Thompkins v. Fuller

667 P.2d 944, 205 Mont. 168, 26 Wage & Hour Cas. (BNA) 594, 1983 Mont. LEXIS 756
CourtMontana Supreme Court
DecidedJuly 21, 1983
Docket82-396
StatusPublished
Cited by18 cases

This text of 667 P.2d 944 (Thompkins v. Fuller) is published on Counsel Stack Legal Research, covering Montana Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Thompkins v. Fuller, 667 P.2d 944, 205 Mont. 168, 26 Wage & Hour Cas. (BNA) 594, 1983 Mont. LEXIS 756 (Mo. 1983).

Opinions

MR. JUSTICE HARRISON

delivered the opinion of the Court.

The Department of Labor and Industry appeals a decision of the District Court of the Fourth Judicial District, County of Lake. This dispute deals with the amount of wages paid by a building contractor to his employees on a state-financed construction project. Essentially, this case involves interpretation of Montana’s Little “Davis-Bacon Act,” sections 18-2-401, et. seq., MCA (1979), which requires contractors on public projects to pay their employees “the standard prevailing rate of wages. . .applicable to the [171]*171county or locality in which the work is being performed.” Section 18-2-403(1), MCA, (1979). Initially, we note that the 1979 statutes are applicable to this case. We affirm the judgment with the exception of the attorney’s fees.

In 1980 the University of Montana let contracts for the construction of a research laboratory at Yellow Bay on Flathead Lake. The respondent was accepted as the mechanical contractor. Prior to this time, respondent was primarily involved in residential construction. The laboratory was his first contract with a governmental entity. The respondent was not a signatory to any collective bargaining agreement, and all of his employees were nonunion.

The contract required the respondent to abide by the labor laws of the State of Montana; specifically, he was required to pay his employees the “standard prevailing rate” (SPR) applicable to the county or locality in which the work was being performed. The contract language was taken from various parts of Montana’s Little Davis-Bacon Act. Concerning his responsibilities, he contacted a Kalispell attorney who reviewed the contract. Nothing was discussed concerning the SPR provision. Respondent also talked to the project architect and a contractor friend who had been coaching him. Through these discussions he believed himself to be in full compliance with Montana law.

Construction began and thereafter the State received a complaint that respondent was not paying his employees the SPR. The complaint was made by the business representative for the carpenters union of Northwest Montana. The union representative testified in part as follows:

“Q. Did you have a conversation with Thompkins on this project? A. Yes, I encouraged him to join the Union.
“Q. Did you encourage him to join the Union? A. I did.
“Q. What did you tell him when he wouldn’t join the Union? A. I said I’d have to do my job and whatever was available to me to try and get him to join.
“Q. And what did you do? A. I reported it to the Department of Labor that I didn’t think he was paying prevailing [172]*172wage.”

The State investigated and concluded that the complaint was legitimate. Below is a chart showing the wages that were actually paid by the respondent and the wages which the State claims should have been paid as the SPR.

EMPLOYEE JOB WAGES ACTUALLY “STANDARD PREVAILING RATE PAID AS DETERMINED BY THE STATE

Marton carpenter $9.00/hour Carpenters:

Becker carpenter $9.00/hour 12.05/hour — -5/1/79-4/30/80

Ryland carpenter $8.00/hour 13.02/hour — 5/1/80-4/30/81

Thompkins carpenter $11.00/hour

Hale laborer $6.00/hour Laborers:

Raudebaugh carpenter/ salaried 10.55/hour — 7/1/79-6/30/80

superintendent 11.45/hour — 7/1/80-6/30/81

Carpenter/Superintendent

12.55/hour — 5/1/79-4/30/80

13.52/hour — 5/1/80-4/30/81

The State claims that it considered three sources of information to determine the SPR: (1) wage rate information compiled by the Employment Security Division; (2) Davis-Bacon rates published by the United States Department of Labor; and (3) local collective bargaining agreements. However, the rates established by the State were taken verbatim from number three, collective bargaining agreements. According to the State, there was little variation between the three sources, and in such cases it has been the policy to adopt rates from the bargaining agreements.

The respondent commenced this action by seeking a declaratory judgment in the District Court. The State filed an answer and counterclaim praying for an order requiring Thompkins to pay past due wages and penalties and attorney fees. Thompkins sought summary judgment but his motion was denied. A nonjury trial was held after which the District Court entered judgment in favor of the plaintiff/ contractor. The Commissioner of Labor and Industry then appealed.

[173]*173The appellant has raised the following issues: (1) whether the District Court erred by not adopting the commissioner’s determination of the standard prevailing rate; (2) whether the District Court erred in its interpretation of the statutory phrase “work of a similar character;” (3) whether the admission of hearsay evidence was reversible error; and (4) whether the award of attorney fees to respondent was proper. We address these issues in turn.

Appellant’s first issue is raised in response to the following comment by the District Court:

“Defendant [appellant] argues that only the Commissioner of the Department of Labor and Industry has the authority to determine the prevailing rate of wages in a given area. Defendant ignores the plain meaning of the statute; ‘The Montana Commissioner may determine . . .’ M.C.A. §18-2-402 (1979) . . . Because the power to determine the prevailing rate of wages is not exclusively that of the Commissioner, that power, at the time the parties entered into the contract in question, rested also with the plaintiff, subject to the standards set out in the applicable laws. The issue, then, on which plaintiff’s request for declaratory judgment turns, is whether plaintiff rather than the defendant has made the proper determination of what their contract term ‘standard prevailing rate of wages’ as defined in M.C.A. §18-2-401(a) (1979) means. The issue, contrary to defendant’s position, is not whether and under what standards this Court may review a decision or determination of an administrative agency.
“Plaintiff’s request for a declaratory judgment would be a request for a review of a decision or determination of an administrative agency if in fact the commissioner of labor had determined the standard prevailing rate of wages for the job classifications in question. But the commissioner did not make the determination he was authorized to make under M.C.A. §18-2-402(1) (1979).”

The District Court obviously viewed the problem as one of contract interpretation. Here, the contract required the re[174]*174spondent to pay his employees the SPR, yet there were no specific hourly rates contained in the contract. The court focused on whether respondent, as a contracting party, properly interpreted the contract term “standard prevailing rate.”

The appellant argues that: (1) it did make a determination of the SPR and its determination should have been granted deference by the court, and (2) the respondent did not have the statutory power to determine the rate. That power rests exclusively with the appellant.

We agree with appellant’s second point; the respondent was not empowered by section 18-2-402(1), MCA, (1979), to determine the standard prevailing rate of wages.

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Thompkins v. Fuller
667 P.2d 944 (Montana Supreme Court, 1983)

Cite This Page — Counsel Stack

Bluebook (online)
667 P.2d 944, 205 Mont. 168, 26 Wage & Hour Cas. (BNA) 594, 1983 Mont. LEXIS 756, Counsel Stack Legal Research, https://law.counselstack.com/opinion/thompkins-v-fuller-mont-1983.