DEWOLF v. HYDROCHEMPSC

CourtDistrict Court, D. New Jersey
DecidedSeptember 30, 2022
Docket2:20-cv-03378
StatusUnknown

This text of DEWOLF v. HYDROCHEMPSC (DEWOLF v. HYDROCHEMPSC) is published on Counsel Stack Legal Research, covering District Court, D. New Jersey primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
DEWOLF v. HYDROCHEMPSC, (D.N.J. 2022).

Opinion

NOT FOR PUBLICATION

UNITED STATES DISTRICT COURT DISTRICT OF NEW JERSEY

ANTHONY DEWOLF; WALTER RIVERA; EDWIN NARVAEZ; RONNY THREADGILL; JOSE GARCIA; ROBERT JUNIOR MEDINA;

JOSE LUIS COLON, JR.; AUDELIS VAZQUEZ; MARCEL PORTER; VICTOR TERRERO; LUIS GONZALEZ,

Plaintiffs, Civ. No. 20-3378 (KSH) (CLW) v.

HYDROCHEMPSC; HYDROCHEM LLC; HYDROCHEM INDUSTRIAL CLEANING, OPINION LLC; CORPORATIONS 1-10,

Defendants.

Katharine S. Hayden, U.S.D.J.

I. Introduction

Plaintiffs Anthony DeWolf, Walter Rivera, Edwin Narvaez, Ronny Threadgill, Jose Garcia, Robert Junior Medina, Jose Luis Colon, Jr., Audelis Vazquez, Marcel Porter, Victor Terrero, and Luis Gonzalez (“plaintiffs”) have sued defendants HydroChemPSC, HydroChem, LLC and HydroChem Industrial Cleaning, LLC (“HydroChem”) for allegedly violating two New Jersey wage statutes: (1) N.J.S.A. § 34:13B-2.1, which addresses the payment of prevailing wages for construction on public utilities, and (2) N.J.S.A. § 48:2-29.47, which addresses the payment of prevailing wages for construction undertaken in connection with Board of Public Utilities (“BPU”) financial assistance. HydroChem has moved to dismiss the amended complaint. As set forth below, the motion will be granted in part and denied in part. II. Background

The amended complaint alleges as follows. Plaintiffs worked for HydroChem on projects for Public Service Electric & Gas (PSEG), a utility company. (D.E. 76, Am. Compl. ¶¶ 3, 9.) HydroChem is in the business of “large scale, industrial environmental and hazardous waste containment and removal services including those integral to industrial construction and demolition projects.” (Id. ¶ 7.) PSEG “retained, used, and employed HydroChem” to provide services for its Energy Strong program, and HydroChem in turn assigned each of the plaintiffs to perform work on PSEG facilities. (Id. ¶¶ 73, 75.) The Energy Strong program had its origins in a series of storms, including Superstorm Sandy, that struck New Jersey in 2011 and 2012 and caused “severe damage to the State’s utility infrastructure.” (Id. ¶ 45.) In February 2013, PSEG petitioned the BPU for approval of an “infrastructure program and associated financial aid to bolster its ‘electric and gas infrastructure to make them less susceptible to damage from wind, flying debris and water damage in anticipation

of Major Storm Events.’” (Id. ¶ 46.) The program that the BPU ultimately approved involved PSEG committing to invest $1.22 billion in its electric and gas infrastructure, including “flood mitigation,” which incorporated the raising or relocation of more than two dozen electrical substations. (Id. ¶¶ 50, 53, 56.) As plaintiffs characterize the BPU proceedings, approval of the Energy Strong program reflected a continuation of state-initiated efforts that began around 2009 (and of which PSEG availed itself) to permit accelerated cost recovery, through rate increases and favorable depreciation treatment, as a means of encouraging utilities to invest in their infrastructure. (Id. ¶¶ 26-33, 41-63.) Approval of such measures fell outside the normal ratemaking processes (e.g., id. ¶ 33), and the approach more generally was formalized in regulations promulgated in 2018 (i.e., after the Energy Strong program was approved) (e.g., id. ¶¶ 34-37). Raising electrical substations—the component of Energy Strong that plaintiffs allegedly worked on—involves “wholesale demotion of existing large electrical power transformers . . . and the construction of new, larger replacement transformers at higher elevations.” (Id. ¶ 68.) Because

