Bergstedt v. Steinbacher

499 N.E.2d 902, 27 Ohio App. 3d 93, 27 Ohio B. 113, 1985 Ohio App. LEXIS 10291
CourtOhio Court of Appeals
DecidedSeptember 3, 1985
Docket7-84-6, -7, -8 and -9
StatusPublished
Cited by2 cases

This text of 499 N.E.2d 902 (Bergstedt v. Steinbacher) is published on Counsel Stack Legal Research, covering Ohio Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Bergstedt v. Steinbacher, 499 N.E.2d 902, 27 Ohio App. 3d 93, 27 Ohio B. 113, 1985 Ohio App. LEXIS 10291 (Ohio Ct. App. 1985).

Opinion

Guernsey, P.J.

These are four separate appeals of the Administrator, Ohio Bureau of Employment Services, from judgments of the Court of Common Pleas of Henry County reversing decisions of the Unemployment Compensation Board of Review, hereinafter referred to as “the board.”

Prior to December 1979, appellees Michael L. Bergstedt and Joe D. Bergstedt, hereinafter referred to as “the brothers,” were employed by their father Don Bergstedt, doing business as Bergstedt Builders, as skilled workmen in the building-remodeling business. Because of unavailability of work, the father laid the brothers off in the early part of December 1979, and they thereupon sought and obtained unemployment benefits through the local office of the Ohio Bureau of Employment Services at Napoleon. Another brother, also working for the father, was retained on *94 the payroll to do such work as might turn up. Shortly afterwards the father and mother of the brothers bought a somewhat run-down home as an investment and the father and the three brothers went to work on the home, doing the same kind of remodeling work that they had done before the layoff. However, the brothers, who each worked approximately forty hours per week during the same time of day when most other work for wages is performed, received no compensation from the father specifically directed to or measured by the work that they did. Instead, they continued to receive their unemployment benefits and, after the father had sought advice as to same from the bureau’s Napoleon office, received from the father payments intended by the father to qualify as “private unemployment benefits” under the provisions of R.C. 4141.36. These payments, as made by the father, were measured as a percentage of the respective unemployment benefit payments which the brothers were receiving, and are commonly referred to as “sub” payments. The third brother, who was also working on the investment property, continued to be compensated by the father as an employee of his business and would leave work on the investment property to do other work on other places as such work became available to the business.

One of the brothers here involved lived with his parents during the time in question and the other brother lived elsewhere with his wife. Their mother remained in the parents’ home most of each day babysitting with children and was available to the residential phone, the number of which had been left with the bureau office and with prospective employers in the event that they wished to reach either of the brothers. A neighbor living near the investment property was willing to receive and convey calls to the brothers at their work, if necessary, and the father returned to his home each noon for his lunch and could likewise convey messages.

The unemployment compensation payments continued to be made to the brothers through the week ending May 10, 1980. On August 25, 1980, the administrator, having apparently been made aware of the situation which had existed by the receipt at Napoleon of an anonymous communication, mailed an order to the brothers to repay the unemployment benefits which they had received for the reason that they had allegedly made fraudulent misrepresentations with the intent of obtaining benefits to which they were not entitled. When such repayments were not forthcoming, the administrator commenced administrative proceedings against each of the brothers. Two of the claims, one against each brother, were for unemployment benefits received for the weeks ending December 15, 1979 to January 5, 1980. The other two claims covered the weeks ending January 12, 1980 through May 10, 1980. Michael Bergstedt had received benefits of $432 and $2,286, respectively, for these two periods while Joe Bergstedt had received $372 and $2,214, respectively, for the same two periods.

After initial proceedings the administrator’s claims were presented as appeals to the board and consolidated for hearing before the board’s referee in that they involved the same issues. The referee determined that the brothers made no fraudulent misrepresentations, allowed their unemployment benefits for the 1979 weeks, but disallowed their benefits and ordered repayment for the weeks in 1980. The referee further held that the “sub” pay did not constitute earnings and was not to be deducted from the benefits.

Both the administrator and the brothers filed applications to' institute further appeals to the board, which allowed the applications and directed a *95 further consolidated hearing before another referee, after which the board held on all the evidence (1) that the brothers did not make fraudulent misrepresentations with the object to obtain benefits to which they were not entitled; (2) that the benefits received for the 1979 weeks are disallowed and should be repaid because the brothers did not actively seek suitable work; and (3) that the benefits received for the 1980 weeks are disallowed and should be repaid because the brothers were neither available for work, nor were they actively seeking suitable work. The board further found that the “sub” pay received by the brothers did not qualify under the provisions of R.C. 4141.36, thus constituting earnings and was deductible as such. Joe Bergstedt was ordered to repay to the bureau a total of $2,588 and Michael Bergstedt was ordered to repay to the Bureau a total of $2,718.

It was this decision as to the four cases which was then appealed by the brothers to the Court of Common Pleas of Henry County, the appeals being consolidated for hearing. That court decided that the administrator had not established guidelines for qualifications of private unemployment plans under R.C. 4141.36, that the board’s decision thht provisions of the Internal Revenue Code should apply is unlawful and unreasonable, and that the payments made by the father to the brothers with the intent that they constitute private unemployment benefits qualified as such and should not be deducted by the administrator from unemployment benefits as earnings.

The lower court next determined, in essence, that to be disqualified from receiving unemployment • benefits, one must both be performing services and be receiving remuneration. The court also found “a total lacking of creditable [sic] evidence to find that the Appellants were not generally available nor that they were able and willing to accept work and/or employment for compensation.”

Based on these determinations, expressed in this ambiguous manner, the lower court reversed the decisions of the board specifically finding in its order that “the plan of Bergstedt Builders is a qualified one, that payments received by the Appellants are in fact qualified, that both Appellants were available for work and did actively seek work.” No further order was made. The administrator then perfected her appeal from these judgments to this court assigning reversible error of the common pleas court:

1. In finding that R.C. 4141.29(A) (4)(a), the available for work section, requires that a claimant must not only perform services but also must receive remuneration in order to be ineligible for unemployment compensation benefits.

2. In substituting its judgment for that of the trier of fact, the board of review, on the factual issue of whether the claimants were available for work as required by R.C. 4141.29(A)(4)(a).

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499 N.E.2d 902, 27 Ohio App. 3d 93, 27 Ohio B. 113, 1985 Ohio App. LEXIS 10291, Counsel Stack Legal Research, https://law.counselstack.com/opinion/bergstedt-v-steinbacher-ohioctapp-1985.