Knox v. Right At Home Southeastern MI Inc. – 16.90

Knox v. Right At Home Southeastern MI Inc.
Digest No. 16.90

Section 421.29; Section 421.32a; Section 421.62; Section 421.33

Cite as: Knox v Right At Home Southeastern MI Inc, unpublished opinion of the Michigan Compensation Appellate Commission, issued July 29, 2016 (Docket No. 15-018792-247172W).

Appeal pending: No
Claimant: Teresa R. Knox
Employer: Right at Home Southeastern MI Inc.
Date of decision: July 29, 2016

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HOLDING: Under Section 421.32a, the Agency cannot reconsider a prior determination or redetermination more than one year from the date of mailing or personal service of the original determination on the disputed issue. All adjudications issued by the Agency that are contrary to this rule are void and must be set aside. All ALJ decisions made after the Agency improperly transferred over a case due to a violation of Section 421.32a are to be set aside as well.

FACTS: In February 2012, the Unemployment Insurance Agency (UIA) issued a Notice of Determination holding the claimant disqualified from receipt of unemployment insurance benefits under Section 421.29(1)(a). In June 2014, more than two years after the February 2012 Determination was issued, the Agency, on its own motion, reconsidered the Determination and issued a June 25, 2014 Redetermination. A March 2015 Redetermination held the claimant disqualified from receipt of unemployment insurance benefits under the voluntary leaving provisions of Section 421.29(1)(a) and held the claimant subject to restitution under Section 421.62(a). A November 2015 ALJ decision affirmed the March 2015 Redetermination. The claimant timely appealed to the Michigan Compensation Appellate Commission (MCAC) from the November 2015 ALJ decision.

DECISION: The November 2015 ALJ decision is set aside. The June 25, 2014 Redetermination and all subsequent Agency adjudications are set aside. The February 2012 Determination is a final ruling on this matter. Therefore Claimant is disqualified from receipt of benefits but Claimant is not subject to restitution.

RATIONALE:

Section 421.32a(2) provides that the Agency may, for good cause, reconsider a prior determination or redetermination after the 30 day period has expired, but that a reconsideration shall not be made unless the request is filed with the UIA, or reconsideration is initiated by the UIA with notice to the interested parties, within one year from the date of mailing or personal service of the original determination on the disputed issue.

The Michigan Supreme Court held in Roman Cleanser v Murphy, 386 Mich 698 (1972) that the doctrines of res judicata and collateral estoppel apply to an Agency ruling that has become “final” under Section 421.32a(2). As a result, the February 2012 Determination, which did not include any ruling on restitution under Section 421.62(a), is a final ruling. Therefore the June 25, 2014 Redetermination is void and must be set aside as the Agency had no legal authority to issue that ruling. All adjudications issued by the Agency after the June 25, 2014 Redetermination are void and must be set aside.

In addition, because the June 25, 2014 Redetermination was not in accordance with Section 421.32a, under Section 421.33 (“An appeal from a redetermination issued . . . in accordance with section 32a or a matter transferred for hearing and decision in accordance with section 32a shall be referred to the Michigan administrative hearing system for assignment to an administrative law judge”), the Agency was without authority to transfer the matter for hearing and assignment to an ALJ.

Digest author: Winne Chen, Michigan Law, Class of 2017
Digest updated: 10/31/2017

 

Barbee v. J.C. Penney – 16.73

Barbee v. J.C. Penney
Digest No. 16.73

Section 421.29(b), 421.33, 421.34, 421.38

Cite as: Barbee v JC Penney Corp, Inc, Unpublished Opinion of the Circuit Court for the County of Oakland, Issued January 26, 2006 (Docket No. 177083W).

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Appeal Pending: No
Claimant: Della M. Barbee
Employer: J.C. Penney Corporation, Inc.
Tribunal: Circuit Court for the County of Oakland
Date of Decision: January 26, 2006

HOLDING: The State of Michigan Employment Security Board of Review’s (“Board”) lacks jurisdiction to review untimely appeals.

