COURT OF APPEALS OF OHIO, EIGHTH DISTRICT
COUNTY OF CUYAHOGA
NO. 86338
ELLIOTT D. FISHER, :
Plaintiff-Appellant :
v. :
BILL LAKE BUICK, ET AL., :
Defendant-Appellee :
DATE OF ANNOUNCEMENT
OF DECISION: FEBRUARY 2, 2006
CHARACTER OF PROCEEDING: Civil Appeal from
Common Pleas Court,
Case No. CV-536719.
JUDGMENT: AFFIRMED.
APPEARANCES:
For Plaintiff-Appellant: Martin T. Galvin
Reminger & Reminger Co., LPA
1400 Midland Building
101 Prospect Avenue, West
Cleveland, OH 44113-1093
For Defendants-Appellees: Mark Fusco
(Bill Lake Buick) Wargo & Wargo
30 Park Drive
P.O. Box 332
Berea, OH 44017
(Director, Ohio Department Jim Petro
of Job and Family Services) Attorney General of Ohio
Laurel Blum Mazorow
Patrick MacQueeney
Assistant Attorneys General
Health and Human Services Section
Unemployment Compensation Unit
State Office Bldg, 11th Floor
615 W. Superior Avenue
Cleveland, OH 44113-1899
CHRISTINE T. McMONAGLE, J.:
{¶ 1} Appellant, Elliott D. Fisher (“Fisher”), appeals from the
judgment of the Common Pleas Court that affirmed the finding of the
Unemployment Compensation Review Commission (the “Commission”) that
he quit his job without just cause and is therefore not entitled to
unemployment benefits. We affirm.
{¶ 2} Fisher filed an application for unemployment compensation
benefits for the week ending February 14, 2004. Appellee Director,
Ohio Department of Job and Family Services, denied the claim,
finding that Fisher quit his employment without just cause and was
not entitled to benefits. Fisher appealed this determination; the
Director subsequently reversed the initial determination and found
that Fisher was separated from employment due to lack of work. The
Employer appealed the redetermination decision and Appellee
transferred jurisdiction to the Commission, which assigned the
matter to a hearing officer.
{¶ 3} Fisher and William Lake, the owner and former president
of Bill Lake Buick, testified at the hearing. Fisher was employed
as a used car manager at Bill Lake Buick from February 5, 2000 to
January 14, 2004. Lake testified that at the recommendation of a
consultant, in December 2003, he and his son, Greg Lake, president
of Bill Lake Buick, began reorganizing the management structure at
the dealership. At that time, the dealership had a general sales
manager, who worked part-time, a new car manager and a used car
manager (Fisher). Because the general sales manager was retiring,
William and Greg Lake decided to combine his duties with those of
the new car and used car managers into one full-time position.
{¶ 4} Lake testified that Fisher was offered the position of
general sales manager, but declined the offer because “he was
afraid he couldn’t do it.” Consequently, in early January 2004,
Bill Lake Buick hired a new general sales manager. According to
William Lake, Fisher was asked to train the new manager and his pay
structure did not change during this training period. Lake
testified further that he had no intention of terminating Fisher’s
employment, although the dealership had not yet determined what his
new job or pay under the new general sales manager were going to
be. According to Lake, “we were trying to figure out how we were
going to organize from that position down. *** We weren’t sure yet
because the new guy had just started. And so we didn’t really know
what was going to happen. *** It was a work in progress.”
{¶ 5} Around the same time as the new general sales manager was
hired, the dealership eliminated its policy of allowing its
managers and sales people to drive “demonstrator cars.” Instead,
it allowed these employees to lease a new car or purchase certain
used cars from the dealership at a substantially reduced price. An
employee was required to wait at least 30 days after the dealership
took a car in trade and then, if the car had not sold off the lot,
the employee could negotiate a purchase price for it at $100 or
$200 over cost.
{¶ 6} Lake testified that he and Fisher spoke several times
about Fisher’s purchase of a Mercedes which the dealership had just
taken in trade and for which it had paid the owner $2650. Lake
told Fisher that he would have to pay $3500 to buy it. Unknown to
William Lake, however, Fisher then spoke with Greg Lake, who agreed
that he could buy the Mercedes for $100 over cost.
