Kam Shing Chan v. City of New York

1 F.3d 96
CourtCourt of Appeals for the Second Circuit
DecidedJuly 26, 1993
DocketNos. 1230, 1231, 2194, Dockets 92-9236, 92-9238 and 93-7038
StatusPublished
Cited by9 cases

This text of 1 F.3d 96 (Kam Shing Chan v. City of New York) is published on Counsel Stack Legal Research, covering Court of Appeals for the Second Circuit primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kam Shing Chan v. City of New York, 1 F.3d 96 (2d Cir. 1993).

Opinion

KEARSE, Circuit Judge:

Defendants City of New York (“City”), Department of Housing Preservation & Development of New York City (“HPD”) (collectively “municipal defendants”), and the Chinese-American Planning Council, Inc. (“CPC”), appeal from so much of an order of the United States District Court for the Southern District of New York, Robert J. Ward, Judge, as denied their motions pursuant to Fed.R.Civ.P. 12(b)(6) to dismiss claims of plaintiffs Kam Shing Chan et al., asserted under 42 U.S.C. § 1983 (1988) for payment of subminimum wages, in violation of § 5310 of the Housing and Community Development Act of 1974, 42 U.S.C. § 5301 et seq. (1988 & Supp. II 1990) (“HCDA” or the “Act”). The district court ruled that although there is no private right of action directly under § 5310, plaintiffs’ claims for violation of that section could be pursued under § 1983. On appeal, defendants contend principally (a) that § 5310 does not create a right that can be enforced under § 1983, and (b) that a § 1983 action cannot be maintained because CPC cannot be considered a state actor. Plaintiffs cross-appeal, challenging the district court’s ruling that § 5310 affords them no private right of action directly under that section. For the reasons below, we reject these challenges and affirm in all respects.

I. BACKGROUND

Plaintiffs were employees of CPC who worked on federally funded construction projects. The present controversy arises out of their claims that CPC paid them less than the minimum wage rates federally required for such projects. For purposes of both the appeal and the cross-appeal, we accept as true the allegations of the First Amended Verified Complaint (“Complaint”), as clarified by the actual terms of the contracts invoked by the Complaint and presented to the district court, see Cortec Industries, Inc. v. Sum Holding L.P., 949 F.2d 42, 47 (2d Cir.1991), cert. denied, — U.S. -, 112 S.Ct. 1561, 118 L.Ed.2d 208 (1992).

A. The Contracts Between CPC and HPD

From 1986 to 1989, CPC was party to a series of three contracts with HPD for the construction, repair, and rehabilitation of certain housing owned by the City (collectively [99]*99the “Contracts”)- The Contracts were funded in whole or in part by federal grants under the HCDA. Section 5310 of that Act provides generally that laborers employed on construction work financed in whole or in part by HCDA grants “shall be paid wages at rates not less than those prevailing on similar construction in the locality” as determined by the Secretary of Labor (hereinafter “federally recognized prevailing rates”) in accordance with the Davis-Bacon Act, 40 U.S.C. §§ 276a to 276a-5 (1988) (“Davis-Bacon”). See 42 U.S.C. § 5310.

The Contracts between CPC and HPD contained certain terms and conditions required by the HCDA. One such provision, entitled “Federal Supplemental Terms and Conditions,” stated that

[t]he Contractor acknowledges that this Agreement is funded under a program providing direct financial assistance from the Federal government to the City and HPD and is subject to, and the Contractor shall comply with, the requirements of all applicable Federal Statutes, rules and regulations, including, but not limited to, those set forth in Exhibit F attached to this Agreement.

(1986-87 Contract, Article 18, ¶ 18.1.) Exhibit F specified that the Contracts were subject to the conditions of, inter alia, the HCDA and Davis-Bacon:

The Davis-Bacon Act: In construction contracts involving an excess of $2000, unless exclusively in connection with the rehabilitation of a structure designed for residential use by less than 8 families, all laborers and mechanics must be payed at a rate not less than those determined by the Secretary of Labor to be prevailing for the locality, which rates are annexed hereto as Exhibit A. These wage rates are a federally mandated minimum....

(1986-87 Contract, Exhibit F, Article 3(b)(i) (emphasis in original).)

Each Contract was awarded following the submission of bids in response to HPD’s Requests for Proposals (“RFPs”). The RFPs, which were incorporated in the Contracts, contained express provisions with respect to the wages to be paid workers on projects covered by the Contracts. For example, the RFP for the 1986-87 Contract stated:

A Person-Day Rate, which shall be all inclusive of costs within each Proposal, will be the proper method of establishing the overall budget. For example, if $75.00 is the Person-Day Rate, - all costs to run the program, .pay the staff and trainees and provide training equipment and administrative services would be covered by said rate multiplied by the number of trainees multiplied by the number of days worked.

(1986-87 RFP General Guidelines ¶ 1 (emphasis omitted).) This RFP also provided that “[tjhere shall be 246 work days in the term of the Contract” (id. ¶ 6 (emphasis omitted)), and that “[a] maximum Person-Day Rate is being set at $90.00” (id. ¶2). The Contract prohibited CPC from receiving any additional funding for “Program Work performed pursuant to this Agreement.” (1986-87 Contract, Article 15, ¶ 15.2.)

CPC bid for and won the 1986-87 Contract with a budget that called for 30 trainees working 246 days at the $90 Person-Day Rate. The total contract price was thus $664,200. The 1988 and 1989 Contracts awarded to CPC were similar, though the RFPs permitted, and the Contracts called for, Person-Day Rates of $95.

B. The Present Lawsuit and the District Court’s Decision

In 1990, plaintiffs commenced the present action, alleging that they were CPC employ-: ees who had performed construction, repair, or rehabilitation work on the projects covered by these Contracts and that from September 1986 to December 1989, (1) the wage rates specified in the Contracts were lower than the then-current federally recognized prevailing rates, and (2) CPC paid plaintiffs at rates even lower than those specified in the Contracts. The Complaint alleged that HPD “knowingly consented to, condoned, authorized, acquiesced in, and acted with deliberate indifference to, the repeated failures and refusals of CPC to pay plaintiffs at the federally mandated prevailing wage rates.” (Complaint ,¶ 53.) Plaintiffs contended principally that CPC in failing to pay federally [100]*100recognized prevailing rates, and HPD in consenting, condoning, and authorizing that failure, deprived plaintiffs of their rights under § 5310, in violation of § 1983. As damages, plaintiffs requested, inter alia, the difference between the federally mandated wages and the wages they actually received.

Defendants moved pursuant to, inter alia, Fed.R.Civ.P. 12

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

Related

Moha v. Valley Proteins Inc.
D. South Carolina, 2022
Tapia v. Blch 3rd Ave LLC
Second Circuit, 2018
United States v. Santillan
Second Circuit, 2018
Adams v. Suozzi
Second Circuit, 2008
Guilford County Community Action Program, Inc. v. Wilson
348 F. Supp. 2d 548 (M.D. North Carolina, 2004)
Home Care Assn. v. Bane
218 A.D.2d 106 (Appellate Division of the Supreme Court of New York, 1995)
Chan v. City of New York
1 F.3d 96 (Second Circuit, 1993)

Cite This Page — Counsel Stack

Bluebook (online)
1 F.3d 96, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kam-shing-chan-v-city-of-new-york-ca2-1993.