Connection Training Services v. City of Philadelphia

358 F. App'x 315
CourtCourt of Appeals for the Third Circuit
DecidedDecember 22, 2009
DocketNo. 09-1856
StatusPublished

This text of 358 F. App'x 315 (Connection Training Services v. City of Philadelphia) is published on Counsel Stack Legal Research, covering Court of Appeals for the Third Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Connection Training Services v. City of Philadelphia, 358 F. App'x 315 (3d Cir. 2009).

Opinion

OPINION OF THE COURT

VAN ANTWERPEN, Circuit Judge.

Plaintiff-Appellant Connection Training Services (“CTS”) filed this appeal of an order of the United States District Court for the Eastern District of Pennsylvania granting summary judgment to defendants, the City of Philadelphia, Perritti DiVirgilio (“DiVirgilio”), and James Ferraro (“Ferraro”) (collectively, the “Defendants”). CTS appeals the District Court’s [316]*316conclusion that CTS failed to show a genuine issue of material fact that it suffered a detriment in relying on Defendants’ misrepresentations as to the availability of a prevailing wage exemption pursuant to a city ordinance. The District Court relied on an estoppel argument in its grant for summary judgment. We will affirm the entry of summary judgment, but through alternative reasoning.

I.

Because we write solely for the parties, we include only those facts necessary to our disposition of this appeal.

On September 28,1999, the City of Philadelphia enacted ordinance number 990221-A (the “Ordinance”), which purported to expand the scope of workers exempt from the prevailing wage requirements for city contract work. The Ordinance would not become effective until the Minority Business Enterprise Council (“MBEC”) provided certain certifications to the Mayor’s Office and the City Council. MBEC never provided those certifications and, therefore, the Ordinance never took effect.

Nevertheless, CTS developed a training program and sought certification as a bona fide training program under the Ordinance.1 After receiving approval and discretionary funding from the Philadelphia Workforce Development Corporation (“PWDC”), CTS sought to place its trainees with LP Group2, Inc. (“LP2”). LP2 attempted to use these trainees on a contract with the city, but received citations from Philadelphia’s Labor Standards Unit (“LSU”) for prevailing wage violations. DiVirgilio and Ferraro are the director and deputy director, respectively, of the LSU, which is responsible for ensuring that, inter alia, workers on city contracts receive the prevailing wages.

Prior to the Ordinance, the only exemption from the prevailing wage requirements was for recognized apprenticeship programs. The Ordinance would have extended those exemptions to bona fide training programs that complied with the requirements of the Ordinance. The LSU refused to recognize an exemption for CTS’s training program on the basis that the only available exemption was for apprenticeship programs. During the course of this litigation, Defendants asserted that CTS’s claimed exemption was unenforceable because the Ordinance never took effect. Nevertheless, the LSU enforced other requirements under the Ordinance which similarly did not take effect without the MBEC’s certification.

CTS argues that Defendants’ refusal to recognize its training programs precludes it from placing its trainees with construction firms working on city projects, thereby violating its due process and equal protection rights, as well as violating Pennsylvania’s Public Official and Employee Ethics Act (“POEEA”), 65 Pa. Cons.Stat. Ann. § 1101-1113. Because these firms would have to pay the prevailing wage unless CTS’s training program is exempt, the firms will not hire and pay unskilled workers at the same rate as skilled workers. CTS’s argument continues that if it cannot place its trainees, then it cannot receive additional funding from the city or city-related agencies, such as PWDC. Although CTS provided evidence of PWDC’s criteria for refunding [317]*317a training program, there is no indication CTS was guaranteed refunding if it met those criteria. Further, CTS argues that it incurred long-term expenses in creating and initiating its training programs, which it cannot recover if Defendants are permitted to refuse to exempt its training program.

On December 31, 2008, 2008 WL 5423479, the District Court granted Defendants’ motion for summary judgment as to CTS’s due process and equal protection claims under 42 U.S.C. § 1983. The court determined that because the Ordinance never went into effect, CTS could only succeed on its claims if it could estop the Defendants from denying that the Ordinance took effect.2 The court concluded that “the record does not show that CTS sought wage exemptions in reliance on [Defendants’ negligent misrepresentations ... or that such reliance would have been justified.” J.A. at 1891. Thus, CTS could not estop Defendants from claiming the Ordinance was not in effect and, therefore, failed to identify a protected property right.

CTS subsequently filed a timely motion for reconsideration, which the District Court denied in a February 25, 2009 order. Although the court assumed that CTS could show it justifiably relied on Defendants’ misrepresentations, it concluded that “CTS has not produced evidence that its reliance caused it detriment.” Id. at 1898-99. The court then denied a second motion for reconsideration as improper and declined to exercise supplemental jurisdiction over CTS’s POEEA claim.

II.

The District Court had jurisdiction for CTS’s § 1983 claims under 28 U.S.C. § 1331. The District Court declined to exercise supplemental jurisdiction for CTS’s state-law claim under § 1367. This Court has jurisdiction to review the grant of summary judgment under § 1291. Dee v. Borough of Dunmore, 549 F.3d 225, 227 (3d Cir.2008). Plaintiff filed a timely notice of appeal.3

The appeal from the denial of a motion for reconsideration brings up the underlying judgment for review; therefore, the standard of review depends on the nature of the underlying judgment. McAlister v. Sentry Ins. Co., 958 F.2d 550, 552-53 (3d Cir.1992). Because the underlying judgment granted Defendants’ motion for summary judgment, this Court exercises ple[318]*318nary review, applying the same standards the District Court was required to apply. Bowers v. NCAA 475 F.3d 524, 535 (3d Cir.2007).

Summary judgment is appropriate if the moving party has established that there is no genuine issue of material fact and it is entitled to judgment as a matter of law. Celotex Corp. v. Catrett, 477 U.S. 317, 322, 106 S.Ct. 2548, 91 L.Ed.2d 265 (1986) (citing Fed.R.CivP. 56(c)). The moving party bears the initial burden of showing that the non-movant has failed to establish one or more essential elements of its case. Id. at 322-23, 106 S.Ct. 2548. The reviewing court must take all facts in the light most favorable to and must draw all reasonable inferences in favor of the non-movant. Bowers, 475 F.3d at 535.

If the moving party meets its burden, the burden then shifts to the non-movant to establish that summary judgment is inappropriate. Matsushita, Elec. Indus. Co. v. Zenith Radio Corp.,

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Bluebook (online)
358 F. App'x 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/connection-training-services-v-city-of-philadelphia-ca3-2009.