STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS

PROVIDENCE, SC DISTRICT COURT , SIXTH DIVISION  

SUSAN ROZZERO                                   

V.     :   A.A. 03-88

 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 Susan Rozzero, 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 upheld the finding of the Referee that the claimant, Susan Rozzero, was not entitled to receive employment security benefits and that recovery of wrongfully paid benefits would not defeat the purposes of the Act.

            The travel of the case is as follows.  The claimant had previously been in receipt of Employment Security benefits.  She subsequently reopened her claim and continued to receive Employment Security benefits.  In a decision dated May 9, 2003, the Director determined that the claimant did not meet the availability requirements under the provisions of Section 28-44-12, and the claimant was declared overpaid under the provisions of Section 28-42-68 of the Rhode Island Employment Security Act.  The claimant filed a timely appeal.  A hearing on the appeal was scheduled.  A Notice of Hearing was sent to all interested parties.  The hearing was held on June 2, 2003.  The claimant appeared and testified. The claimant’s testimony is in conflict with her prior statements of record and evidence of record.

            The Referee held the claimant was not entitled to receive unemployment security benefits, based on the determination that claimant did not meet the requirements of availability; and further, benefits were subject to recovery pursuant to 28-42-68.

            Thereafter, a timely appeal was filed and the matter was heard by the Board of Review.  The Board determined that the Referee’s decision was a proper adjudication of the facts, and upheld the Referee’s decision.  Thereafter, Susan Rozzero 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 a proper adjudication of the facts and that the claimant did not meet the availability requirements of 28-44-12, and that benefits paid were subject to recovery pursuant to 28-42-68 was supported by reliable, probative, and substantial evidence in the record and whether or not it was clearly erroneous.

            The Board of Review adopted the following findings of fact of the Referee:

“The claimant was hired by Contenti Company and worked for this employer one day on March 31, 2003.  She was scheduled to work for the remainder of that week.  The claimant, however, was disenchanted with the job and notified the employer that she needed time off for personal reasons.  The claimant took the time off in order to seek other employment.  She reopened her claim for Employment Security benefits during this period at issue indicating that she was unemployed from this employer due to a lack of work status.  The employer instead notified the Department that the claimant had taken time out on her own.  The claimant had an interview with the Department of Labor and Training and during that interview, indicated that she took the time out due to family illness.  The claimant now alleges that that representation was false and she was actually seeking other employment.  The claimant subsequently returned back to this employer on April 21, 2003 when she was not successful securing other employment.”

 

            The Board of Review adopted the following conclusions of the Referee:

“The first issue in this case is whether or not the claimant meets the availability requirements under the provisions of Section 28-44-12 of the Rhode Island Employment Security Act for the period at issue.

 

The evidence presented establishes that in this particular case, work was available to the claimant with this employer but it was the claimant that decided not to work for this employer because she desired to seek other employment.  The claimant, therefore, does not meet the availability requirements under the provisions of Section 28-44-12 of the Rhode Island Employment Security Act.

 

The second issue in the case is whether or not the claimant is overpaid and subject to recovery of the overpayment under the provisions of Section 28-42-68 of the Rhode Island Employment Security Act.

 

28-42-68. RECOVERY OF ERRONEOUSLY PAID BENEFITS. - (a) Any individual who, by reason of a mistake or misrepresentation made by himself or another, has received any sum as benefits under chapters 42 -- 44, in any week in which any condition for the receipt of the benefits imposed by those chapters was not fulfilled by him or her, or with respect to any week in which he or she was disqualified from receiving those benefits, shall in the discretion of the director be liable to have such that sum deducted from any future benefits payable to him or her under those chapters, or shall be liable to repay to the director for the employment security fund a sum equal to the amount so received, plus, if the benefits were received as a result of misrepresentation or fraud by the recipient, interest thereon at the rate set forth in section 28-43-15.  That sum shall be collectible in the manner provided in section 28-43-18 for the collection of past due contributions.  All interest received hereunder shall be credited to the unemployment security interest fund created by section 28-42-75.

 

(b)  There shall be no recovery of payments from any person who, in the judgment of the director, is without fault on his or her part and where, in the judgment of the director, that recovery would defeat the purpose of chapters 42 -- 44 of this title.

 

In order for an overpayment to be not recoverable from the claimant it must be established that: (1) the overpayment is not as a direct result of fault on the part of the claimant, and (2) recovery of the amount would defeat the purpose of the Rhode Island Employment Security Act.  Both aspects must be satisfied in order for the department to be barred from recovery.

 

The evidence presented on this issue establishes that the claimant is in fact overpaid and that the overpayment is as a result of misrepresentation on the part of the claimant when she first reopened her claim indicating that she was unemployed due to a lack of work status from this employer.  In addition, that situation was further compounded when the claimant gave false statements to the Department of Labor and Training regarding her reason for not working for this employer.  I hold that the overpayment is subject to recovery in accordance with the provisions of Section 28-42-68 of the Rhode Island Employment Security Act.”

 

            In the appeal from the decision of the Board of Review, the claimant alleges that she was unhappy with the job because she was not paid the hourly wages agreed upon, and that the working conditions were unsatisfactory.

            There is evidence on the record to substantiate the findings of fact of the Referee, as adopted by the Board of Review, that the claimant worked for her employer for one (1) day, March 13, 2003, and was scheduled to work for the remainder of the week.  The following day the claimant notified the employer that she needed time off for personal reasons.  During this period of time, she reopened her claim for unemployment benefits and indicated that her leaving was due to family illness.  During the hearing, she indicated that this allegation was false and that she was seeking other employment.

            The record shows that she returned to her employer on April 21, 2003.

            A review of the entire record supports the findings and conclusions that the claimant left her employment voluntarily to seek other employment; however, work was available to her during this period of time.  Since work was available and, as a matter of fact is demonstrated by her return to the same employer, the facts demonstrate that she did not meet the availability requirements of Section 28-44-12.

            On the second issue of recovery of wrongfully paid benefits pursuant to 28-42-68, the findings and conclusions, supported by the evidence, are that the claimant knowingly gave false and misleading statements to the Department of Labor and Training for her not working for this employer.  Therefore, the overpayment is as a direct result of fault on the part of the claimant.

            In this case, recovery of wrongfully paid benefits would not defeat the purposes of the Act.

A review of the entire record demonstrates that there is 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 not “clearly erroneous in view of the reliable, probative and substantial evidence on the whole record,” and that said decision was not “arbitrary or capricious or characterized by abuse of discretion or clearly unwarranted exercise of discretion.”  Rhode Island General Laws § 42-35-15(g)(5)(6).

            Accordingly, the decision of the Board is hereby affirmed.