FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEE REVIEW BOARD OF THE DEPARTMENT OF
S. ROD ACCHIARDO WORKFORCE DEVELOPMENT:
Tell City, Indiana
STEVE CARTER
Attorney General of Indiana
JANET L. PARSANKO
Deputy Attorney General
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
BRIAN K. DOUGHTY, )
)
Appellant-Claimant, )
)
vs. ) No. 93A02-0206-EX-472
)
REVIEW BOARD OF THE DEPARTMENT OF )
WORKFORCE DEVELOPMENT, )
)
Appellee, )
)
and )
)
SCHWAB CORPORATION, )
)
Appellee-Employer. )
APPEAL FROM THE REVIEW BOARD OF THE
DEPARTMENT OF WORKFORCE DEVELOPMENT
Susan K. Kelly, Chairperson; George H. Baker and Sheri L. Clark, Members
Case No. 01-R-2818
March 7, 2004
OPINION - FOR PUBLICATION
BROOK, Chief Judge
Case Summary
Appellant-claimant Brian K. Doughty (Doughty) appeals the determination of appellee Review Board of
the Department of Workforce Development (the Board) that appellee-employer Schwab Corporation (Schwab) discharged
him for just cause. We affirm.
Issue
Doughty raises one issue for our review, which we restate as whether the
Boards determination is contrary to law.
Facts and Procedural History
On June 4, 1992, Doughty began working for Schwab in Cannelton, Indiana.
On March 25, 2001, Doughty joined other employees in a strike. Approximately
one month into the strike, Schwab notified the striking workers that if they
failed to return to work, then Schwab would begin hiring replacement workers.
Doughty did not return to work.
On April 27, 2001, Kathy Williams (Williams) applied at Schwab for a job
as a replacement worker. Williams and her four-year-old son left Schwabs facility
for Owensboro, Kentucky, in a vehicle driven by Judy Mills (Mills). Doughty
and his wife, who were picketing outside Schwabs facility, followed Millss vehicle in
a pickup truck.
See footnote
Doughty drove while his wife sat in the passenger
seat.
Approximately ten miles from Schwabs facility and after Mills had crossed into Kentucky,
Doughty pulled alongside her vehicle. With the vehicles no more than a
foot apart, Doughtys wife hung out her window, screamed, and gestured obscenely.
Doughtys wife sprayed and then threw a Mountain Dew can at Millss car
before Doughty turned onto another road. Soon thereafter, Mills stopped at a
gas station where she and Williams reported the incident to the Hancock County,
Kentucky, Sheriffs Department.
Schwab subsequently hired Williams. On May 1, 2001, Williams reported for her
first day of work. She recognized Doughty and his wife standing in
the picket line outside Schwabs facility as the persons in the pickup truck.
After her orientation session, Williams reported to Schwab Vice President of Engineering
and Manufacturing Randy Engler that she had recognized Doughty and his wife.
On May 4, 2001, Schwab discharged Doughty for misconduct. Tr. at 9.
Schwab later explained to Doughtys union that he had been discharged specifically
for violating a written company rule proscribing fighting or assaulting.
See footnote
See id.
at 9, 12. Doughty subsequently applied for unemployment benefits. On July
6, 2001, a deputy in the Evansville office of the Department of Workforce
Development determined that Doughty was not discharged for just cause and was therefore
eligible for full unemployment benefits. Board Ex. 6; see also Ind. Code
§ 22-4-15-1 (providing for reduced or suspended unemployment benefits if an employee was
discharged for just cause, which term is defined to include
knowing violation of
reasonable and uniformly enforced rule of an employer). Schwab appealed the deputys
determination. On September 15, 2001, an administrative law judge (ALJ) reversed the
deputys determination that Doughty had not been discharged for just cause. Doughty
appealed the ALJs determination to the Board. On January 14, 2002, the
Board affirmed the ALJs determination. Doughty now appeals.
Discussion and Decision
Doughty contends that the Boards determination that he was discharged for just cause
is contrary to law. To evaluate this contention, we must review
both the sufficiency of the findings of fact to sustain the decision and
the sufficiency of the evidence to support the findings of fact.
Under this two-tier standard of review, the Review Boards finding of ultimate fact
is the conclusion, and the findings of basic facts are the premises from
which the Review Board deduced its conclusion.
At the first level of review, we examine only the relationship between the
premises and the conclusion and ask if the Boards deduction is reasonable.
The inquiry at this first level of review may be termed a question
of law.
At the second level of review, we inquire into the nexus between the
premises or findings of basic facts and the evidence presented to determine if
the evidence justified those findings.
When an employee is alleged to have been terminated for just cause, the
employer bears the burden of proof to establish a prima facie showing of
just cause for termination. If that has been done, the burden shifts
to the employee to introduce competent evidence to rebut the employers case.