{¶ 7} On January 14, 2004, William Lake was in his office at
the dealership and learned that Fisher had put through a deal to
purchase the Mercedes for $100 over cost. Lake asked the title
clerk at the dealership to stop the deal, which she did. When
Fisher learned from an employee of the title company that the deal
had been stopped, he became upset, told the new general sales
manager that he was quitting and left. Two days later, Bill Lake
Buick sold the Mercedes to another buyer for $5000.
{¶ 8} Fisher denied that the dispute over his purchase of the
Mercedes was related to his termination. He insisted that his job
had been eliminated, although he admitted that no one had told him
that January 14th would be his last day of employment.
Furthermore, he agreed that he could have remained working at Bill
Lake Buick, although not in his prior position as used car manager.
He further agreed that as of January 14, 2004, “nobody’s pay plan
had really changed” because “we were told that we would still be
paid as long as we had agreed to train the new general sales
manager.” Finally, he agreed that Bill Lake Buick had offered him
the position of general sales manager, but admitted that he had
expressed some reservations to Greg Lake about his ability to
manage the same sales people who had taught him how to sell cars.
{¶ 9} Fisher testified that he was “in limbo” after the new
general sales manager was hired, because no one told him what his
new job at the dealership was going to be. Upon questioning by
William Lake, he admitted that he walked away from his job in
anger:
{¶ 10} “Q. At the time you quit exactly what your title was was
in limbo. But at the time you quit, you did not give notice. You
were not told that the day that you quit was the day you were
supposed to leave. You got mad, and correct me if I’m wrong, when
you found out about me stopping the title of this car and you
walked out? You didn’t give notice to Greg. You didn’t tell me.
You told Mike and you stormed out the door. And that was the ***
that was the end of it. *** Is that true or not?
{¶ 11} “A. Yes, that’s true.”
{¶ 12} On June 16, 2004, the hearing officer issued a written
decision modifying the Director’s redetermination. The hearing
officer concluded that Fisher quit his employment without just
cause when he “became upset because the owner stopped the sale of a
Mercedes that had been taken in a trade, that claimant had arranged
to sell to himself for $100 over cost.” Accordingly, the hearing
officer determined that Fisher was not entitled to unemployment
compensation benefits.
{¶ 13} The Review Commission subsequently disallowed Fisher’s
request for review. Fisher then filed an appeal with the Common
Pleas Court, which affirmed the Commission’s decision. Fisher
timely appealed the trial court’s judgment.
{¶ 14} For clarity, we consider Fisher’s arguments out of their
assigned order. In his second assignment of error, Fisher contends
that the trial court erred in affirming the Commission’s decision
because the employer offered only hearsay evidence at the hearing.
{¶ 15} Initially, we disagree with Fisher’s argument that
William Lake’s testimony at the hearing was only hearsay. Lake
testified that he was at his office at the dealership on January
14, 2004, and, upon learning that Fisher had put through a deal to
sell the Mercedes to himself at $100 over cost, asked the title
clerk to stop the deal. Thus, Lake had personal knowledge of the
events which led to Fisher quitting his job and his testimony
regarding those events was obviously not hearsay. William Lake
also testified that he and his son Greg had extensive discussions
regarding the reorganization of the dealership. Thus, as the owner
of the dealership, William Lake had personal knowledge that
Fisher’s position in the reorganized dealership had not yet been
determined and his testimony regarding these issues was also not
hearsay.
{¶ 16} Furthermore, even if some of Lake’s testimony were
hearsay, such testimony is admissible at administrative hearings.
R.C. 4141.281(C)(2) governs the conduct of hearings in
administrative appeals and states, “Hearing officers are not bound
by common law or statutory rules of evidence or by technical or
formal rules of procedure.” In reviewing this language, found in
former R.C. 4141.28(J), the Supreme Court of Ohio stated:
{¶ 17} “This court previously has not analyzed this specific
segment of R.C. 4141.28(J), however, its meaning is apparent: the
Board of Review and the referee need not apply stringent rules in
determining the admissibility of evidence into the record. The
logical corollary is such evidence placed in the record is not only
admissible but also must be weighed and considered when making a
decision. If evidence which is inadmissible in a court of law is
to be disregarded when and if reviewed, there is no reason to admit
such evidence at the administrative level or for purposes of
subdivision (J) of R.C. 4141.28.” Simon v. Lake Geauga Printing
Co. (1982), 69 Ohio St.2d 41, 43.
