Unicorn Developers, Ltd. v. Commissioner of Labor

147 Misc. 2d 717, 556 N.Y.S.2d 811, 1990 N.Y. Misc. LEXIS 273
CourtNew York Supreme Court
DecidedMay 10, 1990
StatusPublished

This text of 147 Misc. 2d 717 (Unicorn Developers, Ltd. v. Commissioner of Labor) is published on Counsel Stack Legal Research, covering New York Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unicorn Developers, Ltd. v. Commissioner of Labor, 147 Misc. 2d 717, 556 N.Y.S.2d 811, 1990 N.Y. Misc. LEXIS 273 (N.Y. Super. Ct. 1990).

Opinion

OPINION OF THE COURT

John Copertino, J.

In this CPLR article 78 proceeding petitioner demands [718]*718judgment directing respondent Commissioner of Labor (sometimes hereinafter Commissioner) to "withdraw and nullify” two orders entered as judgments against the petitioner. The Commissioner entered the two orders on September 25, 1989, pursuant to certain amendments to Labor Law §§ 220 and 220-b. These amendments, enacted on July 21, 1989 and made effective immediately, allow respondent to enter orders rendered in administrative proceedings held under section 220 or section 220-b of the Labor Law as judgments. Such proceedings fix amounts due laborers and others employed on public works contracts for nonpayment or underpayment of prevailing wage rates and supplements. The dispute here — which is narrowed by the absence of material questions of fact — is whether the July 21, 1989 amendments to the Labor Law may be applied retroactively, permitting the Commissioner to enter the administrative orders in this case as judgments notwithstanding the fact that such orders originally were issued well before the effective date of such amendments. The court concludes that under the facts of this case the amendments may not be applied retroactively, and thus the relief sought in the petition must be granted.

On November 12, 1984 a public works contract was entered into by the New York State Facilities Development Corporation (FDC) and the petitioner, as contractor, for the installation of a sprinkler system at the Pilgrim State Psychiatric Center in West Brentwood, New York. On November 19, 1984, the petitioner and FDC executed a second contract for heating and ventilation work to be performed at a community residence located in Ridge, New York. Both contracts were subject to the Prevailing Wage and Hour Law contained in article 8 of the Labor Law (§ 220 et seq.) as each involved the employment of laborers, workmen and mechanics in various trades and occupations.

In connection with its performance of both contracts, the petitioner hired a subcontractor known as Hydro-Fab Corporation. It was furnished with the prevailing wage rate schedule and, like the petitioner, was obliged to comply with the Prevailing Wage and Hour Law. However, Hydro-Fab failed to pay its employees in accordance with section 220 of the Labor Law. Upon its receipt of complaints by Hydro-Fab employees alleging underpayment, the Department of Labor undertook an investigation which evidenced violations of Labor Law § 220 by Hydro-Fab on both the Pilgrim State and Ridge projects.

[719]*719Thereafter, respondent Commissioner of Labor brought administrative proceedings against Hydro-Fab and the petitioner pursuant to Labor Law § 220 et seq. to determine whether Hydro-Fab failed to pay prevailing wages and supplements to the employees on both projects and the liability of Hydro-Fab and the petitioner for such underpayments, if any. Separate hearings with respect to each project were conducted by the respondent on notice to Hydro-Fab and the petitioner.

On March 4, 1987 the respondent issued an order and determination finding that Hydro-Fab failed to pay prevailing wages and supplements to seven employees on the Pilgrim State project and determining the amounts due each employee. The order also found Hydro-Fab guilty of a willful violation and assessed a civil penalty. The order directed that certain funds due to the petitioner under its contract with FDC, which previously had been withheld by the State Comptroller pursuant to section 220-b of the Labor Law, be used to make pro rata payments to the seven affected employees in satisfaction of the amounts found to be due them for underpayments, with interest. The order further directed that the balance of such underpayments with interest and the amount of the civil penalty assessed against Hydro-Fab be paid by Hydro-Fab and the petitioner.

On March 18, 1987, the Commissioner issued an order and determination finding that Hydro-Fab failed to pay nine employees on the Ridge project prevailing wage rates and supplements. The order also assessed a civil penalty against Hydro-Fab and directed that Hydro-Fab and the petitioner make payments of the amounts due to such workers.

Although Labor Law § 220 (8) provides for direct review of the order of the respondent by the Appellate Division pursuant to CPLR article 78, petitioner did not commence any proceedings for review of the March 4, 1987 and March 18, 1987 orders. In addition, none of the affected employees commenced an action to recover the difference between the amounts paid or provided and the amounts which should have been paid and provided pursuant to Labor Law § 220 (8) or § 220-b (3) (a).

However, on May 31, 1989, the Commissioner accepted assignments from several of the employees on the Pilgrim State project of their wage claims against Hydro-Fab under Labor Law § 196 (1) (b). Thereafter, respondent brought suit on their behalf against Hydro-Fab and the petitioner to re[720]*720cover the balance of the underpayment found due and owing under the March 4, 1987 order. Although Hydro-Fab never was served with process in that action, the petitioner was and appeared by answer. Petitioner set forth several defenses, including an assertion that such action was one pursuant to Labor Law § 220 (8) and was barred by the six-month Statute of Limitations set forth therein. However, respondent Commissioner claimed that the action was timely commenced under Labor Law § 220-b (3) (a) because the three-year Statute of Limitations set forth therein was applicable to such action. That action remains pending, and no further proceedings have been held.

On July 21, 1989, the Legislature enacted certain amendments, effective immediately, to Labor Law §§ 220 and 220-b (see, L 1989, ch 642). Pursuant thereto, the Commissioner of Labor may file with the County Clerk of the county where the employer resides any order of the Commissioner or fiscal officer rendered under section 220 or section 220-b fixing amounts due employees for violations of the Prevailing Wage and Hour Law, provided that no article 78 proceeding for review of such order is pending in the Appellate Division and that the time for the institution of such proceedings (30 days from the filing of the order) has expired. The amendments further provide that the order so entered by the County Clerk shall have the full force and effect of a judgment duly docketed in the office of such Clerk and may be enforced in the name of the Commissioner in the same manner and with like effect as a money judgment.

On September 25, 1989, the March 4, 1987 and March 18, 1987 orders were entered as judgments against the petitioner in the office of the Suffolk County Clerk in accordance with the 1989 amendments to the aforesaid sections of the Labor Law. This proceeding then ensued.

Petitioner demands judgment pursuant to CPLR article 78 directing the respondent to nullify and withdraw the judgments entered on September 25, 1989 by the respondent. Petitioner claims that the July 21, 1989 amendment to Labor Law § 220 may not be retroactively applied to respondent’s orders issued on March 4, 1987 and March 18, 1987. Petitioner further claims that prior to the amendments, a plenary action by the employees, or the Commissioner pursuant to an assignment of the employees’ claims, had to have been commenced in order to convert an administrative decision fixing amounts due for underpayment of prevailing wages and supplements [721]*721into a judgment.

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Bluebook (online)
147 Misc. 2d 717, 556 N.Y.S.2d 811, 1990 N.Y. Misc. LEXIS 273, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unicorn-developers-ltd-v-commissioner-of-labor-nysupct-1990.