Wulff v. Sun Valley Co.

• Decision Date: 19 June 1995
• Docket Number: No. 21085,21085
• Citation: 896 P.2d 979,127 Idaho 71
• Parties: Nancy B. WULFF, SSN: 307-62-8786, Claimant-Respondent, v. SUN VALLEY COMPANY, Employer, Defendant-Appellant, and State of Idaho, Department of Employment, Defendant-Respondent. Boise, March 1995 Term
• Court: Idaho Supreme Court

Page 979

896 P.2d 979

127 Idaho 71

Nancy B. WULFF, SSN: 307-62-8786, Claimant-Respondent, v. SUN VALLEY COMPANY, Employer, Defendant-Appellant and State of Idaho, Department of Employment, Defendant-Respondent.

No. 21085.

Supreme Court of Idaho,

Boise, March 1995 Term.

June 19, 1995.

Moffatt, Thomas, Barrett, Rock & Fields, Boise, for appellant. Grant T. Burgoyne, argued.

Alan G. Lance, Atty. Gen., Jane M. Newby, Deputy Atty. Gen., argued, Boise, for respondent.

SCHROEDER, Justice.

I. BACKGROUND AND PRIOR PROCEEDINGS

This is an appeal by the Sun Valley Company (Sun Valley) from a decision of the Industrial Commission (the Commission) holding that Sun Valley did not carry its burden of establishing that its former employee, Nancy B. Wulff (Wulff), was discharged for misconduct such that she was ineligible for unemployment benefits. The Department of Employment (the DOE) appears as respondent.

Wulff worked as a cashier and skate shop manager for Sun Valley from December of 1989 until January 2, 1993. She was terminated by her supervisor, Nick Maricich, the director of skating. The written notice of termination issued to Wulff listed the following grounds:

1. Nancy has exhibited an inability to communicate in a positive manner with her managers.

2. It has been brought to my attention that she has spoken negatively of the management and Sun Valley Co. to other members of the staff as well as some of our clients.

3. She has shown an overall negative attitude toward her managers and co-workers.

4. She is unwilling to be flexible regarding her scheduled work hours, and expects her manager to schedule the staff according to her personal needs.

5. She continues to bring her children to work despite several warnings.

6. Due to her negativity and inability to communicate with management so as to resolve conflicts in a positive and constructive manner, she is unsuitable to the working environment here, and does not contribute to the overall success of the Sun Valley Skating Center.

Wulff applied for unemployment benefits and was ruled eligible for benefits in an eligibility determination. Sun Valley appealed for a redetermination and the decision was affirmed in an eligibility redetermination. Sun Valley then appealed to the Appeals Bureau. An Appeals Examiner took testimony in telephonic hearings and reversed the eligibility determination, concluding that Wulff was ineligible for unemployment benefits because she had been discharged for misconduct.

In making the determination of misconduct the Appeals Examiner considered a number of allegations by the employer, including claims that Wulff had a negative attitude towards her employer and her immediate supervisor, that she created problems in requesting time off and complaining about her work schedule, and that she allowed her children in the work place after being warned not to do so. The Appeals Examiner determined "that the employer has established that the claimant was discharged for an accumulation of problems which included the claimant allowing her children to stay in the ice skating shop when the claimant did not have appropriate child care arrangements, repeatedly and constantly requesting time off from work and complaining about the work schedule and for a general bad attitude towards the work place." The Appeals Examiner concluded that the accumulation of problems established that Wulff was unwilling to work under the rules established by her employer and was unwilling to work up to the standards established by her employer. The Commission reviewed the record of the hearings before the Appeals Examiner and entered revised findings which deleted some findings of the Appeals Examiner and restated others. The Commission determined that the claims of Sun Valley were "general averments" to which Wulff had given "veritable explanations." The Commission reversed the decision of the Appeals Examiner on the basis of the revised findings of fact, concluding that Sun Valley had not met its burden of establishing misconduct by a preponderance of the evidence because Sun Valley's "general averments" did not outweigh Wulff's "veritable explanations." Sun Valley appeals the Commission's decision.

II. STANDARD OF REVIEW AND THE TEST FOR MISCONDUCT

The standard for reviewing a determination of the Commission in an unemployment case and the underlying definition of misconduct that governs whether a discharged employee is eligible for unemployment benefits is set forth in Campbell v Bonneville County Bd. of Commr's, 126 Idaho 222, 225, 880 P.2d 252, 255 (1994):

This Court only reviews questions of law in an appeal from a decision of the Commission, disturbing findings of fact on appeal only where they are not supported by substantial and competent evidence. Davis v. Howard O. Miller Co., 107 Idaho 1092, 1094, 695 P.2d 1231, 1233 (1984).

