International Fidelity Insurance v. Hartnett
The petitioner, a surety for Berlin Wrecking, Ltd., challenged a determination by the respondent that Berlin willfully failed to pay prevailing wages and supplements to 42 employees, totaling $442,713.10, along with a $110,668 civil penalty. The petitioner did not dispute the underpayment amount or the willful violation but argued for entitlement to monies withheld by the Dormitory Authority of the State of New York. The court affirmed the determination, stating that the CPLR article 78 proceeding was not the appropriate vehicle to determine the priority of claims to the withheld monies, as these issues were not raised at the administrative hearing. The court also found no merit in the petitioner's contention that the respondent exceeded jurisdiction by directing the Authority to issue a check for distribution to underpaid workers, citing Labor Law § 220-b (2) (e) as authorization.