Barno v. Dir., Dept. of Job & Family Servs.

2018 Ohio 2133
Ohio Court of Appeals·Decided May 31, 2018·No. 105933·Published

Opinion

Court of Appeals of Ohio

EIGHTH APPELLATE DISTRICT COUNTY OF CUYAHOGA

JOURNAL ENTRY AND OPINION No. 105933

PATRICK BARNO

PLAINTIFF-APPELLANT

vs.

DIRECTOR, ODJFS, ET AL.

DEFENDANTS-APPELLEES

JUDGMENT:

REVERSED AND REMANDED

Civil Appeal from the

Cuyahoga County Court of Common Pleas Case No. CV-15-844729

BEFORE: Blackmon, J., Boyle, P.J., and Keough, J.

RELEASED AND JOURNALIZED: May 31, 2018

-i-

ATTORNEYS FOR APPELLANT

Kenneth J. Kowalski Cleveland Marshall Civil Litigation Clinic 1801 Euclid Avenue, LB 138 Cleveland, Ohio 44115

Doron M. Kalir Cleveland Marshall Civil Litigation Clinic Cleveland Marshall College of Law 2121 Euclid Avenue, LB 138 Cleveland, Ohio 44115

ATTORNEYS FOR APPELLEES

Mike DeWine Ohio Attorney General

Laurence R. Snyder Assistant Attorney General 615 West Superior Avenue, 11th Floor Cleveland, Ohio 44113

For Great Lakes Water Treatment, Inc.

Great Lakes Water Treatment, Inc. 4949 Galaxy Parkway, Suite G Warrensville Heights, Ohio 44128

ON RECONSIDERATION1 PATRICIA ANN BLACKMON, J.:

{¶1} Upon review, this court grants appellee’s application for reconsideration pursuant to App.R. 26(A)(1). The application did not call to the attention of this court an obvious error in our opinion; however, the manifest weight of the evidence standard of review to be applied to civil cases merits further consideration. This court’s decision to reverse the denial of unemployment benefits remains unchanged.

{¶2} Patrick Barno (“Barno”) appeals from the trial court’s affirming the denial of his application for unemployment benefits in this administrative appeal and assigns the following errors for our review:

I. The Review Commission Hearing Officer’s Decision is unlawful because it either ignored or misstated the law of Ohio on a number of important issues.

II. The Decision of the Review Commission is erroneous in that it is unreasonable and against the manifest weight of the evidence.

{¶3} Having reviewed the record and pertinent law, we reverse the decision and remand to the trial court. The apposite facts follow.

{¶4} On February 17, 2014, Barno began working for Great Lakes Water Treatment (“GLWT”) as an “in-store lead generator.” Barno was stationed at a Home Depot, where he signed up customers for an in-home demonstration of GLWT’s water purification system.

1 The original decision in this appeal, Barno v. Dir., ODJFS, 8th Dist. Cuyahoga No. 105933, 2018-Ohio-1196, released March 29, 2018, is hereby vacated. This opinion, issued upon reconsideration, is the court’s journalized decision in this appeal. See App.R. 22 (C); see also S.Ct.Prac.R. 7.01.

GLWT instructed Barno to tell customers that, as an incentive, they would receive a $20 Home Depot gift card upon completion of the demonstration.

{¶5} According to Barno, when he was hired, GLWT explained the weekly marketing bonus he would receive, starting at $2 for each lead that resulted in a demonstration and $25 for each lead that resulted in a sale. Barno’s understanding was that the marketing bonus increased based on the number of demonstrations and sales generated on a weekly basis. Although GLWT did not give Barno any written documentation of the company’s commission structure at the time Barno was hired, or at any other time during Barno’s employment, Barno took notes during his interview, which reflect the following:

$2.00 for first 2 leads – confirmed $3.00 for each after that $25.00 per system sale for first sold $50.00 per system sale for second sold $100.00 per system sale 3rd sale $150.00 up from there paid weekly

{¶6} On April 22, 2014, Barno notified his manager, Brian Hlavac (“Hlavac”), of two issues he was having regarding “shortages” in his paychecks. First, Barno complained that he was not paid for four hours that he worked. On April 28, 2014, Barno followed up with a letter to Hlavac requesting that this issue be corrected. Hlavac determined that the hours Barno worked were miscalculated and corrected the issue.

