Morse v. Delaney

128 Misc. 317, 218 N.Y.S. 571, 1926 N.Y. Misc. LEXIS 786
CourtNew York Supreme Court
DecidedNovember 16, 1926
StatusPublished
Cited by2 cases

This text of 128 Misc. 317 (Morse v. Delaney) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Morse v. Delaney, 128 Misc. 317, 218 N.Y.S. 571, 1926 N.Y. Misc. LEXIS 786 (N.Y. Super. Ct. 1926).

Opinion

Levy, J.

The plaintiff has brought an action to restrain the award and execution of certain subway contracts in the city of New York covering the construction work on West Fifty-third street from Eighth avenue to Second avenue, and has also made a motion for an injunction pendente lite. Defendants in turn have moved to dismiss the complaint on the ground of insufficiency. The basis of plaintiff’s grievance is that the contracts provide for the payment of the prevailing rate of wages,” a clause inserted pursuant to section 220 of the Labor Law of 1921; that the law is unconstitutional by reason of uncertainty as to what constitutes the prevailing rate; and that the inclusion of the clause will result in a waste of the city’s funds. The further objection urged is, that even if this provision should be held constitutional, it was violated by the addition to the contract of article LXVII, subsequent to the statutory public hearing required by subdivision 2 of section 37 of the Rapid Transit Act (Laws of 1891, chap. 4, as added by Laws of 1894, chap. 752, and amd. by Laws of 1917, chap. 625), which article contains provisions purporting to determine the [319]*319meaning of what constitutes “ the prevailing rate of wages ” and of the term “ locahty ” as employed in the statute. These provisions, it is argued, are not authorized by law. In addition, an arbitration clause is incorporated in that article, providing for the settlement of any controversy which might arise, and it is said this is also illegal as divesting the court of jurisdiction.

An examination of the article in question, therefore, becomes essential. After providing for the contractor’s compliance with the requirements of section 220 of the Labor Law, as to the eight-hour day and the payment of prevailing rate of wages for a legal day’s work in the locahty, it continues:

“It is distinctly understood and agreed as one of the principal moving considerations to the City for entering into this Contract, that for the purpose of this contract the locahty within the State ’ as used in this Article, shall be and be understood to be the City of New York, as existing at the time this contract is delivered.
“It is further so understood and agreed between the parties to this contract that the ' prevailing rate ’ of wage shall be that rate paid to a majority of the laborers, workmen or mechanics, engaged in the same trade or occupation in the City of New York. In the event that there is not a majority in the same trade or occupation in the City of New York paid at the samé rate, then the rate paid to the greater number of such trade or occupation in the City of New York shall be the prevailing rate, provided that such greater number constitute at least forty percentum of the laborers, workmen or mechanics engaged in such trade or occupation in the City of New York; in the event there is less than forty percentum of the laborers, workmen or mechanics engaged in the same trade or occupation in the City of New York paid the same rate, then the average rate paid to such laborers, workmen or mechanics in the same trade or occupation, shall be the prevailing rate. For the purpose of determining the number of laborers, workmen or mechanics engaged in any such trade or occupation, all the laborers, workmen or mechanics engaged in the performance of work under this contract and all other laborers, workmen or mechanics in the City of New York engaged on similar work to that required under this contract, whether Rapid Transit Railroad Construction or otherwise, shall be included in such total number.
“ The Contractor hereby as one of the inducements to the City to enter into this contract particularly agrees to the provisions of this Article with respect to the locahty within the State ’ and the ‘ prevailing rate of wage ’ for the purposes of this contract and shall not make or have any claim that any of the provisions of this Article are void or ultra vires in any respect or for any purpose.”

[320]*320The article then provides for arbitration to be conducted by disinterested persons selected respectively by each party, the two thus chosen to designate a third; and if the former fail to agree upon such umpire, he is to be nominated by the presiding justice of the Appellate Division. The result of the determination of a majority is to be final and conclusive, and the expense of the arbitration is to be equally divided between the parties to the contract.

In support of the contention that the provision of law requiring the payment of the prevailing rate of wages is unconstitutional, plaintiff cites with apparent emphasis the very recent case of Connally v. General Construction Company (269 U. S. 385). In that case an injunction was sought to restrain certain State and county officers from enforcing a quite similar labor statute of the State of Oldahoma, which required that persons employed by or on behalf of the State should be paid “ not less than the current rate ob per diem wages in the locality where the work is performed.” For a violation of this law a penalty of not less than $50 nor more than $500 was to be imposed, or imprisonment for not less than three nor more than six months. The court, dealing with this phase of the law, granted the injunction on the ground that as a penal statute it was not sufficiently explicit to inform those who are subject to it just what conduct on their part would render them liable to its penalties. Mr. Justice Holmes and Mr. Justice Brandéis concurred in the result on the ground that the plaintiff there was not violating the statute by any criterion available in the vicinity of Cleveland, Okla., the place where the work was to be performed.

It will be noted that the scope of the decision is limited to the criminal feature of the statute, in so far as it seeks to impose the penalties of fine or imprisonment. Obviously, it does not assume to dictate the propriety of a policy which prescribes the incorporation of the prevailing wage rate requirement in a public contract. Nor does it attempt to circumscribe the right of the State or its political subdivisions to enforce any civil penalty for violation of the contract. Whether in view of the conditions peculiarly existing in a city like New York, evidently differing from those of a sparsely populated locality in a remote western State, and whether in view of the use of the word prevailing ” in our statute as distinguished from “ current ” in the Oklahoma one, a contrary result would be reached and the New York statute sustained even in respect of the criminal feature, it is unnecessary now to decide. For assuming that the law, so far as it requires the payment of the prevailing rate of wages in the locality, is too indefinite to. be made the basis of criminal prosecution it does not necessarily [321]*321follow that the policy of the State maintained for nearly thirty years, followed by department heads and contractors and sanctioned in principle by constitutional enactment, should be entirely disregarded. Plaintiff himself does not go thus far in his contention. He concedes the validity of the eight-hour feature embodied in section 220 of the Labor Law, but he challenges the legality of the provision requiring the payment of the prevailing rate of wages, urging the indefiniteness of the standard adopted.

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Bluebook (online)
128 Misc. 317, 218 N.Y.S. 571, 1926 N.Y. Misc. LEXIS 786, Counsel Stack Legal Research, https://law.counselstack.com/opinion/morse-v-delaney-nysupct-1926.