Kentucky Unemployment Insurance Commission v. Kroehler Manufacturing Co.

352 S.W.2d 212
CourtCourt of Appeals of Kentucky (pre-1976)
DecidedDecember 15, 1961
StatusPublished
Cited by24 cases

This text of 352 S.W.2d 212 (Kentucky Unemployment Insurance Commission v. Kroehler Manufacturing Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky (pre-1976) primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Kentucky Unemployment Insurance Commission v. Kroehler Manufacturing Co., 352 S.W.2d 212 (Ky. 1961).

Opinion

MONTGOMERY, Judge.

The Kentucky Unemployment Insurance Commission has appealed in these consolidated cases from judgments in favor of the appellees, disqualifying various claimants from receiving certain benefits, reliev *213 ing appellees’ reserve accounts of any payments made or to be made to the claimants, ■and reversing the orders of the Commission. In its findings of fact and conclusions of law, the court- held that the various claimants left their employment voluntarily without good cause under KRS 341.370(1) (b), and without good cause attributable to ■the employment under KRS 341.530(3).

The appellees are Kroehler Manufacturing Company of Kentucky, Kroehler Manufacturing Company, Container Corporation ■of America, and Brown-Forman Distillers Corporation. The appeals arose from the decisions of the Commission, holding that the various claimants, former employees of the various appellees who had retired under the terms of their respective retirement plans', were eligible for unemployment compensation benefits and the payments so made were to be charged to the respective reserve accounts of appellees. Ten employees were involved. They will be referred to as ■claimants unless identified by name. No appeal wás taken by the Commission from a similar judgment in favor of the American Radiator & Standard Sanitary Corporation.

The retirement systems involved are similar. They were instituted by the respective employers in 1945 and 1946 for the benefit ■of their employees'. The systems were not begun by reason of union agreements but later were embraced in collective bargaining agreements. Employees were permitted to participate in the systems by making written requests, but were not compelled to join. The systems were financed by the joint contributions of employers and em-ployées. The benefits payable to each retiree were based on compensation received ■during employment and on creditable years ■of' employment. It was permissible for an employee to withdraw from the system prior to retirement with an accompanying withdrawal of his contributions.

The plan provided for retirement at age 65 upon written application having been made, unless, a special request to continue in employment was made. Provision was made for early retirement at a reduced allowance.

Under these plans, the Commission insists that the claimants were compelled to retire upon reaching age 65 and that their leaving was involuntary and with good cause attributable to the employment.

In order to show that the employee was not compelled to retire at age 65 and that retirement was voluntary, appellees point to the voluntary initial participation in the plan and the options available to the employee to withdraw from the plan or to retire early. Further, it is pointed out that upon reaching age 65, the employee may request an extension of employment instead of retirement. The exercise of any of these options and the initial decision by the employee to participate in the plan are voluntary actions on his part which relieve the retirement at age 65 from being compulsory.

Oddly enough, this argument is consistent with two- decisions of the Commission involving' the same questions and one of the same retirement systems in the cases of Kroehler Manufacturing Company v. Florence, Commission Order No. 2978, and Mengel Company, Inc., v. Lukemeier, Commission Order No. 2979, both decided before the present cases and reported at 1A CCH Unemp.Ins.Rep. (Ky.) ¶ 8222.101. In the Florence case, the Commission said:

“Notwithstanding, it is our opinion that when this claimant personally and without compulsion or coercion elected to become covered by the savings and retirement plan offered by the company (one of the conditions of becoming a member being that he would retire at the ag'e of sixty-five) we feel that he personally chose retirement rather than employment which is tantamount to voluntary quitting. Further, the conditions under which he quit do not relate to the employment and we have no reason to hold that his quitting was attributable to the employment. We conclude that his act was not attributable, to the *214 employment and that the reserve account of the appellant, the employer who furnished him his ‘most recent’ work should be relieved of charges for benefits paid.”

In the Lukemeier case, the Commission said:

“In this case, the facts show that the claimant voluntarily and of his own initiative entered into a plan whereby he elected to sever his relationship with the company upon reaching the age of sixty-five unless certain extensions were granted. Such action on the part of a worker must he considered as a voluntary quitting of his employment. His election to retire being the sole cause of his separation, and there being no condition of his work or factor concerning the employment furnished him by the appellant to motivate or cause his quitting, it must be concluded that his separation was not attributable to his employment and, consequently, the provisions of KRS 341.530(3) became effective and the appellant’s reserve account should be relieved of charges for benefits paid to the claimant.”

