Myers v. Iowa Dept. of Job Service, 84-1088

• Decision Date: 25 June 1985
• Docket Number: No. 84-1088,84-1088
• Citation: 373 N.W.2d 507
• Parties: Dennis R. MYERS, Petitioner-Appellee, v. IOWA DEPARTMENT OF JOB SERVICE, Respondent, and Color Converting Industries, Respondent-Appellant.
• Court: Iowa Court of Appeals

Page 507

373 N.W.2d 507

Dennis R. MYERS, Petitioner-Appellee, v. IOWA DEPARTMENT OF JOB SERVICE, Respondent and Color Converting Industries, Respondent-Appellant.

No. 84-1088.

Court of Appeals of Iowa.

June 25, 1985.

Peter C. Percival of Binford & Percival, P.C., Des Moines, for respondent-appellant Color Converting Industries.

Carolyn F. Coleman, Des Moines, for petitioner-appellee.

Heard by SNELL, P.J., and HAYDEN, and SACKETT, JJ., but considered en banc.

SACKETT, Judge.

Myers was involved in an altercation with a co-worker and was suspended for two days. A production supervisor for Color Converting Industries later held a meeting with Myers and the co-worker. At this meeting Myers agreed there would be no further problem between himself and the co-worker. However, Myers stated he would not take instructions from the co-worker who on occasion substituted for his foreman.

Myers claimed unemployment benefits. The claim was denied by the claims deputy. After an administrative hearing, the decision of the claims deputy was affirmed. The hearing officer, in his findings of fact, determined Myers had stated to the production supervisor he would not take orders from the co-worker and the co-worker was a lead man assistant to the foreman who took over the foreman's duties in the foreman's absence.

The Appeal Board of the Iowa Department of Job Service affirmed the decision denying benefits.

Upon Myers' petition for judicial review, the trial court made its own findings of fact. It determined the plant supervisor's conclusion that Myers refused to obey instructions was an argument with little weight as to the fact. The trial court concluded if Myers did state he would not obey an order from his co-worker that did not constitute misconduct. The trial court reversed the decision of the Appeal Board on the ground it made an error of law in finding misconduct on the part of Myers.

Color Converting claims the findings of fact by the Department of Job Service were supported by substantial evidence and the district court erred in not adopting the agency's findings of fact.

If supported by substantial evidence, the findings of fact made by the Iowa Department of Job Service are conclusive on the reviewing courts and have the same standing as a jury verdict. If, however, the facts are not in dispute and different inferences could not be reasonably drawn therefrom, it becomes a question of law and the court is not bound by the findings of fact or conclusions of the department. McClure v. Union, Et Al., Counties, 188 N.W.2d 283, 284 (Iowa 1971).

The fact that an agency could have drawn two inconsistent conclusions from the evidence does not mean that one of those conclusions is unsupported by substantial evidence. Gipson v. Iowa Dep't of Job Serv., 315 N.W.2d 834, 837 (Iowa Ct.App.1981).

The employer has the burden of proving misconduct. Billingsley v. Iowa Dep't of Job Serv., 338 N.W.2d 538, 540 (Iowa Ct.App.1983).

Myers concedes the findings of fact made by the agency are binding on the district court if supported by substantial evidence, but argues the findings of fact made by the trial court did not form the basis of the ultimate decision reached by the trial court.

The real issue as framed by both parties is whether a finding by the agency that Myers declared he would not take orders from his co-worker, when the co-worker was functioning in a supervisory capacity, is misconduct. When we review decisions of the district court which it rendered in its capacity as an appellate body under Iowa Code section 17A.19, the sole issue for us to determine is whether or not the district court correctly applied the law. To make that determination, we apply the standards of section 17A.19(8) to the agency action to determine whether our conclusions are the same as those of the district court. Floyd v. Iowa Dep't of Job Serv., 338 N.W.2d 536, 537 (Iowa Ct.App.1983).

Myers argues that any erroneous findings made by the trial court were not relied upon by it in concluding there was no misconduct. He contends the trial court simply did not deem the agency's findings supported a misconduct disqualification and additionally the agency's application of law was erroneous.

Color Converting claims the trial court erred in holding Myers' statement to his production supervisor, that he would not take orders from his co-employee when his co-employee was in a supervisory position, was not misconduct. Myers claims an employee's statement as to future conduct does not constitute misconduct in the absence of any actual follow-through on the statement by the employee.

Iowa has not addressed the issue of whether statements as to future conduct can be misconduct. The Iowa Admin.Code section 370-4.32(1) defines misconduct as follows:

Misconduct is defined as a deliberate act or omission by a worker which constitutes a material breach of the duties and obligations arising out of such worker's contract of employment. Misconduct as the term is used in the disqualification provision as being limited to conduct evincing such willful or wanton disregard of an employer's interest as is found in deliberate violation or disregard of standards of behavior which the employer has the right to expect of employees, or in carelessness or negligence of such degree of recurrence as to manifest equal culpability, wrongful intent or evil design, or to show an intentional and substantial disregard of the employer's interests or of the employee's duties and obligations to the employer. On the other hand mere inefficiency, unsatisfactory conduct, failure in good performance as the result of inability or incapacity, inadvertencies or ordinary negligence in isolated instances, or good faith errors in judgment or discretion are not to be deemed misconduct within the meaning of the statute.

This definition of misconduct was approved by the Iowa Supreme Court in Huntoon v. Iowa Dep't of Job Serv., 275 N.W.2d 445, 448 (Iowa 1979). In addition to requiring that an employee's conduct be included within the above definition of misconduct, the agency rule also requires that the misconduct be a current act. Iowa Admin.Code § 370-4.32(8).

Myers' statement that he would not take orders was deliberate.

In order to support a disqualification from unemployment benefits, the misconduct must be substantial. See Budding v. Iowa Dep't of Job Serv., 337 N.W.2d 219, 222 (Iowa Ct.App.1983).

The Commonwealth Court of Pennsylvania has considered this specific issue and determined, "willful misconduct can be established where an employee manifests an intent to disobey the reasonable instructions of his employer." Sturniolo v. Commonwealth, Unemployment Compensation Bd. of Review, 19 Cmwlth. 475, 338 A.2d 794, 796 (1975).

In Unemployment Compensation Bd. of Review v. Ciotti, 24 Pa.Cmwlth. 373, 356 A.2d 368 (1976), the claimant announced refusal to work without good reason on a day she knew she was scheduled to work. The statement of an intention...