Cetnar v. Bernardi

495 N.E.2d 1128, 145 Ill. App. 3d 511, 99 Ill. Dec. 393, 1986 Ill. App. LEXIS 2508
CourtAppellate Court of Illinois
DecidedJune 18, 1986
DocketNo. 85—2695
StatusPublished
Cited by2 cases

This text of 495 N.E.2d 1128 (Cetnar v. Bernardi) is published on Counsel Stack Legal Research, covering Appellate Court of Illinois primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cetnar v. Bernardi, 495 N.E.2d 1128, 145 Ill. App. 3d 511, 99 Ill. Dec. 393, 1986 Ill. App. LEXIS 2508 (Ill. Ct. App. 1986).

Opinion

PRESIDING JUSTICE RIZZI

delivered the opinion of the court:

Plaintiff, John Cetnar, brought an administrative review action in the circuit court of Cook County seeking reversal of a decision of defendant Department of Labor, Board of Review (Board). The Board had found, pursuant to section 602(B) of the Unemployment Insurance Act (Act) (Ill. Rev. Stat. 1983, ch. 48, par. 432(B)), that plaintiff’s benefit rights based upon wages earned prior to the date of his discharge could not accrue to him because he admitted having committed a job-related theft. The circuit court reversed the decision of the Board, and the Board has appealed, contending that the court employed an erroneous construction of section 602(B). We affirm.

Plaintiff was employed as an electrician by Allied Tube & Conduit Corporation (employer) from August 12, 1968, until June 21, 1982, when he and several other employees, including management personnel, were discharged for misappropriating company property and falsifying timecards. The terminations represented the culmination of an investigation initiated by the employer when it discovered that certain materials and employees, which were destined for arrival at its other plants, did not in fact arrive at their destinations. The investigation revealed that a large-scale construction project was being carried out at the residence of the maintenance superintendent, and that employees were working on that project on company time, using materials transported from the employer’s plants.

The employer opposed plaintiff’s claim for unemployment compensation benefits, and the claims adjudicator found him ineligible for benefits under section 602(B) of the Act, based on a finding that plaintiff had submitted a written admission of having committed a job-related theft. Section 602(B) provides, in pertinent part:

“[N]o benefit rights shall accrue to any individual based upon wages from any employer for service rendered prior to the day upon which such individual was discharged because of the commission of a felony in connection with his work, or because of theft in connection with his work, for which the employer was in no way responsible; provided, that *** the individual has admitted his commission of the felony or the theft to a representative of the Director, or has signed a written admission of such act *** or such act has resulted in a conviction by a court of competent jurisdiction ***.” (Emphasis added.) (Ill. Rev. Stat. 1983, ch. 48, par. 432(B).)

Plaintiff’s written statement, which the claims adjudicator characterized as an admission, stated that on certain occasions, plaintiff’s general foreman would send him out of the employer’s plant to work on private property and would tell him what materials he needed for the job. Plaintiff would punch in for the day, then give his timecard to the foreman. Plaintiff maintained that he was given authorization by his foreman to remove materials from the plant and specifically stated, “I have not taken any materials from Allied Tube without authorization.” In a request for reconsideration of the claims adjudicator’s decision, plaintiff stated that he had been unjustly accused of theft and that he had never signed an admission of theft or misappropriation of company assets. The request for reconsideration was denied, and plaintiff appealed to a hearing referee.

A hearing was conducted, at which plaintiff appeared pro se. The employer’s representative testified as to the construction project at the maintenance superintendent’s residence and to plaintiff’s part in removing materials from the plant and performing work at the residence. The representative also testified that timecards had been routinely manipulated to award plaintiff overtime pay for hours which he had not in fact worked. He then introduced into evidence a report prepared by Arthur Andersen & Co. which stated that in several instances, the hours reported on the employee timecards exceeded the hours reported on the foreman’s attendance logs. With respect to plaintiff, the discrepancy amounted to 402.5 hours, which, at plaintiff’s regular rate of pay, translated to approximately $4,600.

Plaintiff testified that since the time he began working for the employer in August of 1968, it was customary for maintenance-department workers to work off the company premises at the homes of management personnel. Shortly after he was hired, plaintiff worked at the residence of the owner of the company. This testimony was unrebutted. Plaintiff further testified that after punching in his time-card, he would give it to his foreman. From that point, he did not have access to the card until the next day.

The hearing referee affirmed the denial of benefits under section 602(B), finding that plaintiff had admitted to misappropriating company assets. This decision was subsequently affirmed by the Board, which found that plaintiff’s removal of property from company premises constituted job-related theft and that his assertion that he did not know he was doing anything wrong was not credible. Plaintiff then filed a complaint for administrative review, and the circuit court reversed the Board’s determination on the grounds that plaintiff never admitted committing theft and that the Board failed to find, as required by section 602(B), that the employer was in no way responsible for the theft.

On appeal, the Board contends that the circuit court erred in finding that plaintiff’s statements concerning his removal of property from company premises at the direction of his foreman did not constitute an admission of theft within the meaning of section 602(B) of the Act. It argues that, contrary to the court’s interpretation, the statute does not require the employee to confess to each element of the offense of theft, but rather merely to admit underlying facts from which his guilt of theft may be inferred.

The purpose of the Unemployment Insurance Act (Ill. Rev. Stat. 1983, ch. 48, par. 300 et seq.) is to provide benefits to workers coming within its provisions for unemployment not occasioned with their consent or brought about by their fault. (Grobe v. Board of Review (1951), 409 Ill. 576, 583-84, 101 N.E.2d 95, 99.) In furtherance of this purpose, section 602 of the Act expressly restricts unemployment benefits under two distinct sets of circumstances. Section 602(A) provides that termination of employment resulting from “misconduct connected with *** work” shall disqualify a claimant from eligibility for benefits for a specified period of time immediately following termination. (Ill. Rev. Stat. 1983, ch. 48, par. 432(A).) In contrast, section 602(B) provides that an individual may lose all accumulated unemployment insurance benefits as a result of a discharge based upon the commission of a job-related felony or theft. (Ill. Rev. Stat. 1983, ch. 48, par. 432(B).) However, because the penalty imposed under section 602(B) is so much more severe than that imposed under section 602(A), the statute requires a far stricter standard of proof to sustain a section 602(B) disqualification. Specifically, such disqualification may not be imposed unless the employee has either admitted his commission of the felony or theft or has been convicted of the offense by a court of competent jurisdiction. Furthermore, in the case of a discharge based on job-related theft, section 602(B) requires a showing that the employer was in no way responsible for the theft.

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Bluebook (online)
495 N.E.2d 1128, 145 Ill. App. 3d 511, 99 Ill. Dec. 393, 1986 Ill. App. LEXIS 2508, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cetnar-v-bernardi-illappct-1986.