Maryland Division of Labor & Industry v. Triangle General Contractors, Inc.

784 A.2d 534, 366 Md. 407, 2001 Md. LEXIS 860
CourtCourt of Appeals of Maryland
DecidedNovember 6, 2001
Docket25, Sept. Term, 2001
StatusPublished
Cited by57 cases

This text of 784 A.2d 534 (Maryland Division of Labor & Industry v. Triangle General Contractors, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of Maryland primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Maryland Division of Labor & Industry v. Triangle General Contractors, Inc., 784 A.2d 534, 366 Md. 407, 2001 Md. LEXIS 860 (Md. 2001).

Opinion

*411 HARRELL, Judge.

Following an evidentiary hearing before an administrative law judge (ALJ) of the Maryland Office of Administrative Hearings (OAH), a Proposed Decision was issued recommending that Appellee, Triangle General Contractors, Inc., the general contractor on a public works project, pay restitution to three employees of one of its subcontractors, Irocc Masonry, Inc. (“Irocc”), and liquidated damages to the contracting public body for Irocc’s violations of the Maryland Prevailing Wage Act, Maryland Code (1988,1995 Repl. Vol.), State Finance and Procurement Article, §§ 17-201-17-226. On 1 September 1998, the Maryland Deputy Commissioner of Labor and Industry (“the Commissioner”) issued a Final Decision and Order adopting the Proposed Decision.

Appellee sought judicial review by the Circuit Court for Anne Arundel County. On 26 October 2000, the Circuit Court affirmed that part of the decision of the Commissioner holding Appellee liable to the public body for liquidated damages, but reversed the decision of the Commissioner regarding restitution, finding that Appellee was not liable for restitution to Irocc’s employees. Appellant, the Maryland Division of Labor and Industry, filed an appeal to the Court of Special Appeals. We issued a writ of certiorari on our own initiative while the case was pending in the Court of Special Appeals, Maryland Div. of Labor and Indus, v. Triangle General Contractors, Inc., 364 Md. 139, 771 A.2d 1069 (2001), to consider the following question:

Whether the Circuit Court erred in concluding a general contractor is not jointly liable for the wage violations of its subcontractor under Maryland Code (1988, 1995 Repl. Vol.), State Finance and Procurement Article, § 17-222(b).

I.

A. Relevant Factual Record

Appellee, Triangle, was the general contractor on a state-funded project erecting the “Computer & Space Sciences Building” at the University of Maryland at College Park. Irocc *412 was Triangle’s initial masonry subcontractor on that project. On 31 December 1991, pursuant to Maryland Code (1988,1995 Repl. Vol.), State Finance and Procurement Article, §§ 17-208 and 17-211 1 , Appellant’s Commissioner issued a determination of the prevailing wage rates for the project. 2 These prevailing wage rates applied to all employees working on the project, including those of Triangle, Irocc, and the other subcontractors.

In the Summer of 1994, Mr. James C. Dugent, an investigator for the Maryland Division of Labor and Industry, began visiting the site weekly at the University of Maryland to verify that the employees on the job were working in the correct classifications and to ensure they were being paid the prevailing wage rate for their classifications. In October of 1994, Mr. Dugent learned from Mr. Cesar Rivera of the Coalition of Fair Contracting, Inc. (a union-related organization), that some of Iroec’s employees’ paychecks were bouncing and, important to this appeal, that Irocc may not be paying some of its employees the proper prevailing wage.

On 1 June 1995, Mr. Dugent sent a letter to Irocc, with a carbon copy to Appellee, informing Irocc that his investigation revealed “[t]he contractor and/or subcontractor is delinquent in submitting payroll records [and] ... has allegedly underpaid employee [Mr. Antonio Pena].” 3 The letter requested a photo-copy of the employee’s restitution check and an $1,210 *413 check for liquidated damages for “late payrolls and misclassifi-cation of employee.” 4 Mr. Dugent did not receive a response to that letter from Irocc or Appellee. On 20 September 1995, Mr. Dugent sent another letter to Irocc, with a carbon copy to Appellee, informing Irocc that “[t]he contractor and/or subcontractor is delinquent in submitting payroll records [and] . .. has allegedly underpaid employeefs] [Mr. Antonio Pena and Mr. Francisco Pena].” He requested copies of the restitution checks provided to both employees, together with liquidated damages. Again, Mr. Dugent received no response from Irocc or Appellee.

On 31 January 1996, the Commissioner, pursuant to § 17-221(g) 5 , sent notice to Appellee and Irocc informing them of the facts disclosed by Mr. Dugent’s investigation (which now included 3 former Irocc employees — Antonio Pena, Francisco Pena, and Fernando Gomez — who assertedly had not been paid the appropriate prevailing wage), including a calculation of the restitution and liquidated damages owed under § 17-222 6 , and notifying them that an administrative hearing would *414 be held on the charges at the “earliest possible date.” The State subsequently withheld from its payments due to Appel-lee the contested amounts, as provided for under § 17-221(e). 7

B. Procedural History

In accordance with COMAR 21.11.11.04B, Appellant’s Commissioner delegated his hearing responsibility, granted under § 17 — 221(h), to the OAH. On 14 August 1996, 1 April and 2 April 1997, a hearing was held before an AL J of the OAH. On 1 July 1997, the ALJ issued a Proposed Decision concluding “that Irocc Masonry, Inc. violated [the Prevailing Wage Act] by submitting inaccurate payroll records 8 and failing to pay *415 employees the prevailing wage for their classifications,” and recommending that Appellee or Irocc pay restitution to Antonio Pena, Francisco Pena, and Fernando Gomez (the former employees of Irocc), and that Appellee pay liquidated damages to the public body for Irocc’s violations of the prevailing wage statute. Appellee filed exceptions to this decision with the Commissioner pursuant to COMAR 21.11.11.04E(3). On 1 September 1998, the Commissioner issued a Final Decision and Order adopting the Proposed Decision, but modified the ultimate conclusion to require Triangle and Irocc to pay restitution and liquidated damages.

Appellee then filed an action for judicial review in the Circuit Court for Anne Arundel County. On 26 October 2000, the Circuit Court issued a Memorandum Opinion and Order affirming in part and reversing in part the decision of the Commissioner. The Circuit Court affirmed the decision that Appellee was liable to the public body for liquidated damages under § 17-222(a) (rendering “[a] contractor” liable for liquidated damages), finding “[t]he evidence established that ...

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Bluebook (online)
784 A.2d 534, 366 Md. 407, 2001 Md. LEXIS 860, Counsel Stack Legal Research, https://law.counselstack.com/opinion/maryland-division-of-labor-industry-v-triangle-general-contractors-inc-md-2001.