RENDERED: AUGUST 17, 2007; 2:00 P.M. 
NOT TO BE PUBLISHED 
Commonwealth of Kentucky 
Court of Appeals 
NO. 2006-CA-001674-MR 
KENTUCKY UNEMPLOYMENT 
INSURANCE COMMISSION 
APPELLANT 
v. 
APPEAL FROM WOLFE CIRCUIT COURT 
HONORABLE WILLIAM LARRY MILLER, JUDGE 
ACTION NO. 01-CI-00198 
HELEN R. SPENCER APPELLEE 
OPINION 
REVERSING AND REMANDING 
** ** ** ** ** 
BEFORE: ABRAMSON AND DIXON, JUDGES; ROSENBLUM,1 SENIOR JUDGE. 
ABRAMSON, JUDGE: 

The Kentucky Unemployment Insurance Commission (KUIC) 
appeals from a July 17, 2006 Order of the Wolfe Circuit Court reinstating unemployment 
insurance benefits for Helen Spencer, a former clerk at the ARH Medical Clinic in 
Campton, Kentucky. Spencer applied for benefits in June 2001 after ARH discharged her 
for allegedly disregarding a doctor’s order specifying Spencer’s lunch hour. A referee 
awarded benefits, but, deeming Spencer’s discharge one for “misconduct” under KRS 

341.370, KUIC reversed the award and ruled that Spencer was not eligible for benefits. 
Pursuant to KRS 341.450, Spencer then filed a complaint in the circuit court seeking 
review of KUIC’s ruling. The court agreed with Spencer that her tardy return from lunch 
did not amount to “misconduct” under the statute and so reinstated her award. Appealing 
from that Order, KUIC contends that by failing to name ARH as a party in her complaint 
Spencer neglected a statutory requirement and thus failed to invoke the circuit court’s 
jurisdiction. We are obliged to agree and so must reverse the Order of the circuit court 
and remand for dismissal of Spencer’s complaint. 

KRS 341.450 provides for judicial review of KUIC decisions as follows: 

(1) Except as provided in KRS 341.460, within twenty (20) 
days after the date of the decisions of the commission, any 
party aggrieved thereby may, after exhausting his remedies 
before the commission, secure judicial review thereof by 
filing a complaint against the commission in the Circuit Court 
of the county in which the claimant was last employed by a 
subject employer whose reserve account or reimbursing 
employer account is affected by such claims. Any other party 
to the proceeding before the commission shall be made a 
defendant in such action. The complaint shall state fully the 
grounds upon which review is sought, assign all errors relied 
on, and shall be verified by the plaintiff or his attorney. The 
plaintiff shall furnish copies thereof for each defendant to the 
commission, which shall deliver one (1) copy to each 
defendant. 

(Emphasis supplied.) As KUIC correctly notes, in Kentucky Unemployment Insurance 
Commission v. Carter, 689 S.W.2d 360 (Ky. 1985), our Supreme Court held that this 
statute requires strict compliance and that “when an employer has been a party before the 
Commission, an aggrieved employee must join said employer as a party to the lawsuit. 

Id. At 360. There was no joinder in that case, and the failure to join the employer, the 
Court explained, meant that “the conditions for the exercise of power by a court [were] 
not met, the judicial power [was] not lawfully invoked. That is to say, that the court 
lack[ed] jurisdiction or ha[d] no right to decide the controversy.” Id. at 362 (citing Board 
of Adjustments of City of Richmond v. Flood, 581 S.W.2d 1 (Ky. 1978) (internal 
quotation marks omitted)). Thus, the deficient complaint in that case should have been 
dismissed, the Court ruled, notwithstanding the claimant’s belated motion to join the 
employer by amendment. 

In this case, too, the employer, ARH, was a party before the Commission, 
but Spencer failed to join it as a party to her circuit court complaint within the twenty day 
limitations period. Under Carter, therefore, her complaint should have been dismissed as 
inadequate to invoke the circuit court’s jurisdiction, and the court should not have 
entertained her amended complaint, which belatedly did include ARH. 

Seeking to avoid this result, Spencer contends that Carter’s strict 
compliance standard has been implicitly overruled by subsequent cases in which our 
Supreme Court has required only substantial compliance with certain provisions of CR 
73, the rule governing ordinary appeals of right in civil actions.2 On the contrary, 
however, in Hutchins v. General Electric Company, 190 S.W.3d 333 (Ky. 2006), our 
Supreme Court recently cited Carter with approval for the proposition that “[t]he right to 
appeal the decision of an administrative agency to a court is a matter of legislative grace; 
therefore, the statutory conditions for invoking the power of the court to hear such an 
appeal are strictly construed.” Id. At 336-37. Thus, Carter’s requirement of strict 
compliance with KRS 341.450 remains the law and, as noted, under Carter Spencer’s 
deficient complaint was fatal to her claim. Accordingly, we must reverse the July 17, 
2006 Order of the Wolfe Circuit Court and remand for entry of an order dismissing 
Spencer’s complaint. 

ALL CONCUR.