In re Wage Payment Litigation

• Decision Date: 29 August 2000
• Parties: In re WAGE PAYMENT LITIGATION.
• Court: Maine Supreme Court

759 A.2d 217

2000 ME 162

In re WAGE PAYMENT LITIGATION.¹

Supreme Judicial Court of Maine.

Argued June 5, 2000.

Decided August 29, 2000.

Gerald F. Petruccelli (orally), Petruccelli & Martin, LLP, Donald F. Fontaine, Jonathan S.R. Beal, Nicolaas W. Groenenveld-Meijer, Fontaine & Beal, P.A., Portland, James W. Case, McTeague Higbee Case Watson Cohen & Whitney, P.A., Topsham, for appellants.

William J. Kayatta Jr. (orally), Ann L. Rudisill, K. Douglas Erdman, Pierce Atwood, Michael G. Messerschmidt, Gregory P. Hansel, Matthew J. LaMourie, Preti, Flaherty, Beliveau, Pachios & Haley, LLC, John H. Rich III, William J. Sheils, Perkins, Thompson, Hinckley & Keddy, P.A., John W. Chapman, Kelly & Chapman, Philip J. Moss, Jonathan Shapiro, Moon, Moss, McGill, Hayes & Shapiro, P.A., Portland, for appellees.

Andrew Ketterer, Attorney General, Gwendolyn D. Thomas, Asst. Atty. Gen., Augusta, for amicus curiae Maine Bureau of Labor Standards.

Panel: CLIFFORD, RUDMAN, SAUFLEY, ALEXANDER, and CALKINS, JJ.

CLIFFORD, J.

[¶ 1] Five classes of employees appeal judgments of dismissal of their complaints against their employers asserting that their employers' practice of paying them on a bi-weekly basis created causes of action pursuant to 26 M.R.S.A. § 621 (1988 & Supp.1998) (concerning the timely payment of wages), repealed by P.L.1999, ch. 465, § 1 (effective September 18, 1999), and 26 M.R.S.A. § 626-A (1988 & Supp. 1998) (concerning penalties and rights of action for violations by employers), amended by P.L.1999, ch. 465, § 1 (effective Sept. 18, 1999); 26 M.R.S.A. § 664 (1988 & Supp.1999) (proscribing minimum wage requirements); the Federal Fair Labor Standards Act, 29 U.S.C.A. §§ 201-219 (1998); and in common law unjust enrichment. Determining that the Superior Court (Cumberland and Kennebec Counties, Crowley, J.) properly dismissed their complaints, we affirm the judgments.

I. PROCEDURAL HISTORY

[¶ 2] The plaintiffs in this case are hourly workers in the service industry who were paid by their employers on a bi-weekly basis. The defendants are service industry corporations. The five lawsuits that constitute this consolidated appeal were filed in 1998. These suits all alleged the same claims against different employers. The Superior Court (Mills, J.) conducted a conference of all counsel in October 1998 to encourage the parties to resolve the cases on some consolidated basis. The cases were in various procedural stages. Discovery had been commenced in some, motions for summary judgment had been filed in others, and motions to certify a class had been filed in still others. Following the conference, the parties produced a joint stipulation regarding the resolution of common legal issues, and the defendants filed a consolidated motion to dismiss. Although the motion was filed by the defendants after some discovery had occurred, the parties and the court agreed to treat the cases under the procedure used for motions to dismiss. No discovery, affidavits, or stipulations of fact were relied upon. The motion court (Crowley, J.) granted the employers' motions to dismiss in all respects. The employees then filed this appeal.

II. STANDARD OF REVIEW AND RULES OF CONSTRUCTION

[¶ 3] Dismissal of a complaint is proper only when the complaint fails to state a claim for which relief may be granted. See M.R. Civ. P. 12(b)(6). "A motion to dismiss tests the legal sufficiency of the complaint." Livonia v. Town of Rome, 1998 ME 39, ¶ 5, 707 A.2d 83, 85 (citing Richards v. Soucy, 610 A.2d 268, 270 (Me.1992)). For the purposes of a motion made pursuant to Rule 12(b)(6), "the material allegations of the complaint must be taken as admitted." Livonia, 1998 ME 39, ¶ 5, 707 A.2d at 85 (citing Larrabee v. Penobscot Frozen Foods, Inc., 486 A.2d 97, 98 (Me.1984)). When reviewing a dismissal, we examine the complaint in the light most favorable to the plaintiff to determine whether it sets forth elements of a cause of action or alleges facts that would entitle the plaintiff to relief pursuant to some legal theory. See Livonia, 1998 ME 39, ¶ 5,

707 A.2d at 85. "A dismissal should only occur when it appears `beyond doubt that [the] plaintiff[s] [are] entitled to no relief under any set of facts that [they] might prove in support of [their] claim.'" McAfee v. Cole, 637 A.2d 463, 465 (Me.1994) (quoting Hall v. Board of Envtl. Protection, 498 A.2d 260, 266 (Me.1985)).

