De La Cruz v. Caddell Dry Dock & Repair Co.
This case addresses whether municipal vessels qualify as "public works" under Labor Law § 220 and Article I, § 17 of the New York State Constitution, thereby mandating prevailing wages for workers involved in their construction, maintenance, or repair. Plaintiffs, employees of Caddell Dry Dock & Repair Co., Inc., sued their employer and its sureties, asserting that they were third-party beneficiaries to contracts between Caddell and New York City agencies for work on various municipal vessels, including Staten Island Ferries and fireboats. The lower courts had dismissed the complaint, citing prior precedent, but the Court of Appeals reversed this decision. The Court established a new three-prong test for determining if a project is a "public work": (1) a public agency must be a party to a contract involving laborers, (2) the contract must involve construction-like labor paid by public funds, and (3) the primary objective of the work must benefit the general public. Applying this test, the Court concluded that municipal vessels serving the general public's use or benefit are indeed "public works," thus granting the plaintiffs' motion for partial summary judgment on liability.