Alameda County Joint Apprenticeship and Training Committee, et al vs. Roadway Electrical Works Inc., et al
Filed July 29, 1010, First Appellate District, Division Three
(Alameda County Super Court No. RG08384120)

Court Reverses Verdict on Union’s Unfair and Unlawful Competition Lawsuit

The appeal was filed by the following appellants:

• the Alameda County Joint Apprenticeship and Training Committee (JATC)
• the International Brotherhood of Electrical Worker’s Local 595 Health and Welfare Trust
• the International Brotherhood of Electrical Worker’s Local 595 Northern California Chapter National Electrical Contractors Association Labor Management Committee and Edward W. Scott Electric Company, Inc.

The group filed a lawsuit against Roadway Electrical Works, Inc. (Roadway) and MCM Construction, Inc. for “unfair and unlawful competition under Business and Professions Code section 17200 et seq and interference with prospective economic sabotage”.

The lawsuit was based on allegation that Roadway and MCM are using unauthorized workers in the rebuilding of the San Francisco-Oakland Bay Bridge, which must be performed by certified electricians under Labor Code section 3099.

Court records show that Roadway is a c-10 specialty electrical contractor, which under Labor Code section 3099, is required to use only certified electricians, enrolled apprentice electricians, or properly supervised electrical trainees to do electrical work.

However, the appellants assailed that Roadway used uncertified workers rather than certified electricians to perform electrical work on the Bay Bridge and other public works projects. The group also charged that MCM failed to supervise Roadway’s activities and consented to the use of uncertified workers.

Because of these unlawful acts, the group claimed they suffered economic injury and sought declaratory and injunctive relief, restitution, damages, and also called for accounting.

However after hearing, the trial court concluded that the appellants’ cause of action implicate the authority of the Director of the California Department of Industrial Relations which should determine the scope of work for electricians under the prevailing wage law and that they failed to exhaust the required administrative remedy provided in section 1773.4 before filing the suit.

As a result, the trial court sustained Roadway and MCM’s demurrer to the complaint without leave to amend.

The union filed an appeal.

During appeal, the appellate court ruled on the following points:

• That the union’s (appellants’) cause of action did not challenge the authority of the Director to determine the scope of work or the prevailing wage.
• That the union was not required to file petition under section 1773.4 to exhaust their administrative remedy before filing the suit.

The court therefore reversed the judgment of the trial court.