007.