Garfield v. Director of the Division of Employment Security

384 N.E.2d 642, 377 Mass. 94, 1979 Mass. LEXIS 1041
CourtMassachusetts Supreme Judicial Court
DecidedJanuary 12, 1979
StatusPublished
Cited by52 cases

This text of 384 N.E.2d 642 (Garfield v. Director of the Division of Employment Security) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Garfield v. Director of the Division of Employment Security, 384 N.E.2d 642, 377 Mass. 94, 1979 Mass. LEXIS 1041 (Mass. 1979).

Opinion

Liacos, J.

The appellant Michael Garfield was discharged from his job as manager of a retail health food store on November 15, 1976. He applied for unemployment compensation. After a hearing held on January 12, 1977, the director of the Division of Employment Security denied Garfield benefits on the ground that his discharge came within the meaning of G. L. c. 151A, § 25 (e) (2), as amended through St. 1975, c. 684, § 78.1 Garfield appealed [95]*95to the division’s board of review. The board, through a single review examiner (G. L. c. 151A, § 41), took evidence, made findings of fact, and affirmed the decision of the director. A judge of the Third District Court of Eastern Middlesex upheld the board’s decision and reported the case to this court. G. L. c. 151A, § 42. The record before us includes the evidence presented to the review examiner, his subsidiary findings of fact and his conclusions of law.

Garfield began working for Nature Food Centre (Nature Food) in November, 1972. He was discharged on November 15, 1976. At the time of his discharge, he was serving as manager of a company retail store, a post he had held for approximately one and one-half years. The examiner found that during his tenure, the appellant was a good salesman and did a creditable job of public relations for the store. The examiner also found, however, that Garfield did not manage the store in the manner prescribed by the employer. This conclusion rests on certain deficiencies in Garfield’s job performance evident at the time he was fired. Specifically, he had failed to keep the store’s product book (order book) up to date as instructed; the week before his discharge he had rearranged the store schedule in order to attend a health food convention in New York City without contacting the district manager as required by a company policy manual; on the day he was discharged, the health inspector complained about the store’s condition; and, during Garfield’s tenure as manager, the store’s profit margin had declined. From these facts, the examiner concluded that Garifeld’s discharge was due to misconduct within the meaning of G. L. c. 151A, § 25(e)(2).

When a discharged worker seeks compensation, the issue before the board is not whether the employer was justified in discharging the claimant but whether the Legislature intended that benefits should be denied in the circumstances. See Goodridge v. Director of the Div. of Employment Security, 375 Mass. 434, 436 (1978). Garfield [96]*96contends that the deficiencies in his performance which precipitated his discharge neither individually nor collectively justify disqualification under the statute.2 He thus challenges the manner in which the board applied § 25(e)(2) to the circumstances of his case. Application of law to fact in the first instance is a function specifically committed to the agency. This function calls on the agency’s “experience, technical competence, and specialized knowledge”; the resulting decision is entitled to some weight and should not be disturbed unless unsupported by substantial evidence. G. L. c. 30A, § 14 (7). See Keough v. Director of the Div. of Employment Security, 370 Mass. 1, 4-5 (1976); Raytheon Co. v. Director of the Div. of Employment Security, 364 Mass. 593, 595-596 (1974). Cf. Olechnicky v. Director of the Div. of Employment Security, 325 Mass. 660, 663 (1950) (decided before enactment of G. L. c. 30A, § 14 [8], now § 14 [7]). On careful examination of the entire record, we conclude that the conduct described by the review examiner as the basis for Garfield’s discharge is not deliberate and wilful misconduct. We therefore reverse.

Only recently have we begun to explore the scope of § 25(e)(2). See Goodridge v. Director of the Div. of Employment Security, supra at 436. We therefore begin our analysis with an overview of c. 151A. In enacting this chapter, the Legislature recognized that job layoffs can occur for countless reasons unrelated to the individual worker’s willingness and desire to stay at his job. Under such circumstances, the compensation scheme aims to "lighten the burden” of unemployment (G. L. c. 151A, § 74) for those who are “compelled to leave work through [97]*97no ’fault’ of their own, whatever the source of the compulsion, personal or employer-initiated.” See Raytheon Co. v. Director of the Div. of Employment Security, 364 Mass. 593, 596 (1974); Kempfer, Disqualifications for Voluntary Leaving and Misconduct, 55 Yale L.J. 147, 149 (1945). Turning to the language of § 25(e)(2), we have already noted that the words "deliberate” and "wilful” suggest purposeful action or inaction. Goodridge v. Director of the Div. of Employment Security, supra at 436. The apparent purpose of § 25(e)(2) then is to deny benefits to a claimant who has brought about his own unemployment through intentional disregard of standards of behavior which his employer has a right to expect. When a worker is ill-equipped for his job or has a good faith lapse in judgment or attention, any resulting conduct contrary to the employer’s interest is unintentional; a related discharge is not the worker’s intentional fault, and there is no basis under § 25(e)(2) for denying benefits. This construction squares with the decisions of other jurisdictions. See, e.g., Maywood Glass Co. v. Stewart, 170 Cal. App. 2d 719, 724 (1959); Kentucky Fried Chicken of Altoona, Inc. v. Unemployment Compensation Bd. of Review, 10 Pa. Commw. Ct. 90, 97 (1973); Boynton Cab Co. v. Neubeck, 237 Wis. 249, 259-260 (1941). Annot., 26 A. L. R. 3d 1356 (1969 & Supp. 1978). This analysis suggests that the critical issue in determining whether disqualification is warranted is the claimant’s state of mind in performing the acts that cause his discharge. See Smith v. Director of the Div. of Employment Security, 376 Mass. 563, 566 (1978); Goodridge v. Director of the Div. of Employment Security, supra at 437. In evaluating its subsidiary findings, the board must therefore take into account the worker’s knowledge of the employer’s expectation, the reasonableness of that expectation and the presence of any mitigating factors. See 76 Am. Jur. 2d Unemployment Compensation §§ 52-55 (1975 & Supp. 1978).

The record in the instant case fails to support the conclusion that those elements of Garfield’s performance [98]*98found by his employer to warrant discharge were the result of a wrongful intent. Although Garfield did not keep the product book precisely as directed, he was neither insubordinate nor recalcitrant in the face of the initial warning on the subject. See generally, Annot., 26 A. L. R 3d 1333 (1969 & Supp. 1978). There was undisputed evidence that his performance in this regard showed marked improvement; moreover, he received no additional warnings about maintenance of the product book prior to his discharge.

As for the second reason given for Garfield’s discharge —rearranging the store schedule without notifying the district manager3 — Garfield testified that he learned of the event requiring rescheduling after he had sent in the work schedule and at a time when he believed the district manager to be out of town. He did not believe he could reach her about the planned change. The review examiner accepts this testimony but implies that failure to leave a message with the "contact store” evinces an intentional disregard for the employer’s interest.

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Bluebook (online)
384 N.E.2d 642, 377 Mass. 94, 1979 Mass. LEXIS 1041, Counsel Stack Legal Research, https://law.counselstack.com/opinion/garfield-v-director-of-the-division-of-employment-security-mass-1979.