Harris v. Electrical Wholesale

• Decision Date: 20 December 2004
• Docket Number: No. 29861.,29861.
• Citation: 105 P.3d 267,141 Idaho 1
• Parties: Brett S. HARRIS, Claimant-Respondent, v. ELECTRICAL WHOLESALE, Employer-Appellant, and State of Idaho, Department of Labor, Respondent.
• Court: Idaho Supreme Court

105 P.3d 267

141 Idaho 1

Brett S. HARRIS, Claimant-Respondent, v. ELECTRICAL WHOLESALE, Employer-Appellant, and State of Idaho, Department of Labor, Respondent.

No. 29861.

Supreme Court of Idaho, Pocatello, September 2004 Term.

December 20, 2004.

Bart M. Davis, Idaho Falls, for appellant.

Hon. Lawrence G. Wasden, Attorney General, Boise, for respondent.

TROUT, Justice.

Employer, Electrical Wholesale Supply Co., Inc. (EWS), challenged an affirmative eligibility determination awarding unemployment benefits to claimant Brett Harris (Harris) through the Idaho Department of Labor. The Industrial Commission affirmed the eligibility determination on the basis that Harris was not discharged for misconduct in connection with his employment. The decision of the Industrial Commission is supported by substantial and competent evidence and is, therefore, affirmed.

I. FACTUAL AND PROCEDURAL BACKGROUND

EWS is an electrical distributor and has warehouses located throughout southern Idaho and western Wyoming. At the time of his discharge, Harris was a truck driver for EWS, driving five times a week between Pocatello, Blackfoot, Idaho Falls, Rexburg and also Jackson, Wyoming. EWS' written employee handbook required that all employees who operated a company motor vehicle have a valid driver's license and maintain a driving record acceptable to EWS' insurance carrier. Harris signed the handbook and was generally aware of his employer's policy.

While driving his personal vehicle during off-work hours in March 2002, Harris received a moving violation traffic citation for traveling 45 miles per hour in a 35 mile per hour zone. Harris then received a traffic citation on January 27, 2003, while driving his personal vehicle during off-work hours, for failing to stop at a stop sign. The next day Harris mentioned at work that he had received a traffic citation. EWS immediately notified its insurance carrier and the carrier responded by denying insurance coverage for Harris for what the appeals examiner determined was "exceeding eligibility for standard driver insurance, per established criteria." Harris was discharged on January 29, 2003, since his job required maintenance of insurance through EWS' carrier in order to continue driving company vehicles.

Harris filed for unemployment benefits through the Idaho Department of Labor and received an eligibility determination that found he was not discharged for misconduct in connection with employment and was therefore eligible for benefits. EWS' account was also held chargeable for experience rating purposes. EWS filed a timely protest of the decision to the Department of Labor and a telephonic hearing was held before an appeals examiner. The examiner determined that although EWS had cause to discharge Harris, it had not established by a preponderance of the evidence that Harris was discharged for misconduct in connection with the employment, as defined by Idaho Code § 72-1366(5), IDAPA 09.01.30.375 and Idaho case law. EWS appealed the matter to the Industrial Commission, which conducted a de novo review of the record in the case. The Commission subsequently affirmed the appeals examiner's decision, also finding that although EWS may have felt it had reasonable grounds for discharging Harris, it had not demonstrated by a preponderance of the evidence that its reason for discharging him constituted misconduct in connection with his employment. EWS subsequently filed this appeal.

II. STANDARD OF REVIEW

When considering an appeal from the Industrial Commission, this Court is limited to reviewing questions of law. Idaho Const. Art. V, § 9. Pimley v. Best Values, Inc., 132 Idaho 432, 434, 974 P.2d 78, 80 (1999). The Commissions findings of fact will not be disturbed on appeal where they are supported by substantial and competent evidence. I.C. § 72-732; Welch v. Cowles Publ'g Co., 127 Idaho 361, 363, 900 P.2d 1372, 1374 (1995). Where conflicting evidence is presented that is supported by substantial, competent evidence, the findings reached by the Commission must be sustained regardless of whether this Court may have reached a different conclusion. Spruell v. Allied Meadows Corp., 117 Idaho 277, 279, 787 P.2d 263, 265 (1990). Idaho Code § 72-1366(5) renders a claimant ineligible for unemployment insurance benefits when the claimant was discharged for misconduct in connection with the employment. Whether an employees behavior constitutes misconduct is a factual determination that will be upheld unless not supported by substantial and competent evidence. Folks v. Moscow Sch. Dist. No. 281, 129 Idaho 833, 933 P.2d 642 (1997).

III. ANALYSIS

When an employer discharges an employee, the worker is eligible for unemployment benefits if "unemployment is not due to the fact that he left his employment voluntarily without good cause connected with his employment, or that he was discharged for misconduct in connection with his employment." I.C. § 72-1366(5). The burden of proving misconduct by a preponderance of the evidence falls strictly on the employer, and where the burden is not met, benefits must be awarded to the claimant. Roll v. City of Middleton, 105 Idaho 22, 25, 665 P.2d 721, 724 (1983); Parker v. St. Maries Plywood, 101 Idaho 415, 419, 614 P.2d 955, 959 (1980). A "preponderance of the evidence" is evidence that, when weighed with that opposed to it, has more convincing force and from which results a greater probability of truth. Cook v. W. Field Seeds, Inc., 91 Idaho 675, 681, 429 P.2d 407, 413 (1967).

Neither party has disputed the nature of Harris' separation. Therefore, the issue is not whether EWS had reasonable grounds for discharging Harris, but rather whether the reasons for the discharge amounted to "misconduct" in connection with his employment such that he can be denied unemployment benefits. This Court has previously declared the two issues separate and distinct. Beaty v. City of Idaho Falls, 110 Idaho 891, 892, 719 P.2d 1151, 1152 (1986). Misconduct is defined as a willful, intentional disregard of the employer's interests; a deliberate violation of the employer's rules; or a disregard of the standards of behavior which the employer has a right to expect of its employees. Johns v. S.H. Kress and Co., 78 Idaho 544, 548, 307 P.2d 217, 219 (1957). This standard has been codified under IDAPA 09.01.30.275(2), which provides:

Misconduct that disqualifies a claimant for benefits must be connected with the claimant's employment and involve one of the following:

a. Disregard of Employer's Interest. A willful, intentional disregard of the employer's interest b. Violation of Reasonable Rules. A deliberate violation of the employer's reasonable rules.

c. Disregard of Standards of Behavior. If the alleged misconduct involves a disregard of a standard of behavior which the employer has a right to expect of his employees, there is no requirement that the claimant's conduct be willful, intentional, or deliberate. The claimant's subjective state of mind is irrelevant. The test for misconduct in "standard of behavior cases" is as follows:

i. Whether the claimant's conduct fell below the standard of behavior expected by the employer; and

ii. Whether the employer's expectation was

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