Hertz Penske Truck Leasing Co. v. Workmen's Compensation Appeal Board
Opinions
Hertz Penske Truck Leasing Company (Employer) appeals an order of the Workmen’s Compensation Appeal Board which affirmed the decision of a referee denying Employer’s petition to terminate the disability benefits of Larry Bowers (Claimant).
Claimant worked for Employer as a Service Manager/Supervisor of Maintenance at Employer’s Rouseville facility. On December 15, 1987, during the course of his employment, Claimant sustained an injury to his back when he fell into a tank. Claimant continued to work after his injury.
[660] The Rouseville facility was previously owned by Leaseway, but was acquired by Employer in November 1986. Claimant was retrained and continued in his position as a supervisor after the acquisition. On February 3, 1988, Employer told Claimant to resign from his position or he would be fired. Claimant signed the resignation. On March 11,1988, nearly a month after Claimant’s separation from employment, Employer issued a notice of compensation payable for the December 1987 injury.
Thereafter, Employer filed a petition to terminate Claimant’s benefits on April 14, 1988, pursuant to Section 413 of the Workers’ Compensation Act (Act),1 contending that Claimant was completely recovered from the injury to his back as of March 31, 1988. Following a hearing and after receiving medical testimony, the referee concluded that Claimant could return to work, but with restrictions. Accordingly, she denied Employer’s petition to terminate. However, the referee also concluded that Claimant’s job would have been available to him on March 31, 1988, but for his resignation on February 3, 1988; therefore, she entered a suspension.2 Claimant appealed to the Board which remanded the case for further findings of fact concerning the voluntariness of Claimant’s resignation, based on testimony from Claimant that he resigned under duress.
On remand, the referee made the following relevant findings of fact:
3. The Claimant did not voluntarily resign his employment with the defendant employer on February 3, 1988. Rather, he was confronted by his superiors that day and given the option of either resigning or being fired on the spot for poor [661] job performance; and at that time he signed a letter of resignation.
4. At the time he signed the letter of resignation on February 3, 1988, the Claimant had been told that if he resigned (rather than being fired) he would continue to receive full salary payments for at least a one (1) month period, would receive his accrued vacation time, would continue to be covered for hospitalization, and would be able to collect unemployment compensation. Claimant mistakenly, although in good faith, also believed that he would forfeit his retirement benefits if he was fired rather than resigning.
5. The Defendants have not alleged, and their proofs do not establish, that the Claimant’s employment was terminated due to any willful misconduct or intentional violations of work rules. Rather, they felt compelled to dismiss the Claimant because he was not performing his job well enough to satisfy the high level of service which their customers expected and they felt they were in imminent danger of losing their two (2) main customers at that location if a change in management was not made quickly.
In addition to finding that Claimant’s separation from employment was not voluntary, the referee also found that Employer had not presented any evidence of available work within Claimant’s restrictions. Accordingly, he dismissed Employer’s petition and held that Claimant was entitled to continued total disability benefits. Employer appealed to the Board which affirmed. This appeal followed.
Employer argues that the Board erred (1) in remanding the case to the referee for findings of fact concerning Claimant’s separation of employment, and (2) that Claimant’s benefits should have been suspended after remand because the referee found that Claimant’s “resignation” was the result of poor job performance.
Employer’s first argument, that the case should not have been remanded to the referee in the first instance, rests on the assertion that there were findings sufficient to conclude that a suspension was properly entered. We disagree.
[662] Claimant’s testimony before the first referee raised the question of the voluntariness of his resignation. On cross-examination, Claimant testified as follows:
Q. When you say [your employment] was terminated, can you explain, please?
A. Yes. I was asked to resign or I would be terminated ____
Q. Just on that point, did you sign a letter of resignation?
A. Yes, under duress.
Q. You claim under duress?
A. Yes, definitely.
(Notes of Testimony 6/18/88 at 8-9.) In spite of this uncontradicted testimony, the referee concluded that Claimant’s job would have been available to him but for this resignation, even though Employer never refuted the fact that Claimant quit “under duress.” This determination was critical to the fulfillment of Employer’s burden of proving that work was available within Claimant’s restrictions. The Board, therefore, did not err in holding that further findings were necessary to determine the circumstances of Claimant’s separation. Armco, Inc. v. Workmen’s Compensation Appeal Board (Carrodus), 139 Pa.Commonwealth Court 326, 590 A.2d 827, petition for allowance of appeal denied, 529 Pa. 636, 600 A.2d 955 (1991); Cudo v. Hallstead Foundry, Inc., 517 Pa. 553, 539 A.2d 792 (1988).
Employer next argues that Claimant’s benefits should have been suspended because his employment was terminated as a result of his poor job performance, thus, relieving Employer from demonstrating that work was available within Claimant’s physical restrictions. However, a claimant’s poor work performance alone, without more, is simply not enough to obviate Employer’s burden to demonstrate that there was work available, especially in a case such as this where Claimant was without fault.
An employer carries a heavy burden of proof where it seeks to terminate a claimant’s benefits, and a claimant who [663] has been separated from employment effectively enjoys a presumption that such separation occurred through no fault of his own, even when the issue is a suspension. See United Parcel Service v. Workmen’s Compensation Appeal Board (Portanova), 140 Pa.Commonwealth Ct. 626, 594 A.2d 829 (1991).
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651 A.2d 1145 (Hertz Penske Truck Leasing Co. v. Workmen's Compensation Appeal Board) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.
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