Mario Amaya v. DGS Construction, LLC

Court of Appeals for the Fourth Circuit·Decided April 21, 2023·No. 22-1232·Unpublished

Opinion

UNPUBLISHED

UNITED STATES COURT OF APPEALS FOR THE FOURTH CIRCUIT

No. 22-1189

MARIO ERNESTO AMAYA; JOSE NORLAND GONZALEZ, Plaintiffs – Appellees,

and JOSE AMADEO CASTILLO, Plaintiff,

v. DGS CONSTRUCTION, LLC, d/b/a Schuster Concrete Construction, Defendant – Appellant,

and WHITING-TURNER CONTRACTING COMPANY, Defendant.

No. 22-1232

MARIO ERNESTO AMAYA; JOSE NORLAND GONZALEZ, Plaintiffs – Appellants,

and

JOSE AMADEO CASTILLO, Plaintiff,

v. DGS CONSTRUCTION, LLC, d/b/a Schuster Concrete Construction, Defendant – Appellee,

and WHITING-TURNER CONTRACTING COMPANY, Defendant.

Appeals from the United States District Court for the District of Maryland at Greenbelt. Theodore D. Chuang, District Judge. (8:16−cv−03350−TDC)

Argued: March 10, 2023 Decided: April 21, 2023

Before WILKINSON, HARRIS, and RUSHING, Circuit Judges.

Affirmed by unpublished opinion. Judge Wilkinson wrote the opinion, in which Judge Harris and Judge Rushing joined.

ARGUED: Christopher Curtis Dahl, BAKER DONELSON, Baltimore, Maryland, for Appellant/Cross-Appellee. Steven Michael Pavsner, JOSEPH GREENWALD AND LAAKE, P.A., Greenbelt, Maryland, for Appellees/Cross-Appellants. ON BRIEF: Stephen M. Silvestri, Mary M. McCudden, JACKSON LEWIS P.C., Baltimore, Maryland; Jennifer L. Curry, BAKER, DONELSON, BEARMAN, CALDWELL & BERKOWITZ, PC, Baltimore, Maryland, for Appellant/Cross-Appellee. Erika Jacobsen White, Brian J. Markovitz, JOSEPH GREENWALD AND LAAKE, P.A., Greenbelt, Maryland, for Appellees/Cross-Appellants.

Unpublished opinions are not binding precedent in this circuit.

WILKINSON, Circuit Judge:

Mario Ernesto Amaya and Jose Norland Gonzalez represent a class of construction workers who sued DGS Construction, LLC, also known as Schuster Concrete Construction (Schuster). They alleged that Schuster unlawfully withheld benefit payments on overtime hours the class worked while constructing the MGM Grand Hotel and Casino in Prince George’s County, Maryland. A jury found that Schuster was unjustly enriched under Maryland law by withholding these payments. Schuster appeals, arguing primarily that the district court committed reversible error in denying its motion for judgment as a matter of law because the evidence was insufficient to establish unjust enrichment. Schuster additionally asserts that the district court erred in certain evidentiary rulings and its jury instructions. Amaya and Gonzalez cross-appeal, positing that the district court erred in granting summary judgment to Schuster on the class’s claim alleging a violation of the Maryland Wage Payment and Collection Law. For the reasons that follow, we shall affirm the district court.

I.

A.

DGS Construction, LLC, is a Maryland-based concrete contractor doing business as Schuster Concrete Construction. Schuster entered into a subcontract with the Whiting- Turner Construction Company, which had received a general contract to build the MGM resort.

As the general contractor on the MGM project, Whiting-Turner executed a Project Labor Agreement (PLA) with various trade unions whose members would work on the

construction of the resort. The PLA sought to have all subcontractors who worked on the project denote their agreement with the PLA and agree to be bound by its terms. The PLA, however, also allowed non-union subcontractors to work on the MGM project and exempted them from its requirements if less than three qualified union subcontractors bid on any aspect of the construction.

Even those subcontractors exempted from the PLA had certain baseline requirements. The PLA provided that:

Exemption from this Agreement shall not automatically relieve the successful bidder from complying with Project based requirements . . . . For all contractors working on the project, payment of prevailing wages and fringe benefit rates of the project as indicated on the Maryland Department of Labor, Licensing, and Regulation Informational Wage Rate for Prince George’s County determined at the commencement of the Project, which Developer has voluntarily adopted for the Project, shall be a minimum requirement and contractors are free to provide wages and fringe benefits at rates in excess of such prevailing rates.

J.A. 5483. The PLA therefore incorporated as a floor for all contractors the wage rates set by the Maryland Department of Labor, Licensing and Regulation (DLLR) for state-funded projects for Prince George’s County. 1 In December 2014, when Schuster executed a subcontract with Whiting-Turner to perform concrete work on the MGM project, it did not assent to the PLA because only one union subcontractor had bid on that aspect of the work. Schuster, however, agreed within

1

In 2019, the DLLR was renamed the Maryland Department of Labor. For purposes of this appeal, we will refer to the agency as the DLLR.

its subcontract to be bound by a “Project Manual” from Whiting-Turner, which outlined additional requirements.