Although our standard of review precludes reweighing the evidence, we must reverse if
reasonable persons would be bound to reach a different result upon a consideration
of the evidence from the perspective favoring the Boards decision.
Hehr v. Review Bd. of Indiana Employment Sec. Div., 534 N.E.2d 1122, 1124-25
(Ind. Ct. App. 1989) (citations omitted).
As previously mentioned, Schwab discharged Doughty for knowingly violating a written rule against
fighting or assaulting. In order to establish a prima facie case for
violation of an employer rule under [Indiana Code Section] 22-4-15-1(d)(2), the employer must
demonstrate that the employee knowingly violated a reasonable and uniformly enforced rule.
McClain v. Indiana Dept of Workforce Dev., 693 N.E.2d 1314, 1318 (Ind. 1998).
[A]n employers asserted work rule must be reduced to writing and introduced
into evidence in order for us to fairly and reasonably evaluate a determination
that an employee was justly discharged for a knowing violation of that rule.
We believe that such is the minimum evidence necessary for the employer
to satisfy its burden, by substantial evidence of probative value, that it has
a rule and that that rule is reasonable and uniformly enforced. Watterson
v. Review Bd. of Indiana Dept of Employment and Training Servs., 568 N.E.2d
1102, 1105 (Ind. Ct. App. 1991).
On appeal, Doughty contends that Schwab failed to establish that he violated the
rule against fighting or assaulting, that the rule applies to off-duty activity, and
that it is uniformly enforced. We address each contention in turn.
A. Rule Violation
Doughty contends that Schwab failed to produce sufficient evidence that he drove the
truck that pulled alongside Williams. Williams, however, positively identified him as the
trucks driver. Doughty is asking us to reweigh the evidence, which we
may not do. We conclude that there is sufficient evidence that Doughty
drove the truck. Doughty further contends that merely passing close to another
vehicle while traveling in the same direction on the road does not constitute
an immediate threat of harm
sufficient to establish an assault. Appellants
Br. at 6-7. The record indicates that Doughty failed to make this
argument at the administrative level. As such, he has waived the argument
on appeal. See Family Dev., Ltd. v. Steuben County Waste Watchers, Inc.,
749 N.E.2d 1243, 1255 (Ind. Ct. App. 2001).
B. Application of Rule
Doughty asserts that there is no indication that the rule against fighting or
assaulting was intended to apply to off-duty or off-site activity and that the
language of the rule should be strictly construed against Schwab as the drafter.
Doughty offers neither cogent argument nor citation to authority in support of
these assertions; the issue is therefore waived. See Davenport v. State, 734
N.E.2d 622, 623 (Ind. Ct. App. 2000) (Failure to put forth a cogent
argument acts as waiver of the issue on appeal.), trans. denied (2001); see
also Ind. Appellate Rule 46(A)(8)(a) (The argument must contain the contentions of the
appellant on the issues presented, supported by cogent reasoning. Each contention must
be supported by citations to the authorities, statutes, and the Appendix or parts
of the Record on Appeal relied on, in accordance with Rule 22.).
C. Uniform Enforcement
Doughty contends that there is no evidence that this rule has been uniformly
enforced in the context of the claimants alleged actions away from the employers
property. Appellants Br. at 4. Doughty failed to make this argument
at the administrative level. As such, we may not address the merits
of Doughtys contention.
See footnote
Affirmed.
FRIEDLANDER, J., concurs.
MATTINGLY-MAY, J., dissents with opinion.
IN THE
COURT OF APPEALS OF INDIANA
BRIAN K. DOUGHTY, )
)
Appellant-Claimant, )
)
vs. ) No. 93A02-0206-EX-472
)
REVIEW BOARD OF THE DEPARTMENT OF )
WORKFORCE DEVELOPMENT, and )
SCHWAB CORP., )
)
Appellees. )
)
MATTINGLY-MAY, Judge, dissenting
I believe Schwabs company rule against fighting and assaulting is too vague to
sustain Doughtys discharge. A review of the various company rules included in
the exhibits indicates the rules relate to conduct that takes place on the
work premises. If we extend beyond the work premises the employers prohibition
against fighting and assaulting, I believe we misapply our own precedent and open
a Pandoras box. I must therefore respectfully dissent.
The asserted basis for Doughtys discharge is Schwabs rule prohibiting fighting and assaulting.
(Exhibits Volume 1, pg. 17.) These terms are not defined in
the companys
policy. It is implicit in the result the majority reaches, however, that
this rule must purport to prohibit an employee from fighting and assaulting even
when that employee is not at work, and to establish such off-the-job activity
as cause for immediate discharge.
To establish a prima facie showing of just cause for termination the employer
must show that the claimant knowingly violated a reasonable uniformly enforced rule.
