DiGregorio v J C Concrete Inc. – 16.92

DiGregorio v J C Concrete Inc.
Digest No. 16.92

Section 421.32a

Cite as: DiGregorio v J C Concrete Inc, unpublished decision of the Michigan Administrative Hearing System, issued September 8, 2016 (Case No. 15-060623).

Appeal pending: No
Claimant: Daniel DiGregorio
Employer: J C Concrete Inc.
Date of decision: September 8, 2016

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HOLDING: Claimant had good cause for his late appeal because he could not understand the conflicting decisions of the Agency with his ADD. Restitution is cancelled because of deficient notice and the Agency’s failure to collect within the statutory period.

FACTS: On September 1, 2015, the Agency issued a redetermination seeking restitution. Claimant did not appeal this until October 29, 2015. Claimant received “over twenty” adjudications from the Agency and was confused because he felt they were conflicting. Claimant concluded that he did not owe anything, so he did not appeal. He did not appeal until he received a bill from the Agency. Claimant also alleges that his ADD and anxiety, for which he sees a doctor and takes medication, affected his ability to comprehend things.

DECISION: Claimant had good cause for the late appeal. Fraud penalties reversed and Claimant does not owe any restitution.

RATIONALE: On good cause, Claimant was confronted at once with many decisions with “conflicting results [that] would be confusing to all but the most seasoned claimant.” In light of this and Claimant’s comprehension limitations, he had good cause for the late appeal.

The Agency violated due process with its fraud redeterminations. Due process requires that the party has notice that is “reasonably calculated, under the circumstances, to apprise interested parties of the pendency of the action and afford them the opportunity to present their objections.” Brooks Williamson & Associates, Inc v Mayflower Const Co, 308 Mich App 18, 35; (2014) citing Mullane v Central Hanover Bank & Trust Co  “A bare demand for payment of fraud penalties does not establish or give notice of the basis for the demand.”

As for restitution, the Agency issued the fraud claim after three years, so the claim for restitution is time barred under Section 62(a). Further, the Agency failed to issue a determination in this case, and a “redetermination without a determination is void as a matter of law.” Fisk v Prostaff Employment Solutions LLC, 15-057282-248256W and 15-057299-238257W MCAC (May 23, 2016).

Digest author: Benjamin Tigay, Michigan Law, Class of 2018
Digest updated: January 26, 2018