Serraino v. Mar-D, Inc.

550 A.2d 178, 228 N.J. Super. 482
CourtNew Jersey Superior Court Appellate Division
DecidedSeptember 23, 1988
StatusPublished
Cited by5 cases

This text of 550 A.2d 178 (Serraino v. Mar-D, Inc.) is published on Counsel Stack Legal Research, covering New Jersey Superior Court Appellate Division primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Serraino v. Mar-D, Inc., 550 A.2d 178, 228 N.J. Super. 482 (N.J. Ct. App. 1988).

Opinion

228 N.J. Super. 482 (1988)
550 A.2d 178

CHARLES SERRAINO, COMMISSIONER OF LABOR, STATE OF NEW JERSEY, PLAINTIFF,
v.
MAR-D, INC., AMERON, INC., PIPE LINING DIVISION AND FEDERAL INSURANCE COMPANY, DEFENDANTS.

Superior Court of New Jersey, Law Division Mercer County.

Decided September 23, 1988.

*484 Elizabeth Zuckerman for plaintiff (W. Cary Edwards, Atty. General of New Jersey, attorney).

Edwin C. Landis, Jr. and Michael C. Caulfield for defendants Ameron, Inc., Pipe Lining Division and Federal Insurance Company (Meyner & Landis, attorneys).

CARCHMAN, J.S.C.

These cross-motions for summary judgment present the novel issue of a general contractor and surety's liability under the Bond Act, N.J.S.A. 2A:44-143 et seq., for a defaulting subcontractor's failure to comply with the Prevailing Wage Act, N.J.S.A. 34:11-56.25 et seq. In addition, the motions raise the issue of plaintiff Commissioner of Labor's standing to bring this action on behalf of the subcontractor's employees.

The relevant facts are not in dispute. On May 2, 1985, the general contractor, Ameron, Inc. (hereinafter "Ameron"), contracted with the City of Trenton (hereinafter "Trenton") to perform cleaning and cementing of mortar linings in the Trenton water system. Ameron, thereafter, on June 5, 1985, subcontracted with defendant Mar-D, Inc. (hereinafter "Mar-D") for material and labor on the contract.

As mandated by N.J.S.A. 34:11-56.25 et seq., the general contract between Ameron and Trenton required the general contractor to

*485 ... pay all workmen as a minimum the prevailing wage rate in accordance with Chapter 150 of the New Jersey Laws of 1963, Prevailing Wages on Public Contracts & U.S. Department of Labor Wage Rates with the higher rate for any given occupation being the governing rate.

In February 1986, employees of Mar-D complained to the New Jersey Department of Labor's public contracts section of the Office of Wage and Hour Compliance, claiming that they had been paid less than the prevailing wage. Plaintiff's preliminary investigation revealed that $55,092.82 (the difference between wages paid and the prevailing wage) was owing to 11 employees. Plaintiff concluded that defendant Mar-D violated the Prevailing Wage Act, N.J.S.A. 34:11-56.25, and brought this action on behalf of the 11 employees pursuant to N.J.S.A. 34:11-56.30. This statute requires employers on public works contracts to pay employees not less than the prevailing wage — a rate determined by plaintiff. Plaintiff brought this action against not only the subcontractor, Mar-D but the general contractor, defendant Ameron, and the general contractor's surety, defendant Federal Insurance Company (hereinafter "Federal"). Mar-D is apparently no longer in business and has not been served in this action.

Plaintiff seeks to enforce its alleged statutory right to collect the wage deficiency on behalf of the employees, see N.J.S.A. 34:11-56.30 and -56.36, and alleges, as to defendant Ameron, that the general contractor is responsible for wage deficiencies due from subcontractors. Federal concedes, that if liability attaches to defendant Ameron, then defendant, Federal is liable as Ameron's surety.

