W.R. Cooper, Inc. v. City of Miami Beach, 86-723

• Decision Date: 15 September 1987
• Docket Number: No. 86-723,86-723
• Citation: 512 So.2d 324,12 Fla. L. Weekly 2267
• Parties: 28 Wage & Hour Cas. (BNA) 1051, 12 Fla. L. Weekly 2267 W.R. COOPER, INC., Appellant, v. CITY OF MIAMI BEACH and Garcia-Allen Construction Co., Inc., Appellees.
• Court: Florida District Court of Appeals

Page 324

512 So.2d 324

28 Wage & Hour Cas. (BNA) 1051, 12 Fla. L. Weekly 2267

W.R. COOPER, INC., Appellant, v. CITY OF MIAMI BEACH and Garcia-Allen Construction Co., Inc., Appellees.

No. 86-723.

District Court of Appeal of Florida Third District.

Sept. 15, 1987.

Manas & Marcus and Richard I. Manas, Miami, for appellant.

Arnold M. Weiner, City Atty., and Sandra W. Schneider and Patrick N. Brown, Asst. City Attys., for Appellee City of Miami Beach, Jeffrey C. Coon, Tampa, for appellee Garcia-Allen Const. Co.

Before HUBBART, BASKIN and FERGUSON, JJ.

PER CURIAM.

W.R. Cooper, Inc. appeals a trial court order granting the City of Miami Beach's motion to dismiss for failure to join an indispensable party. We reverse.

Garcia-Allen Construction Company (Garcia-Allen) entered into a prime contract with the City of Miami Beach (City) to install a water-sprinkler system. The contract contained provisions requiring compliance with federal labor standards which called for the payment of specific wage rates to laborers and mechanics working on the project. The contract also authorized the City to withhold funds as ordered by the Secretary of Labor in the amounts necessary to pay laborers and mechanics the full wages due for work performed on the project. Garcia-Allen entered into a written contract with Cooper, a construction subcontractor, to install the system. The provisions regarding the federal labor standards were incorporated by reference into the contract between Cooper and Garcia-Allen. Cooper fully performed the work required by the contract but a grievance was filed with the Department of Labor regarding alleged underpayment of project employees. Because of the grievance, the Secretary of Labor requested the City to withhold $14,000 in funds owed to Cooper for work performed under the contract. The City placed the funds in escrow pending final disposition of the claims. Subsequently, the Secretary of Labor requested the withholding of an additional $7,855.54. At all times Cooper disputed the Secretary of Labor's claims. Garcia-Allen, without Cooper's knowledge, entered into an agreement with the Department of Labor and executed a letter authorizing the City to release $18,348.52 to the Secretary. Subsequently, while this suit was pending, and without notice to Cooper, the City transferred the escrow funds to the Secretary. The Secretary disbursed the funds to the employees in satisfaction of their claims.

Although Cooper initially named only Garcia-Allen and the City as defendants, the complaint was later amended to include Raymond Donovan, U.S. Secretary of Labor, as an additional defendant. The Secretary removed the case to federal district court where the claim against the Secretary of Labor was dismissed for lack of jurisdiction. The federal court ruled that the claim against the Secretary should be raised in the United States Claims Court and remanded the case to state court. After remand the state court granted the City's motion to dismiss the action for failure to join the Secretary as an indispensable party.

Appellant contends that this is an action in contract against the prime contractor and...