Denise Fugate, V State Employment Security

CourtCourt of Appeals of Washington
DecidedMay 24, 2016
Docket47349-6
StatusUnpublished

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Bluebook
Denise Fugate, V State Employment Security, (Wash. Ct. App. 2016).

Opinion

Filed Washington State Court of Appeals Division Two

May 24, 2016

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON

DIVISION II DENISE FUGATE, No. 47349-6-II

Respondent,

v.

EMPLOYMENT SECURITY DEPARTMENT UNPUBLISHED OPINION OF THE STATE OFWASHINGTON STATE,

Appellant.

LEE, J. —The Employment Security Department appeals a superior court order reversing

the Department Commissioner’s finding that Printcom terminated its employee, Denise Fugate,

for committing misconduct, which disqualified her from receiving unemployment benefits.1 On

appeal, Fugate argues that (1) substantial evidence does not support the Commissioner’s findings

1 Fugate appealed the Commissioner’s ruling to the superior court; therefore, although the Department appealed the superior court’s order to this court, Fugate filed the opening and reply briefs with this court. See General Order 2010-1 of Division II, In re Modified Procedures For Appeals Under The Administrative Procedures Act, Chapter 34.05 and Appeals Under The Land Use Petition Act, Chapter 36.70C (Wash. Ct. App.), available at: http://www.courts.wa.gov/appellate_trial_courts, providing “that the party filing an appeal in superior court under APA . . . shall have responsibility for the opening and reply briefs before our court, and shall be entitled to open and conclude oral argument, whether designated as the appellant or respondent on appeal to this court.” No. 47349-6-II

that Fugate (a) misled her employer regarding her injury, and (b) acted in defiance of her

employer’s instructions. She further argues that (2) the Commissioner erroneously applied the law

to the facts when he concluded that Fugate (a) deliberately acted in violation of her employer’s

interest, (b) was willfully insubordinate, and (c) did not commit a good faith error in judgment

when she disregarded her employer’s instructions. We reverse the superior court and affirm the

Commissioner’s ruling.

FACTS

Denise Fugate began working full time for Printcom in April 2013. On Thursday, October

10, 2013, Fugate strained her back muscles lifting a box. At Judy Coovert’s2 direction, Fugate

went to the doctor for an evaluation. The doctor gave Fugate a written note, which stated that for

the next three days, Fugate should not lift, push, or pull more than 10 pounds, and should rarely

lift, push, or pull more than 5 pounds. After seeing the doctor, Fugate returned to work and gave

the doctor’s note to her employer who sent Fugate home for the remainder of Thursday.

Jeri Melton, Printcom’s office manager, wrote instructions and tasks that Fugate could do

on Friday, and attached them to Fugate’s time card Thursday evening. Fugate returned to work

Friday, October 11, 2013. Shortly after returning to work, Fugate and Jim Coovert reviewed the

doctor’s note and Melton’s written instructions.

The written instructions stated the following, in relevant part:

No pushing carts with anything on them, no picking up/lifting any stacks of paper heavier than 4 lbs or anything else besides paper, or picking anything up to ship

2 Judy Coovert is the corporate secretary treasurer of Printcom. We use Judy’s first name because she shares the last name of another involved party, Jim Coovert, the president of Printcom. No disrespect is intended.

2 No. 47349-6-II

that’s over 4 lbs. . . . Let me know if you need something to do, or if you have any questions.

Administrative Record (AR) at 64.

After reviewing the employer’s instructions, Fugate began performing her regular job

duties. Melton saw Fugate lifting items weighing approximately 15 pounds, and reminded Fugate

of the employer’s instructions. Fugate acknowledged to Melton that she received Jim’s

instructions and said, “Chill.” AR at 19. Melton then saw Fugate lifting items in excess of 40

pounds, and Fugate said to Melton, “You didn’t see that.” AR at 19. Melton confronted Fugate

about not following instructions and showed her the written instructions.

Other employees reported to Judy that Fugate was not following the employer’s

instructions. Judy then asked Fugate whether she was following the employer’s instructions, and

Fugate said that she was. Employees later reported to Judy that Fugate was continuing to not

follow instructions, and then Judy witnessed Fugate pushing carts loaded with stacks of paper. At

that point, Judy told Fugate that she was “doing exactly what you’re not supposed to do” and sent

her home. AR at 20. Later that day, Printcom terminated Fugate’s employment.

Fugate applied for unemployment benefits. The Employment Security Department found

that Fugate was ineligible for unemployment benefits because she committed misconduct. Fugate

petitioned for an administrative law judge (ALJ) to review the Department’s determination.

Fugate testified before the ALJ that she lifted items exceeding the imposed weight limit, but

explained that she did so because she was no longer in pain and was afraid that her job would be

in jeopardy if she did not demonstrate her physical ability to perform her job duties. The ALJ

reversed the Department’s decision, finding that the employer did not prove misconduct, and that

3 No. 47349-6-II

Fugate “wanted to prove to herself and to her employer that she was not hurt.” AR at 75. The

ALJ also found that although Fugate exercised “poor judgment, mitigating circumstances were

present.” AR at 75.

Printcom petitioned the Department’s Commissioner for review of the ALJ’s decision. AR

at 85-89. The Commissioner reversed the ALJ’s decision, finding that the employer met its burden

to prove misconduct under RCW 50.04.294(1)(b) and RCW 50.04.294(2)(a). The Commissioner

adopted the ALJ’s findings of fact and conclusions of law, except for its conclusion that Fugate

did not commit misconduct. The Commissioner also supplemented some of the ALJ’s findings

with its own. Fugate appealed to the Thurston County Superior Court, which adopted the

Commissioner’s findings, but reversed because it found that Fugate’s “actions reflect an error in

judgment and not misconduct pursuant to RCW 50.04.294.” Clerk’s Papers at 31. The Department

appeals the superior court’s order.

ANALYSIS

A. LEGAL PRINCIPLES

1. Standard of Review

The Washington Administrative Procedure Act (WAPA) governs judicial review of the

Department Commissioner’s decisions. RCW 50.32.120. Under WAPA, “[t]his court sits in the

same position as the superior court.” King County Pub. Hosp. Dist. No. 2 v. Dep’t of Health, 178

Wn.2d 363, 372, 309 P.3d 416 (2013). We review the Commissioner’s decision, not the

underlying decision of the ALJ, except to the extent that the Commissioner adopts the ALJ’s

findings of fact. Kirby v. Emp’t Sec. Dep’t, 179 Wn. App. 834, 843, 320 P.3d 123, review denied,

181 Wn.2d 1004 (2014).

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