Beardslee v. Iowa Dept. of Job Services

• Decision Date: 21 March 1979
• Docket Number: No. 62103,62103
• Citation: 276 N.W.2d 373
• Parties: A. L. BEARDSLEE, Appellee, v. IOWA DEPARTMENT OF JOB SERVICES, Appellant.
• Court: Iowa Supreme Court

Page 373

276 N.W.2d 373

A. L. BEARDSLEE, Appellee, v. IOWA DEPARTMENT OF JOB SERVICES, Appellant.

No. 62103.

Supreme Court of Iowa.

March 21, 1979.

Walter J. Maley and Blair H. Dewey, Des Moines, for appellant.

J. Michael O'Donnell of Pillers, Pillers & Pillers, Clinton, for appellee.

Considered by REYNOLDSON, C. J., and REES, McCORMICK, McGIVERIN and LARSON, JJ.

LARSON, Justice.

Iowa Department of Job Services appeals from a ruling of the district court in a judicial review proceeding which reversed an agency ruling of entitlement of a job claimant to unemployment compensation benefits on the basis that the agency lacked jurisdiction. We affirm the district court.

The appellee here, a dentist, had employed Christine M. Stansbarger as a dental assistant. That employment terminated for some reason not disclosed in the record, and she received unemployment compensation benefits under chapter 96, The Code. Unemployment benefits continue only as long as the claimant "is able to work, is available for work, and is earnestly and actively seeking work." Section 96.4(3), The Code. The former employer here contacted the Department of Job Service, contending that the claimant was not at all times eligible for receipt of such benefits. The basis for this challenge was that Ms. Stansbarger had continually received payments during her pregnancy and post-partum recovery period. Job Service then mailed to the claimant a notice requesting her to report to its Clinton, Iowa, office to deal with this request to terminate her benefits. A date and time for the meeting was included, as well as a request for current information as to her availability for work. No response was made to this notification, and the claimant did not appear as scheduled. The date of the scheduled meeting was March 29, 1977. On May 18, 1977, a claims deputy entered the following order denying benefits:

Evidence on file indicates that proof was never received from a licensed practicing physician that you were able and available for work throughout your pregnancy and that you were released as able and available to work after the birth of your baby. Therefore, benefits are denied effective 04-25-76.

(April 25, 1976 was the date the claimant had entered the hospital for delivery.) A copy of this order was mailed to the claimant, together with a notice that if she desired to appeal the ruling, she must do so in the manner prescribed by section 96.6(2), The Code. The notice stated that:

This Decision Shall Become Final, unless within ten calendar days after the decision was mailed to the last known address, you or any interested party appeal to this Department by submitting either a letter or a written Notice of Appeal directly to the Appeal Section of the Iowa Department of Job Service, 1000 East Grand Avenue, Des Moines, Iowa 50319.

The notice then set forth the form and content of such notice of appeal.

The date of mailing of the May 18 order is not clear in the record. However, the form upon which the order is set out states: "Notification Date if other than Decision Date," and no other date is shown. We assume therefore that the notice was mailed on the date shown on the order. Neither the claimant nor the appellant here contend that the notice was not mailed on that date.

No notice of appeal was filed as to this order, and on June 21, 1977, a "Notice of Overpayment" was mailed to Ms. Stansbarger advising her that because of the overpayments received by her, she was to repay the Department of Job Services the sum of $1,690.73. Authority for the Department to order such repayment is found in § 96.16(4), The Code. This notice contained the same information as to the time and manner of appeal as was contained in the first notice mailed May 18. It was mailed to the same address as was shown on the first two mailings to the claimant. This notice of overpayment did result in a written response being received from the claimant. In her letter dated June 24, she stated she had not received prior notices of the agency action of May 18 and requested that her letter be considered as an appeal from the determination of overpayment.

Ms. Stansbarger's appeal of this determination of overpayment was held before a hearing officer on July 27, 1977. At the hearing, she testified as follows:

Q. (D)id you receive a copy of the decision of May 18, 1977 (which terminated her benefits)?

A. I don't re I don't know. I don't recall. I know I didn't I I don't think so. I know that I started to receive these but I don't think I received anything like this where it had any explanation because I couldn't figure out why I was receiving this.

Section 96.6(2), The Code, provides for initial determination of matters of entitlement to benefits, the amount and duration thereof, "and whether any disqualification shall be imposed." It further provides that:

Unless the claimant or other interested party, after notification Or within ten calendar days after such notification was mailed to the claimant's last known address files an appeal from such decision, such decision shall be final and benefits shall be paid or denied in accordance therewith. (Emphasis added.)

The appellant Iowa Department of Job Service does not contend the notices were not mailed to the last known address of the claimant, nor that notice of appeal of the May 18 order was given within ten days thereafter. In fact, it is undisputed that no response was ever made to the order and notice. The first response from the claimant was her letter of June 24, 1977 after receiving a notice that she was to repay the amounts overpaid to her.

The claimant, at the administrative hearing, and the appellant Job Services, here, contend that despite the clear language of § 96.6(2) regarding the commencement of the ten-day appeal period, if she did not in fact receive the notice, the appeal period does not run. Three Iowa cases are relied upon to support this contention. They are Hendren v. Iowa Employment Security Comm., 217 N.W.2d 255 (Iowa 1974); Smith v. Iowa Employment Security Comm., 212 N.W.2d 471 (Iowa 1973); and Eves v. Iowa Employment Security Comm., 211 N.W.2d 324 (Iowa 1973).

Smith involved the application of § 96.6(2) under the 1966 Code. This case held that the seven-day period for appeal was insufficient as applied in that case. The statute then provided for a five-day appeal period if the notice was served personally, and seven days if mailed. We said that "(c)learly this was on the theory reasonable then (at the time of enactment of the statute) that the notice would arrive in due course within two days of mailing." 212 N.W.2d at 473. The provision requiring appeal within seven days after mailing of notice was not reasonable in view of the "continuing breakdown" in the United States mails. Section 96.6(2) was amended after the Smith decision to provide ten days for appeal after mailing of the notice of agency decision. In the instant case, no claim is made that the period for appeal was too short; it is claimed that the appeal time did not start to run because the claimant never actually received the notice advising her of the...