FOR PUBLICATION
ATTORNEYS FOR APPELLANTS: ATTORNEYS FOR APPELLEE:
KEITH E. WHITE JEFFREY A. MODISETT
GEORGE T. PATTON, JR. Attorney General of Indiana
SUSAN E. TRAYNOR
KAREN GLASSER SHARP JON B. LARAMORE
Bose McKinney & Evans CINDY M. LOTT
Indianapolis, Indiana RAFAL OFIERSKI
Deputy Attorneys General
Indianapolis, Indiana
UNION TOWNSHIP SCHOOL CORPORATION, )
and E. RIC FRATACCIA, E. JAMES JENNINGS, )
and GREG S. SCHAFER, in their official )
capacities as members of the Porter County )
Common Construction Wage Committee, )
)
Appellants-Defendants, )
)
vs. ) No. 64A04-9707-CV-306
)
STATE OF INDIANA ex rel. TIMOTHY C. )
JOYCE, as COMMISSIONER OF THE )
INDIANA DEPARTMENT OF LABOR, )
)
Appellee-Plaintiff. )
OPINION - FOR PUBLICATION
oral argument, we denied the stay. Subsequently, a new wage scale was adopted by the
Committee, and the trial court dissolved the preliminary injunction.See footnote
2
We affirm.
The Committee met on May 29, 1997, to determine the common construction wage
to be paid on the Project. At that meeting, Rimsans introduced the Department of Labor's
"Common Construction Wage Law Implementation Manual"See footnote
3
(the "Implementation
Manual") and other evidence. Other Committee members and members of the public also
presented evidence. Strayer then made a motion that the Committee adopt the AFL-CIO
wage scaleSee footnote
4
as the common construction wage in Porter County. Rimsans seconded the
motion, but the remaining three members voted against it. Jennings then moved to set the
common construction wage at $18.00 per hour for skilled labor, $15.00 per hour for
semiskilled labor and $12.00 per hour for unskilled labor. By a three-to-two vote, the
Committee approved the common construction wages as proposed by Jennings. Rimsans and
Strayer opposed the majority's common construction wage determination.
The wage determination was later reduced to writing and filed with the School. In
June, 1997, the School published its Invitation to Bidders and Bid Specifications for the
Project with the intent to open the bids at a public meeting on July 23, 1997. The State, in
the name of the Commissioner, filed its complaint on July 17, 1997. Appellants responded
that the State was not a real party in interest and did not have standing to bring suit. After
a hearing on July 22, 1997, the trial court concluded that the Commissioner had authority to
bring suit and granted the State's request for a preliminary injunction. The court then
certified the case for interlocutory appeal pursuant to Indiana Appellate Rule 4(B)(3).
After this court denied the School's petition for a stay pending appeal, the School
requested that the Committee reconvene and set a new wage scale. The Committee approved
a new common construction wage in accordance with the Implementation Manual and the
trial court's ruling. The School then moved the court to dissolve the preliminary injunction,
and the trial court granted the motion.
that the issue be capable of repetition, but likely to evade review, the public interest
exception is usually recognized in cases which contain issues likely to recur. Id.
Here, the School has a legally cognizable interest in this court's determination of the
propriety of the preliminary injunction based on its counter-claim under Trial Rule 65(C).
That rule exempts governmental agencies from the bond requirements for the issuance of
preliminary injunctions but provides that the governmental agency "shall be responsible for
costs and damages as may be incurred or suffered by any party who is found to have been
wrongfully enjoined or restrained." Ind. Trial Rule 65(C). Thus, the determination of
whether the preliminary injunction was properly issued has a direct bearing on the School's
ability to recover on its counter-claim. See Ridenour v. Furness, 504 N.E.2d 336, 342 (Ind.
Ct. App. 1987) adopted on transfer 514 N.E.2d 273, 274 (Ind. 1987). We conclude that the
appeal is not moot.
In addition, we conclude that whether the State has standing to request a preliminary
injunction and operation of the common construction wage statute are matters of substantial
public interest and that other challenges on those issues are likely to recur. Thus, we also
address this appeal under the public interest exception.
The concepts of standing and real party in interest are often, incorrectly, considered
one and the same. Hammes v. Brumley, 659 N.E.2d 1021, 1029 (Ind. 1995). Although they
are quite similar, they are indeed different concepts. Id. The standing doctrine is designed
to assure that litigants actively and vigorously pursue their claims. Holiday v. Kinslow, 659
N.E.2d 647, 650 (Ind. Ct. App. 1995). Specifically, standing refers to the question of
whether a party has an actual demonstrable injury for purposes of a lawsuit. Hammes, 659
N.E.2d at 1029. A plaintiff has standing if: (1) he can demonstrate a personal stake in the
outcome of the lawsuit, and (2) he can show that he has sustained or was in immediate
danger of sustaining some direct injury as a result of the conduct at issue. Id. at 1029-1030.
