Ohio Valley Associated Builders & Contractors v. Industrial Power Systems, Inc.

941 N.E.2d 849, 190 Ohio App. 3d 273
CourtOhio Court of Appeals
DecidedOctober 8, 2010
DocketNo. L-10-1099
StatusPublished
Cited by6 cases

This text of 941 N.E.2d 849 (Ohio Valley Associated Builders & Contractors v. Industrial Power Systems, Inc.) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Ohio Valley Associated Builders & Contractors v. Industrial Power Systems, Inc., 941 N.E.2d 849, 190 Ohio App. 3d 273 (Ohio Ct. App. 2010).

Opinion

Preston, Judge.

{¶ 1} Plaintiff-appellant and cross-appellee, Ohio Valley Associated Builders and Contractors (“ABC”), appeals the Lucas County Court of Common Pleas’ grant of summary judgment in favor of defendant-appellee and cross-appellant, Industrial Power Systems, Inc. (“IPS”), on its complaint alleging that IPS violated Ohio’s prevailing-wage laws. Cross-appellant, IPS, appeals both the trial court’s grant of summary judgment and the trial court’s denial of its motion for attorney’s fees. For the reasons that follow, we reverse.

{¶ 2} The relevant facts of this case are not disputed. The University of Toledo planned two public-improvement1 projects for the renovations of University Hall and Carlson Library. Westfield Group, an electrical contractor and member of ABC, submitted bids for the award of contracts for the projects. IPS, a heating, ventilation, and air conditioning (“HVAC”) and plumbing contractor, and not a member of ABC, submitted and was awarded a bid for the HVAC contracts for the projects.

{¶ 3} After IPS began working on the projects, ABC suspected that IPS was in violation of Ohio’s prevailing-wage law. As a result, ABC filed two administrative complaints with the Ohio Department of Commerce, Division of Labor, Bureau of Wage and Hour on or about November 3, 2008.2 After the director of commerce [276]*276failed to issue a final determination within 60 days, ABC filed two complaints in the Lucas County Court of Common Pleas pursuant to R.C. 4115.16(B) on January 21, 2009. One complaint was assigned case No. CI09-1366, and the other complaint was assigned case No. CI09-1367.

{¶ 4} On March 19, 2009, IPS filed a motion to consolidate the cases. On March 30, 2009, the trial court ordered that both cases be consolidated under case No. CI09-1366 and dismissed case No. CI09-1367. That same day, IPS also filed a motion to dismiss and motion for a more definite statement in response to ABC’s complaint. On September 4, 2009, the trial court denied both of IPS’s motions.

{¶ 5} On November 5, 2009, IPS filed a motion for summary judgment, arguing that ABC lacked standing to pursue a prevailing-wage complaint against it, that ABC failed to identify any prevailing-wage violations, that ABC failed to exhaust its administrative remedies, and that it was entitled to attorney fees under R.C. 4115.16(D) and Civ.R. 11 for defending the action.

{¶ 6} On December 14, 2009, ABC filed its memorandum in opposition, arguing that it had standing as an interested party under R.C. 4115.03(F)(4), that R.C. 4115.16(B) permitted it to file the complaint, that a material question of fact concerning IPS’s failure to follow Ohio’s prevailing-wage law prevented summary judgment, and that IPS was not entitled to attorney fees, because IPS failed to show that it did not violate Ohio’s prevailing-wage law and ABC’s complaint was filed in good faith based on ample evidence of IPS’s violations.

{¶ 7} On March 10, 2010, the trial court granted IPS’s motion for summary judgment, finding that ABC lacked standing, but the trial court denied IPS’s request for attorney fees, finding that issue moot in light of the dismissal.

{¶ 8} On April 7, 2010, ABC filed its notice of appeal. IPS filed its notice of cross-appeal on April 15, 2010. On June 25, 2010, this court granted the Ohio Institute for Fair Contracting (“OIFC”) leave to file an amicus brief.

