Kleinsasser v. City of Rapid City, 16255

• Decision Date: 13 February 1989
• Docket Number: No. 16255,16255
• Citation: 440 N.W.2d 734
• Parties: Arnold KLEINSASSER, Grievant and Appellant, v. CITY OF RAPID CITY, Respondent and Appellee. . Considered on Briefs
• Court: South Dakota Supreme Court

Page 734

440 N.W.2d 734

Arnold KLEINSASSER, Grievant and Appellant, v. CITY OF RAPID CITY, Respondent and Appellee.

No. 16255.

Supreme Court of South Dakota.

Considered on Briefs Feb. 13, 1989.

Decided May 3, 1989.

Rehearing Denied June 9, 1989.

Linda Lea M. Viken of Finch, Viken, Viken & Pechota, Rapid City, for grievant and appellant.

Robert R. Jackson, Office of the City Atty., Rapid City, for respondent and appellee.

WUEST, Chief Justice.

This matter began as a grievance against appellee, City of Rapid City, South Dakota (City). The grievance was filed by appellant, Arnold Kleinsasser (Kleinsasser), after his termination as a City employee. When the grievance was denied, Kleinsasser appealed to the South Dakota Department of Labor (Department). The Department conducted a hearing and determined that Kleinsasser's termination was wrongful. The City appealed the Department's decision to the circuit court. The circuit court reversed the Department's decision, holding that it was affected by error of law and was clearly erroneous in light of the entire evidence. It is from the adverse decision of the circuit court that Kleinsasser now appeals. We affirm the circuit court's decision.

The essential facts in this matter are not disputed. Kleinsasser and Teresa Reede (Reede), a married woman with two children, were employed by the City Water Department. Shortly after beginning her route as a meter reader on September 19, 1986, Reede telephoned Kleinsasser and asked him to pick her up. Kleinsasser, who was not scheduled to work that day, complied with Reede's request. The two then drove to Kleinsasser's home where they spent several hours together. Thereafter, Kleinsasser returned Reede to a point which was near the route on which she was supposed to be working. Most of Kleinsasser's and Reede's actions were observed by the assistant superintendent of the City Water Department. Because of their conduct, Kleinsasser and Reede were discharged later that same day. ¹

Kleinsasser was a member of the American Federation of State, County, and Municipal Employees (AFSCME). Pursuant to the labor union's contract with the City, Kleinsasser subsequently was furnished a letter stating the reasons for his being discharged. Of the four reasons enumerated in the letter, three alleged specific violations of conduct and work rules contained in a booklet entitled "Standard Schedule of Disciplinary Offenses and Penalties for City of Rapid City Employees." Kleinsasser previously had received and read a copy of this booklet. The alleged rules violations included "immoral, indecent, or notoriously disgraceful conduct which reflects unfavorably on the City," "falsification, misstatement, exaggeration, or concealment of material fact in connection with employment, promotion, and record, investigation or other proper proceeding," and "falsifying attendance record for oneself or another employee." The fourth reason for which Kleinsasser was discharged was "helping another employee to willfully deceive the city in hours worked."

Shortly after his termination, Kleinsasser filed a grievance against the City, seeking to be reinstated at his former position. ² When the grievance was denied, he appealed to the Department pursuant to SDCL 3-18-15.2. ³ The Department held a hearing on the matter and determined that Kleinsasser's conduct did not rise to the level of misconduct which would justify terminating his employment. The Department reasoned that the City failed to prove that Kleinsasser had a willful or wanton disregard of the City's interests or his duties and obligations to the City. The Department also found that the only way to justify Kleinsasser's discharge would be to impute to him Reede's misconduct. Because this would amount to an inequitable application of the City's work rules and policies, the Department concluded that Kleinsasser was wrongfully discharged.

The City appealed the Department's decision to the circuit court. The circuit court determined that the Department's decision was affected by error of law and clearly erroneous in light of the entire evidence. Specifically, the circuit court held that the Department erred in concluding that Kleinsasser's actions on September 19, 1986, were not misconduct. The circuit court disagreed with the standard applied by the Department in determining "work-connected misconduct." The Department applied to the present case the same standard used to determine whether an employee committed "work-connected misconduct" that would deprive him of unemployment compensation. The circuit court correctly stated that the standard for misconduct used in employment termination cases is less stringent. In reversing the Department's decision, the circuit court concluded that the City did not wrongfully discharge Kleinsasser because his actions constituted "work-related misconduct" under either standard.