{¶ 18} Thus, as this court has recognized:
“It is well settled that a referee may use hearsay evidence in
making unemployment compensation decisions. ‘As a general
rule, administrative agencies are not bound by the strict
rules of evidence applied in a court. The hearsay rule is
relaxed in administrative hearings; however, the discretion to
consider hearsay evidence cannot be exercised in an arbitrary
manner.’” Cully v. Administrator (Oct. 13, 1994), Cuyahoga
App. No. 66187, quoting Haley v. Ohio State Dental Bd. (1982),
7 Ohio App.3d 1, 6.
{¶ 19} In Taylor v. Bd. of Review (1984), 20 Ohio App.3d 297,
this court found that it is unreasonable to give credibility to a
hearsay statement and deny credibility to the claimant testifying
in person where the sworn testimony of the claimant is contradicted
only by hearsay testimony. Fisher argues that we should follow
Taylor in this case and find his sworn testimony credible while
disregarding William Lake’s testimony as hearsay.
{¶ 20} Taylor is easily distinguishable from this case, however.
Unlike Taylor, not all of William Lake’s testimony was hearsay.
Furthermore, in an administrative hearing such as this, the factfinder
is not required to blindly accept sworn testimony over
otherwise inadmissible evidence. Hansman v. Director, ODJFS,
Butler App. No. CA2003-09-224, 2004-Ohio-505. Rather, the duty of
the fact-finder is to weigh and consider the reliability of the
evidence and the credibility of the witnesses. Id. See, also,
Simon, supra.
{¶ 21} The irony of Fisher’s argument is that he asks us to
disregard William Lake’s testimony as hearsay and find that other
hearsay evidence in the record (logs of telephone conversations
between an examiner for the Office of Unemployment Compensation and
the employer) is more credible. We refuse to do so. We find
nothing in this record to indicate that the hearing officer
exercised his discretion to consider hearsay testimony in an
arbitrary manner and, further, we find no error in the hearing
officer’s decision to give weight to such evidence.
{¶ 22} Appellant’s second assignment of error is therefore
overruled.
{¶ 23} In his first assignment of error, Fisher contends that
the trial court erred in affirming the denial of unemployment
benefits because he did not quit his employment with Bill Lake
Buick but was laid off because his job had been eliminated.
{¶ 24} Unlike most administrative appeals where we employ an
abuse of discretion standard, see Lorain City School Dist. Bd. of
Educ. v. State Emp. Relations Bd. (1988), 40 Ohio St.3d 257, 260-
261, our standard of review on appeal from a decision of the
Commission is the same as that of the Common Pleas Court. This
court “may reverse the board’s determination only if it is
unlawful, unreasonable, or against the manifest weight of the
evidence.” Tzangas, Plakas & Mannos v. Ohio Bur. of Emp. Serv., 73
Ohio St.3d 694, 696, 1995-Ohio-206. In making this determination,
we must give deference to the Commission in its role as finder of
fact. Irvine v Unemployment Comp. Bd. of Rev. (1985), 19 Ohio
St.3d 15, 18. We may not reverse the Commission’s decision simply
because “reasonable minds might reach different conclusions.” Id.
On close questions, where the board might reasonably decide either
way, we have no authority to upset the agency’s decision. Id.
Instead, our review is limited to determining whether the
Commission’s decision is unlawful, unreasonable, or totally lacking
in competent, credible evidence to support it. Id. A judgment
supported by some competent, credible evidence going to all the
essential elements of the controversy will not be reversed by a
reviewing court as being against the weight of the evidence. C.E.
Morris Co. v. Foley Construction Co. (1978), 54 Ohio St.2d 279.
{¶ 25} R.C. 4141.29(D)(2)(a) provides that an individual may not
obtain unemployment benefits if he “quit his work without just
cause.” Traditionally, just cause is that which, to an ordinarily
intelligent person, is a justifiable reason for doing or not doing
a particular act. Irvine, supra, at 17. The determination of
whether just cause exists depends on the “unique factual
considerations” of a particular case and is, therefore, primarily
an issue for the trier of fact. Id.
