Distribution II
Transmanagement Corp., Appellant-Appellant,
vs.
James Howell >et al.,
Appellees-Appellees
No. 86AP-507
COURT OF APPEALS OF OHIO, TENTH APPELLATE DISTRICT, FRANKLIN
COUNTY
1988 Ohio App. LEXIS 5348
December 30, 1988, Decided
APPEAL from the Franklin County
Common Pleas Court.
COUNSEL
BRICKER & ECKLER, MR. CHARLES H. WALKER and MR. CHARLES D.
SMITH, for appellant.
MR. ANTHONY J. CELEBREZZE, JR., Attorney General, and MR. PATRICK
A. DEVINE, for appellee Administrator, Ohio Bureau of Employment
Services.
MR. JAMES HOWELL, pro se.
JUDGES
NICHOLS,* J. WHITESIDE, P.J., and McCORMAC, J., concur.
AUTHOR: NICHOLS
OPINION
NICHOLS, J.
This matter came on for consideration before us on the appeal of
appellant, Distribution II Transmanagement Corporation, from a
judgment of the Franklin County Court of Common Pleas that affirmed
the decision of the Ohio Bureau of Employment Services' Board of
Review, that appellee, James Howell, separated from employment with
appellant for lack of work.
From the record it appears that appellee worked for appellant in
a full-time capacity as a warehouseman from August 1983 until May
9, 1985, when he was laid-off at the end of the workday for lack of
work. Subsequently, appellant determined that on May 8, 1985,
appellee directed a work crew to improperly load containers that
were to be shipped by railroad to a customer, the effect of which
was to cause a substantial expense to appellant. Appellant then
notified appellee on May 13, 1985 that his employment had
terminated on May 9, 1985 for insubordination and job neglect.
In response to appellee's application for determination of
benefits, appellant's personnel manager, Mary Brewer, on May 14,
1985, stated that he separated due to lack of work. By letter of
May 15, 1985, she informed the bureau that "Mr. Howell was
terminated for 'Neglect of Duty' and 'Gross Insubordination.'" On
June 3, 1985, however, the administrator of the Bureau of
Employment Services found that "[n]o disqualification for benefits
is imposed," and allowed Howell's claim. Appellant appealed the
decision and requested a fact-finding hearing. Notice of a
fact-finding interview was mailed to all participants on June 11,
1985, scheduling the matter for June 17, 1985, at 10:00 a.m. The
matter came on for reconsideration as scheduled; appellant failed
to appear at the hearing because it did not receive the notice
until June 18, 1985.
The administrator's decision of June 20, 1985, affirmed the
initial determination of June 3, 1985. Appellant appealed the
decision to the Unemployment Compensation Board of Review and the
matter was assigned for hearing before the referee on July 16,
1985. The referee limited testimony to the reasons for the layoff
of May 9, 1985, and he ruled that matters stated in the letter of
May 13, 1985 were not relevant, In his decision of July 24, 1985,
the referee found that appellee and others were laid off for lack
of work. He further found that:
"* * * Within the meaning of the Ohio Unemployment Compensation
Law, once an individual has been terminated, there can be no other
separation until the individual returns to work * * *. In
conclusion, the Referee will hold that none of the
disqualifications called for * * * apply to the reason for
claimant's separation on May 9, 1985, and therefore no
disqualification for benefit rights is appropriate by reason of his
separation at that time which the Referee concluded above was due
to lack of work."
Upon further appeal, the board of review found appellant's
application to institute further appeal was disallowed. Said
decision was timely appealed to the Franklin County Court of Common
Pleas. After review of the entire record, the court affirmed the
administrative decision and found "* * * the decision of the Board
of Review is supported by reliable, substantive and probative
evidence. * * *"
In support of its appeal, appellant raises the following
assignments of error:
"1. The Common Pleas Court erred by failing to conclude that the
decision of the Unemployment Compensation Board of Review was both
unlawful and unreasonable in light of the fact that Distribution II
Transmanagement Corp. was denied a full and fair hearing before the
referee for the Board of Review on its appeal from the
administrator's decision on reconsideration, in violation of
Chapter 4141 of the Ohio Revised Code and Distribution II
Transmanagement Corp.'s constitutional right to due process.
"2. The Common Pleas Court committed prejudicial error by
failing to apply the proper standard of review in rendering its
decision on Distribution II Transmanagement Corp.'s appeal as
required by section 4141.28(C) of the Ohio Revised Code.
"3. The Court of Common Pleas erred in affirming the referee's
finding that Mr. Howell had been terminated from his employment for
lack of work on May 9, 1985.
"4. The Common Pleas Court erred in concluding that because Mr.
Howell had been laid off on May 9, 1985, his status could not be
changed by notice of termination at a later date."
The gravamen of appellant's complaint is that it was denied a
full and fair hearing at all stages of the appellate process
because it was not permitted to present evidence that appellee was
terminated for just cause.
