Galvin v. Iowa Beef Processors, Inc.

261 N.W.2d 701, 1978 Iowa Sup. LEXIS 1191
CourtSupreme Court of Iowa
DecidedJanuary 18, 1978
Docket59434
StatusPublished
Cited by14 cases

This text of 261 N.W.2d 701 (Galvin v. Iowa Beef Processors, Inc.) is published on Counsel Stack Legal Research, covering Supreme Court of Iowa primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Galvin v. Iowa Beef Processors, Inc., 261 N.W.2d 701, 1978 Iowa Sup. LEXIS 1191 (iowa 1978).

Opinions

LeGRAND, Justice.

This appeal involves the statutory labor dispute disqualification for unemployment benefits and the recoverability of benefits allegedly erroneously paid.

[702]*702Due to price conditions in the market for beef, Iowa Beef Processors shut down operation of its plant at Mason City, Iowa, on July 23, 1973. The notices posted in the plant included this last sentence: “Notification will be given by local radio and television as to when we will resume operation.” Following the closure, employees received unemployment benefits from Iowa Employment Security Commission.

Later in the summer beef prices improved, and on September 6, 1973, Iowa Beef decided to resume operations on Monday, September 10, 1973. Accordingly, employees were notified by press, radio, and telephone to return at that time. Maintenance men came back in advance to ready the plant.

At 7:30 p. m. on September 7, 1973, the local manager received a telegram from the employees’ union that a strike would begin at midnight, September 9, 1973. Claimant-employees participated in this strike and picketed. The strike continued until January 22, 1974. During at least some of the strike period, claimants received both unemployment benefits from Iowa Employment Security Commission and strike benefits from their union.

Under commission rules, claims for unemployment benefits must be filed currently and may not be back dated. Ritchey v. Iowa Employment Security Comm’n, 216 N.W.2d 580 (Iowa 1974). Accordingly, commission representatives told claimants to continue to file claims even though they were on strike. Had claimants not done so, they would have forfeited their right to collect for the unfiled weeks if they were ultimately held to be otherwise eligible.

Claimants therefore continued to file claims for unemployment benefits during the strike. They disclosed that they were receiving union strike benefits and did not misrepresent the facts. Iowa Beef resisted the claims on the ground the work stoppage was due to a labor dispute. This temporarily stopped payment of benefits until the commission considered the claims on the file of its claim department. On November 15, 1973, the commission rendered an “Initial Determination,” subject to appeal, that claimants were entitled to unemployment benefits. A notice from the commission dated November 16, 1973, stated that Iowa Beef had seven days in which to appeal to the commission after the notice was mailed. Iowa Beef’s time to appeal expired on November 23, 1973. § 96.6(2). Soon after that date, the commission released the unemployment benefits and began to pay claimants.

Actually, however, Iowa Beef did not receive the mailed notice until December 4, 1973, eighteen days after it was mailed. It forthwith appealed, and the timeliness of the appeal is not in issue. See Smith v. Iowa Employment Security Comm’n, 212 N.W.2d 471, 472 (Iowa 1973). See also § 96.7(3)(a)(6).

On the appeal to the commission, the claims were formally presented and contested. The commission ruled by a two-to-one vote that claimants were not entitled to unemployment benefits during the period in question because they were absent from work as a result of the strike.

From that ruling claimants appealed to district court, which adopted the position of the dissenting commissioner and reversed. The court also held that the commission was not entitled to recover the unemployment benefits paid to claimants during the strike. Iowa Beef and the commission then appealed to this court.

The appeal involves two main issues: (1) Did the work stoppage during the period of the strike result from the strike? (2) Is the commission entitled to recover the unemployment benefits paid during the strike?

I. The first issue involves two subsections of our employment security statute. (All references are to the Code of 1973.) Subsection 96.5(3) disqualifies an individual for unemployment benefits if he fails to accept suitable work when offered him, but paragraph b of the subsection provides that an individual shall not be denied benefits for not accepting “new work” if “the position offered is vacant due directly to a strike, lockout, or other labor dispute * * * 11

[703]*703Our statute (§ 96.5(4)) provides that an individual is disqualified for benefits during “any week with respect to which the commission finds that his total or partial unemployment is due to a stoppage of work which exists because of a labor dispute at the factory, establishment, or other premises at which he is or was last employed [with two exceptions not involved here].”

The instant claims involve but one factual difference from most strike related work stoppages. Here claimants did not walk out of the Iowa Beef plant on strike. They were laid off because of unfavorable beef market conditions, were called to return, and then went on strike. Is this a “stoppage of work which exists because of a labor dispute” under § 96.5(4)?

The reported decisions hold that it is. The courts look at the period for which benefits are claimed and determine whether work was stopped because of the prior layoff or the later strike. Clapp v. Appeal Bd. of the Mich. Unemployment Compensation Comm’n, 325 Mich. 212, 38 N.W.2d 325; Abbott v. Appeal Bd. of Mich. Unemployment Compensation Comm’n, 323 Mich. 32, 34 N.W.2d 542; Tripp v. Alley Const. Co., Inc., 297 Minn. 232, 237, 210 N.W.2d 668, 671; Employees of Lion Coal Corp. v. Industrial Comm’n of Utah, 100 Utah 207, 111 P.2d 797. See also Matson Terminals, Inc. v. California Employment Comm’n, 24 Cal.2d 695, 705, 151 P.2d 202, 208; Ft. Smith Chair Co. v. Laney, 238 Ark. 636, 383 S.W.2d 666; Merryman v. Administrator, Unemployment Compensation Act, 23 Conn. Sup. 233, 181 A.2d 260; Muncie Foundry Div. of Borg-Warner Corp. v. Review Bd. of Employment Security Div., 114 Ind.App. 475, 51 N.E.2d 891; Ablondi v. Board of Review, Div. of Employment Security, 8 N.J.Super. 71, 73 A.2d 262; 76 Am.Jur.2d Unemployment Compensation § 79 at 988; Annot. 28 A.L.R.2d 287, 307-312; Annot. 63 A.L.R.3d 88, 165-169; Annot. 61 A.L.R.3d 693.

After examining the evidence, the statute, and the decisions, we hold the commission applied the correct rule of law and its decision is supported by substantial evidence that during the strike period claimants did not work because of the strike and that claimants were disqualified during the strike. The district court erred in overturning the commission’s decision.

II. The second issue involves the commission’s right to recover payments made to claimants under the initial determination of November 15, 1973. The commission claims it is entitled to do so under § 96.16(4) because the payments were erroneously made.

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Galvin v. Iowa Beef Processors, Inc.
261 N.W.2d 701 (Supreme Court of Iowa, 1978)

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Bluebook (online)
261 N.W.2d 701, 1978 Iowa Sup. LEXIS 1191, Counsel Stack Legal Research, https://law.counselstack.com/opinion/galvin-v-iowa-beef-processors-inc-iowa-1978.