Abex Corporation v. Todd

235 A.2d 271, 1967 Del. Super. LEXIS 73
CourtSuperior Court of Delaware
DecidedOctober 24, 1967
StatusPublished
Cited by36 cases

This text of 235 A.2d 271 (Abex Corporation v. Todd) is published on Counsel Stack Legal Research, covering Superior Court of Delaware primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Abex Corporation v. Todd, 235 A.2d 271, 1967 Del. Super. LEXIS 73 (Del. Ct. App. 1967).

Opinion

STIFTEL, President Judge.

This is an appeal from an unemployment compensation award to Gertrude A. Todd by the Unemployment Security Commission (hereinafter “Commission”). The *272 sole question is whether the Commission properly found Mrs. Todd was discharged without just cause.

In 1956, Abex Corporation hired Mrs. Todd as a cost clerk. Shortly afterward, she was assigned to the payroll computation department. In 1965, she was one of several Abex employees who campaigned for union representation. In January, 1966, a majority of Abex employees voted for the union in an election conducted by the National Labor Relations Board. After the union victory, Mrs. Todd’s supervisor, Mr. Robert Lobue, began to discover certain errors in Mrs. Todd’s work. In January, 1966, he discovered that she had failed to calculate New Year’s holiday payroll rates for incentive (piecework) laborers. (Hereinafter this error is referred to as “the New Year’s error”). In March, he disciplined Mrs. Todd for crediting an employee for double time on a Sunday when he had not worked, and for which there was no time card (“the March error”). Finally, in April Mr. Lobue discovered that Mrs. Todd had erroneously included overtime in her Good Friday calculation (“the Good Friday error”). Thereupon, he discharged her. Mrs. Todd then claimed unemployment compensation, alleging that she was discharged for union activities.

The controversy is whether Mrs. Todd is entitled to unemployment compensation. The relevant statute, 19 Del.Code § 3315(2), disqualifies an employee from benefits, inter alia, if she has been discharged for “just cause”. The Claims Deputy found that Mrs. Todd had not been discharged for just cause. The Referee reversed the decision of the Deputy. The Commission reversed the Referee, finding that the discharge was without just cause, and after a partial rehearing, the Commission reaffirmed its findings, which are summarized as follows:

(1) Mrs. Todd’s work had been satisfactory for ten years. For that period, no fault had been found with her work.

(2) After the union’s victory, the employer, Abex, began to treat her differently. It refused to allow her to work overtime; it paid closer attention to her work; it found errors, and then discharged her.

(3)The errors for which she was discharged were inadvertent. These errors included failure to revise the incentive workers’ payroll rates in January, and posting the erroneous Sunday hours in March. The Good Friday payrate miscalculation was due to using the wrong rate and the fact that Mrs. Todd was not told what was wrong until the day she was fired. By implication, the Good Friday error made in April was also inadvertent.

Assuming the above findings to be proper, the question arises whether inadvertent errors constitute “just cause” under 19 Del.Code § 3315(2). Although there are no published Delaware cases defining “just cause”, that concept has been defined in other jurisdictions. Generally, the term “just cause” refers to a wilful or wanton act in violation of either the employer’s interest, or of the employee’s duties, or of the employee’s expected standard of conduct. See 48 Am.Jur., “Social Security”, Sec. 38, p. 541 (defining misconduct justifying denial of compensation). See also Annot., 146 A.L.R. 243, Hardman v. Board of Review, etc., 94 Ohio Law Abst. 257, 200 N.E.2d 825 (Ct.C.P.Ohio, 1964); Murrin v. Unemployment Compensation Board of Review, 199 Pa.Super. 583, 186 A.2d 438 (1962) ; Schock v. Board of Review, etc., 89 N.J.Super. 118, 214 A.2d 40 (1965). However, Mrs. Todd was discharged for “inadvertent” acts. Although inadvertence may include negligence, it does not include such conduct as is designated by the term “wanton”. Nor does inadvertence mean “wilful”. See 20A, Words and Phrases, “Inadvertence”, pp. 43-44. Hence, the Commission’s findings of inadvertence, if proper, are sufficient to negate “just cause”.

The issue thus arises whether the Commission’s findings are proper. In testing the propriety of Commission findings, the Superior Court looks only to determine *273 if they are supported by substantial evidence on the record. See Air Mod Corp. v. Newton, Del., 215 A.2d 434 (1965); General Motors Corp. v. Freeman, 3 Storey 74, 164 A.2d 686 (1960). Under this standard, questions of credibility and conflicts in the evidence are resolved by the Commission, General Motors Corp. v. McNemar, Del., 202 A.2d 803 (Supreme Ct., 1964), while the Court determines only whether there is satisfactory proof to support a factual finding. Johnson v. Chrysler Corp., Del., 213 A.2d 64 (Supreme Ct., 1963); M. A. Hartnett, Inc. v. Coleman, Del., 226 A.2d 910 (Supreme Ct., 1967). Therefore, the question presented is whether the finding that Mrs. Todd was fired for inadvertent error is supported by substantial evidence.

At the various hearings, conflicting evidence was introduced by both sides on the question of whether Mrs. Todd’s “March error” (mistakenly posting overtime to an employee) was inadvertent. Mr. Lobue testified that upon confronting Mrs. Todd with the fact of her error, she had no excuse. 1 However, Mrs. Todd testified that at the time, she wasn’t sure that “her handwriting was posted”. 2 In any case, even if she had committed the error, she explained that “If I hadn’t been out sick, I would have caught it”. 3 Although both versions of the incident are sufficient, the Commission was entitled to believe Mrs. Todd. Since it could have found that Mrs. Todd made the March error while sick, it could find that the error was inadvertent.

The Commission also found as inadvertent the “New Year’s error” (Mrs. Todd’s failure to revise the holiday payrates.). But in this instance, the Commission found improperly. At the hearing before the Referee, Mrs. Todd testified that she knowingly failed to revise the rates since 1963. 4 Nor did she repudiate this admission at the hearing before the Board. Moreover, both she and Mr. Lobue testified that her failure to revise the payrates was the reason for her suspension in January. 5 From this evidence, the Commission could have found the New Year’s error to be wilful. It could not have found the error to be inadvertent. Therefore, its finding was incorrect.

Nonetheless, that finding is not fatal. For three reasons the Commission could still have found that Mrs. Todd was discharged for inadvertent errors.

First, after Mr.

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Bluebook (online)
235 A.2d 271, 1967 Del. Super. LEXIS 73, Counsel Stack Legal Research, https://law.counselstack.com/opinion/abex-corporation-v-todd-delsuperct-1967.