FACTS: Claimant was employed by J.C. Penney as a Customer Service Associate until she was discharged for misconduct. Her alleged misconduct included obtaining fraudulent refunds, discount abuse, and unauthorized price adjustments. The Administrative Law Judge (“ALJ”) disqualified the claimant from benefits due to her misconduct under MCL 421.29(b).

Claimant appealed the ALJ’s decision to the State of Michigan Employment Security Board of Review (“Board”). The deadline to appeal was September 24, 2004, but claimant did not file her appeal until October 6, 2004. Pursuant to MCL 421.33, the Board dismissed the late appeal due to lack of jurisdiction.

Claimant did not seek rehearing or to reopen the case with the Board for good cause but instead, appealed to the Circuit Court (“Court”) for de novo review of the Board’s (1) arbitrary Appeal deadline and (2) the underlying determination in finding the Plaintiff guilty of misconduct.

DECISION: The Board’s deadlines cannot be challenged as arbitrary because they were set by the legislature and codified as MCL 421.33(2) and MCL 421.34. Additionally, the Circuit Court cannot de novo review claimant’s underlying determination because she appealed the Board’s decision. Finally, the Board’s order dismissing claimant’s appeal for lack of jurisdiction was proper.

RATIONALE: The Circuit Court ruled that the appeal deadlines were not arbitrary because they were established by the legislature through MCL 421.33(2) and MCL 421.34.

The Court also denied claimant’s appeal for de novo review of her underlying determination as guilty of misconduct. The Court noted that a claimant can appeal a referee’s (ALJ’s) decision to the Circuit Court directly under MCL 421.38(2). However, because the claimant appealed the Board’s decision and said decision did not include a review of claimant’s determination as guilty of misconduct, the Circuit Court lacks authority to de novo review the claimant’s guilty determination.

The Circuit Court reviewed the whole record to determine if claimant’s appeal was untimely. Pursuant to MCL 421.38(1), the standard for finding an appeal untimely is support by competent, material, and substantial evidence. After finding that the appeal was untimely under the standard, the Court affirmed the Board’s decision dismissing claimant’s untimely appeal for lack of jurisdiction under MCL 421.33.

Digest Author: Sean Higgins, Michigan Law, Class of 2017
Digest Updated: 3/27/2016

Bateman v Jackson Industrial Manufacturing Co – 7.17

Bateman v Jackson Industrial Manufacturing Co
Digest no. 7.17

Section 28(1)(c)

Cite as: Bateman v Jackson Industrial Manufacturing Co, unpublished opinion of the Kent County Circuit Court, issued May 5, 1980 (Docket No. 80 29462 AE).

Appeal pending: No
Claimant: Robert L. Bateman
Employer: Jackson Industrial Manufacturing Company
Docket no.: B77 10805 RO2 62489
Date of decision: May 5, 1980

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CIRCUIT COURT HOLDING: (1) Where a medical restriction limits an individual to seated work, which the claimant has never performed for wages, the claimant is not able and available for work. (2) Lack of counsel is not good cause for reopening. (3) A late appeal to the Board may be treated as a request for reopening.

FACTS: An equipment painter became medically restricted to seated work, which he had never performed for wages. He appeared before the referee without an attorney. His late appeal to the Board was treated as a request for reopening.

DECISION: The claimant is ineligible for benefits.

RATIONALE: “The Board of Review was within its authority in rejecting the so-called Delayed Appeal for lack of jurisdiction because of untimely filing and did properly refer it back to the Referee for a rehearing.”

“The claimant was fully advised of his rights to counsel..”

“[A]fter May 18, 1977 claimant was released and permitted by his doctor to perform ‘seated work only.’ Claimant did not meet the test of able and available for work requirements. The claimant’s testimony at the hearing indicated that all his work experience training and background has been in heavy work active jobs and not seated work.”

Digest Author: Board of Review (original digest here)
Digest Updated:
6/91