R.C. 4141.28(J) provides,
inter alia:
"When an appeal from a decision on reconsideration of the
administrator or deputy is taken, all interested parties shall be
notified and the board or referee shall, after affording such
parties reasonable opportunity for a fair hearing, affirm, modify,
or reverse the findings of act and the decision of the
administrator or deputy in the manner which appears just and
proper. In the conduct of such hearing or any other hearing on
appeal to the board which is provided in this section, the board
and the referees shall not be bound by common law or statutory
rules of evidence or by technical or formal rules of procedure. * *
*"
We recognize that R.C. 4141.28(J) grants a referee broad
discretion in accepting or rejecting evidence that is offered at a
hearing. However, exclusion of relevant evidence at a hearing for
reconsideration of the determination of unemployment benefits
constitutes a denial of a reasonable opportunity to be heard.
Nordonia Hills Bd. of Edn. v. Unemp. Comp.
Bd. of Review (1983), 11 Ohio App. 3d 189. Relevant
evidence is that which tends to make the existence of any fact that
is of consequence to the determination of an action more or less
probable than it would be without the evidence. Evid. R. 401. The
issue then becomes whether the excluded evidence concerning
termination for just cause was relevant within the context of the
facts of this case.
Although appellant did not receive notice of the fact-finding
hearing of June 17, 1985, until one day after it was completed, its
failure to appear did not constitute a deprivation of a reasonable
opportunity to be heard. R.C. 4141.28(B)(1)(b) provides,
inter alia, that notices of a fact-finding
hearing:
"* * * [S]hall inform such employer of his right, upon request,
to be present at a fact-finding interview conducted prior to the
making of any determination under such division upon receipt of any
request, the claimant and the employer making the request shall
have at least three days prior notice of the time and place of the
fact-finding interview. In the conduct of the interview, the
administrator is not bound by rules of evidence or of procedure for
the conduct of hearings. * * *"
The notice of the fact-finding hearing was timely sent to
appellant; its failure to receive the notice prior to the scheduled
hearing does not vitiate the decision entered on the evidence
adduced.
Moreover, at the hearing held before the Unemployment
Compensation Board of Review, the referee correctly found the
proffered evidence of appellee's alleged insubordination and job
neglect inadmissible because it was not relevant, The trial court
found "* * * that the [appellee] could not be later fired from a
job he did not have." Thus, the trial court held that the referee
correctly found that appellee could not be terminated for cause
from a job which had been abolished and which resulted in
separation for lack of work. At the instant he separated on May 9,
1985, he was no longer employed. Therefore, he could not be later
discharged for cause from a job he no longer held and which no
longer existed, and evidence in support of such cause was
irrelevant.
We conclude that appellant was granted a full and fair hearing
before the referee who considered relevant evidence regarding the
reason for appellee's separation on May 9, 1985. The reason was
simply lack of work; his status became frozen on that date, and
subsequent revelations, if proven, would not alter it. Appellant's
first, third and fourth assignments of error are overruled.
R.C. 4141.28(O) provides, inter alia:
"* * * If the court finds that the decision was unlawful,
unreasonable, or against the manifest weight of the evidence, it
shall reverse and vacate such decision or it may modify such
decision and enter final judgment in accordance with such
modification; otherwise such court shall affirm such decision. * *
*"
In the case sub judice, it is apparent that the
trial court considered whether the decision of the board of review
was unlawful and unreasonable when it stated in its decision that
appellant "[a]sserts various procedural errors but does not refute
the basic finding that on May 9, 1985, Mr. Howell was laid off. * *
*" Nothing appellant claims it was denied in the appellate process
prejudiced its rights or adversely affected the outcome. The
evidence it sought to present to the referee was not relevant. The
fact-finding hearing of June 17, 1985, timely notice of which
appellant denies, was not adversarial to such a degree that
appellant can claim an unreasonable or unlawful deprivation.
An appeal to the court of common pleas pursuant to R.C.
4141.28(O) based on factual grounds is limited to determining
whether the board's decision is supported by evidence in the
record. Therefore, a decision supported by some competent, credible
evidence going to the issues in dispute will not be reversed as
being against the manifest weight of the evidence. C.E.
Morris Co. v. Foley Construction Co.
(1978), 54 Ohio St.2d 279; Angelkovski v.
Buckeye Potato Chips Co. (1983), 11 Ohio App. 3d
159. The trial court specifically found the board's decision to be
supported by reliable, substantive and probative evidence. Such
statement reflects that it applied the proper standard of review
although may not have used the proper language in its decision.
Ohio Presbyterian Homes v. Carol L.
Meyers (February 28, 1984), Franklin App. No. 83AP-807,
unreported (Memorandum Decision).
Lastly, our review of proceedings below is limited to a
determination of whether the trial court abused its discretion. "*
* * In this context, the meaning of the term 'abuse of discretion'
connotes more than an error of judgment; it implies a decision
without a reasonable basis, one which is clearly wrong."
Angelkovski, supra, at 161-162. We find that the
trial court reasonably determined that the board's decision was not
against the manifest weight of the evidence. Appellant's second
assignment of error is overruled.
For the foregoing reasons, appellant's assignments of error are
overruled and the judgment of the Franklin County Common Pleas
Court is affirmed.
DISPOSITION
Judgment
affirmed.
JUDGES FOOTNOTES
* NICHOLS, J., of the Madison County Common Pleas Court, sitting by
assignment in the Tenth Appellate District.