Ak-Wa Inc. v. Dear

This is a dispute arising from three contracts between the Washington Department of Transportation (DOT) and AK-WA, Inc., to repair and refurbish ferries. Following the completion of the work on the ferries, the Department of Labor and Industries (Department) filed notices of violation, citing AK-WA for failure to pay the prevailing rate of wages as required by the contracts. The trial court found in favor of AK-WA as to the issues pertaining to the prevailing wage dispute, but against AK-WA on the issues pertaining to the apprenticeship training program. The court awarded $1,060,000 to AK-WA for lost profits resulting from the loss of bonding capacity required on most public contracts and some private contracts because of the Departments prevailing wage enforcement procedures. We reverse the rulings in favor of AK-WA pertaining to the prevailing wage dispute and affirm the rulings in favor of the Department pertaining to the apprenticeship training program.