Wilcox v. Bay City American Legion 18 – 16.88

Wilcox v. Bay City American Legion 18
Digest No. 16.88

Section 421.33, Admin. Rules 792.11411(10), 792.11415(5), and 792.11431

Cite as: Wilcox v Bay City American Legion 18, 2015 Mich ACO 14-015959-244230W

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Appeal pending: Yes
Claimant: Deborah E. Wilcox
Employer: Bay City American Legion 18
Tribunal: Michigan Compensation Appellate Commission
Date of decision: August 31, 2015

HOLDING: An Administrative Law Judge’s (ALJ) encouragement to an unrepresented Claimant, who in good faith misunderstood the scope of the hearing, caused the claimant to withdraw her appeal. The ALJ did not explain to the Claimant the ramifications of withdrawing, which constitutes good cause to reopen the appeal.

FACTS: Claimant was employed by Dore and Associates but was laid off. During this period of unemployment, claimant accepted a part-time position as a bartender with American Legion, but broke her ankle outside of work shortly after accepting the position. On doctor’s orders, Claimant withdrew from her position and was disqualified under Section 29(1)(b) of the Michigan Employment Security Act for voluntarily leaving her position with American Legion. Claimant received a hearing on September 11, 2014 with Bay City American Legion 18 as the employer for the hearing. During the hearing, the unrepresented Claimant articulated that she did not understand why or how her employment with American Legion would affect her claim, which she believed was established based on income earned from Dore and Associates. The Administrative Law Judge (ALJ) suggested it was unnecessary for the claimant to pursue the matter and encouraged her to withdraw her appeal. The claimant followed the ALJ’s suggestion and withdrew her appeal. The ALJ never explained the ramifications of withdrawing an appeal. After obtaining representation, Claimant filed a request to the ALJ to reopen her appeal, arguing that a good faith misunderstanding of the scope of the hearing constituted good cause for reopening as ruled in Jaeger v. Sears, Roebuck and Co., Digest No. 1620. The ALJ denied the request, and the claimant appealed the denial.

DECISION: The ALJ erred in denying claimant’s request to reopen her appeal, and thus, the appeal has been reopened. The matter is remanded to the Michigan Administrative Hearings System for a new hearing with a different ALJ.

RATIONALE: Pursuant to Administrative Rule 792.11415(5), the Michigan Compensation Appellate Commission (MCAC) will only review an ALJ’s denial of a request for reopening if it decides there is good cause for reopening. Administrative Rule 792.11402(v) defines “good cause” as reliance on incorrect information from the agency, ALJs, the hearing system, or the MCAC. The ALJs failure to explain the ramifications of withdrawing an appeal to the claimant constitutes good cause under this rule, and thus, the appeal is reopened. If the MCAC grants a request for reopening, Administrative Rule 792.11431 requires the decision on the appeal to be decided according to the “record already made” at the initial hearing. Because the hearing featured no testimony or evidence, the claimant’s appeal must be remanded for a new hearing.

Digest Author: Sean Higgins, Michigan Law, Class of 2017
Digest Updated: 1/6/2016