STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

PROVIDENCE, SC DISTRICT COURT , SIXTH DIVISION

KAREN HARVEY:

V.  : A.A. 03-75

DEPARTMENT OF LABOR AND TRAINING, BOARD OF REVIEW :

 

  

D E C I S I O N

DEROBBIO, C.J.  This matter is before the Court on the complaint of Karen Harvey, filed pursuant to Rhode Island General Laws § 42-35-15, seeking judicial review of a final decision rendered by the respondent, Board of Review, Department of Labor and Training, which reversed the finding of the Referee that the claimant, Karen Harvey was entitled to receive employment security benefits.

            The travel of the case is as follows.  The claimant was employed for approximately 33 months.  The claimant’s last day of work was March 13, 2003.  The claimant filed for Employment Security benefits on March 25, 2003.

On April 4, 2003 the Director determined that the claimant was discharged under disqualifying circumstances according to the provisions of Section 28-44-18 of the Rhode Island Employment Security Act.  On April 7, 2003 the claimant appealed the Director’s decision.

A hearing was held before a Referee on April 29, 2003. Only the claimant was present.  On April 30, 2003 the Referee concluded that the preponderance of the evidence did not prove misconduct.  The claimant was allowed benefits.  On May 12, 2003 the employer filed an appeal with the Board of Review.

A hearing was held before the full Board of Review on May 29, 2003.  The claimant, a witness for the claimant, the employer and a witness for the employer were present.

The Board determined that the Referee’s decision was not a proper adjudication of the facts, and reversed the Referee's decision. Thereafter, Karen Harvey filed a complaint for judicial review; jurisdiction for review of the decisions of the Board is vested in the District Court by Rhode Island General Laws § 28-44-52.

            The standard of review is provided by Rhode Island General Laws § 42-35-15(g), a section of the state Administrative Procedures Act, which provides as follows:

42-35-15.  Judicial review of contested cases.

 (g) The court shall not substitute its judgment for that of the agency as to the weight of the evidence on questions of fact.  The court may affirm the decision of the agency or remand the case for further proceedings, or it may reverse or modify the decision if substantial rights of the appellant have been prejudiced because the administrative findings, inferences, conclusions, or decisions are:

 

(1) In violation of constitutional or statutory provisions;

(2) In excess of the statutory authority of the agency;

(3) Made upon unlawful procedure;

(4) Affected by other error of law;

(5) Clearly erroneous in view of the reliable,                                                                        probative, and substantial evidence on the whole record; or

(6) Arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.

 

Thus, on questions of fact, the District Court ". . . may not substitute its judgment for that of the agency and must affirm the decision of the agency unless its findings are clearly erroneous.”  Guarino v. Department of Social Welfare, 122 R.I. 583, 584, 410 A.2d 425 (1980) citing Rhode Island General Laws § 42-35-15(g)(5).  The Court will not substitute its judgment for that of the Board as to the weight of the evidence on questions of fact.  Cahoone v. Board of Review of the Department of Employment Security, 104 R.I. 503, 246 A.2d 213 (1968).  Stated differently, the findings of the agency will be upheld even though a reasonable mind might have reached a contrary result.  Cahoone v. Board of Review of Department of Employment Security, 104 R.I. 503, 246 A.2d 213, 215 (1968).  See also D'Ambra v. Board of Review, Department of Employment Security, 517 A.2d 1039, 1041 (R.I. 1986).

The Court has recognized that a liberal interpretation shall be utilized in construing and applying the Employment Security Act:

. . . eligibility for benefits is to be determined in the light of the expressed legislative policy that "Chapters 42 to 44, inclusive, of this title shall be construed liberally in aid of their declared purpose which declared purpose is to lighten the burden which now falls upon the unemployed worker and his family.”  G.L.1956, § 28-42-73. The legislature having thus declared a policy of liberal construction, this court, in construing the act, must seek to give as broad an effect to its humanitarian purpose as it reasonably may in the circumstances.  Of course, compliance with the legislative policy does not warrant an extension of eligibility by this court to any person or class of persons not intended by the legislature to share in the benefits of the act; but neither does it permit this court to enlarge the exclusionary effect of expressed restrictions on eligibility under the guise of construing such provisions of the act.  Harraka v. Board of Review of Department of Employment Security, 98 R.I. 197, 201, 200 A.2d 595, 597 (1964).

 

            The issue before the Court is whether the Board’s determination that the Referee’s decision was not a proper adjudication of the facts and that the claimant was discharged under disqualifying circumstances was supported by reliable, probative, and substantial evidence in the record and whether or not it was clearly erroneous.

      A majority of the Board of Review made the following findings of fact:

“The claimant was employed as a teacher. On the claimant’s last day of work the employer had scheduled a staff meeting to discuss a number of issues including, but not limited to, the employer’s concern that the staff was not performing in accordance with employer expectations.  The claimant became upset as a result of the comments made at the meeting.  At the end of the meeting the claimant followed the employer into the employer’s office.  The claimant confronted the employer in a loud voice.  The discussion became a verbal altercation and the claimant was asked to leave the office.  The claimant refused.  The employer told the claimant to leave and to hand in her keys.  The claimant refused.  When the employer told the claimant that she was calling the police, the claimant left the office.”

 

      A majority of the Board of Review made the following conclusions:

 

“The issue in this case is whether or not the claimant was discharged under disqualifying circumstances within the provisions of Section 28-44-18 of the Rhode Island Employment Security Act.

