Wilson v. Review Bd. of Indiana Employment Sec. Division

Decision Date07 March 1978
Docket NumberNo. 2-677A228,2-677A228
Citation373 N.E.2d 331
PartiesDonna WILSON, Appellant, v. REVIEW BOARD OF the INDIANA EMPLOYMENT SECURITY DIVISION, Steak 'N Shake, Indiana Employment Security Board, Max Wright, Richard Ristine, Glenn Ray, Dr., William H. Andrews, Jr., George Elrod, John F. Coppes, David Brown, Mary Aikens Currie, William Davis, and Leslie Harris, Appellees.
CourtIndiana Appellate Court

David F. Shadel, Legal Services Organization, Indianapolis, for appellant.

Theo. L. Sendak, Atty. Gen., Darrell K. Diamond, Deputy Atty. Gen., Indianapolis, for appellees.

LOWDERMILK, Judge.

OPINION GRANTING PETITIONS FOR REHEARING

Our prior opinion was filed November 23, 1977, and appears in 369 N.E.2d 675. Both the State and Donna Wilson have petitioned for rehearing. We have carefully reexamined the record in light of facts and arguments emphasized in those petitions and accompanying briefs. We also have reexamined the briefs filed initially by the parties and the authorities cited therein. Having done so, we conclude that our prior opinion must be set aside. Accordingly, the petitions for rehearing filed by the Review Board and by Wilson are hereby granted. Our opinion of November 23, 1977, and the decision expressed therein, are hereby vacated.

STATEMENT OF THE CASE

Donna Wilson (Wilson) seeks review of a decision of the Review Board affirming a referee's denial of unemployment compensation benefits. Wilson also appeals from an order of the Marion County Circuit Court dismissing an amended complaint she had filed against the Indiana Employment Security Division (the Division) and numerous other parties. This court granted Wilson's motion for consolidation of these two matters.

STATEMENT OF THE FACTS

Donna Wilson worked as a waitress at Steak 'N Shake restaurant (restaurant) on Pendleton Pike in Indianapolis. Her employment terminated November 12, 1976, when she left work early, complaining of illness, despite instructions that she should remain until the end of her scheduled work shift.

Wilson filed a claim for unemployment compensation benefits. On or about December 12, 1976, Wilson returned to the restaurant to inquire concerning a check due for past services. While Wilson was at the restaurant, the restaurant manager, in the presence of the district manager, offered twice to reinstate Wilson in the same job she held previously. She refused both offers. Wilson stated that she did not want to work under the supervision of the head waitress who had refused Wilson's request to leave early on November 12, 1976.

The following events are relevant to the issues raised herein:

                  In the      In the
                trial court  Division
                -----------  --------
                             11/15/76  Wilson filed her initial
                                       claim for benefits
                             12/2/76   The Division recognized
                                       Wilson's status as an
                                       insured worker
                             12/14/76  Wilson's former
                                       employer submitted a
                                       report indicating that
                                       Wilson had refused an
                                       offer of suitable work
                                       without good cause
                             1/5/77    A deputy of the Division
                                       gave Wilson written
                                       notice that Wilson's
                                       benefit rights were
                                       suspended commencing
                                       the week ending
                                       December 18, 1976
                1/6/77                 Wilson filed her verified
                                       complaint for declaratory
                                       judgment and injunctive
                                       relief
                             1/17/77   Wilson filed her request
                                       for a hearing before a
                                       referee
                             1/26/77   Wilson filed a motion
                                       for immediate order to
                                       resume payment of
                                       benefits, for recognition
                                       of her appeal as a class
                                       action, and for adoption
                                       of rule and policy.
                             1/26/77   The referee denied
                                       Wilson's motion.
                             2/ 1/77   Wilson filed her request
                                       for appeal to the Review
                                       Board, listing the denial
                                       of her motion as the
                                       point in dispute.
                             2/ 9/77   Wilson received a hearing
                                       before a referee.
                             2/15/77   The referee ruled that
                                       restaurant made a
                                       good-faith offer of
                                       suitable work and Wilson
                                       refused that offer
                                       without good cause;
                                       therefore, the deputy
                                       properly suspended
                                       Wilson's benefits.
                             2/22/77   Wilson filed her request
                                       for appeal to the
                                       Review Board.
                3/4/77                 The trial court granted
                                       defendant's motion to
                                       dismiss.
                3/17/77                Wilson filed an amended
                                       complaint for declaratory
                                       judgment and injunctive
                                       relief.
                3/22/77                The trial court granted
                                       defendants' motion to
                                       dismiss the amended
                                       complaint.  1
                4/6/77                 The trial court entered
                                       judgment of dismissal.
                             4/12/77   The Review Board
                                       heard oral argument on
                                       the record of the hearing
                                       before the referee.
                             4/14/77   The Review Board
                                       affirmed the decision
                                       of the referee.
                

