Employment Security Commission v. Doughty

478 P.2d 109, 13 Ariz. App. 494, 1970 Ariz. App. LEXIS 879
CourtCourt of Appeals of Arizona
DecidedDecember 23, 1970
Docket1 CA-CIV 1163
StatusPublished
Cited by13 cases

This text of 478 P.2d 109 (Employment Security Commission v. Doughty) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Employment Security Commission v. Doughty, 478 P.2d 109, 13 Ariz. App. 494, 1970 Ariz. App. LEXIS 879 (Ark. Ct. App. 1970).

Opinion

STEVENS, Judge.

James T. Doughty, herein referred to as the claimant, and his son were engaged in a wholesale electrical supply business. The business was organized as a corporation with the claimant and his son each holding 50% of the stock. The claimant was the president and his son was the vice-president. In 1965 the corporation filed for reorganization of the business under Chapter XI of the Federal Bankruptcy Act. The Court-appointed receiver decided that the number of employees of the business had to be reduced to one. The claimant continued on the payroll until 2 December 1965. The claimant was a divorced man. His son was a married man with two small children. Understandably, the claimant elected to permit his son to retain the sole position of employment. In our opinion, this humane and realistic decision did not constitute a voluntary termination of employment by the claimant.

On 6 December 1965 he filed a claim for unemployment benefits with the Employment Security Commission, the appellant here. On 22 December 1965 a claims deputy determined that the claimant was unavailable for work for an indefinite number of weeks beginning 28 November 1965.

The claimant appealed the deputy’s determination, and an Appeal Tribunal hearing was held on 10 January 1966. The Appeal Tribunal affirmed the determination of the deputy that the claimant was unavailable for work beginning 28 November 1965, but limited the period of unavailability to six weeks through 8 January 1966.

The decision of the Appeal Tribunal was appealed to the Commission. After a hearing which was held on 27 April 1966, the Commission affirmed the Tribunal decision.

Pursuant to A.R.S. § 23-681, and on 6 July 1966, the claimant filed a petition for review from the decision of the Commission in the Superior Court for Maricopa County. Claimant paid a $15 filing fee in connection with his petition for review. The matter was submitted to the court on oral arguments and memoranda. On 16 May 1969 the judgment of the Superior Court was filed. The judgment reversed the decision of the Commission and awarded the claimant $258 in unemployment compensation benefits, being six weeks of *496 benefits at $43.00 a week, plus 6% interest from 8 January 1966 and $15 court costs. It is that judgment which is the subject of this appeal.

The Commission presents several issues to this Court. We address ourselves briefly to the question of whether the trial court exceeded its authority by awarding costs against the State, costs incurred as the result of payment of a filing fee.

The claimant is proceeding under the provisions of Title 23, Chapter 4, A.R. S., and when doing so an individual is exempted from being charged fees of any kind by the Commission or its representatives or by • a court or officer thereof by A.R.S. § 23-683. Since the filing fee was not required, it would not be a taxable cost.

A second issue was whether the Superior Court exceeded its authority by awarding interest on the unpaid six weeks of unemployment benefits. In view of our decision in this case, we decline to rule on that issue at this time.

There are two other questions which the Commission raises on appeal. The first of these is whether the trial court exceeded its authority by admitting additional evidence into the record.

The claimant was represented by an attorney for the first time at the review proceeding in the Superior Court. The attorney offered evidence before the court in the form of an identification card which the claimant was required to present at the Employment Security office when he reported each week. The card would then be initialed by the interviewer to show that the claimant had appeared. The attorney for the Commission objected to this exhibit and to the testimony laying the foundation for its admission into evidence. The testimony was received and the exhibit was admitted.

The presentation of evidence before the Superior Court on review of an Employment Security Commission decision is limited to cases wherein irregularities in procedure before the Commission, which are not shown in the record, have been alleged, and it may only be taken on the alleged irregularities. A.R.S. § 23-681, subsec. C. The statute does not contemplate a de novo hearing on review in the Superior Court. Miranda v. Beaman, 95 Ariz. 388, 391 P.2d 555 (1964). The review of the Superior Court, with the exception of the question of alleged irregularities in procedure before the Commission, is confined to the record which was made before the Commission. A.R.S. § 23-681, subsec. C.

The Superior Court’s minute entry order of judgment reflects that it considered the failure of the Commission to receive in evidence and considered the identification card as one of the irregularities in procedure before the Commission. We have reviewed the entire record of the administrative hearings and of the proceedings before the Superior Court. We may presume that the Commission was aware that the claimant had complied with the reporting requirements to establish his eligibility. The issue was not raised by the Commission at any stage. The card was not offered in evidence by the claimant before the Commission. While reporting to the employment office may be relevant to the issue of availability and actively seeking work, the claimant has the burden of proving his availability and the mere act of reporting gives him no procedural advantage in establishing the merits of his claim. Cramer v. Employment Security Commission of Arizona, 90 Ariz. 350, 367 P.2d 956 (1962). The absence of the card before the Commission was not an irregularity in procedure and its admission into evidence in the Superior Court was error.

In order to justify a reversal the error must be prejudicial to the substantial rights of the appellant. See State ex rel. Willey v. Whitman, 91 Ariz. 120, 370 P.2d 273 (1962). Prejudice will not be presumed but must appear from the record. Webb v. Hardin, 53 Ariz. 310, 89 P.2d 30 (1939). Our review of the record does not reveal that the error was so prejudicial *497 that it would warrant a reversal and was harmless.

The fourth and critical issue is whether the Superior Court was correct in its determination that the Commission’s decision was not supported by competent, material and substantial evidence and that there was sufficient evidence in the record to support an award of unemployment benefits for the period in question. We agree that there was not sufficient evidence to support a determination that the claimant was not actively seeking work, and therefore was not available for work within the standards set in Cramer.

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Bluebook (online)
478 P.2d 109, 13 Ariz. App. 494, 1970 Ariz. App. LEXIS 879, Counsel Stack Legal Research, https://law.counselstack.com/opinion/employment-security-commission-v-doughty-arizctapp-1970.