Johnson v. Idaho Central Credit Union

908 P.2d 560, 127 Idaho 867, 1995 Ida. LEXIS 165
CourtIdaho Supreme Court
DecidedDecember 18, 1995
Docket21658
StatusPublished
Cited by6 cases

This text of 908 P.2d 560 (Johnson v. Idaho Central Credit Union) is published on Counsel Stack Legal Research, covering Idaho Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Johnson v. Idaho Central Credit Union, 908 P.2d 560, 127 Idaho 867, 1995 Ida. LEXIS 165 (Idaho 1995).

Opinions

JOHNSON, Justice.

This is an unemployment benefits case. We conclude that there is substantial and competent evidence to support the Industrial Commission’s finding that the claimant is eligible for unemployment benefits because she was discharged for reasons other than misconduct.

I.

THE BACKGROUND AND PRIOR PROCEEDINGS

Lisa Johnson (Johnson) was employed by the Pocatello branch of the Idaho Central Credit Union (ICCU) from June 19, 1991 until July 13, 1993. Linda Waters (Waters) was the Pocatello branch manager and Johnson’s immediate supervisor. Approximately one week before Johnson’s last day of employment, Waters met with ICCU’s human resource director and its president to review the operation of the Pocatello branch. During this meeting, the managers decided to terminate an employee (the other employee) at the Pocatello branch. They also discussed terminating Johnson, but decided not to do so because they believed that she had the capacity to make the necessary improvements and because the branch would be understaffed if the other employee and Johnson were both terminated.

On July 12, 1993, Waters fired the other employee. The same night, the other employee called and told Johnson that the other employee had been “let go” because of her attitude. At this time, Johnson believed that she was next in line for the other employee’s position and expected to be given that position the next day.

At the beginning of the work day on July 13, 1993, Waters held a meeting with the staff at the Pocatello branch. She announced that the other employee had been fired and that a person from another branch would take the other employee’s position. Johnson found this strange because she believed that Waters would offer her the other employee’s former position.

After the staff meeting, Johnson began working. In a short time, Waters told Johnson that she needed to talk to her. Waters had another employee bring her own cash drawer and take Johnson’s place. Usually employees do not bring their own cash drawers to replace other employees unless the replaced employee will be gone for a lengthy period. Johnson testified in this proceeding that this alerted her that “something was up.” It was not a common practice to be called into Waters’s office, and it was not time for a regular evaluation of Johnson’s performance.

Waters and Johnson went into Waters’s office, closed the door, and met for about forty-five minutes. Waters explained to Johnson that there were three areas in which Johnson had to improve. She told Johnson that she had until the end of the month to improve or else she would be fired. Waters offered to help Johnson find another job by giving her referrals and time off for interviews. Johnson testified in this proceeding that she was crying uncontrollably and that Waters said, “Do you want me to let you go?” Johnson testified that she said, “You can let me go now.” In a few minutes Johnson said, “I’m going home,” left a key on Waters’s desk, and left the building.

Johnson made a claim for unemployment insurance benefits on July 13, 1993. In her separation statement, she claimed that she had been discharged. In its employer’s statement, ICCU claimed that she had quit. The department of employment (the department) determined that Johnson had quit without good cause and was therefore ineligible for benefits. Johnson made a request for redetermination. The appeals examiner upheld the department’s decision and found Johnson ineligible. Johnson appealed the re-determination decision to the Industrial Commission (the Commission). The Commission remanded the decision to the appeals examiner because portions of the hearing were not recorded as required by I.C. § 72-[869]*8691368(f) (Supp.1995). After the second hearing, the appeals examiner again determined that Johnson was ineligible for benefits. Johnson appealed this decision to the Commission. The Commission reversed the appeals examiner’s decision and determined that Johnson was eligible for unemployment insurance benefits, finding that Johnson was discharged but not for misconduct in connection with her employment. ICCU appealed the Commission’s decision to this Court.

II.

THERE IS SUBSTANTIAL AND COMPETENT EVIDENCE TO SUPPORT THE FINDING THAT JOHNSON WAS DISCHARGED.

ICCU asserts that there is not substantial and competent evidence to support the Commission’s finding that Johnson was discharged and did not voluntarily quit her job. We disagree.

A claimant is ineligible for unemployment insurance benefits if the claimant voluntarily quits without good cause or is discharged for misconduct. I.C. § 72-1366(e) (Supp.1995). The first step in proving eligibility, therefore, is establishing whether an employee quit or was discharged. The second step in proving eligibility depends upon the outcome of the first step. If the employee quit, the second step is establishing whether it was with good cause. If the employee was discharged, the second step is establishing whether it was for misconduct.

The test for determining whether an employee was discharged is “whether sufficient words or actions by the employer would logically lead a prudent ... [person] to believe ... [the person’s] tenure has been terminated.” Jackson v. Minidoka Irrigation Dist., 98 Idaho 330, 334-35, 563 P.2d 54, 58-59 (1977); Knee v. Sch. Dist. 139, In Canyon County, 106 Idaho 152, 154, 676 P.2d 727, 729 (Ct.App.1984) (quoting Jackson). Applying this objective test, whether the claimant was discharged is a question of fact to be determined by the Commission. Laundry v. Franciscan Health Care Ctr, 125 Idaho 279, 281, 869 P.2d 1374, 1376 (1994) (“The question whether a claimant has met the eligibility requirements of I.C. § 72-1366 is a question of fact for the Commission.”).

In Parker v. St. Maries Plywood, 101 Idaho 415, 417, 614 P.2d 955, 957 (1980), the Court stated that the “general rule in Idaho is that an unemployment compensation benefit claimant bears the burden of proving his or her eligibility for benefits.” The Court then overruled prior decisions by holding that if the claimant was discharged, the employer has the burden of proving that the discharge was for misconduct. This makes it clear that the burden of proving discharge is on the claimant. Only if the claimant proves discharge does the employer have the burden of proving misconduct.

In the present case, the Commission correctly stated the objective test for determining whether a claimant was discharged, citing Jackson. In reaching its decision, the Commission stated:

From the testimony it is clear that Claimant believed that she was being terminated and that Employer was aware of Claimant’s belief; Waters acknowledged that she did nothing to dispel that belief.
... We find that there were sufficient words and actions on the part of Employer to lead Claimant to believe that her employment had been terminated. In so finding, we note that Employer made no attempt to convince Claimant otherwise. Thus, we conclude that Claimant was discharged.

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Johnson v. Idaho Central Credit Union
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Cite This Page — Counsel Stack

Bluebook (online)
908 P.2d 560, 127 Idaho 867, 1995 Ida. LEXIS 165, Counsel Stack Legal Research, https://law.counselstack.com/opinion/johnson-v-idaho-central-credit-union-idaho-1995.