Caterpillar, Inc. v. Doherty

• Decision Date: 16 October 1998
• Docket Number: No. 2-97-1217,2-97-1217
• Citation: 299 Ill.App.3d 338,701 N.E.2d 1163,233 Ill.Dec. 889
• Parties: , 233 Ill.Dec. 889 CATERPILLAR, INC., Plaintiff-Appellant, v. Lynn DOHERTY, Director of the Department of Employment Security, et al., Defendants-Appellees.
• Court: United States Appellate Court of Illinois

Page 1163

701 N.E.2d 1163

299 Ill.App.3d 338, 233 Ill.Dec. 889

CATERPILLAR, INC., Plaintiff-Appellant, v. Lynn DOHERTY, Director of the Department of Employment Security, et al., Defendants-Appellees.

No. 2-97-1217.

Appellate Court of Illinois Second District.

Oct. 16, 1998.

L. Lee Smith, Alan L. Hellman, Westervelt, Johnson, Nicoll & Keller, Peoria, for Caterpillar Inc.

James E. Ryan, Attorney General, Barbara A. Preiner, Solicitor General, John P. Schmidt, Assistant Attorney General, Chicago, for Board of Review, Ill. Dept. of Employment Security and Lynn Doherty.

Stanley Eisenstein, Patrick T. Wallace, Katz, Friedman, Schur & Eagle, Chicago, for Bruce Hartzell.

Justice RAPP delivered the opinion of the court:

Defendant-claimant, Bruce Hartzell (Hartzell), filed a claim for unemployment benefits with The Department of Employment Security (Department). Plaintiff-employer, Caterpillar, Inc. (Caterpillar), protested the claim. A claims adjudicator determined Hartzell was eligible for unemployment benefits. Caterpillar appealed the claims adjudicator's determination. A Department referee conducted a hearing and determined Hartzell was eligible for unemployment benefits. Caterpillar appealed the referee's decision to the Board of Review of the Department of Employment Security (Board of Review). The Board of Review affirmed the decision of the hearing referee. Caterpillar sought administrative review. The circuit court of Kendall County affirmed the decision of the Board of Review. Caterpillar appealed. We affirm.

Caterpillar discharged Hartzell from employment on September 27, 1994, alleging he violated the rules of conduct for striking employees by threatening a nonstriking worker. Hartzell denied the allegations but admitted a brief name-calling match with the nonstriking worker. At the time of his discharge, Hartzell, a member of the International Union of United Automobile, Aerospace and Agricultural Implement Workers of America (UAW), was participating in a strike against Caterpillar. The strike began on June 20, 1994, and continued to December 1995.

Hartzell filed a claim for unemployment benefits with the Department on September 3, 1995. Caterpillar protested the claim in a letter to the Department dated September 14, 1995, claiming Hartzell was ineligible for benefits because he was "on strike." A Department claims adjudicator rejected Caterpillar's protest and determined Hartzell was eligible for benefits commencing on September 3, 1995. Caterpillar appealed the claims adjudicator's determination.

On May 2, 1996, a Department referee conducted a hearing on Caterpillar's appeal. Caterpillar argued that the hearing referee lacked jurisdiction and that the appeal should have been considered instead by the Director of the Department of Employment Security (Director) because Hartzell's unemployment resulted from a labor dispute. Caterpillar also argued that Hartzell's claim for unemployment benefits was untimely because it was filed almost a year after his discharge. Caterpillar's primary witness, Stephen Fuller (Fuller), and Hartzell offered conflicting testimony regarding the September 19, 1994, incident.

Fuller testified that as he, his wife, his son, and a co-worker were leaving the Caterpillar plant, Hartzell followed them in a truck. Fuller further testified that Hartzell called him a "scab," cursed at him, made threats, and tried to run him off the road.

Hartzell testified that Fuller was in a car next to his truck while they were stopped at a red light. Hartzell testified that Fuller initiated a verbal exchange by inviting Hartzell to call him a "scab." Hartzell admitted calling Fuller a "f---ing scab." Hartzell denied threatening Fuller or any of his passengers and denied trying to run Fuller off the road.

On May 7, 1996, the hearing referee issued a decision affirming the claims adjudicator's determination that Hartzell was eligible for unemployment benefits. The referee held that he had the authority to consider Caterpillar's appeal and that section 604 of the Unemployment Insurance Act (Act) (820 ILCS 405/604 (West 1992)), which disqualifies participants in a labor dispute from receiving benefits, did not apply.