Butler v. Review Bd. of Ind. Dept. of Employment and Training Servs., 633
N.E.2d 310, 312 (Ind. Ct. App. 1994). To the extent Doughtys discharge
was premised on his off-premises and off-the-job activities, I would hold the employer
has not shown its rule was reasonable.
The only witness at the hearing as to the alleged assault was Kathy
Williams. She testified:
Q. All right, so what happened at that time?
A. I had been to the Schwab plant to put in an application for
employment. We left, we were going out 60 west heading towards Owensboro
and Mr. Doughty and his wife in a red and white pick-up truck
had come around us. She threw a mountain dew can at our
car.
* * *
A. Um, they came around the semi and around us. His wife was
hanging out the window screaming, giving us fingers. She jetted a mountain
dew can at the windshield at the car, which the liquid went all
over the windshield and the car. The[y] had made a turn on
Highway 271 by Hancock County High School . . . And then we
went back to Haughsville and filed a complaint with the sheriffs department there
. . . .
(Tr. at 21-22.) She later testified that Doughtys car was within one
foot of hers when Doughtys wife threw the Mountain Dew can.
It is apparent from our prior decisions addressing discharge for violation of an
employer rule that the Schwab rule in the case before us should be
interpreted to be limited to workplace fighting and assaults. In Best Lock
Corp. v. Review Bd., 572 N.E.2d 520, 523 (Ind. Ct. App. 1991) we
noted our prior holdings that
a rule which regulates an employees on-duty activities and which protects the interest
of the employer is reasonable[;] . . . when a rule purports to
govern employees off-duty activities, the conduct regulated must bear some relationship with the
employers business interest in order for the rule to be considered reasonable.
(Emphasis in original.) We further noted:
A rule laid down by the employer governing off-duty conduct of his employees
must have a reasonable relationship to the employers interests in order that violation
thereof will constitute misconduct barring eligibility for unemployment compensation benefits. The question
of the reasonableness of such a rule is to be tested by the
rules relationship to the business interests of the employer at the time of
the making of the rule, rather than at the time of the employees
violation thereof. A rule of this type may be regarded as reasonable
where a violation is reasonably likely to harm the employers business interest, even
though the actual violation does not result in actual harm to the business
interests of the employer.
Id. at 523-24 (quoting 76 Am. Jur. 2d Unemployment Compensation § 57 (1975))
(emphasis in original).
See footnote
An employer has a stake in regulating an employees on-the-job conduct. The
employer may want to closely regulate his employees actions while at work in
order to maximize efficiency and assure safety of personnel. Accidents occur at
work and the employer has an interest in minimizing those accidents for the
sake of his employees as well as for the sake of his own
liability insurance. However, the same interest does not always exist in regulating
the employees off-duty conduct.
Id. at 524-25. Therefore, in order for
an employer rule that regulates an employees off-duty activity to be considered reasonable,
the activity sought to be regulated must bear some reasonable relationship to the
employers business interest. Id. at 525.
While I do not condone fighting or assaulting on or off the job,
it is not apparent that an employees off-duty activities of that nature are
reasonably related to Schwabs business interests.
See footnote Even though this incident was ill-considered
on the part of Doughty and his wife, I do not believe it
has the essential nexus to the workplace that Schwabs company policies, to be
considered reasonable, must require. Accordingly, I must dissent from the majoritys determination
that Doughty was discharged for just cause because he violated a reasonable and
uniformly enforced employer rule.
Footnote: Doughtys wife did not work at Schwab but had joined her
husband on the picket line.
Footnote:
Schwabs Company Work Rules and Disciplinary Discharge Policy provides in relevant
part that [t]he following shall be cause for immediate discharge:
.
Fighting or assaulting. Employer Ex. 2.
Footnote: Doughty challenges the uniform enforcement of the rule in the Summary
of Argument section of his brief but fails to advance this contention in
the Argument section.
Footnote: If Schwab had offered evidence that its rule was meant to apply
to off-the-job and off-premises activities and that such a prohibition was related to
its business interests, the rule would presumably be reasonable and Doughtys discharge would
be for just cause. There was no such testimony or evidence offered
below. At one point in the hearing, Doughtys union representative had the
following exchange with Schwabs representative:
[Schwab]: Thats a clear cut violation of the behavior and code.
[Union]: Unless it occurred on . . . theres not even an allegation this
occurred on company property.
[Schwab]: No but it initiated there in both cases and, uh, the people were
stalked. Women employees were stalked and assaulted.
Footnote: The application of this principle is made more difficult in the case
before us, where Doughtys off-duty actions were apparently motivated by a strike at
the plant where he worked. However, as we noted in
Best Lock,
we look to the rules relationship to the business interests of the employer
at the time of the making of the rule, rather than at the
time of the employees violation thereof. There was no testimony as to
Schwabs business interests at the time of the making of the policy.