FOR PUBLICATION
ATTORNEY FOR APPELLANT: ATTORNEYS FOR APPELLEES:
THOMAS M. FROHMAN JEFFREY A. MODISETT
Legal Services Organization of Indiana, Inc. Attorney General of Indiana
Bloomington, Indiana
JON LARAMORE
Deputy Attorney General
Indianapolis, Indiana
IN THE
COURT OF APPEALS OF INDIANA
VIVIAN SCOTT, )
)
Appellant, )
)
vs. ) No. 93A02-9908-EX-627
)
REVIEW BOARD OF THE INDIANA DEPARTMENT )
OF WORKFORCE DEVELOPMENT and )
QUALITY PERSONNEL SERVICES, )
)
Appellees. )
APPEAL FROM THE REVIEW BOARD OF THE
INDIANA DEPARTMENT OF WORKFORCE DEVELOPMENT
Cause No. 99-R-1350
March 31, 2000
OPINION - FOR PUBLICATION
NAJAM, Judge
STATEMENT OF THE CASE
Vivian Scott appeals from the denial of unemployment benefits by the Review Board
of the Indiana Department of Workforce Development (Review Board). Scott raises two
issues for our review, which we consolidate and restate as one dispositive issue:
whether the Review Board erred when it affirmed the administrative law judges
(ALJ) decision denying Scott unemployment benefits where Scott did not receive actual notice
of the hearing requested by her employer.
We reverse the Review Boards decision and remand to the Board for proceedings
consistent with this opinion.
FACTS AND PROCEDURAL HISTORY
This case is presented on a Record on Agreed Statement. Scott left
her employment with Quality Personnel Services, Inc. (Quality) and applied for unemployment benefits.
The claims deputy determined that she was eligible for benefits, and Quality
filed its request for a hearing before an ALJ. The IDWD subsequently
mailed both Quality and Scott notices setting the case for hearing on July
6, 1999. These notices were mailed on June 25, 1999 pursuant to
Indiana Code Section 22-4-17-6, which requires that notice of a hearing shall be
mailed at least ten days prior to the hearing.
On July 1, 1999, Scott left town to attend a funeral in Arkansas.
As of that date, she had not received notice of the July
6, 1999 hearing. When Scott returned home on July 11, 1999, she
found both the notice of the July 6, 1999 hearing and the ALJs
decision reversing the initial approval of her unemployment benefits in her mail.
The next day, July 12, 1999, Scott filled out a Request for Appeal
to the Review Board, in which she stated that she had not received
actual notice of the hearing, and she also argued that the ALJs decision
should be reversed on the merits.
On July 30, 1999, the Review Board affirmed the ALJs decision and adopted
and incorporated by reference the ALJs findings of fact and conclusions of law.
The Review Board did not address Scotts allegation that she had not
received actual notice of the hearing.
DISCUSSION AND DECISION
On judicial review of an unemployment compensation proceeding, we determine whether the decision
of the Review Board is reasonable in light of its findings. Browning-Ferris
Indus. v. Review Bd. of Ind. Dept of Workforce Dev., 693 N.E.2d
1351, 1353 (Ind. Ct. App. 1998). We are bound by the Review
Boards resolution of all factual matters; thus, we neither reweigh evidence nor reassess
witness credibility. Id. Rather, we consider only the evidence most favorable
to the Boards decision and the reasonable inferences to be drawn therefrom, and
if there is substantial evidence of probative value to support the Boards conclusion,
it will not be set aside. Id. When, however, an appeal
involves a question of law, we are not bound by the agencys interpretation
of law, and we will reverse a decision if the Board incorrectly interprets
a statute. Id.; Duvall v. ICI Americas, Inc., 621 N.E.2d 1122, 1124
(Ind. Ct. App. 1993).
Scott contends that the Review Board deprived her of her right to a
hearing on the merits of her case. The Review Board counters that
Scott was provided with notice and an opportunity to be heard when notice
was mailed on June 25, 1999, more than ten days prior to the
hearing date, in accordance with Indiana Code Section 22-4-17-6. A determination whether
Scott is entitled to a new hearing requires construction of the Indiana Employment
Security Act (the Act), Indiana Code Section 22-4-17-1 et seq. The Act
is given a liberal construction in favor of employees because it is social
legislation meriting such construction in order to promote its underlying humanitarian purposes.
