SAMUEL S. BELKIN,
APPELLANT
vs.
BOARD OF
REVIEW, OHIO BUREAU OF
EMPLOYMENT SERVICES, ET
AL., APPELLEES
No. 40365
COURT OF APPEALS OF OHIO, EIGHTH APPELLATE DISTRICT, CUYAHOGA
COUNTY
Slip Opinion
February 7, 1980
APPEAL FROM COMMON PLEAS COURT, No.
966,917
COUNSEL
For Plaintiff-Appellant: Alan S.
Belkin
For Defendants-Appellees: Q. Albert Corsi, Asst. Attorney
General
JUDGES
KRUPANSKY, J., JACKSON, P.J. and PRYATEL, J. CONCUR.
AUTHOR: KRUPANSKY
OPINION
JOURNAL ENTRYOPINION
KRUPANSKY, J.:
This cause came on to be heard upon the pleading and the
transcript of the evidence and record in the Common Pleas Court,
and was argued by counsel; on consideration whereof, the court
certifies that in its opinion substantial justice has not been done
the party complaining, as shown by the record of the proceedings
and judgment under review, and judgment of said Common Pleas Court
is reversed. Each assignment of error was reviewed by the court and
upon review the following disposition made:
On August 27, 1976, Samuel S. Belkin, appellant herein, applied
to the Ohio Bureau of Employment Services for a determination of
his rights to unemployment benefits. On September 21, 1976,
appellant was notified his claim was disallowed because he failed
to meet the requirements of R.C. 4141.01(R) as to the validity of
his application, in that he was not unemployed.
On September 22, 1976, appellant requested reconsideration of
that determination, and on October 19, 1976 the decision of
September 21, 1976 was affirmed by the Administrator. Appellant
filed a timely appeal to the Board of Review from the
Administrator's decision and the matter was heard on December 7,
1976.
The testimony at the hearing established the following
facts:
Appellant was an officer and shareholder of Cleveland
Diversified Construction Company since its incorporation in
October, 1975. (Tr. 3)
Appellant's duties as an officer of the corporation included
processing all Unemployment Service, Workmen's Compensation, and
Internal Revenue Service matters, handling the payroll, doing the
company's accounting, and procuring work for the corporation. (Tr.
5) Appellant never received any wages for his services as an
officer of the corporation. (Tr. 11) The business address of the
corporation is the same as that of appellant's residence. (Tr.
4)
The corporation's business was carpentry type work. (Tr. 4) In
late 1975, the corporation obtained a carpentry subcontract from
Transwestern Construction Company and did carpentry work on a
residential construction project. During the duration of this
relationship with Transwestern, Cleveland Diversified Construction
Company employed six carpenters, one of them being appellant.
Cleveland Diversified was paid by Transwestern for work done, and
then issued salaries to the six men. For his services as carpenter
and foreman, appellant received $ 10 per hour, or $ 400week. The
other five carpenters working for Cleveland Diversified received $
9 per hour as wages.
The work for Transwestern terminated in August, 1976. At that
time, appellant having been unable to procure further work for the
corporation, all six carpenters, including appellant, were laid off
the job and removed from the corporation's payroll.
On January 6, 1977, the Board of Review affirmed the
Administrator's decision on reconsideration denying appellant's
claim for unemployment benefits. On February 14, 1977, the Board of
Review disallowed appellant's application for further appeal.
Appellant appealed to the Court of Common Pleas pursuant to R.C.
4141.28(O), which, on January 2, 1979, affirmed the decision of the
Board of Review.
On appeal to this court, appellant assigns the following as
error:
APPELLANT, SAMUEL S. BELKIN (HEREINAFTER REFERRED TO AS
"BELKIN") ASSIGNS AS ERROR THAT IN CONSIDERING HIS APPLICATION FOR
UNEMPLOYMENT BENEFITS THE OHIO BUREAU OF EMPLOYMENT SERVICES FAILED
AND REFUSED TO FIND BELKIN ELIGIBLE FOR BENEFITS IN THAT HE WAS
PARTIALLY UNEMPLOYED AS THAT TERM IS DEFINED IN OHIO REVISED CODE
SECTION 4141.01 (N) AND THUS ENTITLED TO BENEFITS PURSUANT TO OHIO
REVISED CODE SECTION 4141.01 (R). BELKIN FURTHER ASSIGNS AS ERROR
THAT IN AFFIRMING THE DECISION OF THE BOARD OF REVIEW, THE COMMON
PLEAS COURT PERPETUATED THE ERRONEOUS FINDINGS AND APPROACH OF THE
ADMINISTRATIVE AGENCY.
Appellant argues the trial court erred in affirming the decision
of the Board of Review because that decision was contrary to the
unemployment compensation statutes in that it failed to find
appellant was partially unemployed and thus entitled to benefits.
We find merit in this argument.
As pointed out by appellee, the authority of the Common Pleas
Court, and this court on appeal, in an appeal from a decision of
the Unemployment Compensation Board of Review under R.C. 4141.28 is
limited to a determination of whether such decision was unlawful,
unreasonable, or against the manifest weight of the evidence.
