Banks

RENDERED: December 12, 1997; 2:00 p.m.

NOT TO BE PUBLISHED

NO. 96-CA-1943-MR STEVEN BANKS APPELLANT

APPEAL FROM JOHNSON CIRCUIT COURT v. HONORABLE STEPHEN FRAZIER, JUDGE

ACTION NO. 94-CI-510

ASHLAND OIL, INC., and KENTUCKY UNEMPLOYMENT INSURANCE COMMISSION APPELLEES

OPINION AFFIRMING *** *** *** ***

BEFORE: DYCHE, MILLER, and SCHRODER, Judges. MILLER, JUDGE: Steven Banks brings this appeal from a January

22, 1996 judgment of the Johnson Circuit Court. We affirm.

The facts are these: Banks filed a claim for unemployment insurance benefits. Pursuant to a preliminary investigation, the Division of Unemployment Insurance's local office in Prestonsburg, Kentucky, issued a "Notice of Determination" on May 5, 1994. Therein, it determined that Banks was entitled to receive unemployment insurance benefits. Co-appellee Ashland Oil, Inc. (Ashland Oil), appealed the Notice of Determination to an unemployment insurance referee. Ky. Rev. Stat. (KRS) 341.420(2). An evidentiary hearing ensued, and the "Referee Decision" was issued on June 14, 1994. The decision reversed the Notice of Determination and held that Banks was not entitled to unemployment insurance benefits, as he was discharged for misconduct. An appeal ensued to the Kentucky Unemployment Insurance Commission (KUIC), which in turn issued an order remanding the case to the "appeals branch for the scheduling of an additional hearing consistent with this order." The hearing was held, and on November 14, 1994, the KUIC entered an order affirming the Referee Decision. Thereupon, Banks appealed the KUIC's adverse determination to the Johnson Circuit Court. KRS 341.450(1). On January 22, 1996, the circuit court affirmed the KUIC's decision and dismissed Banks's action. This appeal follows.

As an appellate court, we step into the shoes of the circuit court to determine whether the KUIC's decision was arbitrary. See American Beauty Homes Corp. v. Louisville and Jefferson County Planning and Zoning Comm'n, Ky., 379 S.W.2d 450 (1964). Banks contends that the KUIC's decision was not supported by substantial evidence of a probative value and is contrary to the law. As Banks initially filed the claim for unemployment insurance benefits and was denied same, our review does not center upon substantial evidence, but rather upon whether the evidence compels a finding in Banks's favor. See Reo Mechanical v. Barnes, Ky. App., 691 S.W.2d 224 (1985). A finding in favor of Banks would be compelled if the evidence that he produced was so overwhelming that no reasonable person could have reached the KUIC's decision. Id.

The record indicates that Banks tested positive for drug use. Thereupon, Ashland Oil terminated his employment pursuant to the company's drug-free workplace policy. KRS 341.370(1)(b) states that a worker shall be disqualified from receiving unemployment benefits if he was discharged for misconduct. "Misconduct" is defined by KRS 341.370(6) to include a "knowing violation of a reasonable and uniformly enforced rule of an employer." As Banks's drug test was positive, he violated Ashland Oil's drug-free workplace rule. Hence, we are of the opinion that the KUIC correctly concluded that Banks was not entitled to unemployment insurance benefits. Cf. Smith v. Kentucky Unemployment Insurance Commission, Ky. App., 906 S.W.2d 362 (1995). Based upon these facts alone, we are of the opinion that a reasonable person could have reached the KUIC's conclusion that Banks was not entitled to unemployment insurance benefits. Cf. Barnes, supra.

For the foregoing reasons, the order of the circuit court is affirmed.

ALL CONCUR.

BRIEF FOR APPELLANT: Timothy A. Parker Prestonsburg, KY

BRIEF FOR APPELLEE/ASHLAND OIL:

Debra H. Dawahare Charles D. Webb, Jr. Lexington, KY

BRIEF FOR APPELLEE/KUIC: Randall K. Justice Frankfort, KY