Horvath v. Review Bd. of Ind. Employment Sec. Div., 503 N.E.2d 441, 443
(Ind. Ct. App. 1987).
The Act provides that parties to a disputed claim for unemployment benefits are
to be afforded a reasonable opportunity for fair hearing. Ind. Code §
22-4-17-3. We interpret this provision to mean that a reasonable opportunity for
fair hearing must include reasonable notice, which requires that parties receive actual, timely
notice. See Carter v. Review Bd. of the Ind. Dept of Employment
and Training Servs., 526 N.E.2d 717, 719 (Ind. Ct. App. 1988), trans. denied.;
Fruehauf Corp. v. Review Bd. of the Ind. Employment Sec. Div., 448 N.E.2d
1193, 1196 & n.3 (Ind. Ct. App. 1983). Where, as here, an
administrative agency does in fact send notice through the regular course of mail,
a presumption arises that such notice is received. Carter, 526 N.E.2d at
718-719. However, that presumption is rebuttable. Id. at 719. Because
both parties agree that Scott did not receive actual notice of the July
6, 1999 hearing until July 11, 1999, Record at 2-4, the presumption of
receipt is rebutted, and we conclude that Scott did not have a reasonable
opportunity for a fair hearing on the merits of her case.
While the facts in this case differ from those in Carter, the reasoning
in Carter supports our determination that this matter should be remanded for a
hearing on the merits. In addressing the notice issue, we said that
Carter cannot be found to have been afforded an opportunity to be heard
as mandated by the doctrine of procedural due process, if he was not
apprised of the time and place of the referees hearing. Carter, 526
N.E.2d at 719. There was a factual dispute in Carter on whether
the claimant had received notice of the hearing, so we remanded for a
hearing on Carters claim of inadequate notice. Id.
Here, there is no factual dispute regarding notice. Because Scott and the
Review Board agree that Scott did not receive actual notice of the hearing
until after it had occurred, Record at 2-4, there is no reason to
remand for a hearing on that issue.
See footnote Rather, a hearing on the
merits is warranted.
Although our courts have not been confronted with the factual scenario presented here,
the Supreme Court of Iowa squarely addressed this issue in Eves v. Employment
Security Commn, 211 N.W.2d 324 (Iowa 1973) (cited with approval in Fruehauf, 448
N.E.2d at 1196 n.3). In Eves, the claimant was on vacation when
notice of a hearing on the denial of his unemployment benefits arrived at
his home, so he did not receive actual notice of the hearing until
after it had occurred. The court affirmed the district courts remand for
a hearing on the merits. At the same time, the court reaffirmed
the long-standing presumption of receipt of notice when a notice is properly addressed
and mailed according to postal laws and regulations. Id. at 327.
We likewise reaffirm that presumption but also recognize that such a presumption is
plainly inoperative to confer jurisdiction when the parties concede notice was not received
in time to be of any benefit to the addressee.
See footnote
Id.
The Review Board erred when it affirmed the ALJs decision denying Scott unemployment
benefits. Scott did not receive actual notice. Thus, she was not
afforded a reasonable opportunity for a fair hearing. Scott is entitled to
a hearing on the merits before the ALJ.
Reversed and remanded.
ROBB, J., and BROOK, J., concur.
Footnote:
The Review Board suggests that the notice issue should be remanded
pursuant to the doctrine of primary jurisdiction. Generally, the doctrine does not
apply where, as here, the agency is one of the parties to the
appeal.
Austin Lakes Joint Venture v. Avon Utilities, Inc., 648 N.E.2d
641, 648 (Ind. 1995). Further, Scott raised the notice issue in her
Request for Appeal, and the Review Board ruled on the issue when it
denied her Request and affirmed the ALJs determination. Once a decision is
rendered by an agency, that decision is subject to judicial review by the
court. Johnson Oil Co., Inc. v. Area Plan Commn of Evansville and
Vanderburgh County, 715 N.E.2d 1011, 1014.
Footnote:
In most cases, it will be difficult to overcome the presumption
that a notice of hearing properly addressed and mailed was received. As
a practical matter, it is difficult to prove a negative, i.e., that notice
was not received in this case.
See Elkins v. United States, 364
U.S. 206, 218 (1960). Scott was spared this conundrum because the parties
have agreed that she did not receive notice before the hearing.