Postema v Grand Rapids Diecraft Inc – 7.30

Postema v Grand Rapids Diecraft Inc
Digest no. 7.30

Sections 28, 54(b)

Cite as: Postema v Grand Rapids Diecraft Inc, Ottawa Circuit Court, No. 95-23141-AA (September 19, 1996).

Appeal pending: No
Claimant: James Postema
Employer: Grand Rapids Diecraft Inc.
Docket no.: B93-06258-127231W
Date of decision: September 19, 1996

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CIRCUIT COURT HOLDING: Where claimant was primarily engaged in establishing his own business, his mental attitude was not one of genuine attachment to the labor market. Where the claimant only sought work via networking with potential customers and other industry contacts, he was not “seeking work” and was not “available to work.”

FACTS: Claimant was laid off from an executive position in February, 1992. He received regular benefits then extended benefits until December 12, 1992. Claimant started his own tool and die business on August 15 as 51% owner. Corporate status was established week of August 9, 1992. During the first week the business grossed $24,000. After that, expenses exceeded profits. Claimant received no wages. For weeks ending August 29, 1992, and September 5, 1992, claimant failed to report self employment. Thereafter, he reported self employment but zero earnings. For week ending September 12, 1992, claimant reported 70+ hours at his business, but thereafter reported only 20 hours. Claimant sought work primarily through “networking” with contacts who were also potential customers. He never actually filled out any job applications.

DECISION: Claimant ineligible for benefits for period August 9, 1992, through December 12, 1992. Claimant must pay restitution and penalties only for some of the weeks in question as for the most part claimant disclosed his interest in self employment and the nature of his job seeking efforts.

RATIONALE: Claimant’s own testimony demonstrated that he was not diligently searching for employment or truly available for work. “His `mental attitude’ was not that of someone attached to the labor market; rather, it was that of an entrepreneur spending his time and energy trying to make his business successful.”

Digest Author: Board of Review (original digest here)
Digest Updated: 7/99