STATE OF RHODE ISLAND AND PROVIDENCE PLANTATIONS
PROVIDENCE, SC DISTRICT COURT
, SIXTH DIVISION

TORAY PLASTICS (AMERICA), INC. :

V.  :   A.A. 03-121

DEPARTMENT OF LABOR AND TRAINING, BOARD OF REVIEW :

 

D E C I S I O N

 

LAFAZIA, J.  This matter is before the Court on the complaint of Toray Plastics (America) Inc. (hereinafter Toray), 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 (hereinafter the Department), which reversed the decision of the Referee, and thereby awarded benefits to the claimant Janet Cambra (hereinafter claimant).  The decision is hereby affirmed.

TRAVEL

            The claimant was employed for approximately nine years. She was discharged on July 22, 2003. On July 23, 2003, the claimant filed for Employment Security benefits.

On August 8, 2003, the Director determined that the claimant was discharged under disqualifying circumstances pursuant to the provisions of Section 28-44-18 of the Rhode Island Employment Security Act.  The claimant filed a timely appeal.

A hearing was held on September 8, 2003 before a Referee. The claimant, her attorney, and two employer representatives were present.  On September 10, 2003, the Referee affirmed the decision of the Director concluding that the claimant’s failure to follow the employer’s policy regarding safety procedures constituted misconduct as claimant was on “Final Warning.”  The Referee denied benefits.  The claim was appealed to the Board of Review on September 11, 2003.

As no transcript was available, a de novo hearing was held before the Board of Review on October 7, 2003.  The claimant, her attorney, the employer’s human resource representative, production manager and senior production supervisor were present and provided testimony.

The Board reversed the Referee and found that the claimant was discharged under non-disqualifying circumstances and thereby allowed benefits.  Thereafter, Toray filed a complaint for judicial review.  Jurisdiction for review is vested in the District Court by Rhode Island General Laws § 28-44-52.

STANDARD OF REVIEW

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).

 

DISCUSSION

The Board of Review made the following findings of fact:

“The claimant was employed as a machine operator.  On July 22, 2003, the claimant and a co-worker engaged in squirting water at each other.  A supervisor witnessed her actions.  The employer has a policy, which prohibits certain conduct in the workplace.  The policy provides for the termination of the employee in aggravated cases or in light of an employee’s total employment record.  The co-worker was terminated.  The claimant had previously received a warning from the employer regarding a job performance issue.  That warning provided that future infractions would constitute grounds for termination. The claimant was terminated because of her employment record and her actions on July 23, 2003.”

 

 

     The Board of Review adopted the following conclusions:

“An employer has the right to terminate an unsatisfactory worker.  In the employer’s view, the claimant was an unsatisfactory worker.  The claimant’s conduct on July 22, 2003 violated the employer’s safety policy.  Violation of safety rules is a ground of separation from the employer.

 

However, the issue in awarding or denying Employment Security benefits is whether the claimant’s conduct constitutes misconduct…  The burden is on the employer to prove misconduct under § 28-14-18 of the Act.  Therefore, the focus is on whether the claimant’s actions are deliberate in willful disregard of employers interest or a knowing violation of an enforced rule.”

 

The Board of Review went on to conclude:

 

“The record …. established that the claimant’s actions were a spontaneous response to a co-worker’s action …. her response was not proper … however, it has not been proven that her response was intended to harm the employer’s interest or that she acted knowingly against the employer safety policy ….  We conclude that the claimant’s conduct was an isolated incident of bad judgment rather than misconduct…”

 

The issue before the Court is whether the Board’s determination was supported by reliable, probative, and substantial evidence in the record and whether or not it was clearly erroneous.

Toray alleges that the legal standards applied by the Board represent a revolutionary departure from the requirements of the Act and that as a result, the Board’s decision was affected by an error of law which prejudiced the rights of Toray.

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.

 

            In all cases of discharge, the burden of proof to show misconduct in connection with the work on the part of the claimant rests solely with the employer.

            This Court does not accept the analogies put forth by Toray in its memorandum to reverse the Board’s decision.

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, 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.