The relevant section of the Prevailing Wage Act provides as follows:

If any workman is paid by an employer less than the prevailing wage to which such workman is entitled under the provisions of this Act, such workman may recover in a civil action the full amount of such prevailing wage less any amount actually paid to him or her by the employer. [N.J.S.A. 34:11-56.40]

The Prevailing Wage Act sets forth the wage obligations of a general contractor and those of a subcontractor. All parties agree that the Legislature intended to, and indeed did, impose *486 several liability upon both general contractors and subcontractors for violation of the Prevailing Wage Act; however, Ameron maintains that the general contractor and/or its surety are not liable for a subcontractor's violation of the act. Ameron argues that the statute imposes liability only upon the entity which has the direct employer-employee relationship with the underpaid workers, and it is not responsible for Mar-D's violation of the statute. Ameron further urges that had the Legislature intended a general contractor, such as Ameron, to be liable for the failure of its subcontractor to comply with the Prevailing Wage Act, it would have expressly stated so. Ameron claims that this omission evidences a legislative intent not to hold general contractors liable for their subcontractor's violation of the act.

Plaintiff contends that where a subcontractor fails to pay the prevailing wage to its employees, the Legislature intended to impose liability jointly upon a contractor and its surety.

It is well settled in New Jersey that statutory interpretation must be based on the intent of the Legislature. See N.J. Turnpike Employees v. N.J. Turnpike Authority, 200 N.J. Super. 48, 53 (App.Div. 1985); Johns Manville Products Corp. v. Dronebarger, 211 N.J. Super. 520, 525 (Law Div. 1986). To determine intent with a degree of certainty, the court must consider many factors including the statutory language, legislative history and underlying policy, as well as, concepts of reasonableness. Coletti v. Union County Board of Chosen Freeholders, 217 N.J. Super. 31 (App.Div. 1987). The public policy statement set forth in N.J.S.A. 34:11-56.25 reveals that the Legislature's intent in enacting the Prevailing Wage Act was:

... to establish a prevailing wage level for workmen engaged in public works in order to safeguard their efficiency and general well being and to protect them as well as their employers from the effects of serious and unfair competition resulting from wage levels detrimental to efficiency and well being.

As noted above, the contract executed between Trenton and Ameron required, in accordance with the statute, that *487 Ameron pay all workmen the prevailing wage rate as a minimum. There is no reference, explicit or implicit, to exclude a specific class of employees, such as the subcontractor's employees. The Prevailing Wage Act makes reference to both the obligations of a general contractor to its employees and the obligations of a subcontractor to its employees. These references are noted in specific sections of the Prevailing Wage Act. See, e.g., N.J.S.A. 34:11-56.32 which provides: "Contractors and subcontractors performing public work ... shall post the prevailing wage rates for each craft," emphasis supplied, and N.J.S.A. 34:11-56.33 which states:

... it shall be duty of the the treasurer of the public body ... to require the contractor and subcontractor to file written statements ... certifying to the amounts then due and owing from such contractor and subcontractor ... to any and all workmen for wages due on account of public work.... [Emphasis supplied]

These references indicate the Legislature's awareness not to distinguish between contractors and subcontractors but to include both of these classes under the scope of the act. It is language which is designed to be inclusive rather than to differentiate.

However, Ameron claims that statutory distinctions between a general contractor and a subcontractor's obligations, such as those found in N.J.S.A.

Free access — add to your briefcase to read the full text and ask questions with AI

Related

Cipolla v. Institute for Psychoanalytic Psychotherapies
33 F. App'x 617 (Third Circuit, 2002)
Bankston v. Housing Authority
777 A.2d 74 (New Jersey Superior Court App Division, 2001)
Quayle v. Tricon Construction of North Jersey, Inc.
685 A.2d 988 (New Jersey Superior Court App Division, 1996)
Quayle v. TRI-CONST. OF NORTH JERSEY, INC.
685 A.2d 988 (New Jersey Superior Court App Division, 1996)
Brunswick Corp. v. Director, Div. of Taxation
11 N.J. Tax 530 (New Jersey Tax Court, 1991)

Cite This Page — Counsel Stack

Bluebook (online)
550 A.2d 178, 228 N.J. Super. 482, Counsel Stack Legal Research, https://law.counselstack.com/opinion/serraino-v-mar-d-inc-njsuperctappdiv-1988.