In contrast, a real party in interest is the person who is the true owner of the right
sought to be enforced. Id. at 1030. He is the person who is entitled to the fruits of the action.
Id. Indiana Trial Rule 17(A) states, "[e]very action shall be prosecuted in the name of the
real party in interest." Further, "when a statute provides for an action by this state on the
relation of another, the action may be brought in the name of the person for whose use or
benefit the statute was intended." Ind. Trial Rule 17(A)(2).
Here, the trial court concluded that "[t]he State, through the Commissioner of Labor,
has the authority to bring this suit under Ind. Code §§ 22-1-1-2(b) and 22-1-1-18." Indiana
Code § 22-1-1-2(b) provides:
The commissioner of labor shall be the administrative and executive officer of
the department of labor, shall supervise and direct the work of the department,
shall have the immediate charge of the administration and enforcement of all
the laws and rules that the department is required by law to enforce and
administer, shall have charge of all inspections and investigations, and shall
perform such other duties as may be prescribed in this chapter.
(emphasis added). Indiana Code § 22-1-1-18 states:
It shall be the duty of the several prosecuting attorneys of the respective
judicial circuits or the attorney-general of the state of Indiana on the relation
of the state of Indiana, upon the request of the commissioner of labor, or any
of his authorized representatives, to prosecute any violation of any law, rule
or order which it is made the duty of the commissioner to enforce.
(emphasis added). The Commissioner is charged with the enforcement of Indiana Code
§ 5-16-7. See Ind. Code § 22-1-1-16 (Commissioner has authority to enter any place of
employment for purpose of enforcing state labor laws, including Indiana Code § 5-16-7).
Thus, the Commissioner is the State's representative entrusted with the duty to enforce the
labor laws passed on behalf of the people of the State of Indiana, and Indiana Code § 22-1-1-
18 requires the Attorney General's office to bring suit on the relation of the Commissioner.
Cf. Ridenour, 504 N.E.2d at 339-340 (wildlife is the property of the people of the State of
Indiana, and the State in its sovereign capacity is the trustee of all the citizens in common).
The State has a "personal" stake in the enforcement of the laws passed to regulate
wages paid on public works projects, and its citizens suffer direct injury when those laws are
disregarded. Because the Commissioner is charged with the enforcement of Indiana Code
§ 5-16-7-1 and the Attorney General's office is required to bring suit on the relation of the
Commissioner, we conclude that the State has standing to bring this suit. Further, the State,
on behalf of its citizens, is the true owner of the right to enforce its laws and, thus, is entitled
to the "fruits of the action." We conclude that the State is a "real party in interest" for the
purposes of Indiana Trial Rule 17(A)(2).
issue; (2) whether the plaintiff has demonstrated at least a reasonable likelihood of success
at trial by establishing a prima facie case; (3) whether the threatened injury to the plaintiff
outweighs the threatened harm the grant of an injunction may inflict on the defendant; and
(4) whether, by the grant of the preliminary injunction, the public interest would be
disserved. Id. The party seeking an injunction has the burden of showing, by a
preponderance of the evidence, that the facts and circumstances entitle the party to injunctive
relief. Id. If the movant fails to prove any one or more of these requirements, the trial
court's grant thereof is an abuse of discretion. Id.
In this case, the trial court concluded not only that the Committee had violated the
common construction wage statute and, thus, that "per se irreparable harm" had occurred
which "obviates the need for the State to engage in a balance of harms," but also that "[t]he
State is entitled to a preliminary injunction under the traditional standard."See footnote
5
Because the first
conclusion is dispositive, we do not address the second.
(c) As soon as appointed, the committee shall meet in the county where the
project is located and determine in writing the following:
(1) A classification of the labor to be employed in the performance of
the contract for the project, divided into the following three (3) classes:
(A) Skilled labor.
(B) Semiskilled labor.
(C) Unskilled labor.
(2) The wage per hour to be paid each of the classes.
(d) The rate of wages determined under subsection (c) shall not be less than the
common construction wage for each of the three (3) classes of wages described
in subsection (c) that are currently being paid in the county where the project
is located.
Ind. Code § 5-16-7-1(a), (c) and (d) (emphasis added). The term "common construction
wage" is defined as:
[A] scale of wages for each class of work described in section 1(c) of this
chapter that is not less than the common construction wage of all construction
wages being paid in the county where a project is located, as determined by the
committee . . . after having considered: (A) reports from the department of
workforce development; and (B) any other information submitted by any
person to the committee.
