ADMINISTRATOR OHIO
BUREAU OF EMPLOYMENT SERVICES, et al.,
Plaintiff-Appellant
vs.
JAMES W. VERES,
Defendant-Appellee
No. 84 C.A. 180
COURT OF APPEALS, SEVENTH APPELLATE DISTRICT OF OHIO, MAHONING
COUNTY, OHIO
Slip Opinion
March 18, 1986
Appeal from the Common Pleas Court of
Mahoning County, Case No. 82 CV 1924
COUNSEL
ATTY. EDWARD CZOPUR, 190 Wick Building, Youngstown, Ohio 44503, for Defendant-Appellee.
ATTY. ANTHONY J. CELEBREZZE, JR., ATTORNEY GENERAL, ATTY. ROSALIND
T. ANDREWS, Assistant Attorney General, 800 State Office Building,
615 West Superior Avenue, Cleveland, Ohio 44113, for
Plaintiff-Appellant.
JUDGES
FORD, J., COOK, J., concur (of the Eleventh District, by
assignment)
AUTHOR: DAHLING
OPINION
DAHLING, P.J.,
This is an appeal from a judgment of the
Court of Common Pleas, MahoningCounty, in which the court reversed
the decision of the Board of Review of the Ohio Bureau of
Employment Services. We reverse the judgment of the common pleas
court.
The facts are not in dispute and are
significant to a determination of this matter.
Claimant-appellee (hereinafter "claimant")
had been employed as a crane operator for Fitzsimmons Steel for
more than a year and was laid off. The administrator initially
awarded claimant benefits as his employer stated claimant was laid
off because of lack of work. Claimant received benefits from the
Bureau from June 1980 through February 1981.
During the period claimant was receiving
benefits he owned a tavern. On June 18, 1980, claimant filed a
written statement with the Bureau that reads as follows:
"I am sole owner of the Pastime Tavern 3321
South Avenue. I employ two waitresses to run the business. I do not
perform any work in the business nor have I received any wages from
the business in the last four years.
"Any money earned from the business reverted
back to the business. My primary occupation is with Fitzsimmons
Steel.
"I place no restrictions on my availability
for work."
Claimant's business activities were
investigated and in December of 1981, claimant signed a statement
which reads in part:
"Mr. Kalby has shown me my affidavit dated
8-21-81 which I signed. I now wish to change some statements as I
was under the impression, if I worked at my place and didn't take
any monies out of the business, the services I performed at my
place, was not considered work. Yes during my periods of drawing
benefits week endy (sic) 6-7-80 thru 2-28-81, I did work or perform
services, working at times by myself. It is true my records
reflected profit, in said weeks, also I did build up my
inventories, etc., and purchased equipment. As a result of this my
statement 410 dated 6-18-80 is not quite truthful. I honestly
believed regardless of how much time I spent at my business, it
would not effect my unemployment benefits, plus as long as I didn't
take any monies from the business until April of 1981, *** I was
available for any type of job during my periods of drawing
benefits."
As a result of the investigation, the
administrator reversed the decision to allow benefits to claimant
and issued a collection letter to recoup funds already paid over to
claimant. The claimant then brought a request for a hearing before
the Board of Review. The Board's referee found that claimant had
misrepresented his work status and availability for other
employment.
The common pleas court reversed the board
and stated as follows:
"1. It is this Court's opinion that the
Board of Review erred in affirming the Referee's decision in the
above captioned case.
"2. It is this Court's order that the
decision of the Board of Review of the Ohio Bureau of Employment
Services is reversed. Costs are to be borne by
Defendant-Appellee."
ASSIGNMENT OF ERROR
NO. I
The Court of Common Pleas erred when it
reversed the findings of the Board of Review of the Ohio Bureau of
Employment Services when the Board found that claimant fraudulently
misrepresented his employment status in order to collect
benefits.
This assignment of error is with
merit.
