IN THE CIRCUIT COURT OF JACKSON COUNTY, MISSOURI AT INDEPENDENCE

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1 IN THE CIRCUIT COURT OF JACKSON COUNTY, MISSOURI AT INDEPENDENCE LABORERS INTERNATIONAL UNION ) OF NORTH AMERICA, LOCAL 264, ) individually and on behalf of a class of ) all similarly-situated, ) ) 1101 E. 87 St. ) Case No. Kansas City, MO ) ) Plaintiff, ) ) Division v. ) ) NEW HORIZONS ENTERPRISES, L.L.C., ) ) Serve: ) Stephanie Isaacson ) 2003 NW 59th Court ) Kansas City, MO ) ) Defendant. ) PETITION Plaintiff Laborers International Union of North America, Local 264 ( Local 264 ) states the following on personal knowledge as to its own acts, and on information and belief as to all other matters. PARTIES 1. Plaintiff Laborers International Union of North America, Local 264, is an unincorporated association dedicated to representing the rights of construction laborers in the Kansas City area. Local 264 has a principal office in Jackson County, Missouri, and by virtue of its bi-state membership is a citizen of Kansas and Missouri. 1

2 2. Defendant New Horizons Enterprises, L.L.C. ( New Horizons ), is a Jackson County-based contractor focused on asbestos remediation. New Horizons is a Missouri limited liability company. It is believed that New Horizon s principal member is Stephanie Isaacson, a Missouri resident and citizen. New Horizons is accordingly a citizen of Missouri. JURISDICTION AND VENUE 3. This Court has subject matter jurisdiction under Mo. Const. art. V, 14, and RSMo No federal court has subject matter jurisdiction: both Local 264 and New Horizons are citizens of Missouri; no question arises under federal law; the putative class numbers fewer than 100 members; and the value of relief sought, based upon a projection of the hours at issue and the rate of wages, does not exceed the sum of $75,000 per person, and $5 million in the aggregate, excluding interest and costs. 4. This Court has personal jurisdiction under RSMo because New Horizons is domiciled in this state, transacted business within this state, and made contracts within this state which give rise to the cause of action asserted here. 5. Venue is proper under RSMo because New Horizons and Local 264 both have their principal offices in Jackson County, and the acts and omissions giving rise to this Petition occurred in Jackson County. FACTS 6. New Horizons Enterprises, L.L.C., is a construction contractor based in Kansas City, Missouri, which performs work related to asbestos remediation. 2

3 7. Beginning in 2012, New Horizons performed work as a subcontractor on a project or series of projects, generally known as the Commonwealth Project. The Commonwealth Project involves the comprehensive rehabilitation and refinishing of multi-family housing units along Armour Boulevard and Locust Street in midtown Kansas City, Missouri. 8. This work consisted of altering and remodeling the buildings, not routine maintenance. 9. The Commonwealth Project has been paid for in whole or in part with public funds through tax abatements and incentives. As a representative of the project s developer recently told the media: We did a lot of this with historic tax credits. 10. The Commonwealth Project also has been constructed for public use. The power of eminent domain was conferred in connection with the project. 11. The project was overseen by the Planned Industrial Expansion Authority a governmental agency. 12. Logan Parsons and other employees performed construction work on this project for New Horizons. 13. However, New Horizons did not pay the prevailing wages required for any possibly applicable wage classification. Parsons and most other employees received no more than $17.50 per straight-time hour for their work. 14. This is less than half the legal rate. Under Annual Wage Order No. 19, which went into effect in 2012, the Jackson County prevailing wage rate for a second 3

4 semiskilled laborer the category covering asbestos removal was $ The fringe benefit amount was an additional $ This totals to hourly compensation of $ In addition, Parsons and other workers on the Commonwealth Project regularly worked in excess of 40 hours per week. When New Horizons paid overtime, it only paid at a rate of one-and-a-half times the sub-standard rate. For instance, a worker at $17.50 per hour would receive only $26.25 per overtime hour, instead of one-and-onehalf times the prevailing wage rate. wages. one of them. 16. Employees complained about the failure of New Horizons to pay prevailing 17. New Horizons retaliated against some of these employees, firing at least CLASS ACTION ALLEGATIONS 18. Local 264 brings this action individually and on behalf of all members of a Putative Class, defined as follows: All persons who performed labor on a construction project or series of projects generally known as the Commonwealth Project, in Kansas City, Jackson County, Missouri, within two years prior to the date of this Petition, and who were employed by New Horizons Enterprises, L.L.C., and including assignees or other valid holders of claims of persons performing such labor. Excluded from the class are any Judges assigned to this case, plaintiff s counsel in this case, their staff and assistants, and immediate family members of these persons. 19. Local 264 proposes that it be appointed as Class Representative, and that its counsel, Louie A. Wright, and Edward (E.E.) Keenan/Keenan Law Firm, LLC, be appointed as class counsel. 4