{¶ 9} ABC appeals raising one assignment of error. IPS appeals raising two assignments of error. We will combine ABC’s assignment of error with IPS’s second assignment of error on cross-appeal for discussion.

ABC’s Assignment of Error
The trial court erred when it granted defendant/appellee IPS’s motion for summary judgment.
[277]*277Cross-Appellant IPS’s Assignment of Error No. II
The trial court erred by not holding that ABC lacks standing for failing to bid against IPS on its HVAC/plumbing bid, the very reason that ABC suffered no damages.

{¶ 10} In its sole assignment of error, ABC argues that the trial court erred in granting IPS’s motion for summary judgment on the basis of standing, since it was an “interested party” under R.C. 4115.03(F)(4). Specifically, ABC argues that one of its members, Westfield Group, submitted a bid for a contract to perform electrical work on the two University of Toledo public improvements, which grants it standing under the statute. ABC also argues that R.C. 4115.03(F) does not require specific monetary damages for interested-party status, as the trial court found.

{¶ 11} Cross-appellant IPS, in its second assignment of error, argues that ABC lacks standing to pursue its prevailing-wage complaint because ABC’s member, Westfield Group, never bid on the HVAC and plumbing contracts from which the alleged prevailing-wage violations stem. Rather, Westfield Group was a successful bidder on electrical contracts for the public improvement. IPS argues that the phrase “a contract” in R.C. 4115.03(F)(1) requires that the interested party bid on the same contract from which the alleged prevailing-wage violation stems — not merely any contract for the public improvement. IPS argues that this interpretation of R.C. 4115.03(F)’s definition of interested party is consistent with common-law standing and Civ.R. 17’s requirement that actions be prosecuted by the real party in interest.

{¶ 12} OIFC argues that ABC was an interested party under R.C. 4115.03(F)(4)’s plain language, since its member, Westfield Group, submitted a bid for a contract for the public improvement. OIFC further argues that the trial court’s reliance upon common-law standing was misplaced, since ABC has statutory standing. OIFC also contends that IPS’s limited interpretation of interested-party standing is contrary to the purposes of the prevailing-wage law.

{¶ 13} An appellate court reviews a lower court’s decision to grant summary judgment de novo. Doe v. Shaffer (2000), 90 Ohio St.3d 388, 390, 738 N.E.2d 1243. Summary judgment is proper where there is no genuine issue of material fact, the moving party is entitled to judgment as a matter of law, and reasonable minds can reach but one conclusion when viewing the evidence in favor of the nonmoving party, and the conclusion is adverse to the nonmoving party. Civ.R. 56(C); State ex rel. Cassels v. Dayton City School Dist. Bd. of Edn. (1994), 69 Ohio St.3d 217, 219, 631 N.E.2d 150. Likewise, both standing and statutory interpretation are questions of law reviewed de novo on appeal. Cuyahoga Cty. Bd. of Commrs. v. State, 112 Ohio St.3d 59, 2006-Ohio-6499, 858 N.E.2d 330, ¶ 23 (standing); Monroeville v. Wheeling & Lake Erie Ry. Co., 152 Ohio App.3d 24, [278]*2782003-Ohio-1420, 786 N.E.2d 504, ¶ 9 (statutory interpretation); State v. Consilio, 114 Ohio St.3d 295, 2007-Ohio-4163, 871 N.E.2d 1167, ¶ 8 (same). De novo review is independent and without deference to the trial court’s judgment. Monroeville, 152 Ohio App.3d 24, 2003-Ohio-1420, 786 N.E.2d 504, at ¶ 9. See also Graham v. Drydock Coal Co. (1996), 76 Ohio St.3d 311, 313, 667 N.E.2d 949.

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Cite This Page — Counsel Stack

Bluebook (online)
941 N.E.2d 849, 190 Ohio App. 3d 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/ohio-valley-associated-builders-contractors-v-industrial-power-systems-ohioctapp-2010.