ISSUES

1. Whether the decision of the Review Board is contrary to law and not supported by the evidence.

2. Whether the Indiana Employment Security Division erred in failing to allow Wilson to proceed with her administrative appeal as a class action administrative appeal.

3. Whether the trial court had jurisdiction of Wilson's amended complaint.

4. Whether Wilson's amended complaint stated a claim upon which relief could be granted.

5. Whether the Indiana Employment Security Division erred in failing to find that Wilson's rights to unemployment compensation benefits were violated by the suspension of her benefit rights without first providing her with notice and opportunity for a fair hearing.

6. Whether the Indiana Employment Security Division erred in refusing to adopt the rule, regulation, policy or practice sought by Wilson.

Issue One

Wilson argues that the restaurant made no genuine offer of suitable work.

This court may not weigh the evidence when it reviews a decision of the Review Board. The Review Board's decision as to all questions of fact is conclusive. Skirvin v. Review Board (1976), Ind.App., 355 N.E.2d 425.

Wilson's argument goes solely to weight of the evidence and credibility of witnesses. The record provides evidence of probative value to support the Review Board's conclusion that Wilson refused an offer of suitable work without good cause. 2

Issue Two

Wilson argues that the Indiana Employment Security Division erred in failing to allow Wilson to proceed with her administrative appeal as a class action administrative appeal. Wilson contends that, (1) because the referee has considerable discretion in the conduct of hearings, and (2) because no statute prohibits class action administrative appeals, the appeal should have been recognized as a class action. The Division responds that no authorization for such a procedure exists.

An administrative agency is a creature of the Legislature. The procedures to be followed in an administrative proceeding are defined in the statutes pertaining to the particular agency. Clary v. National Friction Products, Inc. (1972), 259 Ind. 581, 290 N.E.2d 53.

Wilson contends that the administrative agency had "apparent authority" to do what she requested. An administrative agency has only the powers and authority specifically provided it. Wilson errs when she searches for a statute prohibiting a particular procedure; she must search instead for authorization for such a procedure. The Division did not err in refusing to allow Wilson to proceed with her administrative appeal as a class action administrative appeal.

Issue Three

Wilson argues that the trial court had jurisdiction of Wilson's amended complaint. She emphasizes that in the trial court she did not seek to challenge the ruling on her claim for benefits but rather she did seek to challenge the procedure employed by the Indiana Employment Security Division in suspending and terminating benefits.

The Division responds that the Indiana Employment Security Act provides a comprehensive administrative procedure for determination of eligibility for benefits. The Review Board's decision ultimately may be reviewed by the Court of Appeals. The Division argues that the jurisdiction of the Court of Appeals is exclusive and the trial court has no jurisdiction to entertain Wilson's amended complaint.

A failure to pursue statutory remedies is jurisdictional and may be raised by a motion to dismiss. Bryant v. Lake County Trust Co. (1972), 152 Ind.App. 628, 284 N.E.2d 537.

IC 1971, 22-4-17-12 (Burns Code Ed.) provides that either party to the dispute, the Indiana Employment Security Board, or the Director of the Division may appeal the decision of the Review Board to the Court of Appeals. Ind.Rules of Appellate Procedure, Appellate Rule 4(C) states that the Court of Appeals shall have jurisdiction to review final decisions of the Review Board of the Employment Security Division.

The Indiana Employment Security Division is administered by the Indiana Employment Security Board. IC 1971, 22-4-18-1 (Burns Code Ed.). The ...

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