Laundry v. Franciscan Health Care Center

• Decision Date: 14 March 1994
• Docket Number: No. 20278,20278
• Citation: 125 Idaho 279,869 P.2d 1374
• Parties: Judith N. LAUNDRY, SSN: 536-42-4970, Claimant-Respondent, v. FRANCISCAN HEALTH CARE CENTER, Employer, Defendant-Appellant, and State of Idaho, Department of Employment, Defendant-Respondent. Boise, December 1993 Term
• Court: Idaho Supreme Court

Page 1374

869 P.2d 1374

125 Idaho 279

Judith N. LAUNDRY, SSN: 536-42-4970, Claimant-Respondent, v. FRANCISCAN HEALTH CARE CENTER, Employer, Defendant-Appellant and State of Idaho, Department of Employment, Defendant-Respondent.

No. 20278.

Supreme Court of Idaho,

Boise, December 1993 Term.

March 14, 1994.

[125 Idaho 280] Roger B. Madsen, Boise, for appellant.

Stephen B. McCrea, Coeur d'Alene, for respondent Laundry.

Larry EchoHawk, Atty. Gen., and John C. Hummel, Deputy Atty. Gen., Boise, for respondent Department of Employment. John C. Hummel argued.

McDEVITT, Chief Justice.

Appellant, Franciscan Health Care Center ("Franciscan"), appeals an order of the Industrial Commission awarding respondent, Judith N. Laundry ("Laundry"), unemployment benefits. Franciscan contends that Laundry is not entitled to any benefits because she voluntarily quit her job with Franciscan and failed to show good cause for refusing Franciscan's offer of alternative employment. The Commission found that Laundry was terminated, but not for misconduct, and that Franciscan failed to adequately show that it offered Laundry alternative employment. We reverse.

BACKGROUND

Laundry worked for appellant Franciscan as the Director of Nursing from June 5, 1985 until August 7, 1991. Observing that Laundry was having difficulty supervising the employees under her direction, Laundry's supervisor, Nani Spohn ("Spohn"), attempted unsuccessfully on several occasions to help Laundry rectify the situation. Spohn did not feel that Laundry intentionally performed poorly, but simply lacked the ability to do better. Spohn met with Laundry on July 6, 1991, to discuss Spohn's concern over Laundry's poor supervisory skills. At the meeting, Spohn suggested that Laundry take a position as a staff nurse. Laundry refused. Subsequently, on August 7, 1991, Spohn met with Laundry and informed her that she would no longer be the Director of Nursing and that, following a three week vacation, Laundry was to return as a staff nurse. Laundry became upset and left the meeting, asking for a written explanation of the terms of her discharge. Spohn immediately executed the written notice, which notice did not contain the offer of a staff nursing position. Nor did Spohn discuss the particulars of the offer of a staff nurse position with Laundry before Laundry left the meeting.

Laundry sought unemployment compensation from the Idaho Department of Employment following the termination of her employment as the Director of Nursing. Franciscan opposed any payment of compensation. After conducting a telephonic hearing on the matter, the claims examiner denied Laundry's claim on September 4, 1991. Following a reexamination of the claim by another claims examiner who also denied the claim, Laundry appealed the claim to an appeals examiner. The appeals examiner also denied the claim on November 8, 1991, finding that Laundry had been discharged, not for misconduct, but had failed, without good cause, to accept suitable available employment. On appeal, the Commission, without This Court addresses the following issues on appeal:

[125 Idaho 281] an additional hearing, affirmed the appeals examiner's decision as to the misconduct issue, but reversed the decision as to the alternative suitable employment issue. The Commission, in its decision dated September 10, 1992, ruled that Laundry was eligible for unemployment benefits. Franciscan appeals the order of the Commission.

I. Whether the Commission erred in ruling that Laundry was involuntarily terminated, but not for misconduct, as the Director of Nursing at Franciscan.

II. Whether the Commission erred in ruling that Laundry was not offered alternative employment.

III. Whether Laundry is entitled to attorney fees on appeal.

STANDARD OF REVIEW

The standard of review for appeals from the Industrial Commission is two-fold. While this Court will exercise free review over the Commission's legal conclusions, Idaho Const. art. V, § 9; Spruell v. Allied Meadows Corp., 117 Idaho 277, 278, 787 P.2d 263, 264 (1990), it will not disturb the Commission's factual findings if they are supported by substantial and competent evidence. Spruell, 117 Idaho at 278, 787 P.2d at 264; Booth v. City of Burley, 99 Idaho 229, 232, 580 P.2d 75, 78 (1978). ¹ Substantial evidence in the context of a review of the proceedings of an administrative tribunal consists of such relevant evidence as a reasonable mind might accept as adequate to support a conclusion. Idaho State Ins. Fund v. Hunnicutt, 110 Idaho 257, 260, 715 P.2d 927, 930 (1985) (citing Local 1494 Int'l Assoc. of Firefighters v. City of Coeur d'Alene, 99 Idaho 630, 586 P.2d 1346 (1978)).

ANALYSIS

I.

THE COMMISSION DID NOT ERR IN RULING THAT RESPONDENT LAUNDRY WAS TERMINATED, BUT NOT FOR CAUSE, AS THE DIRECTOR OF NURSING AT FRANCISCAN

Franciscan asserts that Laundry became voluntarily unemployed when she refused to accept the position as staff nurse, and, consequently, that she is ineligible for benefits according to I.C. § 72-1366(e). We disagree. Idaho Code § 72-1366 provides the terms upon which a claimant is eligible for an award of unemployment compensation. Section 72-1366(e) requires that, in order to qualify for benefits, a claimant's unemployment is not due to the fact that he or she voluntarily quit without good cause or was discharged for misconduct in connection with the employment. Section 1366(f) requires that a claimant's unemployment is not due to his or her failure without good cause to accept suitable work when offered. The question whether a claimant has met the eligibility requirements of I.C. § 72-1366 is a question of fact for the Commission. Burnside v. Gate City Steel Corp., 112 Idaho 1040, 1042, 739 P.2d 339, 341 (1987). If the Commission's resolution of such questions of fact is supported by substantial and competent evidence on the record it will not be overturned on appeal. Id. There is substantial and competent evidence to support the Commission's finding that Laundry was discharged but not for misconduct.

Franciscan erroneously confuses the two distinct issues before this Court, namely, whether Laundry was discharged due to her own misconduct, and whether Laundry unreasonably rejected suitable employment, by asserting that Laundry voluntarily quit her job by refusing the staff nurse position. Laundry's alleged refusal to accept the staff nurse position is relevant to the second issue only. As to the first issue, the record overwhelmingly supports the Commission's finding that Laundry was discharged rather than voluntarily quit. Spohn admitted both at the hearing and in her report that she discharged Laundry as the Director of Nursing. The reasons for the discharge were put forth to Laundry in writing. The record also supports the finding that Laundry was discharged but not for her own misconduct. Misconduct has been defined in our prior cases to mean "willful, intentional disregard of the employer's interest, deliberate violation of the employer's rules, or disregard of standards of behavior which the employer has the right to expect from its employees." Johns v. S.H. Kress & Co., 78 Idaho 544, 548, 307 P.2d 217, 219 (1957). Franciscan has failed to show that Laundry engaged in misconduct as defined by Johns.

II.

THE COMMISSION ERRED IN RULING THAT LAUNDRY WAS NOT OFFERED ALTERNATIVE EMPLOYMENT

Franciscan asserts that there is not substantial and competent evidence to support the...