Brookfield-based Badger Lighting & Signs Inc.’s insolvency has given it a break from a federal prevailing wages lawsuit, though the case has not been dismissed.
Badger went into receivership Jan. 31 under John Wirth, an attorney in Mallery & Zimmerman SC’s Milwaukee office.
In December, the company was drawn into a prevailing wages lawsuit by Brookfield-based Arctic Landscape & Design LLC, the suit’s original defendant.
Eleven of Arctic’s former employees claim they weren’t paid prevailing wages on four Wisconsin Department of Transportation road projects, among other complaints. Arctic sued Badger as a third-party defendant, claiming Arctic subcontracted through Badger on the projects and wasn’t informed they required prevailing wages. Badger has denied those claims.
U.S. Magistrate Judge Patricia Gorence on Tuesday imposed a stay on Arctic’s third-party complaint against Badger while it goes through receivership. The ex-employees’ complaints against Arctic will proceed.
In the same order, Gorence granted withdrawal requests from Arctic’s and Badger’s attorneys. Arctic must retain a new attorney by March 26, according to the order, or risk a default judgment against it.
Badger does not have to retain counsel until the stay on the third-party complaint is lifted, according to the order.
– Beth Kevit