{¶7} Second, Barno complained to Hlavac that his paychecks were “short on commissions.” Barno first became aware that one of his leads turned into a sale when the customer came back into Home Depot to complain about his new water system. According to Barno, he was never paid his marketing bonus for this sale. Barno also identified one other sale for which he was allegedly never paid. According to Barno, GLWT had no record-keeping system to inform its employees of the disposition of their leads. When Barno notified Hlavac about the missing bonuses, Hlavac said they “would show up on the check.”

{¶8} Barno experienced “issues weekly” regarding unpaid or underpaid bonuses, and “[n]early every Tuesday he complained to Mr. Hlavac that his check did not appear to include bonuses for sales of the water purification systems.” Hlavac typically responded that he was “going to look into it.” Ultimately, however, GLWT did nothing in response.

{¶9} Additionally, Barno began to question the ethical practices of GLWT. For example, a customer who purchased GLWT’s water purification system returned to Home Depot “livid” and asked to cancel his contract. Barno called Hlavac, who instructed Barno to tell the customer to continue calling GLWT’s office. According to Barno, “GLWT would screen incoming calls with Google Voice and likely not answer.” Furthermore, other customers returned to Home Depot to complain about the high-pressure sales pitch and that they never received their promised $20 Home Depot gift cards. According to Barno, Hlavac said in response, “yes I know they call and call,” and GLWT’s position was to“just continue to re-pitch them and resell them and sooner or later they would get tired and stop calling.”

{¶10} Barno identified other GLWT practices that he felt were unethical. For example, at the end of March or early April, Hlavac instructed Barno not to write up leads for “elderly people * * *, Russians, Orientals, anybody in zip code 441-anything, and by the way, Indians.” Barno was uncomfortable with these tactics and thought them to be unethical.

{¶11} On August 26, 2014, Barno told Hlavac that he was concerned about training new people to engage in these practices. Hlavac stated that Barno “had to do it, he had no one else.”

Barno also told Hlavac he could no longer wait to be paid correctly. Hlavac told Barno he was being paid correctly and, according to Barno, for the first time Hlavac stated that “it depends on what pay program you’re in.” Barno told Hlavac, “there’s only one pay program that I know of.” Hlavac “had nothing else to say” in response. That same day, Barno quit his job, claiming that GLWT failed to honor the bonus structure they had promised him and engaged in unethical treatment of its customers.

{¶12} On August 27, 2014, Barno applied for unemployment compensation benefits. On September 26, 2014, the Ohio Department of Job and Family Services Office of Unemployment Compensation (“ODJFS”) issued a determination disallowing Barno’s application for unemployment compensation benefits, finding that Barno

did not establish that he/she was compelled to quit for ethical reasons. Ohio’s legal standard that determines if a quit is without just cause is whether the claimant acted as an ordinary person would have under similar circumstances.

After a review of the facts, this agency finds that the claimant quit without just cause under Section 4141.29(D)(2)(a), Ohio Revised Code.

Barno appealed this determination.

{¶13} On November 7, 2014, the agency issued a redetermination affirming the initial decision disallowing Barno’s unemployment benefits. The agency’s findings were identical to the findings it made in its initial September 26, 2014 decision. Barno appealed this redetermination.

{¶14} On December 12, 2014, January 5, 2015, and January 27, 2015, the Unemployment Compensation Review Commission (“UCRC”) held telephone hearings regarding Barno’s appeal.

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Barno v. Dir., Dept. of Job & Family Servs., 2018 Ohio 2133 (Ohio Ct. App. 2018).

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