Taylor v. Douglas Co.

2004 Ohio 7348, 130 Ohio Misc. 2d 4
CourtLucas County Court of Common Pleas
DecidedJuly 1, 2004
DocketNo. CI 02-4751
StatusPublished
Cited by2 cases

This text of 2004 Ohio 7348 (Taylor v. Douglas Co.) is published on Counsel Stack Legal Research, covering Lucas County Court of Common Pleas primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Taylor v. Douglas Co., 2004 Ohio 7348, 130 Ohio Misc. 2d 4 (Ohio Super. Ct. 2004).

Opinion

James D. Jensen, Judge.

{¶ 1} This cause is before the court upon motions for summary judgment filed by defendants the Douglas Company (“Douglas”) and Precision Panel, Inc. (“Precision”) and plaintiffs. Upon consideration of the pleadings, memoranda of counsel, and applicable law, this court finds the plaintiffs’ motion well taken, and it is granted. The defendants’ motions for summary judgment are found not well taken, and they are denied.

I

{¶ 2} This dispute arose out of the construction of four buildings totaling 52 units of affordable housing located at 14th and Adams Street in downtown Toledo, Ohio, and commonly referred to as the Toledo Uptown project. A construction contract for the project was entered into by Adams Street Limited Partnership (the developer) and Adams Street, L.L.C. (the general contractor) on May 31, 2001. Another construction contract was entered into by Adams Street, L.L.C. and Douglas on June 27, 2001. The housing facility was developed as an affordable housing project under Section 42 of the Internal Revenue Code, in which units are rented to individuals who are income-qualified pursuant to the rules and regulations promulgated by the Internal Revenue Code. The city of Toledo leased the developer the real property upon which the project was constructed for 60 years at one dollar per year pursuant to a ground lease.

{¶ 3} On or about August 8, 2001, Douglas subcontracted parts of the project to Winbigler Lumber Company, Jeromesville, Ohio (“Winbigler”). The subcontract covers the wall panels and miscellaneous lumber for the construction of the project. Winbigler subcontracted the labor for the installation of the paneling to Precision. All of the plaintiffs who worked on the project were employed by Precision.

{¶ 4} To finance the project, the developer obtained funds from the following sources: (1) a loan from Charter One Bank consisting of a May 16, 2001, commitment in the amount of $4,360,000; (2) a $500,000 HOME loan from the city of Toledo consisting of a July 12, 2000, commitment; (3) a $350,000 grant from the Capital Improvement Funds Program from the city of Toledo; (4) a $297,346 Housing Credit from the Ohio Department of Development; (5) $220,000 from a funding agreement between the Ohio Department of Development and Buckeye Community Hope Foundation; and (6) a commitment letter dated May 18, 2001, issued by Equity Fund for Housing Limited Partnership X concerning the purchase of tax credits in the sum of $2,990,056.

[7]*7{¶ 5} On November 13, 2001, Mike Steigerwalt filed a prevailing-wage complaint with the Director of Commerce, pursuant to R.C. 4115.10(B). The director investigated the complaint, and on August 14, 2002, the Ohio Department of Commerce, Division of Labor and Worker Safety, rendered a finding that Precision had underpaid its employees in violation of the Ohio Prevailing-Wage Law. The total amount of liability assessed by the director’s determination was $107,633.16. However, three employees who are not party plaintiffs authorized the director to collect their back pay. Accordingly, plaintiffs seek $102,194.79 in this action.

{¶ 6} Plaintiffs filed this lawsuit on September 13, 2002, to collect monies they believe are owed to them pursuant to R.C. 4115.10(A). Defendants have filed two separate motions for summary judgment, the first on behalf of both defendants, Douglas and Precision, and the second one on behalf of Douglas. Plaintiffs have opposed both motions and have filed their own motion for summary judgment. These motions are now before the court for decision.

II

{¶ 7} In Harless v. Willis Day Warehousing Co. (1978), 54 Ohio St.2d 64, 66, 8 O.O.3d 73, 375 N.E.2d 46, the Supreme Court of Ohio stated the requirements that must be met before a Civ.R. 56 motion for summary judgment can be granted: “The appositeness of rendering a summary judgment hinges upon the tripartite demonstration: (1) that there is no genuine issue as to any material fact; (2) that the moving party is entitled to judgment as a matter of law; and (3) that reasonable minds can come to but one conclusion, and that conclusion is adverse to the party against whom the motion for summary judgment is made, who is entitled to have the evidence construed most strongly is his favor.”

{¶ 8} A party who claims to be entitled to summary judgment on the grounds that a nonmovant cannot prove its case bears the initial burden of (1) specifically identifying the basis of its motion and (2) identifying those portions of the record that demonstrate the absence of a genuine issue of material fact regarding an essential element of the nonmovant’s case. Dresher v. Burt (1996), 75 Ohio St.3d 280, 293, 662 N.E.2d 264. The movant satisfies this burden by calling attention to some competent summary judgment evidence of the type listed in Civ.R. 56(C), affirmatively demonstrating that the nonmovant has no evidence to support his or her claims. Id. Once the movant has satisfied this initial burden, the burden shifts to the nonmovant to set forth specific facts, in the manner prescribed by Civ.R. 56(E), indicating that a genuine issue of material fact exists for trial. Id. Accord Mitseff v. Wheeler (1988), 38 Ohio St.3d 112, 114-115, 526 N.E.2d 798.

[8]*8III

{¶ 9} Two issues are presented in this case. The first is whether Ohio’s Prevailing-Wage Law is applicable to the project. The second issue is, if Ohio’s Prevailing-Wage Law applies, whether Douglas, as general contractor, is liable for the wage violations of its subcontractor Precision.

{¶ 10} The court will first address the issue of whether the Ohio Prevailing-Wage Law applies to the project. Pursuant to R.C. 4115.10(A), the prevailing-wage law in Ohio applies to all construction projects that are public improvements. See Harris v. Cincinnati (1992), 79 Ohio App.3d 163, 169, 607 N.E.2d 15. To be considered a public improvement, a project must be constructed (1) pursuant to a public contract with a public authority and (2) for a public authority. Episcopal Retirement Homes, Inc. v. Ohio Dept. of Indus. Relations (1991), 61 Ohio St.3d 366, 369, 575 N.E.2d 134.

{¶ 11} Defendants contend that the project was not undertaken by a public authority and that it was not constructed pursuant to a contract with a public authority. R.C. 4115.03(A) defines a public authority to include, in addition to the state, political subdivisions thereof, other units of government, and “any institution supported in whole or in part by public funds.” The project owner and developer is Adams Street Limited Partnership. Its two general partners are Adams Street, L.L.C. and Adams Housing Partners, Inc. Adams Housing Partners, Inc. is wholly owned by two public charities: the Buckeye Community Hope Foundation, Inc. and the Palmetto Community Hope Foundation, Inc. Both of these public charities are institutions supported in part by public funds and are, therefore, public authorities within the definition of R.C. 4115.03(A).

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

Related

Cite This Page — Counsel Stack

Bluebook (online)
2004 Ohio 7348, 130 Ohio Misc. 2d 4, Counsel Stack Legal Research, https://law.counselstack.com/opinion/taylor-v-douglas-co-ohctcompllucas-2004.