Koret of California, Inc. v. Zimmerman

941 S.W.2d 886, 1997 Mo. App. LEXIS 630, 1997 WL 164010
Missouri Court of Appeals·Decided April 9, 1997·No. 20983·Published·Cited by 10 cases

Opinion

BARNEY, Presiding Judge.

Appellant Koret of California, Inc., (Kor-et) appeals from the decision of the Labor and Industrial Relations Commission (Commission) affirming a determination by the Appeals Tribunal of the Division of Employment Security that Claimant Kathy Zimmerman (Claimant) was eligible for unemployment compensation benefits under the *887 provisions of the Missouri Employment Security Law, §§ 288.010 — 288.500. 1

The evidence reveals that Koret operates a chain of several ladies apparel factory outlet stores, including a high volume store at Branson, Missouri, where Claimant worked as store manager supervising nine employees. Claimant worked from November 7, 1994, through October 24,1995. During this period of time, Koret discovered that on approximately six different occasions there were discrepancies between amounts stated on nightly deposit slips and the amount of money actually deposited in the total amount of $5,028.59. Claimant testified that she was aware of Koret’s policies regarding the handling of nightly deposits and the necessity of obtaining dual signatures on deposit slips and having a second person reconcile the deposit figures. However, Claimant stated that the press of business made compliance difficult with these and other company procedures and she had to rely on other employees to make nightly deposits.

Unrefnted evidence further revealed that Claimant admitted her manager’s office was improperly secured because it could not be locked and faulted building maintenance for this discrepancy. However, in late October 1995, a Koret representative was able to correct the problem with one phone call to the building maintenance office. Additionally, the unrefuted evidence presented by Kor-et showed that at the time of Claimant’s discharge, office records at the store were in a state of disarray, paperwork was missing, hundreds of clothing articles on the store floor were incorrectly priced, and upon an inventory made on December 3, 1995, after Claimant’s departure, it was determined that there were shortages of over 4,000 garments.

A deputy of the Division of Employment Security found that Claimant was disqualified for unemployment compensation benefits for ten weeks, on a finding that Claimant was discharged November 1,1995, for misconduct connected with her work. An Appeals Tribunal reversed the deputy’s determination and the Commission adopted the decision of the Appeals Tribunal.

The Appeals Tribunal found that Claimant “worked long hours and did not conform, to policies in various ways including cash management practices because time would not permit such conformance.” (Italics added). It then concluded that Claimant, as “manager, was assigned a greater volume of work than was reasonably possible for her to perform in compliance with the employer’s policies ... [and she made a] good faith effort to perform her managerial duties....” Since there was “no direct evidence that the [Claimant took employer funds or converted employer funds to her own use,” it concluded that Claimant “was discharged on November 1, 1995, but not for misconduct connected with her work.”

In its sole point on appeal, Koret argues that the Commission erred as a matter of law in concluding that the actions of Claimant did not amount to misconduct connected with her work. Koret contends that the uncontradict-ed evidence discloses that Claimant had faded to comply with mandated policies and procedures in the conduct of her duties, including improper accounting and cash management procedures, improper procedure for handling nightly deposits, improper store security procedures, improper product pricing procedures, and incorrect and improper displaying of products. Koret contends that the evidence showed Claimant’s work performance was so negligent and recurrent as to manifest culpability amounting to misconduct connected with her employment. 2

Review is under § 288.210, RSMo Supp.1995. The issue is whether the Commission’s finding that Claimant was not engaged in acts of misconduct in connection with her work is supported by competent and *888 substantial evidence. Bartsch v. Moore, 931 S.W.2d 877, 878 (Mo.App.1996). In the absence of fraud and when supported by competent and substantial evidence, the Commission’s findings shall be conclusive and we confine our judicial review to questions of law. Heavy Duty Trux Ltd., v. Labor and Indus. Relations Comm’n, 880 S.W.2d 687, 640 (Mo.App.1994).

The term “misconduct” as used in § 288.050.2 is not defined by statute. Adopting the definition of “misconduct” as set out in 76 AM.Jur.2d Unemployment Compensar tion § 52 (1975) 3 , the courts of this state have adopted the definition summarized as follows:

[Misconduct within the meaning of an unemployment compensation act excluding from its benefits an employee discharged for misconduct must be an act of wanton or wilful disregard of the employer’s interest, a deliberate violation of the employer’s rules, a disregard of standards of behavior which the employer has the right to expect of his employee, or negligence in such degree or recurrence as to manifest culpability, wrongful intent, or evil design, or show an intentional and substantial disregard of the employer’s interest or of the employee’s duties and obligations to the employer.

Hurlbut v. Labor and Indus. Relations Comm’n, 761 S.W.2d 282, 284 (Mo.App.1988).

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Koret of California, Inc. v. Zimmerman, 941 S.W.2d 886, 1997 Mo. App. LEXIS 630, 1997 WL 164010 (Mo. Ct. App. 1997).

941 S.W.2d 886 (Koret of California, Inc. v. Zimmerman) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

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