5 20. The Putative Class s membership is readily ascertainable from records maintained by New Horizons, and the identity of class members can be determined on an objective basis and in an efficient manner. 21. The Putative Class meets the prerequisites for certification under Mo. S. Ct. Rule 52.08(a). 22. The Putative Class is so numerous that joinder of all members is impracticable. Though the precise membership is unknown, the Putative Class is believed to number approximately 50 employees. 23. There are questions of law and fact common to the Putative Class. These include but are not limited to: the applicability of the Missouri Prevailing Wage Act to the Commonwealth Project; the type of work performed by New Horizons employees on the Commonwealth Project and the corresponding wage category under Missouri s Annual Wage Orders; the wage rates paid by New Horizons; and New Horizons ultimate liability for unpaid prevailing wages. 24. The claims of Local 264 are typical of the claims of the Putative Class. Parsons has assigned his wage claims on the Commonwealth Project to Local 264, and Local 264 stands directly in the shoes of Logan Parsons as assignee of his claims. Parsons was employed by New Horizons and performed similar work on the project to all other members of the Putative Class. 25. Local 264 will fairly and adequately protect the interests of the Putative Class. Local 264 is experienced in handling prevailing wage disputes and is a longstanding, stable labor organization with the financial and logistical ability to prosecute 5

6 litigation of this complexity. In addition, Parsons has assured Local 264 that he will assist in providing evidence in this action. Local 264 has hired counsel who is knowledgeable and experienced in labor and employment law and litigation. 26. In addition to meeting the prerequisites under Mo. S. Ct. Rule 52.08(a), this proposed class action meets one or more of the requirements under Mo. S. Ct. Rule 52.08(b). 27. Questions of law or fact predominate over questions affecting only individual members. The core issues in this case are the application of the Missouri Prevailing Wage Act, the wage category applicable to the type of work New Horizons was doing, and whether New Horizons paid that rate. On information and belief, New Horizons had a common policy of not paying prevailing wage rates to any of its employees on the Commonwealth Project. A class action is the superior method for the fair and efficient adjudication of this action, because (A) the limited individual wages at issue perhaps several thousand dollars per person reduce the incentive for each class member to prosecute this case individually; (B) no litigation has been commenced for unpaid prevailing wages, except for a National Labor Relations Board proceeding regarding unfair labor practices, which may involve collateral issues of the proper amount of unpaid wages for one New Horizons employee; (C) it is desirable to concentrate litigation in this forum, as the acts and omissions alleged here occurred in Jackson County, Missouri, and most class members are believed to reside in the Kansas City metropolitan area; and (D) few if any difficulties are likely to be encountered in managing this action, as the number of class members is relatively contained, there is 6

7 only one basic issue unpaid wages and records are believed to exist that would allow for ready contact with class members during this case. 28. The Purported Class meets all requirements under Mo. S. Ct. Rule 52.08, and should be certified. COUNT I VIOLATION OF THE MISSOURI PREVAILING WAGE ACT, RSMo through Plaintiff incorporates each and every foregoing and succeeding paragraph of this Petition as if fully set forth here. 30. RSMo confers a private right of action for enforcement of the prevailing wage laws. 31. Logan Parsons was a workman employed by or on behalf of a public body engaged in the construction of public works, exclusive of maintenance work. Parsons was a second semiskilled laborer. Other employees also were workmen performing such construction as second semiskilled laborers. 32. Parsons has assigned his wage claims to Local 264, which is now the assignee of those claims. 33. New Horizons paid approximately $17.50 per hour. This was below the applicable prevailing wage. 34. By failing to pay the prevailing wage or its equivalent in cash, New Horizons violated Missouri s prevailing wage laws. 7

8 35. Plaintiff respectfully prays that this Court adjudge New Horizons liable for violation of the Missouri prevailing wage laws, and grant all relief allowed under the law, as set forth in the Prayer in this Petition. COUNT II VIOLATION OF THE MISSOURI MINIMUM WAGE LAW, RSMo through Plaintiff incorporates each and every foregoing and succeeding paragraph of this Petition as if fully set forth here. 37. Logan Parsons was an employee of New Horizons, and at points during his employment worked in excess of forty hours per week. New Horizons also employed other laborers for work in excess of forty hours per week. 38. New Horizons failed to pay overtime based on the prevailing wage rate, and instead paid overtime based on an unlawful base rate of pay. 39. Parsons has assigned his wage claims to Local 264, which is now the assignee of those claims. 40. Plaintiff respectfully prays that this Court adjudge New Horizons liable for violation of the Missouri Minimum Wage Law, and grant all relief allowed under the law, as set forth in the Prayer in this Petition. PRAYER FOR RELIEF Plaintiff respectfully prays that this Court grant the following relief, believed to be in excess of $25,000: 8

9 1. Certification of the Putative Class and appointment of Local 264 as class representative and Local 264 s counsel as class counsel; 2. Double the unpaid prevailing and overtime wages as provided by Missouri statutes and regulations; 3. Pre-judgment and post-judgment interest at the maximum rate permitted by law; 4. Declaratory and injunctive relief barring Defendant from further violations of the law; 5. The costs of this action; 6. Reasonable attorney s fees; and 7. Any other and further legal and/or equitable relief that this Court deems just and proper. 8. Based on the size of the class and the number of hours and pay at issue, this action does not seek relief in excess of $75,000 per person, excluding interest and costs, and the aggregate relief demanded does not exceed $5 million, excluding interest and costs. 9

10 Dated: November 20, 2013 Respectfully submitted, LOUIE A. WRIGHT Mo. Bar No Wyandotte, Ste. 200 Kansas City, MO Tel: (816) Fax: (816) and /s/ E.E. Keenan KEENAN LAW FIRM, LLC Edward (E.E.) Keenan Mo. Bar No Emanuel Cleaver II Blvd., #7E Kansas City, MO Tel: (816) Fax: (816) ATTORNEYS FOR PLAINTIFF LABORERS INTERNATIONAL UNION OF NORTH AMERICA, LOCAL