transformers require “thousands of gallons of transformer oil” for operation and insulation, demolishing and retiring them involves emptying the oil tank, “including contemporaneous containment and removal of any spillage or contaminated soil, water, or other material,” and building new transformers involves filling a new tank with transformer oil and engaging in “associated contemporaneous environmental containment and removal work.” (Id. ¶¶ 69-71.) Demolition and construction of transformers also involves erecting “secondary containment structures such as berms, frac tanks, and drums; continuous environmental monitoring (‘environment watch’) during the oil pumping and removal process; and the removal and ultimate disposal of contaminated soil, water, and other material and structure parts.” (Id. ¶ 72.)

What HydroChem (and by extension plaintiffs) did included “pumping transformer oil; and monitoring, containing, storing, and ultimately removing oil, soil, water, and other pollutants and contaminants from within and underneath the transformers on the PSE&G worksites.” (Id. ¶ 76.) They used equipment and machinery such as “containment units, vac-trucks, frack-tanks, roll frames, rack trucks, box trucks, skid steers, berms, submersible pumps, drums, and water blasters.” (Id. ¶ 77.) Plaintiffs also handled environmental watch and containment during installation of the transformers and removed contaminants and other materials. (Id. ¶ 77.) Plaintiffs “generally documented their work and hours at PSE&G worksites on both electronic and written time/work sheets that were submitted to HydroChem management/payroll, and which were then used by HydroChem to invoice and charge PSE&G for the work.” (Id. ¶ 78.) Plaintiffs assert that although they were entitled to be paid prevailing wages for their work, HydroChem has “failed and refused” to do so. (Id. ¶¶ 81-82; see also id. ¶¶ 93, 101.) Plaintiffs filed suit on February 26, 2020, in New Jersey state court, asserting claims under N.J.S.A. §§ 34:13B-2.1 and 48:2-29.47, as well as for breach of contract and violation of the New

Jersey Prevailing Wage Act (“NJPWA”), N.J.S.A. §§ 34:11-56.25 to -47. (D.E. 1-1.) HydroChem removed the action to this Court on March 27, 2020, asserting diversity jurisdiction (D.E. 1), and moved to dismiss the complaint for lack of standing and failure to state a claim (D.E. 3). In November 2020, after HydroChem’s motion was fully briefed, this Court issued an opinion in an unrelated action, captioned Cosgrove v. Veolia ES Industrial Servs., Inc., 18cv173 (hereafter, “Cosgrove”). The Cosgrove plaintiffs, represented by the same attorney who represents plaintiffs in this action, alleged that a different company, Veolia ES Industrial Services, Inc., now known as Clean Harbors Industrial Services, Inc. (“VESIS”), failed to pay prevailing wages for work those plaintiffs did on the Energy Strong program. They asserted that VESIS violated the

same two statutes underlying the claims in this action, i.e., N.J.S.A. §§ 34:13B-2.1 and 48:2-29.47. In its November 2020 ruling, which granted in part and terminated in part the defense’s motion for judgment on the pleadings, the undersigned (1) directed the parties to brief whether a private cause of action exists under N.J.S.A. § 34:13B-2.1, and (2) dismissed without prejudice the claim under N.J.S.A. § 48:2-29.47 because the operative complaint failed to adequately plead an “incentive,” and therefore had not met the BPU “financial assistance” requirement of the statute. (Cosgrove, D.E. 136, 11/30/20 Op.) The Cosgrove plaintiffs later amended their complaint with leave of court to reinstate the claim under N.J.S.A. § 48:2-29.47. (Cosgrove, D.E. 146, 165.) VESIS moved to dismiss that claim, and, as further discussed below, the Court has denied that motion in an opinion that is being filed contemporaneously with this one. (See Cosgrove, 9/30/22 Op.). In May 2021, plaintiffs moved to amend the complaint in this action to reflect changes they had made to their claim under N.J.S.A. § 48:2-29.47 in response to the November 2020 ruling in Cosgrove. (D.E. 43.) Judge Waldor granted that motion on November 23, 2021, holding that there

was good cause under Fed. R. Civ. P.

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DEWOLF v. HYDROCHEMPSC, Counsel Stack Legal Research, https://law.counselstack.com/opinion/dewolf-v-hydrochempsc-njd-2022.