 

Section 28-44-18 provides, in part, as follows:

 

For the purposes of this section, ‘misconduct’ shall be defined as deliberate conduct in willful disregard of the employer’s interest, or a knowing violation of a reasonable and uniformly enforced rule or policy of the employer, provided that such violation is not shown to be as a result of the employee’s incompetence.  Notwithstanding any other provisions of chapters 42 -- 44 of this title, this section shall be construed in a manner which is fair and reasonable to both the employer and the employed worker.

 

Unlike the hearing before the Referee, the employer presented testimony and argument before the Board.  The testimony is substantially similar except for the contents of the language used between the parties.  However, except for this latter conflict, the record established that after a staff meeting, a verbal altercation occurred between the claimant and the employer, in the employer’s office.

 

The credible testimony established that the claimant began the discussion by going to the employer’s office.  The discussion between the parties came about after a staff meeting.  The rest of the staff departed after the meeting, with the exception of the claimant, who vented her feelings toward the employer.  The discussion became more intense and the credible evidence is that the claimant refused to leave the employer’s office when directed by the employer.  At the time the claimant refused to leave the office, the discussion had progressed to a verbal altercation.  The claimant’s refusal to withdraw from the office as directed by the employer and her inappropriate remarks were deliberate acts of insubordination. The employer has proved misconduct, and the claimant is not eligible to receive Employment Security benefits under Section 28-44-18 of the Act.”

 

            Section 28-44-18 of the General Laws of the state of Rhode Island provides:

28-44-18.  Discharge for misconduct.  --  An individual who has been discharged for proved misconduct connected with his or her work shall thereby become ineligible for waiting period credit or benefits for the week in which that discharge occurred and until he or she establishes to the satisfaction of the director that he or she has, subsequent to that discharge, had at least eight (8) weeks of work, and in each of that eight (8) weeks has had earnings of at least twenty (20) times the minimum hourly wage as defined in chapter 12 of this title for performing services in employment for one or more employers subject to chapters 42 - 44 of this title; provided, however, that any individual who is required to leave his or her work pursuant to a plan, system, or program, public or private, providing for retirement, and who is otherwise eligible, shall under no circumstances be deemed to have been discharged for misconduct.  However, if an individual is discharged and a complaint is issued by the regional office of the national labor relations board or the state labor relations board that an unfair labor practice has occurred in relation to the discharge, the individual shall be entitled to benefits if otherwise eligible.  For the purposes of this section, "misconduct" shall be defined as deliberate conduct in willful disregard of the employer's interest, or a knowing violation of a reasonable and uniformly enforced rule or policy of the employer, provided that such violation is not shown to be as a result of the employee's incompetence.  Notwithstanding any other provisions of chapters 42 - 44 of this title, this section shall be construed in a manner which is fair and reasonable to both the employer and the employed worker.

 

      The standard for defining “misconduct” under section eighteen was provided by the Rhode Island Supreme Court in Turner v. Department of Employment Security, 479 A.2d 740, 741-42 (R.I. 1984), in which the Court quoted from Boynton Cab Co. v. Neubeck, 237 Wis. 249, 259-60, 296 N.W. 636, 640  (1940):

'[M]isconduct' . . . is limited to conduct evincing such wilful or wanton disregard of an employer's interests as is found in deliberate violations or disregard of standards of behavior which the employer has the right to expect of his employee, or in carelessness or negligence of such degree or recurrence as to manifest equal culpability, wrongful intent or evil design, or to show an intentional and substantial disregard of the employee's duties and obligations to his employer.  On the other hand mere inefficiency, unsatisfactory conduct, failure in good performance as the result of inability or incapacity, inadvertencies or ordinary negligence in isolated instances, or good faith errors in judgment or discretion are not to be deemed 'misconduct' within the meaning of the statute.

 

The record demonstrates that there is evidence that the claimant and the employer had a verbal confrontation which became heated and that the claimant refused to withdraw from the employer’s office when directed and only left when threatened by police action.  In this case, there is some evidence presented of a personal relationship between the parties.

This one incident appears to be an isolated incident of bad judgment.  The Court, in a review of the record, finds that this conduct does not rise to the level of misconduct as defined by Turner v. Department of Employment Security.

The Court in this case, based upon the evidence, adopts the decision as stated in the dissenting opinion of the Board of Review, which is as follows:

“I view the facts as an isolated incident of bad judgment.  The record established that there was a difficult meeting in which the staff, in general, was called to task.  The claimant took exception to the comments, and it is reasonable that she might take the remarks personally.  This is the reason that caused the claimant to confront the employer.”

 

      A review of the entire record demonstrates that there is not substantial, probative and reliable evidence to support the findings of fact, conclusions and decision of the Board of Review.

      On findings of fact, as to the weight of the evidence, this Court shall not substitute its judgment for that of the administrative agency.

            The scope of judicial review by the Court is limited by Section 28-44-54 which in its pertinent part provides:

28-44-54.  Scope of judicial review - Additional evidence - Precedence of proceedings. - The jurisdiction of the reviewing court shall be confined to questions of law, and, in the absence of fraud, the findings of fact by the board of review, if supported by substantial evidence regardless of statutory or common law rules, shall be conclusive.

 

            Upon careful review of the evidence, this Court finds that the decision of the Board was "clearly erroneous in view of the reliable, probative and substantial evidence on the whole record," and that said decision was "arbitrary and capricious and characterized by abuse of discretion and clearly unwarranted exercise of discretion."  Rhode Island General Laws § 42-35-15(g)(5)(6).

            Accordingly, the decision of the Board is hereby reversed.