Appellees have cited several decisions indicating that the Commission has held both ways on this question, both before and after the cases on appeal were decided. The Commission has not favored the Court with any explanation of the vacillation in its policy.

The quoted views expressed by the Commission in the Florence and Lukemeier cases are in accord with the principles expressed elsewhere. Bergseth v. Zinsmaster Baking Company, 252 Minn. 63, 89 N.W.2d 172; Lamont v. Director of Division of Employment Security, 337 Mass. 328, 149 N.E.2d 372; Campbell v. Unemployment Compensation Board of Review, 175 Pa.Super. 592, 106 A.2d 687; 180 Pa.Super. 74, 117 A.2d 799; Valles v. Unemployment Compensation Board of Review, 194 Pa.Super. 47, 166 A.2d 108, 8 CCH Unemp.Ins.Rep. (Pa.) ¶ 8878; Madison Gas & Electric Company v. Gardner, 9 CCH Unemp.Ins.Rep. (Wis.) 1975.52 (Wis.Cir.Ct.1951); John Morrell & Company v. ESC, 4 CCH Unemp.Ins.Rep. (Ia.) ¶ 1995.45 (Ia.Dist.Ct.1959); Regal Pale Brewing Company v. California Unemployment Insurance Appeals Board, 2 CCH Unemp.Ins.Rep. (Cal.) ¶ 8829 (Cal.Sup.Ct.1958); 48 Am.Jur., Social Security, Unemployment Insurance, and Retirement Funds, Section 34, page 52 (1960 Cum.Supp.).

The authorities cited are in harmony with the principles in Unemployment Insurance Commission v. Cochran Foil Company, Ky.,

Related

Kentucky Unemployment Insurance Commission v. Hamilton
364 S.W.3d 450 (Kentucky Supreme Court, 2011)
Brownlee v. Commonwealth
287 S.W.3d 661 (Kentucky Supreme Court, 2009)
Vance v. Kentucky Unemployment Insurance Commission
814 S.W.2d 284 (Court of Appeals of Kentucky, 1991)
Kentucky Unemployment Insurance Commission v. Jones
809 S.W.2d 715 (Court of Appeals of Kentucky, 1991)
Parks v. Employment Security Commission
398 N.W.2d 275 (Michigan Supreme Court, 1986)
Kentucky Unemployment Insurance Commission v. Goode
631 S.W.2d 28 (Court of Appeals of Kentucky, 1982)
McFadden v. Kentucky Unemployment Insurance Commission
588 S.W.2d 711 (Court of Appeals of Kentucky, 1978)
Churchill Downs, Inc. v. Kentucky Unemployment Insurance Commission
454 S.W.2d 347 (Court of Appeals of Kentucky, 1970)
Richey v. Riegel Textile Corp.
169 S.E.2d 101 (Supreme Court of South Carolina, 1969)
Richardson v. Maine Employment Security Commission
229 A.2d 326 (Supreme Judicial Court of Maine, 1967)
Jenkins v. Review Board of the Indiana Employment Security Division
211 N.E.2d 42 (Indiana Court of Appeals, 1965)
Kentucky Unemployment Insurance Commission v. Young
389 S.W.2d 451 (Court of Appeals of Kentucky (pre-1976), 1965)
Leach v. Columbus Coated Fabrics Co.
205 N.E.2d 608 (Court of Common Pleas of Ohio, Franklin County, Civil Division, 1964)
Kentucky Unemployment Insurance Commission v. American National Bank & Trust Co.
367 S.W.2d 260 (Court of Appeals of Kentucky (pre-1976), 1963)
Ball Bros. v. Review Board of Indiana Employment Security Division
189 N.E.2d 429 (Indiana Court of Appeals, 1963)
Kentucky Unemployment Insurance Commission v. Reynolds Metals Company
360 S.W.2d 746 (Court of Appeals of Kentucky (pre-1976), 1962)

Cite This Page — Counsel Stack

Bluebook (online)
352 S.W.2d 212, Counsel Stack Legal Research, https://law.counselstack.com/opinion/kentucky-unemployment-insurance-commission-v-kroehler-manufacturing-co-kyctapphigh-1961.