Nos. 68,145 & 68,442 

UNEMPLOYMENT APPEALS COMMISSION, 
Petitioner, 
vs.
ZACHARY S . COMER, Respondent. 

UNEMPLOYMENT APPEALS COMMISSION, 
Petitioner, 
VS. 
PIERRE S. RENELUS, Respondent. 


[April 2, 1987]


OVERTON, J. 

The Unemployment Appeals Commission petitions for review 
of Comer v. State, Unemployment Appeals Commission, 481 So. 2d 67 
(Fla. 3d DCA 1985), and Renelus v. Florida Unemployment Appeals 
Commission, 484 So. 2d 629 (Fla. 3d DCA 1986). In each case, the 
Commission sought repayment of unemployment compensation benefits 
to which the claimants, Comer and Renelus, were not entitled. 
Both claimants asserted that recovery of overpayments should be 
waived under section 443.151 (6) (c), Florida Statutes (1983). The 
Unemployment Compensation Referee determined in both cases that 
the compensation law does not allow waiver of overpayment 
recovery. The district court held, however, that the claimants 
may assert the defense that repayment of benefits would defeat 
the purpose of unemployment compensation law or would be against 
equity and good conscience. The district court certified its 
decisions to be in express and direct conflict with Sheppard v. 
State, Department of Labor and Employment Security, 442 So. 2d 
1114 (Fla. 4th DCA 1983). We agree that there is direct and 
express conflict and we have jurisdiction. Art. V, § 3 (b) (4) , 
Fla. Const. For the reasons expressed, we quash the decisions of 
the Third District Court of Appeal in Comer and Renelus and 
approve the Fourth District Court's decision in Sheppard. 

The sole issue in this case is the interpretation of 
section 443.151(6)(c), specifically whether it provides claimants 
a defense in the Commission's repayment efforts. Section 
443.151(6), Florida Statutes (1983) , addressing recovery and 
recoupment of overpayments, reads in part: 


Recovery and Recoupment .--

(a) Any person who, by reason of his 
fraud, has received any sum as benefits 
under this chapter to which he was not 
entitled shall be liable to repay such sum 
to the division for and on behalf of the 
trust fund or, in the discretion of the 
division, to have such sum deducted from 
future benefits payable to him under this 
chapter, provided a finding of the 
existence of such fraud has been made by a 
redetermination or decision pursuant to 
this section within 2 years from the 
commission of such fraud, and provided no 
such recovery or recoupment of such sum may 
be effected after 5 years from the date of 
such redetermination or decision. 

(b) If any person, other than by 
reason of his fraud, has received any sum 
as benefits under this chapter to which, 
under a redetermination or decision 
pursuant to this section, he has been found 
not entitled, he shall be liable to repay 
such sum to the division for and on behalf 
of the trust fund or, in the discretion of 
the division, shall have such sum deducted 
from any future benefits payable to him 
under this chapter. No such recovery or 
recoupment of such sum may be effected 
after 2 years from the date of such 
redetermination or decision. 

(c) No recoupment from future benefits 
shall be had if such sum was received by 
such person without fault on his part and 
such recoupment would defeat the purpose of
this chapter or would be against equity and 
good conscience. 


(d) In any case in which under this 
section a claimant is liable to repay to 
the division any sum for the fund, such sum 
shall be collectible without interest by a 
deduction from benefits pursuant to a 
redetermination as above provided or by 
civil action in the name of the division. 

(Emphasis added.) 

Under the statute, the Division of 
Unemployment Compensation, at its discretion, may recover 
overpayments by (1) demanding direct repayment or (2) recouping 
monies from future benefits. Section 443.151 (6) (c) sets forth a 
defense to recoupment from future benefits when the claimant can 
establish the overpayments were received without claimant's fault 
and recoupment would defeat the purpose of the act -or be against 
equity and good conscience. 

The Commission argues that the legislature intended these 
defenses to apply only to recoupment proceedings--not repayment 
proceedings. The Third District Court of Appeal disagreed and 
reaffirmed its holding in Sagaert v. State, Department of Labor, 
418 So. 2d 1228 (Fla. 3d DCA 1982), which held that section 
443.151(6)(c) "must be read to apply to recovery by repayment as 
well as by recoupment from future benefits." -Id. at 1230. -See 
Garcia v. State, Department of Labor, 426 So. 2d 1171 (Fla. 3d 
DCA 1983)(applying Sagaert). In Sheppard, the Fourth District 
Court of Appeal disagreed, expressly rejecting Sagaert, and 
stating that to allow the provision's application to repayment 
proceedings would be 

an inappropriate invasion by the judiciary 
into the legislative arena, contrary to the 
constitutional mandate which separates the 
two respective governmental powers. The 
language in (b) does -not compel the 
division to exercise its discretion by 
seeking recoupment rather than repayment. 
It plainly enables the division to proceed 
with efforts to effect repayment or, in the 
alternative, deduct sums already received 
from future benefits which may become 
available. 

442 So. 2d at 1116. 


In our view, the statutory scheme clearly distinguishes 
repayment and recoupment. Recoupment contemplates future 
payments. It logically follows that deducting improperly paid 
funds from future payments due a faultless claimant may defeat 
the purpose of the act and be against equity and good conscience. 
We find the intent was to provide the defense only when 
recoupment is sought because, if the Commission was always 
allowed to recover from payments due, the purpose of the benefits 
to the unemployed claimant could be defeated in many instances. 

For the reasons expressed, we approve Sheppard, disapprove 
Sagaert and Garcia, and quash Comer and Renelus. 

It is so ordered. 


McDONALD, C.J., and EHRLICH, SHAW and BARKETT, JJ., Concur 
ADKINS, J. (Ret.), Dissents 


NOT FINAL UNTIL TIME EXPIRES TO FILE REHEARING MOTION AND, IF 
FILED, DETERMINED.