The Project Manual included a wage rate schedule, labeled as “S.3: Project Labor Minimum Wage Rates” (S.3). J.A. 5389–91. The S.3 stated that, consistent with the PLA, Schuster must pay its workers pursuant to a designated schedule consisting of wage rates that “were voluntarily adopted for the Project by [the] Developer” and were “derived from those listed by the [DLLR] for Prince George’s County.” J.A. 5389. The S.3 further required Schuster to certify that the wages paid to its employees were “not less than those established as set forth in the Contract Documents.” Id. Importantly, the S.3 clearly stated that the MGM project was “not subject to State law regarding the payment of prevailing wages or the Davis-Bacon Act.” Id.

The S.3 thus listed wages which mirrored those set by the DLLR. It had two columns labeled as “Basic Hourly Rate” and “Fringe Benefit Payment.” J.A. 5390. Workers earned fringe benefit payments only if they opted to receive cash in lieu of actual fringe benefits, such as health insurance. For example, a carpenter who opted to take the fringe benefit payment in lieu of in-kind benefits would receive the “Basic Hourly Rate” of $26.81 and the “Fringe Benefit Payment” of $8.19. Id.

This appeal involves the lack of fringe benefit payments on overtime hours. The S.3 did not specify whether fringe benefit payments were due for overtime hours. Whereas the “Basic Hourly Rate” was calculated at time and a half after 40 hours worked, Schuster took the position that it was not required to make fringe benefit payments on overtime hours. Thus, the carpenter would earn $40.22 for each overtime hour worked but zero dollars in

fringe benefits. Schuster’s reasoning for not making benefit payments on overtime was that the costs it pays for in-kind benefits, like health insurance premiums, are fixed at monthly levels and do not increase when an employee works overtime. Moreover, it did not read the project documents as requiring fringe benefit payments on overtime. It therefore concluded that it need not pay Appellees fringe benefits for overtime hours.

B.

Mario Ernesto Amaya and Jose Norland Gonzalez were at-will employees of Schuster who worked on the MGM project and chose to receive cash in lieu of in-kind benefits. Like other Schuster employees, they received no written employment contract but were repeatedly told that the MGM project was a “scale” job. See, e.g., J.A. 165, 167–73. According to Gonzalez, he understood “scale” to mean “the highest rate paid by the state or federal government.” J.A. 4322.

Amaya and Gonzalez later sued Schuster and Whiting-Turner for the lack of fringe benefit payments on overtime hours on behalf of a class of approximately 1,600 similarly situated employees. 2 They asserted five causes of action, but relevant to this appeal are the claims against Schuster for violations of the Maryland Wage Payment and Collection Law (MWPCL), Md. Code Ann., Lab. & Empl. §§ 3-501– 3-509, and unjust enrichment under Maryland law.

2

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

Mario Amaya v. DGS Construction, LLC, (4th Cir. 2023).

Mario Amaya v. DGS Construction, LLC (Mario Amaya v. DGS Construction, LLC) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Related

Tennant v. Peoria & Pekin Union Railway Co.
321 U.S. 29 (Supreme Court, 1944)
Sprint/United Management Co. v. Mendelsohn
552 U.S. 379 (Supreme Court, 2008)
Noel v. Artson
641 F.3d 580 (Fourth Circuit, 2011)
United States v. Hornsby
666 F.3d 296 (Fourth Circuit, 2012)
United States v. Cedric Orlando Lewis
53 F.3d 29 (Fourth Circuit, 1995)
Price v. City of Charlotte, North Carolina
93 F.3d 1241 (Fourth Circuit, 1996)
Reeves v. Sanderson Plumbing Products, Inc.
530 U.S. 133 (Supreme Court, 2000)
Plitt v. Greenberg
219 A.2d 237 (Court of Appeals of Maryland, 1966)
Royal Investment Group, LLC v. Wang
961 A.2d 665 (Court of Special Appeals of Maryland, 2008)
County Commissioners v. J. Roland Dashiell & Sons, Inc.
747 A.2d 600 (Court of Appeals of Maryland, 2000)
Hill v. Cross Country Settlement, LLC
936 A.2d 343 (Court of Appeals of Maryland, 2007)
Everhart v. Miles
422 A.2d 28 (Court of Special Appeals of Maryland, 1980)
First Union Commercial Corp. v. GATX Capital Corp.
411 F.3d 551 (Fourth Circuit, 2005)
Fleur Bresler v. Wilmington Trust Company
855 F.3d 178 (Fourth Circuit, 2017)
Keith Ward v. AutoZoners, LLC
958 F.3d 254 (Fourth Circuit, 2020)
Amaya v. DGS Construction
278 A.3d 1216 (Court of Appeals of Maryland, 2022)
Dolan v. McQuaide
79 A.3d 394 (Court of Special Appeals of Maryland, 2013)