2 Ohio Jurisprudence 3d, Administrative Law,
section 208, states:
"It is a general rule that the court will
not substitute its judgment for a matter within the province of an
administrative agency and that courts ought not to interfere with
administrative action which is not clearly beyond the power of the
agency. Accordingly, under statutes providing for review of the
lawfulness and reasonableness of administrative action, the court
will not disturb the decision of the agency but will affirm it
where the decision is not unlawful or unreasonable or against the
manifest weight of the evidence.***"
The standard of review by a court of final
decisions of the unemployment compensation board of review is
whether the board's decision is unlawful, unreasonable, or against
the manifest weight of the evidence. Simon v.
Lake Geauga Printing
(1982), 69 Ohio St. 2d 41; Hall v.
American Brake Co. (1968), 13 Ohio St. 2d 11;
Brown-Brockmeyer v. Roach (1947),
148 Ohio St. 511; R.C. 4141.28(0).
Appellant correctly argues that the facts
show self-employment. What constitutes self-employment was
addressed in Dorothy Ridel v. Board of
Review, Ohio Bureau of Employment Services (1980), Case
No. 79 C.A. 72 (unreported).
In Ridel, the claimant
worked as a bookkeeper for her husband's electronics business and
although she worked an average of eight hours a day, six days a
week she received no wages. On her weekly claim forms she did not
reveal to the claims examiner the nature of her activities. She
certified that she was not self-employed. Also, it is noted that
the work she performed was normally done by a paid
employee.
The question presented was whether or not
claimant was "working." The Board of Review found fraudulent
misrepresentation. The common pleas court reversed and "did not
write an opinion or give its reasons for the reversal of the
decision of the Board of Review." The court of appeals reversed
holding that although the claimant received no payment during the
time she was receiving unemployment compensation, the record shows
that she did provide services to her husband's business and under
R.C. 4141.01(M) was not "totally unemployed." The court
explained:
"The term 'unemployment,' for purposes of
the unemployment compensation laws, is defined in section
4141.01(M) of the Revised Code. This section provides that an
'individual' is 'totally unemployed' in any week during which he
performs no services and with respect to such week no renumeration
is payable to him.' In order to be unemployed within the meaning of
R.C. 4141.01(M), a person must have neither provided services nor
received payment during the week for which he is applying for
benefits. See Nunamker v. United
States Steel Corp. (1985), 2 Ohio
St. 2d 55. (Opinion, pg. 3.)"
This assignment of error is
sustained.
ASSIGNMENT OF ERROR
NO. II
The court of Common Pleas erred when it did
not find that claimant was not available for employment as claimant
was working 64 hours per week in his own business.
This assignment of error is with merit.
Where an individual is working 64 hours a week it is hard to see
that he was available for employment. Claimant relies on
Parent v. Ohio Bureau of Employment
Services (1959), 171 N.E.2d 522. In
Parent, claimant worked at a variety store that
continually lost money. The court compared claimant's activity to
that of a coin collector or other hobbyist. The court ruled in
Parent that the claimant was entitled to benefits.
We find the within case is easily distinguished from
Parent.
ASSIGNMENT OF ERROR
NO. III
The Court of Common Pleas erred when it did
not find that the claimant having made fraudulent
misrepresentations to the Ohio Bureau of Employment Services was
overpaid and that said overpayment should be reimbursed to the
unemployment fund pursuant to O.R.C. 4135.
ASSIGNMENT OF ERROR
NO. IV
The Common Pleas Court erred in that it made
a finding de novo and as an appellate forum by
statute cannot reweigh the evidence presented to the trier of
facts.
The court stated, at page 518:
"The decision of purely factual questions is
primarily within the province of the referee and the Board of
Review. The courts reverse such decisions only when found to be
contrary to law or against the manifest weight of the evidence. The
court does not consider the question of the weight of the
evidence."
DISPOSITION
These
assignments of error are also sustained.
The
judgment is reversed and final judgment entered for
appellant.