The referee found that Hartzell was not discharged for misconduct as defined in section 602 of the Act (820 ILCS 405/602 (West 1992)). Specifically, the referee found that Caterpillar failed to demonstrate "by a fair preponderance of the evidence that the claimant engaged in 'intimidation, coercion, physical violence or a threat thereof' as proscribed in the rules." The referee found that Caterpillar failed to establish that it or any of its employees had suffered any harm. The referee further found that Caterpillar did not issue prior warning or explicit instruction regarding the conduct to Hartzell.

Caterpillar appealed the referee's decision to the Board of Review. Caterpillar stated it was appealing (1) the referee's ruling that Hartzell was not discharged for misconduct as defined in section 602 of the Act; and (2) the referee's ruling that section 604 of the Act was inapplicable. Caterpillar also argued that the referee lacked jurisdiction because a claim involving eligibility under section 604 of the Act should have been considered by the Director or her representative.

However, in its two briefs filed with the Board of Review, Caterpillar did not argue that the referee lacked jurisdiction or that Hartzell filed his claim for benefits untimely. On October 30, 1996, after reviewing the record, including the transcript of testimony submitted at the hearing before the referee, the Board of Review affirmed the decision of the referee.

Caterpillar filed a complaint for administrative review of the Board of Review's decision in the circuit court of Kendall County. Caterpillar argued that the Board of Review erred when it ruled Hartzell was not disqualified from receiving benefits because of misconduct or because he was unemployed due to a labor dispute. Caterpillar also argued that Hartzell's claim was untimely filed and that Caterpillar's administrative appeals should have been considered by the Director or her representative. On October 30, 1997, the circuit court affirmed the decision of the Board of Review and entered final judgment for defendants and against Caterpillar. Caterpillar timely appealed.

Caterpillar raises the following issues on appeal: (1) whether the evidence before the Board of Review established that Hartzell was eligible for unemployment benefits despite his participation in a labor dispute during the period for which benefits were claimed; (2) whether the Department followed the proper procedure in Caterpillar's appeal of the administrative claims adjudication; and (3) whether the claimant filed a timely claim.

Caterpillar first argues that the Board of Review erred in its decision that the evidence established the claimant was improperly discharged. Caterpillar argues that the Board of Review's failure to find the claimant ineligible for benefits under section 604 of the Act was against the manifest weight of the evidence and a misinterpretation of the law.

The Unemployment Insurance Act (820 ILCS 405/100 et seq. (West 1992)) was enacted to provide support to unemployed workers and their families during periods of involuntarily unemployment. See American Steel Foundries v. Gordon, 404 Ill. 174, 181, 88 N.E.2d 465 (1949). An unemployed individual may receive benefits if the eligibility requirements of section 500 of the Act (820 ILCS 405/500 (West 1992)) are met and the individual is not subject to any of the specified exemptions.

Caterpillar argues that Hartzell should be disqualified under section 604 of the Act because he was involved in a labor dispute at the time he was discharged from employment. This is a case of first impression in Illinois. We are aware of no prior cases addressing the application of section 604 to an employee discharged from employment during a labor dispute.

Section 604, commonly referred to as the "labor dispute disqualification" section, provides in pertinent part:

"Labor Dispute. An individual shall be ineligible for benefits for any week with respect to which it is found that his total or partial unemployment is due to a stoppage of work which exists because of a labor dispute at the factory, establishment, or other premises at which he is or was last employed." (Emphasis added.) 820 ILCS 405/604 (West 1992).

The principles of statutory construction are well established, as the supreme court observed in Bridgestone/Firestone, Inc. v. Aldridge, 179 Ill.2d 141, 227 Ill.Dec. 753, 688 N.E.2d 90 (1997):

" 'It is a primary rule in the interpretation and construction of statutes that the intention of the legislature should be ascertained and given effect. [Citations.] This is to be done primarily from a consideration of the legislative language itself, which affords the best means of its exposition, and if the legislative intent can be ascertained therefrom it must prevail and will be given effect without resorting to other aids for construction. [Citations.] There is no rule of construction which authorizes a court to declare that the legislature did not mean what the plain language of the statute imports.' [Citation.]" Bridgestone/Firestone, 179 Ill.2d at 149, 227 Ill.Dec. 753, 688 N.E.2d 90, quoting Illinois Power Co. v. Mahin, 72 Ill.2d 189, 194, 21 Ill.Dec. 144, 381 N.E.2d 222 (1978).

The supreme court in Bridgestone/Firestone further noted:

" 'Where the language of the act is certain and unambiguous the only legitimate function of the courts is to enforce the law as enacted by the legislature. [Citations.] It is never proper for a court to depart from plain language by reading into a statute exceptions, limitations or conditions which conflict with the clearly expressed legislative intent. [Citations.]' [Citation.]" Bridgestone/Firestone, 179 Ill.2d at 149, 227 Ill.Dec. 753, 688 N.E.2d 90, qu...