Robbins Sound, Inc. v. Ohio University

590 N.E.2d 877, 70 Ohio App. 3d 212, 8 Ohio App. Unrep. 551, 1990 Ohio App. LEXIS 4910
CourtOhio Court of Appeals
DecidedNovember 6, 1990
DocketCase 89AP-1021
StatusPublished
Cited by3 cases

This text of 590 N.E.2d 877 (Robbins Sound, Inc. v. Ohio University) 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
Robbins Sound, Inc. v. Ohio University, 590 N.E.2d 877, 70 Ohio App. 3d 212, 8 Ohio App. Unrep. 551, 1990 Ohio App. LEXIS 4910 (Ohio Ct. App. 1990).

Opinion

HENDRICKSON, J.

Plaintiff appeals from a judgment rendered by the Ohio Court of Claims which dismissed its complaint for damages against defendant-third-party plaintiff Ohio University. Plaintiff sought to recover from Ohio University money plaintiff was required to pay its employees under the Ohio Prevailing Wage Law for work performed on a project at Ohio University.

Ohio University, in March 1984, advertised for proposals for an integrated telecommunications system at its Athens, Ohio campus. Prospective bidders on the project received documents from Ohio University which included a prevailing wage determination packet prepared by the Ohio Department of Industrial Relations ("DIR"), dated March 26, 1984. This packet of prevailing wage determinations for Athens County, Ohio, contained no wage classification for the category "telephone installers." An updated packet of prevailing wage determinations prepared by the DIR for Athens County, which packet also did not include a determination for telephone installers, was provided in November 1984 to the three finalists in the bidding process, one of which was third-party defendant Honeywell, Inc. Subsequently, Ohio University continued to provide to Honeywell the then current prevailing wage determination packets by the DIR, but at no time did any packet contain a prevailing wage rate determination for telephone installers. Based upon the recommendation of several departments of Ohio University, an interim contingent agree *552 ment was entered into between Ohio University and Honeywell in June 1985.

Although work began in July 1985, the formal agreement was not executed between Ohio University and Honeywell until August 1985. That agreement contained a prevailing wage determination packet prepared by the DIR for Athens County, dated June 7, 1985. This determination package did not include the classification for telephone installer. There is no dispute that these agreements were subject to the provisions of R.C. Chapter 4115, the Ohio Prevailing Wage Law.

Plaintiff, Robbins Sound, Inc., d.b.a., Robbins Communications, Inc. ("Robbins"), a Pennsylvania corporation, was retained by Honeywell to perform certain cable installation services on the project, which Robbins commenced in July 1985. At the time Robbins entered into its agreement with Honeywell, it was a party to a collective bargaining agreement with the local affiliate of the International Brotherhood of Electric Workers ("AFL-CIO"), and based its pricing to Honeywell on labor costs associated with the wage and benefit provisions of the labor agreement. For all relevant periods of time, Robbins paid its employees for work performed on the project at the wage rate specified in the collective bargaining agreement.

Although required by statute to provide monthly certified payroll report forms to Ohio University for all employees working on the project, Honeywell first provided such documents to Ohio University in December 1985, following several oral and written requests by the University. These reports listed Robbins' employees as telephone installers. When the DIR received several complaints from various employees in January 1986 regarding the wage being paid by plaintiff, it undertook an investigation of the rate paid by Robbins to its employees. The DIR notified Ohio University in late January 1986 that it had initiated an investigation under the prevailing wage law to determine whether Robbins was complying with that law. Ultimately, the DIR concluded that the proper classification for Robbins' employees, with one exception, was "telephone installer."

Further investigation by Ohio University revealed that it had not obtained a prevailing wage determination from the DIR for telephone installers and that no prevailing-wage determination packet provided to Honeywell in conjunction with the project contained such classification.

A telephone installer classification for Athens County had been in effect since January 1985, but was not included by the DIR in its prevailing wage packet for the Ohio University project. On February 18, 1986, the DIR provided Ohio University with its first prevailing wage rate for telephone installers. Ohio University then provided this information to Robbins on February 26, 1986. A subsequent change in the prevailing wage rate determination for telephone installers was made by the DIR in March 1986, which change was provided to both Robbins and Honeywell. Based upon the investigation undertaken by the DIR, it was determined that Robbins had underpaid its employees a total of $171,043.26 for the period ending February 1, 1986. For the period February 1, 1986 through April 15, 1986, the DIR determined that Robbins had failed to pay its employees a total of $46,040.38 under the revised prevailing wage rate.

Ohio University, on April 12, 1986, ordered that work cease on the project for the reason that Robbins had failed to pay its employees the prevailing wage rate for telephone installers. As a result of this work stoppage, representatives of Honeywell, Robbins, the DIR, and Ohio University met in Columbus. At this meeting, the Ohio Attorney General and the DIR represented that they would immediately issue a stop work order on the project, without prior notice or hearing, unless Honeywell and Robbins agreed to pay their employees on the project the prevailing wage rate for telephone installers. This threat was underscored by the representation of Ohio University that it would enforce a $2,000 per day penalty provision in the agreement for delays. As a result of this meeting, Robbins and Honeywell executed a settlement agreement with the DIR on July 30, 1986. Pursuant to that agreement, Robbins agreed to pay its employees the sum of $180,000 in settlement of all claims.

Plaintiff then commenced this action in the Ohio Court of Claims on June 30, 1987. Robbins sought recovery from Ohio University damages which were allegedly incurred as a result of the failure of Ohio University to *553 provide Robbins with the prevailing wage rate determination for telephone installers as required by R.C. Chapter 4115, the Ohio Prevailing Wage Law. Specifically, Robbins alleged that Ohio University failed to comply with its statutory duty to obtain from the DIR the prevailing wage rate determinations for all employees working on the project and its duty to provide such determinations to all employers performing such work. Robbins also alleged claims for contribution and indemnification arising from its payment of the $180,000 settlement. Ohio University answered and filed a third-party complaint in August 1987 against Honeywell, setting forth claims for breach of contract, contribution and indemnification.

Following a joint stipulation of facts, the parties submitted trial briefs to the Court of Claims for determination on the merits. In a sixteen-page decision, rendered May 19, 1989, the Court of Claims dismissed plaintiffs complaint in its entirety. Finding that the third-party complaint of Ohio University against Honeywell was moot, that action was dismissed as well. In essence, the Court of Claims concluded that it lacked jurisdiction over the subject matter of plaintiffs complaint and that plaintiff failed to state a claim for relief under R.C. Chapter 4115.

Plaintiff now appeals and sets forth the following assignments of error:

"1.

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Cite This Page — Counsel Stack

Bluebook (online)
590 N.E.2d 877, 70 Ohio App. 3d 212, 8 Ohio App. Unrep. 551, 1990 Ohio App. LEXIS 4910, Counsel Stack Legal Research, https://law.counselstack.com/opinion/robbins-sound-inc-v-ohio-university-ohioctapp-1990.