This Court has articulated a test for three types of conduct to determine whether an employee is ineligible for unemployment benefits due to a discharge based on "misconduct" as used in I.C. § 72-1366(e) by defining misconduct as "willful, intentional disregard of the employer's interest; a deliberate violation of the employer's rules; or a disregard of standards of behavior which the employer has a right to expect of his employees." Puckett v. Idaho Dep't of Corrections, 107 Idaho 1022, 1023, 695 P.2d 407, 408 (1985) (quotations omitted).

We have further subdivided the test for the third type of conduct by bifurcating the test for "standards of behavior" misconduct into an evaluation of "(1) whether the employee's conduct fell below the standard of behavior expected by the employer; and (2) whether the employer's expectation was objectively reasonable in the particular case." Id. at 1023-24, 695 P.2d at 408-09. The tests for the first two types of misconduct are clearly factual determinations. We have previously said that the third test is also a question of fact. Puckett, 107 Idaho at 1024, 695 P.2d at 409.

In unemployment cases the findings of the Industrial Commission will be upheld on appeal when sustained by substantial and competent, though conflicting evidence. Lang v. Ustick Dental Office, P.A., 120 Idaho 545, 547, 817 P.2d 1069, 1071 (1991). This standard has been further defined in workers' compensation decisions: "Substantial and competent evidence consists of 'such relevant evidence as a reasonable mind might accept as adequate to support a conclusion.' " Reiher v. American Fine Foods, 126 Idaho 58, 60, 878 P.2d 757, 759 (1994). "Moreover, we refuse to disturb on appeal the Commission's conclusions as to the weight and credibility of the evidence unless they are clearly erroneous." Id. at 61, 878 P.2d at 760.

III. SUFFICIENCY OF THE COMMISSION'S FINDINGS

Sun Valley argues that the Commission did not fulfill its statutory obligation under I.C. § 72-716 to make adequate findings of fact. This Court has remanded unemployment cases to the Commission in the past for inadequate findings. See Comegys v. Idaho Air Nat'l Guard, 104 Idaho 767, 663 P.2d 648 (1983); Nenoff v. Culligan Soft Water, 95 Idaho 834, 521 P.2d 658 (1974), appeal after remand, 97 Idaho 243, 542 P.2d 837 (1975).

In Nenoff, the Court outlined the type of findings that are adequate:

In reviewing appeals from the Industrial Commission, this Court is limited by constitution, statute, and decision, to a review of questions of law. It is impossible, however, to fairly evaluate a conclusion of law of the Industrial Commission without knowing the facts upon which the Commission based its conclusion. The Commission has a duty to make findings of fact. I.C. 72-716; Swan v. Williamson, 74 Idaho 32, 257 P.2d 552 (1953); Patrick v. Smith Baking Co., 64 Idaho 190, 129 P.2d 651 (1942); In re MacKenzie, 54 Idaho 481, 33 P.2d 113 (1934). Such findings must be definite, certain and specific, and there should be no room for misunderstanding as to whether statements are intended to be findings. Swan v. Williamson, supra.

In this case the Commission did not resolve the factual conflicts in the evidence. The findings of fact entered by the Commission are merely a recitation of the allegations, contentions and testimony of the parties. Such findings of fact do not permit this Court to obtain a clear understanding of the basis of the decision of the Commission and are contrary to this Court's instructions in Swan v. Williamson, supra, wherein we stated:

"Where there is a conflict in the testimony the duty rests upon the board, a fact finding body, to resolve such conflict, to determine what is true and what is false and to announce the facts in accordance with its findings. Statements, observations, recitals and excerpts from the testimony of witnesses, argumentative comment thereon, statements of the method of reasoning by which a conclusion is reached, that the claimant has or has not established certain facts by a preponderance of the evidence, as well as statements as to sustaining or failing to sustain the burden of proof are not proper; neither are they required by nor sufficient to satisfy the express statutory duty requiring specific, certain and reasonably concise findings of fact." 74 Idaho at 37, 257 P.2d at 554.

Therefore the matter is remanded to the Industrial Commission with directions to enter findings of fact, conclusions of law and a new order conforming with those findings and conclusions.

Nenoff, 95 Idaho at 836-37, 521 P.2d at 660-61 (footnotes omitted). The findings in Nenoff did not contain any statement by the Commission weighing the conflicting testimony. See Nenoff, 95 Idaho at 836 n. 4, 521 P.2d at 660 n. 4. Sun Valley maintains that this case has the same flaw that existed in Nenoff, arguing that the Commission's findings constitute merely a recitation of what the opposing witnesses said. However, a close reading of the Commission's recitations indicates that it did make sufficient findings to allow review by this Court. The...