Searching over 5,500,000 cases.


searching
Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.

500 James Hance Court and Knauer and Gorman Construction Co., Inc. v. Pennsylvania Prevailing Wage Appeals Board

August 31, 2009

500 JAMES HANCE COURT AND KNAUER AND GORMAN CONSTRUCTION CO., INC., PETITIONERS
v.
PENNSYLVANIA PREVAILING WAGE APPEALS BOARD, RESPONDENT



The opinion of the court was delivered by: Bernard L. McGINLEY, Judge

Argued: June 8, 2009

BEFORE: HONORABLE BONNIE BRIGANCE LEADBETTER, President Judge, HONORABLE BERNARD L. McGINLEY, Judge, HONORABLE JAMES R. KELLEY, Senior Judge.

OPINION

500 James Hance Court, LP (JHC) and Knauer and Gorman Construction Co. (Knauer and Gorman) (collectively, Appellants) petition for review from a decision of the Prevailing Wage Appeals Board's (Board) denial of Appellants' grievance that the construction of the "building shell" was not "public work" that required the application of the Pennsylvania Prevailing Wage (Wage Act).*fn1 On December 7, 2006, Appellants filed a notice of grievance with the Board and alleged:

I. Identity And Interest Of The Grievants

1. 500 James Hance Court, L.P. is a Pennsylvania limited partnership, the general partner of which is 500 JHC, LLC, a Pennsylvania limited liability company, the only limited partners are James J. Gorman and Christopher J. Knauer. The sole members of 500 JHC, LLC are James J. Gorman and Christopher J. Knauer.

2. Knauer and Gorman Construction Co, Inc. ("Knauer and Gorman") is a Pennsylvania for-profit corporation, the sole shareholders of which are James J. Gorman and Christopher J. Knauer.

3. 500 James Hance Court, L.P. is the equitable owner of real property located at 500 James Hance Court . . . also known as Lot 11 of Oaklands Corporate Center (the "Property").

4. In mid 2006, 500 James Hance Court, L.P. entered into a construction management contract with Knauer and Gorman, to construct a building on the Property. (emphasis added).

5. 500 James Hance Court, L.P. and Knauer and Gorman are sometimes hereinafter refereed [sic] to collectively as the "Grievants".

6. The Grievants [500 James Hance Court, L.P., Knauer and Gorman] are seeking a determination from the Prevailing Wage Appeals Board that the Prevailing Wage Act . . . is not applicable to the Project for the reasons hereinafter stated. (emphasis added).

II. Identity Of Project And The Contracting Public Body

7. The project consists of the construction of an approximately 68,000 square foot building shell on the Property.

8. James J. Gorman and Christopher J. Knauer are real estate developers who have developed the Oaklands Corporate Center under various entities for the last 15 years, one of which is 500 James Hance Court, L.P. . . . .

11. Oaklands Corporate Center is a mix of offices, light manufacturing, medical offices, research facilities, wholesale sales and distribution facilities, vocational and other educational institutions.

12. Collegium Foundation, a Pennsylvania nonprofit corporation ("Collegium") that acts as a support organization for Collegium Charter School, also a Pennsylvania nonprofit corporation, is the owner of a building in Oaklands Corporate Center located at 535 James Hance Court which has been occupied by Collegium Charter School for the last 2 to 3 years as the school's class and administrative office building. The building was purchased from the Chester County Intermediate Unit.

13. In mid 2006 Collegium became aware that 500 James Hance Court, L.P. planned to construct a building on the Property for single or multiple tenant use. (emphasis added).

14. A representative of Collegium contacted James J. Gorman to discuss leasing the building. Eventually, the provisions of a lease were negotiated, under which 500 James Hance Court, L.P. would lease to Collegium a building to be built by Knauer and Gorman and owned by 500 James Hance Court, L.P., with Collegium responsible for the entire fit out of the building shell at its sole cost and by its contractor or contractors. (emphasis added).

15. Collegium in turn will sublease the building to Collegium Charter School. (emphasis added).

III. A Brief Statement Of The Issue Or Dispute Giving Rise To The Grievance

16. Neither Collegium nor Collegium Charter School own directly or indirectly an interest in 5000 [sic] James Hance Court, L.P., 500 JHC, LLC, Knauer and Gorman.

17. No public body is a party to the contract to build the Project, nor is public money being used to construct the building shell. (emphasis added).

18. Funding for construction of the building shell will be provided by Fulton Bank, 500 James Hance Court, L.P. will be solely liable for repayment of the construction loan. (emphasis added).

19. Neither 500 James Hance Court, L.P. nor Knauer and Gorman Construction Co., is an alter-ego or instrumentality of Collegium nor Collegium Charter School. (emphasis added).

20. No funds from Collegium nor Collegium Charter School are being paid to 500 James Hance Court, L.P. nor to Knauer and Gorman to construct the building shell. (emphasis added).

19. [sic] The Construction of the building shell is not a public work project. (emphasis added).

21. Collegium and Collegium Charter School are not parties to the construction contract between 500 James Hance Court, L.P. and Knauer and Gorman, nor are they obligated to repay nor guaranty [sic] the construction loan. (emphasis added).

IV. Brief Statement Of The Agency's Position

22. The Bureau of Labor Law Compliance (the "Bureau") determined that the Prevailing Wage Act does apply to the project . . . . (emphasis added).

Notice of Grievance, December 7, 2006, Paragraphs 1-8 and 11-22 at 1-4; Reproduced Record (R.R.) at 8a-11a.

After a number continuances, the Board allowed the parties to file supplemental briefs no later than April 15 and May 1 respectively.*fn2

The Board made the following findings of fact*fn3 :

1. On or about September 25, 2006, JHC contracted with KGC to construct a 68,000 square foot building on Lot 11 of Oaklands Corporate Park or 500 James Hance Court . . . . (emphasis added).

2. On or about October 2, 2006, KGC contracted with Pancoast and Clifford, Inc. (PCI) to construct the building.

3. On March 1, 2007, the September 25 contract was amended to provide for the separation of the construction into the building "shell" and the building "fit out." (emphasis added).

4. On or about March 1, 2007, JHC took title to lot 11 . . . .

5. On or about March 1, 2007, JHC and the Collegium Foundation entered into a lease for the ...


Buy This Entire Record For $7.95

Download the entire decision to receive the complete text, official citation,
docket number, dissents and concurrences, and footnotes for this case.

Learn more about what you receive with purchase of this case.