Chapman v. NYK LINE NORTH AMERICA, INC.

207 P.3d 154, 147 Idaho 178, 2009 Ida. LEXIS 58
CourtIdaho Supreme Court
DecidedApril 6, 2009
Docket35014
StatusPublished
Cited by2 cases

This text of 207 P.3d 154 (Chapman v. NYK LINE NORTH AMERICA, INC.) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chapman v. NYK LINE NORTH AMERICA, INC., 207 P.3d 154, 147 Idaho 178, 2009 Ida. LEXIS 58 (Idaho 2009).

Opinions

W. JONES, J.

Merrie Chapman, flk/a Merrie Lockyer, (Chapman), appeals from the Industrial Commission’s finding that she engaged in misconduct and is therefore ineligible for unemployment benefits. Chapman appeals to this Court contending that (1) the Industrial Commission abused its discretion when it denied her an evidentiary hearing, and (2) the findings which resulted in her ineligibility for unemployment benefits are not supported [180]*180by substantial and competent evidence. Chapman’s former employer, NYK Line North America (N.Y.K Line), requests attorney’s fees on appeal.

FACTUAL AND PROCEDURAL BACKGROUND

Chapman was discharged from her position with NYK Line on July 19, 2007 for failure to comply with an investigation. The investigation was the result of a complaint filed by Chapman in June 2007.1 On July 18, 2007, a human resources representative informed Chapman that she would be meeting that afternoon with Tamsen Leachman (Leachman), an attorney hired by NYK Line to investigate the June 2007 complaints. Pri- or to the afternoon meeting, Chapman purchased a Sony 570V tape recording device at an office supply store. The sales associate put the batteries and blank tape into the recorder and Chapman placed the recorder in her purse. Chapman ate lunch and then proceeded to the meeting with Leachman which was scheduled at 2:00pm that afternoon. The following is Leachman’s account of the meeting as prepared in the confidential investigative report. The purpose of the report is to “serve to summarize the results of [Leachman’s] investigation into various employment-related allegations made against NYK Lines, Inc. (N.Y.K.) by Merrie [Chapman].”2

As for [Chapman], her cooperation and credibility were significant factors in how I viewed the information learned during her interview. As noted above, I met with [Chapman] on July 18 to discuss the various issues she raised in her internal complaint. At the beginning of the discussion, [Chapman] asked if she could tape record the conversation. I told her “no,” and then explained the various reasons for this. I shared that this was my choice and decision, and that I have determined based on my experience that recording impairs productive discussion and creates greater risk of breach of confidentiality. I told her I would not conduct an interview if there was insistence on it being recorded and asked her if I had her agreement about the basis for going forward. She responded that she understood and agreed. At that point, she pulled out a pad of paper and a pen for taking notes (although she did not use this at any point during the meeting). I then addressed my concerns about notes being shared, and reminded her of the importance of confidentiality, particularly while the investigation was active and open.

The interview then progressed for an hour and a half, at which point Leachman left the room to retrieve some documents. Her absence lasted only a few minutes. Approximately thirty minutes following Leachman’s return there was a loud beep. Leachman inquired into the source of the beep and Chapman pulled the tape recorder from her purse and denied that she had been recording the interview. Leachman listened to the tape and confirmed with Chapman that the voices on the tape were their own. Leach-man’s report summarized her opinion on the incident:

[After the interview] I attempted to contact [the human resources representatives]. I left messages expressing my deep concern about [Chapman’s] integrity and honesty, and my belief that she had significantly impaired the investigation with her conscious decision to ignore our agreement regarding recording, and to be less than truthful about what she did. I do not believe the recording was accidental, and it troubles me that she chose to cover up one dishonest act with another, particularly in the context of an investigation of her complaints where credibility assessment was so critical. I have been involved in many investigations where tape recording of management meetings was viewed as a significant breach of trust or violation of a company directive. When I talked with you later about this I advised that I viewed the conduct by [Chapman] to be equally if not more serious, and shared [181]*181that I felt termination of employment was warranted.

Chapman was terminated on July 19, 2007 for “being untruthful and for failure to comply with an investigation.” Chapman filed for and was awarded unemployment benefits on July 20. NYK Line timely challenged that determination and a telephonic hearing was held by an appeals examiner. The appeals examiner reversed the eligibility determination, finding that Chapman intentionally recorded the meeting in violation of her agreement with Leachman and therefore, compromised the employment-related investigation. The appeals examiner found that Chapman’s dishonesty and breach of trust qualified as misconduct in connection with employment. Chapman appealed to the Industrial Commission and requested a hearing to present additional evidence. The Industrial Commission denied the request to present additional evidence and affirmed the appeal examiner’s decision. Chapman continues to maintain that the recording was accidental and unintentional and that the recorder was activated when she reached into her purse for a piece of gum. Chapman appeals the Industrial Commission’s decision to this Court.

ISSUES ON APPEAL

This Court is presented with the following issues on appeal:

1. Whether the Industrial Commission abused its discretion in denying an evidentiary hearing as requested by Chapman.
2. Whether the Industrial Commission’s decision is supported by substantial and competent evidence.
3. Whether NYK Line is entitled to attorney’s fees on appeal pursuant to I.C. § 12-121.

STANDARD OF REVIEW

“On appeal from the Industrial Commission, this Court exercises free review of the Commission’s legal conclusions, but will not disturb findings of fact if they are supported by substantial and competent evidence.” Giltner, Inc. v. Idaho Dept. of Commerce and Labor, 145 Idaho 415, 418, 179 P.3d 1071, 1074 (2008) (quoting Steen v. Denny’s Rest., 135 Idaho 234, 235, 16 P.3d 910, 911 (2000)). “Substantial and competent evidence is relevant evidence that a reasonable mind might accept to support a conclusion.... We do not re-weigh the evidence or consider whether we would have reached a different conclusion from the evidence presented.” Uhl v. Ballard Med. Prod., Inc., 138 Idaho 653, 657, 67 P.3d 1265, 1269 (2003) (internal citations omitted).

ANALYSIS

The Industrial Commission did not abuse its discretion in denying the evidentiary hearing requested by Ms. Chapman.

“The record before the commission shall consist of the record or proceedings before the appeals examiner, unless it appears to the commission that the interests of justice require that the interested parties be permitted to present additional evidence.” I.C. § 72-1368(7). The decision to allow for additional evidence is in the “sole discretion” of the Industrial Commission. I.C. § 72-1368(7).

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Related

Ginther v. Boise Cascade Corp.
244 P.3d 1229 (Idaho Supreme Court, 2010)
Chapman v. NYK LINE NORTH AMERICA, INC.
207 P.3d 154 (Idaho Supreme Court, 2009)

Cite This Page — Counsel Stack

Bluebook (online)
207 P.3d 154, 147 Idaho 178, 2009 Ida. LEXIS 58, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chapman-v-nyk-line-north-america-inc-idaho-2009.