March 26, 2009 - 12:55 pm
News Feed: Ohio

Justices hear arguments in prevailing-wage case

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Construction contractors responded that such a requirement would drive up the cost of building in Ohio, effectively putting the brakes on hundreds of projects.

The two sides made their cases to the Ohio Supreme Court in a dispute over whether a Port Clinton company subjected itself to the state's prevailing-wage law by accepting two government loans to build a showroom.

The company, Fellhauer Mechanical Systems, cobbled together a mix of private financing, a $305,000 loan from the Ohio Department of Development and a $36,750 loan from a program administered by Ottawa County. The money, totaling about $695,000, allowed Fellhauer to build an audio-visual-products showroom in 2006.

As the project began, the Northwestern Ohio Building and Construction Trades Council obtained a court injunction to block the work because Fellhauer was not paying its construction workers union-scale wages.

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