Kilgore v. Board of Review (1965), 2 Ohio App. 2d
69, Syl. 1.
The facts of the instant case are not in dispute. In addition to
those set forth previously in this opinion, the findings of fact in
the decision of the Board of Review included the following:
"During claimant's base period which is comprised of the 52
calendar week period beginning August 10, 1975, and ending August
7, 1976, claimant earned $ 12,600.00 performing services for
Cleveland Diversified Construction Co., Inc. Claimant received a
wage rate of $ 10.00 an hour. All his employees and supervisors
received $ 9.00 an hour. Claimant received his last paycheck from
Cleveland Diversified Construction Co., Inc. on August 26, 1976, in
the amount of $ 400.00.
"Since August 27, 1976, claimant has devoted at least 40 hours
per week in his efforts to procure additional work for Cleveland
Diversified Construction Co., Inc. by contacting various
contractors, scanning local newspapers, and by making telephone
calls to prospective general contractors. Claimant has also
completed all taxation and payroll forms and statements for
Cleveland Diversified Construction Co., Inc."
Appellant does not dispute any of the factual findings of the
Board of Review, but rather disputes the Board's application of the
law to those facts. Specifically, appellant disputes the Board's
conclusion that he was not "unemployed" as required by R.C.
4141.01(R).
That section of R.C. 4141.01(R) relevant to the matters herein
reads as follows:
"* * * Any application for determination of benefit rights made
in accordance with section 4141.28 of the Revised Code is valid if
the individual filing such application is unemployed, has been
employed by an employer or employers subject to sections 4141.01 to
4141.46 of the Revised Code, in at least twenty calendar weeks
within his base period, and has earned remuneration of at least
twenty dollars during each of such twenty weeks. Within the
meaning of the preceding sentence, an individual is 'unemployed,'
if, with respect to the calendar week in which such application is
filed he is 'partially unemployed' or 'totally unemployed' as
defined in this section, or if, prior to filing his
application, he was separated from his most recent work for any
reason which terminated his employee-employer relationship, or was
laid off indefinitely or for a definite period of seven or more
days." (Emphasis added)
Therefore, appellant's application for benefits was valid if he
was either totally or partially unemployed at the time of filing.
Since the only issue raised by appellant on appeal is the Board's
failure to find he was partially unemployed, we will limit our
analysis and opinion to that issue. Thus, we are not concerned
herein with the propriety of the Board's ruling vis-a-vis the issue
of total unemployment.
The statute defines partial unemployment as follows:
Revised Code 4141.01:
"(N) An individual is 'partially unemployed' in any week if, due
to involuntary loss of work, the total remuneration payable to him
for such week is less than his weekly benefit amount."
The facts in the instant case clearly indicate that due to the
completion of the carpentry subcontract between Cleveland
Diversified Construction Company and Transwestern Construction
Company and due to appellant's inability to procure additional work
for Cleveland Diversified, appellant suffered an involuntary loss
of work as of August 27, 1976. Because of this loss of work, the
remuneration payable to appellant for his services to the
corporation dropped from $ 400week to no remuneration at all.
The statement found in the referee's conclusions, part of the
announced decision of the Board of Review, to the effect that when
he filed his application for benefits appellant was legally
entitled to a weekly salary of $ 400 as president and treasurer of
the corporation is unsupported by the record and against the
manifest weight of the evidence. The record indicates appellant
never had any wages due him nor were any wages ever paid to him for
his services as an officer of the corporation, this fact being
established by appellant's unrebutted testimony. If the referee had
cause to dispute this fact, whether pursuant to an investigation of
appellant's finances, an examination of the corporate books and
records, or testimony of other witnesses, he should have stated his
reasons on the record and supported same.
Thus, pursuant to R.C. 4141.01(N), appellant was partially
unemployed at the time he filed his application for unemployment
benefits. We therefore find the decision of the Board of Review
that appellant was not "unemployed" pursuant to R.C. 4141.01(R) to
be unlawful, unreasonable, and against the manifest weight of the
evidence.
The decision of the Court of Common Pleas affirming the decision
of the Board of Review is hereby reversed. The decision of the
Board of Review is hereby reversed and vacated with respect to its
determination that appellant was not unemployed when he filed his
claim for benefits and, therefore, not eligible for unemployment
benefits pursuant to the statute. This cause is remanded to the
Board of Review for further proceedings consistent with this
opinion.
This cause is remanded to the Common Pleas Court for further
proceedings according to law.
It is, therefore, considered that said appellant recover of said
appellees his costs herein.
It is ordered that a special mandate be sent to said 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.
Exceptions.
N.B. This entry is made pursuant to the third sentence of Rule
22(D), Ohio Rules of Appellate Procedure. This is an announcement
of decision (see Rule 26). Ten (10) days from the date hereof this
document will be stamped to indicate journalization, at which time
it will become the judgment and order of the court and time period
for review will begin to run.
DISPOSITION
Reversed and
Remanded