Chishko v. Unemployment Compensation Board of Review

934 A.2d 172, 2007 Pa. Commw. LEXIS 581
CourtCommonwealth Court of Pennsylvania
DecidedOctober 15, 2007
StatusPublished
Cited by10 cases

This text of 934 A.2d 172 (Chishko v. Unemployment Compensation Board of Review) is published on Counsel Stack Legal Research, covering Commonwealth Court of Pennsylvania primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Chishko v. Unemployment Compensation Board of Review, 934 A.2d 172, 2007 Pa. Commw. LEXIS 581 (Pa. Ct. App. 2007).

Opinion

OPINION BY

Judge LEAVITT.

Thomas Chishko (Claimant) petitions for review of an adjudication of the Unemployment Compensation Board of Review (Board) holding Claimant ineligible for unemployment compensation benefits he received in 2005 and ordering recoupment of those benefits. In doing so, the Board reversed the decision of a Referee. In this case, we consider whether the Board erred in concluding that Claimant submitted an improper application for benefits. We also consider whether the Board properly subjected Claimant to a fault overpayment recoupment and penalties. Finding no error by the Board, we affirm.

In June 2005, Claimant applied to the Indiana UC Service Center for benefits under the Unemployment Compensation Law (Law).1 Claimant received $4302 in unemployment compensation benefits for the 15 claim weeks from October 8, 2005, through January 14, 2006. During this time period, Claimant entered into an oral agreement with Sue Woodward to renovate a house for resale. Under the terms of their agreement, Woodward was to pay for all materials and supplies, and Claimant was to do the actual renovations for which he was to receive $700 per month. Claimant and Woodward also agreed to split the profit from the sale of the renovated house. Claimant did not report this construction work to the UC Service Center.

Eventually, the relationship between Claimant and Woodward soured. Claimant filed a civil suit against Woodward and requested a mechanic’s lien against the property and improvements “for the payment of a debt due [Claimant as contractor for labor and services furnished by [Claimant in the alteration and repair of the improvements.” Board Opinion at 2; Finding of Fact No. 17 (F.F. — ). An anonymous tipster informed the Department that Claimant was employed while he was also collecting unemployment benefits. In response to the anonymous tip, the Department conducted an investigation.

On September 19, 2006, the UC Service Center issued a Notice of Determination, finding Claimant to be ineligible for the benefits he had received because he had been employed during the weeks he claimed to be unemployed. As a result, the UC Service Center determined Claimant was overpaid benefits in the amount of $4,302. The UC Service Center also issued a Notice of Penalty Weeks Determination finding that Claimant had knowingly failed to disclose his employment and subjecting him to an additional seventeen-[175]*175week period of disqualification pursuant to Section 801(b) of the Law, 43 P.S. § 871(b).2 Claimant appealed.

At a hearing before a Referee, Claimant testified that Woodward paid him $700 per month so he could purchase supplies, such as gasoline, gloves, face masks and clothing suitable for asbestos removal. Claimant testified that he did not report this work to the UC Service Center because he “never received payment for the work.” Notes of Testimony, November 8, 2006, at 14 (N.T. —); Reproduced Record at 17a (R.R. -). Woodward disputed Claimant’s account. Woodward testified that she paid for Claimant’s materials and expenses and established an account at Lowe’s for Claimant to use for that purpose. According to Woodward, the monthly $700 payment was intended “to give [Claimant] an income so he could work” and that “he worked and he was paid for work.” N.T. 19, 20; R.R. 22a, 23a.

The Referee found, as fact, that Claimant was not employed by Woodward because he had received no wages or remuneration. The Referee stated that there was conflicting testimony at the hearing and, as fact finder, he resolved all conflicts in Claimant’s favor. The Referee further stated that “[Cjlaimant’s services involved in [renovating] a house is not services in employment or even considered any type of employer/employee relationship but more in the line of any other type of investment venture.” Referee’s Decision at 2. The Referee reversed the UC Service Center’s decision and granted benefits. The Bureau of UC Benefits and Allowances appealed to the Board.

On appeal, the Board found, as fact, that the $700 Claimant received from Woodward every month represented wages, not reimbursement for project expenses. The Board noted that Claimant’s mechanic’s lien was “for the payment of a debt due [C]laimant as contractor for labor and services furnished by [C]laimant in the alteration and repair of the improvements.” Board Adjudication at 2; F.F. 17. The Board also found, based on Claimant’s own testimony, that he spent a total of 996 hours working on the project, or an average of 55 hours per week. Id.; F.F. 13-14.

Based on the foregoing findings, the Board reversed the determination of the Referee and disallowed benefits. The Board first held that Claimant was ineligible for the benefits he received pursuant to Section 401 of the Law, 43 P.S. § 801,3 [176]*176because he was employed during the relevant time period, either as Woodward’s employee or as an independent contractor. The Board also held that Claimant was retroactively disqualified from receiving benefits because he had failed to comply with the reporting requirements of Section 401(c) of the Law, 43 P.S. § 801(c). Additionally, the Board concluded that Claimant was in receipt of a fault overpayment of $4,302, which it ordered to be repaid. Finally, the Board assessed a seventeen-week period of disqualification from future unemployment compensation benefits based upon its determination that Claimant had deliberately misled the UC Service Center. Claimant now petitions this Court for review.

Before this Court,4 Claimant argues, inter alia, that he did not submit an improper application for benefits because he had no duty to report his home renovation activities.5 Claimant also contends that the Board erred in subjecting him to re-coupment of a fault overpayment and a seventeen-week penalty period of disqualification.

We consider, first, the Board’s determination that Claimant was ineligible for benefits because he failed to comply with the reporting requirements set forth in the Law. Section 401(c) of the Law provides that a claimant must make his “claim for compensation in the proper manner and on the form prescribed by the department.” 43 P.S. § 801(c). In applying this provision, this Court has described a claimant’s disclosure responsibilities as follows:

A claimant seeking unemployment compensation benefits is required to divulge to the OES [Office of Employment Security] all pertinent information regarding the claimant’s employment status. This information is required so that the OES may make an intelligent and informed determination as to the claimant’s eligibility for benefits and computation of a weekly benefit rate and partial benefit credit. This requirement which is imposed upon, claimants recognizes the Commonwealth’s interest in unemployment compensation and assists in fulfilling the Commonwealth’s duty to protect the unemployment compensation fund against dissipation by those not entitled to benefits under the law.

Amspacher v. Unemployment Compensation Board of Review, 84 Pa.Cmwlth. 447, 479 A.2d 688, 690-691 (1984) (emphasis added). In order for information to be pertinent and material to an OES investi[177]

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Bluebook (online)
934 A.2d 172, 2007 Pa. Commw. LEXIS 581, Counsel Stack Legal Research, https://law.counselstack.com/opinion/chishko-v-unemployment-compensation-board-of-review-pacommwct-2007.