Ind. Code § 5-16-7-4 (emphasis added). The State contends that the disputed language requires the Committee to determine three wage figures, including fringe benefits, for each individual trade or craft to be utilized on the project. Appellants counter that the statute does not require the Committee to designate wages for the "non-statutory classifications" advocated by the State. Rather, Appellants claim that the statute only requires the committee to determine a single wage, excluding fringe benefits, for skilled, semiskilled and unskilled labor.
When construing a statute our primary objective is to determine and give effect to the
intent of the legislature. Greyhound Financial Corp. v. R.L.C., Inc., 637 N.E.2d 1325, 1327
(Ind. Ct. App. 1994). Undefined words and phrases in a statute must be given their plain,
ordinary and usual meaning. Ind. Code § 1-1-4-1(1). The reviewing court must examine
the grammatical structure of the clause or sentence at issue and the structure of the statute as
a whole. Greyhound, 637 N.E.2d at 1127.
An agency's interpretation of statutes and regulations which it is charged with
enforcing is entitled to some weight. Miller Brewing Co. v. Bartholemew County Beverage
Co., 674 N.E.2d 193, 200 (Ind. Ct. App. 1996) trans. denied. However, courts are charged
with the responsibility of statutory construction and, thus, are not bound by the agency's
interpretation. The interpretation of a statute is a question of law to which this court owes
the trial court's holding no deference. Meier v. American Maize-Products Co., 645 N.E.2d
662, 667 (Ind. Ct. App. 1995).
legislative session, the term "scale of wages" survived those amendments and was inserted
into the definition of "common construction wage."See footnote
6
A "scale" is "[a] progressive
classification, as of size, amount, importance, or rank." The American Heritage
Dictionary of the English Language 1157 (1981). Thus, the plain and ordinary meaning
of the phrase "scale of wages" is a progressive classification of wages. This definition
comports with the Department of Labor's longstanding interpretation of that phrase to require
that the committee set three wages for each trade or craft, i.e. one wage for each skilled,
semiskilled, and unskilled tradesman engaged in a particular trade. When, as here, a
governmental department has given an interpretation and construction to a statute generally
recognized and acquiesced in to such an extent that legislative knowledge of it may be
inferred, the legislature may be presumed to have adopted the construction put upon the
language by such department when again using the same language in re-enacting the
legislation. Citizens' Trust & Sav. Bank of South Bend v. Fletcher American Co., 207 Ind.
328, 334, 192 N.E. 451, 452 (1934); accord Gingerich v. State, 228 Ind. 440, 449-450, 93
N.E.2d 180, 184 (1950).
In addition, section (c)(1), which provides that the committee shall determine "a
classification of the labor to be employed in the performance of the contract for the project,
divided into the following three (3) classes," also survived the amendments. Ind. Code § 5-
16-7-1(c) (emphasis added). The plain and ordinary meaning of that phrase is that the
committee must determine which trades or crafts will be utilized on the project. Further, the
legislature added the words "described in (c)(1)" to section (a) which now states that "for
each class of work described in (c)(1) on the project a scale of wages" shall be paid. Ind.
Code § 5-16-7-1(a).
Thus, the common construction wage statute prescribes a two-step process. First the
committee must classify the labor to be employed, that is, determine the trades or crafts to
be utilized on the project. Then the committee must set wages for skilled, semiskilled, and
unskilled workers within each classified trade or craft.
Appellants' interpretation of the statute is flawed. Under Appellants' interpretation,
the phrases "scale of wages" and "classification of labor to be used on the project" are
ignored and, thus, rendered meaningless. To ignore those phrases would violate the rule of
statutory construction that every word must be given effect and meaning and no part is to be
held meaningless. See Moduform, Inc. v. Harry H. Verkler Contractor, Inc., 681 N.E.2d 243,
248 (Ind. Ct. App. 1997). Language used in a statute is deemed to have been used
intentionally. Indiana State Highway Comm'n. v. Bates & Rogers Constr. Co., 448 N.E.2d
321, 324 (Ind. Ct. App. 1983).
We must also presume that the legislature would not intend for the statute to be
applied in an illogical or absurd manner. Id. The single wage advocated by Appellants
would establish the same wage for all trades or crafts utilized on a project, e.g., laborers
could be compensated at the same rate as heavy equipment operators. This would create an
illogical result because, in the construction trades, workers are compensated at different rates
which reflect not only different skill levels but also the disparity in the market value of
services among occupations and categories of labor. We conclude that the trial court did not
err when it determined that the Committee had violated the common construction wage
statute when it failed to set a "scale of wages" for each classification of labor as required by
the statute.
[The] term should be broadly defined and includes not only periodic monetary
earnings but all compensation for services rendered without regard to the
manner in which such compensation is computed.
Black's Law Dictionary 1579 (6th ed. 1990). Thus, based on the definition of "wages"
in Johnson, we hold that the trial court did not err when it concluded that the term "wage"
as used in the common construction wage statute includes fringe benefits.
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