John Fox v. Nichter Construction Co., Inc.

978 N.E.2d 1171, 2012 Ind. App. LEXIS 561, 2012 WL 5505912
CourtIndiana Court of Appeals
DecidedNovember 14, 2012
Docket03A01-1202-SC-52
StatusPublished
Cited by9 cases

This text of 978 N.E.2d 1171 (John Fox v. Nichter Construction Co., Inc.) 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
John Fox v. Nichter Construction Co., Inc., 978 N.E.2d 1171, 2012 Ind. App. LEXIS 561, 2012 WL 5505912 (Ind. Ct. App. 2012).

Opinions

OPINION

KIRSCH, Judge.

John Fox (“Fox”), the employee-claimant, appeals from the trial court’s denial of his motion to correct error from an order of dismissal with prejudice, contending that the trial court erred in dismissing his wage claim for lack of subject matter jurisdiction.

We affirm in part, reverse in part, and remand.

FACTS AND PROCEDURAL HISTORY

Fox, who was employed by Nichter Construction Company, Inc. (“NCC”), alleged that he left his employment with NCC voluntarily.1 After leaving NCC, Fox filed an Application For Wage Claim (“the Application”) with the Department of Labor (“the DOL”) in which he sought payment for vacation time that had allegedly accrued during his employment with NCC. The Application contained the following pertinent language:

Pursuant to IC 22-2-9-5, I hereby assign to the Commissioner of Labor all my rights, title and interest in and to the above certified claim for processing in accordance with the provisions of IC 22-2-9-1, et seq.

Appellant’s App. at 22.

The DOL sent a letter to NCC setting forth a deadline for NCC’s response. NCC timely responded that Fox was a part-time employee and was ineligible for vacation pay. NCC supplied documents in support of its position. The day after receiving NCC’s response, the DOL sent a letter to Fox stating that it “ha[d] been [1174]*1174investigating the complaint” and found that Fox “w[as] not a full time employee” and was “ineligible to receive vacation payout.” Id. at 32.

Fox filed a pro se action as a small claim in Bartholomew Superior Court. NCC failed to appear at the small claims trial date, and a default judgment was entered on behalf of Fox on November 5, 2010. On November 8, 2010, NCC filed a motion to set aside the default judgment and a motion to dismiss for lack of jurisdiction. NCC argued that Fox did not have standing to pursue his small claims action because his wage claim had been assigned to the DOL, and Fox had not obtained a referral letter from the Attorney General referring his claim back to him. NCC also argued that the trial court lacked jurisdiction because the DOL had already made the determination that Fox was a part-time employee who was ineligible for vacation pay. On April 4, 2011, the trial court entered its order setting aside the default judgment and dismissing Fox’s case with prejudice for lack of subject matter jurisdiction.

Thereafter, Fox retained counsel, who faxed a letter to the DOL requesting that the wage claim be referred to Fox’s counsel. That same day Fox’s counsel filed a motion to correct error. In the motion, Fox argued that before counsel was hired, Fox had submitted his claim against NCC with the DOL thinking that was the appropriate course of action. However, Fox believed that he was entitled to accrued vacation pay because he was a full-time employee who voluntarily quit his employment with NCC after giving two-weeks notice. Fox’s counsel attached an amended complaint to the motion in which he claimed entitlement to the vacation pay under the Wage Payment Statute.2

Fox’s counsel further stated in the motion that should the small claims court find that Fox’s claim did fall under the Wage Claims Statute,3 the alleged standing issue had been resolved or soon would be resolved. He asserted that he had requested a referral of Fox’s claim from the DOL, and that the referral would likely be made within two weeks. After Fox’s counsel received the referral letter from the DOL on May 23, 2011, he faxed the letter to the small claims court and to opposing counsel. The small claims court held a hearing on the motion to correct error on December 2, 2011, and later entered an order denying the motion to correct error. Fox now appeals.4

DISCUSSION AND DECISION

The Wage Payment Statute and the Wage Claims Statute provide different procedural frameworks for different categories of claimants who have wage disputes. St. Vincent Hosp. & Health Care Ctr., Inc., v. Steele, 766 N.E.2d 699, 705 (Ind.2002). We have previously stated the following about the Wage Claims Statute and the Wage Payment Statute:

Claimants who proceed under the Wage Claims statute may not file a complaint with the trial court. Rather, the wage claim is submitted to the Indiana Department of Labor. The Wage Claims statute references employees who have been separated from work by their employer and employees whose work has [1175]*1175been suspended as a result of an industrial dispute. By contrast, the Wage Payment statute applies to current employees and those who have voluntarily left employment, either permanently or temporarily. The Wage Payment statute does not require a claimant to submit his or her claim to the Indiana Department of Labor before filing suit. E & L Rental Equip., Inc. v. Bresland, 782 N.E.2d 1068, 1070 (Ind.Ct.App.2003)(internal citations omitted). The issue presented in this appeal is the issue discussed in Justice Sullivan’s dissent to the denial of a petition to transfer from this court’s decision in Quimby v. Becovic Management Group, Inc., 946 N.E.2d 30 (Ind.Ct.App.2011)(dissent from denial of transfer reported at 962 N.E.2d 1199 (Ind.2012)). Therefore, it is necessary to discuss this court’s opinion in Quim-by.

There, the claimant, Quimby, who voluntarily left her employment, made an application for wage claim -with the DOL. Her application included the statement that she assigned her claim to the DOL. The DOL investigated her claim and found that certain deductions were not properly made and directed Becovic, to pay Quimby $590.39. Becovic sent a check in that amount to Quimby, and she cashed it.

Thereafter, Quimby filed an action with the trial court against Becovic under the Wage Payment Statute and alleged that Becovic had not paid wages and commissions she had earned and had not paid her for vacation time she had not used. The trial court granted Becovic’s motion to dismiss on the grounds that it lacked subject matter jurisdiction and that Quimby had not stated a claim upon which relief could be granted. Quimby appealed the trial court’s decision.

A panel of this court found that the trial court did not err by dismissing her action. First, we held that since Quimby had assigned her claim to the DOL, she was no longer a real party in interest. Quimby v. Becovic Mgmt. Grp., Inc., 946 N.E.2d 30, 33 (Ind.Ct.App.2011), and cited to our previous decision in E & L Rental Equip., Inc. v. Gifford, 744 N.E.2d 1007 (Ind.Ct.App.2001). This Court further noted that since Quimby voluntarily left her employment she should have brought her claim under the Wage Payment Statute. Therefore, she need not have brought her claim to the DOL.

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978 N.E.2d 1171, 2012 Ind. App. LEXIS 561, 2012 WL 5505912, Counsel Stack Legal Research, https://law.counselstack.com/opinion/john-fox-v-nichter-construction-co-inc-indctapp-2012.