Kleinsasser now appeals to this court, essentially raising two issues. He first contends that the circuit court wrongfully substituted its judgment for that of the Department and that it applied the wrong standard in determining misconduct. In his second contention, Kleinsasser argues that the circuit court should have dismissed this matter because the City failed to file its brief in a timely manner.

Our standard of review in this matter is determined by the provisions in SDCL 1-26-36. These provisions were succinctly restated by this court in Permann v. Dept. of Labor, Unemp. Ins. D., 411 N.W.2d 113 (S.D.1987). In Permann, we stated:

Common sense dictates which standards apply to the different matters reviewed. The agency, after holding a hearing and listening to witnesses, is in a much better position to find facts than are we on appeal. On questions of law, however, it is well within our province to interpret statutes without any assistance from the administrative agency. It is well settled that conclusions of law made by a trial court are given no deference by this court on appeal, and lacking special circumstances, we see no reason to give deference to agency conclusions of law.

Id. at 117 (footnote omitted). See also Sambo v. City of Mitchell, 427 N.W.2d 379 (S.D.1988); Matter of Kotrba, 418 N.W.2d 313 (S.D.1988).

Having reviewed the transcript of the hearing conducted by the Department in the present case, we cannot conclude that the Department's findings of fact are clearly erroneous. The same can be said for those of the circuit court which differ from the Department's findings of fact only by exceeding them in detail. The Department's conclusions of law, however, are a different matter. As previously stated, the Department concluded that Kleinsasser's conduct did not rise to the level of misconduct that would justify his being discharged. This conclusion was based on the Department's erroneous application of the standard used in determining whether an employee's misconduct would deprive him of unemployment compensation.

In Matter of Kotrba, 418 N.W.2d 313 (S.D.1988), this court defined "work-connected misconduct" as grounds for the denial of unemployment benefits. We stated:

[I]n order to establish misconduct connected with an employee's work as required by [statute] the employer must show by a preponderance of the evidence that a reasonable person would find the employee's conduct: (1) had some nexus with the employee's work; (2) resulted in some harm to the employer's interests; and, (3) was in fact conduct which was (a) violative of some code of behavior contracted for between employer and employee, and (b) done with intent or knowledge that the employer's interest would suffer.

Id. at 316 (quoting Nelson v. Department of Employment Security, 98 Wash.2d 370, 655 P.2d 242, 245 (Wash.1982)). This standard or rule, however, is inapplicable to the present case. The present case concerns misconduct justifying the termination of employment. What constitutes misconduct justifying termination of an employee and what is misconduct which warrants denial of employment benefits are two separate decisions. Pierce v. Iowa Dept. of Job Service, 425 N.W.2d 679, 680 (Iowa App.1988); Kotrba, 418 N.W.2d at 316; Johnson v. Department of Employment Sec., 138 Vt. 554, 420 A.2d 106, 107 (1980). The standard for determining whether misconduct rises to the level which justifies discharging an employee is lower than that which determines whether an employee's misconduct will deprive him of unemployment compensation. See Kotrba, 418 N.W.2d at 316. This conclusion was correctly reached by the circuit court in this matter and the Department erred in failing to recognize this distinction between said standards.

The circuit court also correctly concluded that the Department made an error of law when it determined that Kleinsasser's employment had been wrongfully terminated. It is undisputed that Kleinsasser was romantically involved with a married woman, namely, Reede. On September 19, 1986, the two were seen driving to Kleinsasser's home where they spent several hours together. This occurred during Reede's working hours. In addition, Kleinsasser and Reede were observed displaying affection toward each other on the grounds of the City's water treatment facilities.

We find that Kleinsasser's conduct on the day he was discharged falls within the broad parameters of that which is immoral, indecent, or notoriously disgraceful and reflects unfavorably on the City. Municipal employees, whether in the performance of their jobs or in their off-duty behavior, are constantly under the ever watchful eyes of the public. The very nature of Kleinsasser's conduct has a tendency to destroy public respect for municipal employees and confidence in the operation of municipal services. See State v. Civil Service Com'n of City of West Allis, 27 Wis.2d 77, 133 N.W.2d 799 (1965); Civil Service Com'n of Philadelphia v. Wiseman, 93 Pa.Cmwlth. 358, 501 A.2d 350 (1985); In re Zeber's Appeal, 398 Pa. 35, 156 A.2d 821 (1959)...