[¶ 4] We review the interpretation of a statute de novo for errors of law. See Daniels v. Tew Mac Aero Servs., Inc., 675 A.2d 984, 987 (Me.1996)

. When construing a statute, we seek to give effect to the legislative intent by examining the plain meaning of the statutory language. See Estate of Whittier, 681 A.2d 1, 2 (Me. 1996). If the plain meaning of the text does not resolve an interpretative issue raised, we then consider the statute's history, underlying policy, and other extrinsic factors to ascertain legislative intent. See Arsenault v. Crossman, 1997 ME 92, ¶ 7, 696 A.2d 418, 421. In ascertaining legislative intent, we interpret the section of the statute in the context of the statutory scheme in which it is found. See City of Rockland v. Doud, 1998 ME 238, ¶ 5, 721 A.2d 981, 982. Moreover, although an agency's interpretation of a statute it is charged with administering is not binding on this Court, we will accord that interpretation substantial deference "unless the statute plainly compels a contrary result." Maine Bankers Ass'n v. Bureau of Banking, 684 A.2d 1304, 1306 (Me.1996); see also Davric Maine Corp. v. Maine Harness Racing Comm'n, 1999 ME 99, ¶ 7, 732 A.2d 289, 293.

III. TIMELY WAGE PAYMENT STATUTE

[¶ 5] The employees allege that their employers' practice of paying them on a bi-weekly basis is a violation of 26 M.R.S.A. §§ 621, 626-A.² Because of these violations, they contend that they are entitled to enforce a civil forfeiture of $100 to $500 per violation and, in addition, to recover treble damages, costs, and attorney fees.

A. Private Rights of Action for Civil Forfeitures

[¶ 6] The plaintiffs contend that the motion court erred in holding that 26 M.R.S.A. § 626-A does not allow for a private right of action for employees to collect forfeitures against their employers. Section 626-A provides for a forfeiture of $100 to $500 for each violation to be enforced against a party when that party is in violation of sections 621, 622, 623, 626, 628, or 629. See 26 M.R.S.A. § 626-A. The statute, however, does not state to whom that forfeiture is payable.

[¶ 7] Because section 626-A does not state that a private right of action exists, such a right of action can only be implied. In Larrabee v. Penobscot Frozen Foods, Inc., 486 A.2d 97 (Me.1984), we dealt with a similar issue of whether 26 M.R.S.A. § 630³ contains a private right of action to assert a civil forfeiture. See Larrabee, 486 A.2d at 101

. We noted that when the Legislature deems it "essential that a private party have a right of action, it has expressly created one." Id. For the purpose of the creation of a private right of action, the Legislature expresses its intent in the statutory language or in the legislative history.

[¶ 8] In the present case, it is clear that sections 621 and 626-A were enacted for the benefit of wage earners and that these plaintiffs are wage earners. We examine whether there is any indication of legislative intent to create or deny a private remedy of forfeiture, and whether implying the existence of such a remedy is consistent with the underlying purpose of the legislative scheme.

[¶ 9] In Larrabee, we concluded that section 630 created no private right of action to enforce a forfeiture. See Larrabee, 486 A.2d at 101

. Section 626-A has language similar to that of section 630 and is part of the same legislative scheme. See 26 M.R.S.A. §§ 621-634 (1988 & Supp.1998). These provisions should be interpreted harmoniously. See Estate of Whittier, 681 A.2d at 2.

[¶ 10] Moreover, title 17-A, section 4-B states that "civil violations ... are enforceable by the Attorney General, his representative or any other appropriate public official in a civil action to recover what may be designated a fine, penalty or other sanction, or to secure the forfeiture that may be decreed by the law." 17-A M.R.S.A. § 4-B (Supp.1999). The civil forfeiture referenced in section 626-A is the type of "civil violation" that is solely enforceable by the Attorney General unless otherwise specified. Cf. Larrabee, 486 A.2d at 101

. We discern no intention on the part of the Legislature, from either the plain language of the statute or the legislative history, that would provide for a private right of action under section 626-A to enforce the civil forfeiture. Moreover, our interpretation is in harmony with that of the Department of Labor, which has maintained that the pursuit of these penalties is its exclusive province. See Maine Bankers Ass'n v. Bureau of Banking, 684 A.2d at 1306 (holding that deference should be given to an agency's interpretation of a statute it is charged with enforcing). The Department may elect to pursue such remedies, but the decision to do so is a discretionary one. See New England Outdoor Ctr. v. Commissioner of Inland Fisheries & Wildlife, 2000 ME 66, ¶ 12, 748 A.2d 1009, 1014.

B. Wages Paid Late vs. Unpaid Wages Pursuant to Section 626-A

[¶ 11] The employees also contend that the motion court erred in dismissing their claims for unpaid wages, liquidated damages, and attorney fees under section 626-A by concluding that "late" wages were not "unpaid" wages. Section 626-A in effect at the time these cases were initiated stated:

Any employer is liable to the employee or employees for the amount of unpaid wages and health benefits. Upon a judgment being rendered in favor of any employee or employees, in any action brought to recover unpaid wages or health benefits under this subchapter, such judgment includes, in addition to the unpaid wages or health benefits adjudged to be due, a

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