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September 23, 2008         DOL Home > OALJ Home > USDOL/OALJ Reporter
USDOL/OALJ Reporter

PHOENIX DEVELOPMENT CO., WAB No. 90-09 (WAB Mar. 29, 1991)


CCASE: PHOENIX DEVELOPMENT COMPANY DDATE: 19910329 TTEXT: ~ [1] WAGE APPEALS BOARD UNITED STATES DEPARTMENT OF LABOR WASHINGTON, D. C. In the Matter of: PHOENIX DEVELOPMENT COMPANY WAB Case No. 90-09 Prime Contractor CORDOVA CONTRACTING, INC. Subcontractor BEFORE: Charles E. Shearer, Jr., Chairman Ruth E. Peters, Member Patrick J. O'Brien, Member DATED: March 29, 1991 DECISION OF THE WAGE APPEALS BOARD This case addresses the question of the contents of petitions to the Wage Appeals Board from decisions generally and from Wage and Hour rulings specifically. It is before the Wage Appeals Board on the five-part petition of Phoenix Development Company (hereinafter "Phoenix") from a Wage and Hour ruling finding Phoenix, as general contractor, liable for back wages due to the employees of Cordova Contracting, its subcontractor. The petition in this case: 1) denies knowledge of certain telephone conversations referred to in a letter from the Administrator dated September 18, 1989; 2) alleges that Cordova, not Phoenix, was the prime contractor; 3) alleges [1] ~2 [2] that Phoenix was not in a position to manage Cordova's employees; 4) alleges that Phoenix was not liable "as the former owner of the project"; and 5) states that Phoenix was "sabotaged" by the U. S. Department of Housing and Urban Development ("HUD") and "badgered" by the Department of Labor. It is well settled that prime contractors ("owner[s]-developers" under the HUD contract at hand) are responsible for the Davis-Bacon compliance of their subcontractors. See 29 C.F.R. 5.5(a); Werzalit of America, Inc., WAB Case No. 85-19 (Apr. 7, 1986); Thomas J. Clements, Inc., WAB Case No. 84-12 (Jan. 25, 1985); and Bright Construction Co. & Trac Excavating Co., WAB Case No. 85-03 (Oct. 1, 1985). The agreement between Phoenix and the City of Omaha specifically required Phoenix to comply with Davis-Bacon provisions on the project. See Record, Tab 7, pp. 1-5. Hence, points two, three, and four in the petition are incorrect as a matter of law. Points one and five in the petition do not raise matters cognizable on appeal. 29 C.F.R. 7.5 and 7.8(a), read together, permit the Board to dismiss a petition in whole or in part where that petition fails to state facts or law sufficient to make a claim upon which relief can be granted. As points one and five fail to do either, they are accordingly dismissed. In short, the ruling of the Administrator is affirmed. BY ORDER OF THE BOARD: /s/ Charles E. Shearer, Jr., Chairman Ruth E. Peters, Member, Patrick J. O'Brien, Member [2]



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