{¶ 26} Fisher argues that the trial court erred in affirming the
decision of the Review Commission because it contained several
factual errors. Specifically, Fisher contends that, contrary to
the decision, he was not still working as the used car manager and
receiving his salary while the new general sales manager was being
trained and he was not offered the general sales manager position.
Fisher stridently contends that, contrary to the Commission’s
recitation of the facts, the “only evidence introduced at the
hearing” and the “only evidence in the record” demonstrates that
his position was terminated prior to January 14, 2004. We
disagree.
{¶ 27} Our review of the record indicates that Fisher was, in
fact, no longer working as the used car manager after the general
sales manager was hired. However, the record also indicates that
Fisher admitted that as of January 14, 2004, his pay structure had
not yet changed. Despite Fisher’s argument to the contrary, the
record clearly indicates that Fisher’s last check from Bill Lake
Buick was for “a mere $37" because the dealership deducted from the
check the monies Fisher owed it for a loan, not because his
compensation had been “drastically reduced.” The record also
reflects that, although Fisher was no longer the used car manager,
the dealership had no intention of terminating his employment and
Greg Lake had told Fisher that he would still have a job, as yet
unspecified, at the dealership, although it would likely be at a
lower pay rate. Finally, the record demonstrates that, although
Fisher may not have formally interviewed for the position of
general sales manager, he was offered the job but turned it down.
During the hearing, Fisher testified, “The job was offered to me.
I did speak with Greg Lake about it. I had some reservation about
how effective I would be within a sales staff of people that taught
me how to sell cars.”
{¶ 28} In light of this evidence, it is apparent that the
immediate cause of Fisher’s separation from employment was his
actions, not those of the dealership. Indeed, Fisher admitted at
the hearing that no one had told him that January 14, 2004 was his
last day of employment, but, on that day, when he found out that
William Lake had stopped the sale of the Mercedes to him, he got
mad and quit.
{¶ 29} This case is easily distinguishable from those cited by
Fisher. In Robb v. Director, Lake App. No. 2002-L-060, 2003-Ohio-
6972, the employee was found to have quit with just cause when his
employer told him that he would be fired if he did not resign.
Likewise, in Daugherty v. Admin. (1984), 21 Ohio App.3d 1, the
court found it apparent that the employee had just cause to quit
because, when she announced that she planned to marry a co-worker,
her employer advised her to quit because two persons married to
each other could not work at the store. Similarly, in Frato v.
Ohio Bur. of Employment Serv. (1991), 77 Ohio App.3d 193, the court
determined that the employee quit with just cause because, when she
attempted to return to work from maternity leave, her employer
refused to set a return date and continually made excuses as to why
she could not return to work.
{¶ 30} Fisher was not asked to resign. In fact, he was offered
the position of general sales manager, but turned it down. Even
after he turned it down, he was told that he would continue to have
a job at the dealership. As of the day that he quit, Fisher’s pay
had not changed. The inescapable conclusion is that Fisher quit
his job without a justifiable reason.
{¶ 31} Fisher admitted that he quit his job because he was angry
that William Lake had stopped his purchase of the Mercedes.
Generally, an employee who quits his job because of a problem with
working conditions must make reasonable efforts to solve the
problem before quitting. Roach v. Administrator (July 20, 2000),
Cuyahoga App. No. 76661, citing DiGiannantoni v. Wedgewater Animal
Hosp., Inc. (1996), 109 Ohio App.3d 300, 308. The employee must
attempt to notify the employer of the problem and give the employer
an opportunity to correct the problem. Id. Fisher offered no
evidence that he made any attempt to resolve the dispute about the
Mercedes before he walked off the job in anger. Accordingly, he
quit without just cause and, therefore, is not entitled to
unemployment benefits.
{¶ 32} Appellant’s second assignment of error is overruled.
Affirmed.
It is ordered that appellee recover of appellant costs herein
taxed.
The court finds there were reasonable grounds for this appeal.
It is ordered that a special mandate issue out of this court
directing the Common Pleas Court to carry this judgment into
execution.
A certified copy of this entry shall constitute the mandate
pursuant to Rule 27 of the Rules of Appellate Procedure.
CHRISTINE T. McMONAGLE
JUDGE
MARY EILEEN KILBANE, P.J., and
MICHAEL J. CORRIGAN, J., CONCUR.