People Ex Rel. Department of Labor v. Sackville Construction, Inc.

930 N.E.2d 1063, 402 Ill. App. 3d 195, 341 Ill. Dec. 549, 2010 Ill. App. LEXIS 556
Appellate Court of Illinois·Decided June 9, 2010·No. 3-09-0006·Published·Cited by 12 cases

Opinion

JUSTICE LYTTON

delivered the opinion of the court:

The Department of Labor filed a complaint against defendant subcontractor Sackville Construction, Inc. (Sackville), alleging that it violated the Prevailing Wage Act (Act) (820 ILCS 130/1 et seq. (West 2006)). The trial court granted summary judgment to defendant, finding that it was unfair to require Sackville to pay the prevailing wage without adequate notice that the project was covered by the statute. We reverse and remand for further proceedings.

In February 2006, private developer Rock Island Industrial Partners (RIIP) entered into a contract with Hy-Brand Contractors (Hy-Brand) to build a 45,000-square-foot industrial complex on a vacant lot in downtown Rock Island (the project). Ten days later, RIIP signed a contract with the City of Rock Island (City) to construct the project. Under the terms of the agreement, RIIP agreed to invest $1.5 million in the project. In return, the City conveyed title of the project site to RIIP in consideration of $1. The City also agreed to contribute $150,000 “for use in the project.” The funds were to be used for site construction and dispersed in two equal payments, one when the building permit issued and another when the certificate of occupancy issued. The City also agreed to pay up to $57,000 for the cost of site clearance and demolition.

In March 2006, Hy-Brand entered into an oral subcontract with Sackville to provide laborers for the project. Hy-Brand did not inform Sackville that the City had contributed funds to the project or that the project was covered by the Prevailing Wage Act.

During construction, the Department of Labor received a complaint that Sackville had failed to pay its laborers the correct wage. The Department conducted an investigation and determined that the construction project constituted a public works project subject to the Prevailing Wage Act and that Sackville’s employees had not been paid the prevailing wage. The Department calculated an underpayment of $19,189.39 and demanded back wages from the subcontractor. Sack-ville refused to pay its workers the prevailing wage.

In December 2007, the Department filed a complaint against Sack-ville, alleging a violation of the Act based on Sackville’s failure to pay its laborers the prevailing wage for their work. The Department sought back wages, plus penalties.

Sackville filed a motion for summary judgment, claiming that the Act did not apply to the project because RIIP was not a public body; thus, it was not required to pay the prevailing wage. Sackville argued that the City served only as a “financing conduit” and that the project was not actually funded by the City.

The Department filed a cross-motion for summary judgment, arguing that RIIP met the requirements of a public body under the Act because it received public funds from the City for the project. The Department further maintained that because the Act applied to both contractors and subcontractors, Sackville owed its workers the prevailing wage and was required to pay a 20% penalty.

The trial court entered an order granting summary judgment in favor of Sackville on the basis that it had no knowledge of the agreement between the City and RIIP The court found that public funds were expended in support of the project and that the Act applied, but concluded that it was “unfair to require payment of prevailing wages when [Sackville] had no reason to believe the project was covered by the Prevailing Wage Act.”

STANDARD OF REVIEW

We review de novo a trial court’s grant of summary judgment. Murray v. Chicago Youth Center, 224 Ill. 2d 213 (2007). Summary judgment is appropriate where the pleadings, depositions and affidavits on file, viewed in a light most favorable to the nonmovant, show that there is no genuine issue of material fact and that the moving party is entitled to judgment as a matter of law. Murray, 224 Ill. 2d at 228.

ANALYSIS

I. Prevailing Wage Act

The purpose of the Prevailing Wage Act is to encourage the efficient and expeditious completion of public works by public bodies by ensuring that workers receive a decent wage. Opportunity Center of Southeastern Illinois, Inc. v. Bernardi, 204 Ill. App. 3d 945, 949-50 (1990). Section 1 of the Act states, in relevant part:

“It is the policy of the State of Illinois that a wage of no less than the general prevailing hourly rate as paid for work of a similar character in the locality in which the work is performed, shall be paid to all laborers, workers and mechanics employed by or on behalf of any and all public bodies engaged in public works.” 820 ILCS 130/1 (West 2006).

The primary rule of statutory interpretation and construction, to which all other canons and rules are subordinate, is to ascertain and give effect to the true intent and meaning of the legislature. Maloney v. Bower, 113 Ill. 2d 473 (1986). In interpreting a statute, courts must give the legislative language its plain and ordinary meaning. Opportunity Center, 204 Ill. App. 3d 945. If the language of the statute is plain, clear and unambiguous, it must prevail and will be given effect by the courts without resorting to other aids for construction. Village of Buffalo v. Illinois Commerce Comm’n, 180 Ill. App. 3d 591 (1989). Each word, clause and sentence of a statute should be given reasonable meaning and not rendered superfluous. Brucker v. Mercola, 227 Ill. 2d 502 (2007). Courts must not read into statute exceptions, limitations or conditions that the legislature did not intend. People v. Roake, 334 Ill. App. 3d 504 (2002).

However, the proper interpretation of a statute and determination of legislative intent cannot always be based upon language alone. Where a statute is ambiguous and the legislative intent cannot be ascertained from the plain and ordinary meaning of its language, then the court is guided by the rules of statutory construction and extrinsic aids. Rigney v. Edgar, 135 Ill. App. 3d 893 (1985). Generally, the interpretation of a statute must be grounded on the nature and object of the statute as well as the consequences that would result from construing it one way or another. Legislative intent may be ascertained from the reason and necessity for the act, the evils sought to be remedied and the objects and purposes sought to be obtained. In re Marriage of Antonich, 148 Ill. App. 3d 575 (1986).

When a statute is capable of more than one reasonable interpretation, the statute will be deemed ambiguous, and the court may consider extrinsic aids to construction, such as legislative history. People v. Collins, 214 Ill. 2d 206 (2005). An amendment to a statute is an appropriate source for determining the original legislative intent of a statute. Where the statute is amended soon after questions have arisen regarding its interpretation, it is logical and reasonable to regard the amendment as a legislative interpretation of the original statute. People v. Badoud, 122 Ill. 2d 50 (1988).

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People Ex Rel. Department of Labor v. Sackville Construction, Inc., 930 N.E.2d 1063, 402 Ill. App. 3d 195, 341 Ill. Dec. 549, 2010 Ill. App. LEXIS 556 (Ill. Ct. App. 2010).

930 N.E.2d 1063 (People Ex Rel. Department of Labor v. Sackville Construction, Inc.) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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