MBM Law Achieves Full Dismissal in Prevailing Wage Dispute
The Court of Common Pleas of Allegheny County, Pennsylvania, granted preliminary objections and dismissed the complaint with prejudice in favor of MBM Law’s client. The court found the allegations were legally insufficient to state a prima facie case for fraud or breach of contract. The heart of this issue involved prevailing wage requirements.
Court Upholds Contractual Disclosure of Prevailing Wage Requirements
MBM Law’s defense team successfully argued against the contention that the client had failed to disclose that multiple construction projects were subject to prevailing wage requirements, leading to damages. They were able to prove that a CoStars Contract, which expressly notified the parties of the requirements of the prevailing wage act, was clearly integrated into the prime contract documents that made up the agreement between the parties. As such, the Court held as a matter of law that the Plaintiff could not prove the elements of the breach of contract and fraud claims set forth in their Complaint.
Key Precedent Set: Importance of Scrutinizing Legal Sufficiency of Claims
The decision emphasized the following:
- The defendant disclosed the relevant prime contract to the plaintiff, who acted as a subcontractor.
- If the plaintiff had reviewed the contract’s terms, conditions, and provisions, they would have been aware of the prevailing wage requirements at issue.
- There was no allegation that the defendant engaged in actionable conduct prior to contract formation, nor that it provided untruthful or inaccurate information in response to specific inquiries.
- There was no factual claim that the defendant failed to fulfill its obligations under the contract.
By prevailing on preliminary objections, MBM Law achieved the strongest possible outcome–a permanent dismissal of all claims at the earliest stage of litigation. This not only protects the client from ongoing risk but also sets a precedent for the importance of scrutinizing the legal sufficiency of claims at the outset.
As a trial lawyer and litigator for 30 years, Steven Engel has prosecuted and defended hundreds of lawsuits. His area of specialization is in Construction Law and works with contractors, subcontractors, design professionals, and owners in construction-related matters. Engel is the Director of MBM’s Litigation Department.