Archie Patterson v. SCDEW

CourtCourt of Appeals of South Carolina
DecidedApril 3, 2024
Docket2019-000599
StatusPublished

This text of Archie Patterson v. SCDEW (Archie Patterson v. SCDEW) is published on Counsel Stack Legal Research, covering Court of Appeals of South Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Archie Patterson v. SCDEW, (S.C. Ct. App. 2024).

Opinion

THE STATE OF SOUTH CAROLINA In The Court of Appeals

Lorenda Robinson, Elaine Nix, Archie Patterson and Tami Bollerman, Plaintiffs,

Of Whom Archie Patterson and Tami Bollerman are the Respondents,

v.

South Carolina Department of Employment and Workforce, Appellant.

Appellate Case No. 2019-000599

Appeal From Barnwell County Doyet A. Early, III, Circuit Court Judge, Clifton Newman, Circuit Court Judge

Opinion No. 6055 Heard August 17, 2023 – Filed April 3, 2024

REVERSED

Robert E. Tyson, Jr., Vordman Carlisle Traywick, III, and Robert E. Stepp, all of Robinson Gray Stepp & Laffitte, LLC, all of Columbia; and Kenneth P. Woodington and William H. Davidson, II, both of Davidson, Wren & DeMasters, of Columbia, all for Appellant.

C. Bradley Hutto, of Williams & Williams, of Orangeburg; Daniel Webster Williams, of Bedingfield & Williams, of Barnwell; Susan B. Berkowitz and Adam Protheroe, both of South Carolina Appleseed Legal Justice Center, of Columbia; and Alexander D. Paterra, of The Paterra Law Firm, LLC, of Greenville, all for Respondents.

Kenneth M. Moffitt, Jessica J. Godwin, and John Potter Hazzard, V, all of Columbia, for Amicus Curiae Thomas Alexander, President of the South Carolina Senate.

Patrick Graham Dennis, Haley Mottel Symmes, and Steven Robert Davidson, all of Columbia, for Amicus Curiae G. Murrell Smith, Speaker of the South Carolina House of Representatives.

VINSON, J.: In this declaratory judgment action, the South Carolina Department of Employment and Workforce (DEW) appeals the circuit court's orders 1 granting judgment in favor of named plaintiffs Archie Patterson and Tammie Bollerman (collectively, Claimants), arguing the circuit court erred by (1) certifying a class, and in the alternative, failing to require a claims-made process, (2) declaring DEW was required to promulgate regulations implementing its online work search requirement, and (3) concluding Claimants were not required to exhaust their administrative remedies prior to bringing this action. We reverse.

FACTS AND PROCEDURAL HISTORY

In the 2011–2012 Appropriations Act, the General Assembly enacted the following budget proviso pertaining to DEW:

(DEW: SUTA Contingency Assessment Funds) Thirty percent of the funds appropriated through the contingency assessment funds collected on taxable wages

1 DEW appeals seven orders: the (1) May 5, 2016 order certifying the class; (2) April 27, 2017 order finding Claimants had standing; (3) October 30, 2017 order denying DEW's motion to reconsider the April 27, 2017 and May 5, 2016 orders; (4) February 15, 2019 order ruling in favor of Claimants on the merits; (5) March 11, 2019 order denying DEW's motion to reconsider the merits order; (6) March 21, 2019 order granting Claimants' motion to amend the merits order; and (7) July 22, 2020 order denying DEW's motion to reconsider the March 21, 2019 order. paid by employers shall be spent on enforcement of [s]ection 41-35-110(3) and [s]ection 41-35-120(5) of the [South Carolina Code (2021)2], via Eligibility Reviews, Random Verification of Job Contacts and Wage Cross Matches during those weeks covered by the South Carolina State Unemployment Tax Authority (SUTA), and to ensure seated meetings with Unemployment Insurance claimants and requiring that one of the four job search contacts required per week be conducted through SC Works Online System (SCWOS), so that it can be electronically verified. The agency must also inform claimants in advance that Eligibility Reviews and Random Verification of Job Contacts will be used by the Department to verify compliance with laws administered by the agency.

Act No. 288, 2012 S.C. Acts 448, § 67.7 (emphasis added). The General Assembly passed identical provisos in 2013, 2014, and 2015. See Act. No. 101, 2013 S.C. Acts 475-76, § 83.6; Act No. 286, 2014 S.C. Acts 503, § 83.6; Act No. 91, 2015 S.C. Acts 484-85, § 83.5. The proviso remained in effect until July 1, 2016. 3 In August 2012, after providing advance notice to unemployed insurance benefits claimants, DEW began requiring these individuals to conduct at least one job search per week using SCWOS in accordance with the directive contained in the proviso. DEW distributed a letter titled "Procedure Transmittal Letter Number 1267-3" to all department heads, area directors, claim supervisors, and staff managers on August 10, 2012. The letter explained that beginning with the claim week ending August 11, 2012, any claimants who failed to comply with the online job search requirement for a given week would be notified their benefits were stopped because they failed to make a job search through SCWOS for the specified claim week. The letter further provided,

2 See § 41-35-110(3) (providing "[a]n unemployed insured worker is eligible to receive benefits with respect to a week only if [DEW] finds he: . . . is able to work and is available for work . . . and . . . is himself actively seeking work"); § 41-35-120(5) (providing, in pertinent part, "[a]n insured worker is ineligible for benefits . . . [i]f [DEW] finds he has failed, without good cause: . . . to apply for available suitable work, when so directed by the employment office or [DEW]"). 3 In 2017, DEW promulgated a regulation addressing this requirement. See S.C. Code Ann. Regs. 47-104 (Supp. 2023). Warnings are NOT acceptable for SCWOS work searches. Claimants will not be given a warning if they fail to meet this requirement. There may be a few extraordinary circumstances, such as a court order prohibiting a claimant from using the Internet, or for a claimant whose first language is not English and (s)he cannot read the instructions on SCWOS, where a claimant may be justified in failing to make job searches through SCWOS.

Prior to DEW's implementation of the online work search requirement, individuals claiming unemployment benefits received weekly benefits automatically through DEW's automated system. In other words, benefits were paid unless DEW staff took action to stop the payment. Although DEW required claimants to maintain a paper form, "Form UCB-303," documenting contacts with potential employers each week, verifications of this information did not occur on a weekly basis but occurred on an unspecified, periodic basis. Once the online work search requirement took effect, however, DEW's system automatically stopped benefits payments when it detected a claimant failed to conduct the online search. These claimants then received a written notice explaining their benefits had been stopped and instructing them to report to their local "SC Works Center" immediately if they "would like to receive future benefits." It also instructed them to bring the written notice and their Form UCB-303. The instruction telling them to report to a local employment center was the claimant's opportunity to provide DEW with a statement regarding their failure to perform the online search and to seek payment of the benefits for which they had been deemed ineligible; however, the written notice did not explain this. Numerous individuals failed to comply with this online work search requirement and were denied their weekly benefits as a result.

On February 14, 2013, Claimants filed this declaratory judgment action as a putative class action.4 Claimants moved to certify the class in May 2013. In their amended complaint filed February 17, 2015, Claimants 5 requested the circuit court (1) certify the class, (2) declare DEW was required to promulgate regulations implementing its online work search requirement, (3) temporarily enjoin DEW from enforcing its policy requiring an online job application, and (4) require DEW

4 Circuit Court Judge Doyet A. Early, III, designated the case as complex and appointed himself to hear all matters in the case until its conclusion.

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Archie Patterson v. SCDEW, Counsel Stack Legal Research, https://law.counselstack.com/opinion/archie-patterson-v-scdew-scctapp-2024.