Linda Darkenwald v. State Of Washington Department Of Employment Security

Court of Appeals of Washington·Decided June 24, 2014·No. 44376-7·Published

Opinion

FILED

CCURT

OF APPE LS

DIVISION II

2014 JUN 24 '

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BY

IN THE COURT OF APPEALS OF THE STATE OF WASHINGTON DIVISION II

LINDA DARKENWALD, No. 44376 -7 -I1

Respondent,

v.

STATE OF WASHINGTON EMPLOYMENT SECURITY DEPARTMENT, PUBLISHED OPINION

Appellant.

MAxA, J. — The Employment Security Department (the Department) appeals the superior court' s reversal of the Department Commissioner' s order denying Linda Darkenwald unemployment benefits. Darkenwald left her job as a dental hygienist because she believed that

her injured neck and back prevented her from working the increased hours her employer required. Darkenwald argues that she qualifies for unemployment benefits because she either was discharged or voluntarily left her job for good cause, or because as a part-time employee RCW 50. 20. 119 allowed her to reject a job requiring more than 17 hours of work per week without disqualifying her from benefits. She also moves this court to dismiss the Department' s appeal as moot, arguing that its payment of unemployment benefits to her after the filing of its notice of appeal constituted a final determination of benefits that cannot be recouped without evidence of fraud, misrepresentation, or nondisclosure.

We hold that ( 1) because the superior court directed the Department to pay unemployment benefits to Darkenwald and the Department appealed that ruling, that payment did not constitute a final determination of benefits that moots this appeal; ( 2) Darkenwald was

not discharged but instead left work voluntarily, and therefore was required to prove that she had good cause for leaving in order to receive unemployment benefits; ( 3) Darkenwald did not have

good cause to leave work because she failed to prove that (a) her disability was her primary reason for leaving, or ( b) her employer caused a 25 percent reduction in her hours; and ( 4) RCW 50.20. 119 does not apply to currently employed workers, and therefore does not allow her to qualify for unemployment benefits. Accordingly, we reverse the superior court, affirm the Department Commissioner' s order denying Darkenwald unemployment benefits, reverse the superior court' s award of attorney fees to Darkenwald attorney fees, and deny Darkenwald' s request for attorney fees on appeal.

FACTS

Darkenwald began working as a dental hygienist in Dr. Gordon Yamaguchi' s office in 1985. In 1998, she suffered a neck and back injury and filed a claim for benefits with the Department of Labor and Industries ( L & I). L & I provided benefits and stated that Darkenwald had a permanent impairment. For the next eight years, Darkenwald continued to work either

three or four days per week. In 2006, Darkenwald reduced her hours from three to two days per week, working approximately 15 - 16 hours per week on Mondays and Wednesdays. She later

asserted that the reduction was because her chronic pain made it impossible for her to work more. Yamaguchi later asserted that the reduction was so that Darkenwald could spend more

time with her family.

On July 28, 2010, Yamaguchi told Darkenwald that he needed her to work three days per week because his practice had grown. Yamaguchi suggested that Darkenwald work on Fridays

to extend her hours to three days per week, or alternatively to work as an on call hygienist. In response to Yamaguchi' s request that she work three days per week, Darkenwald stated, " I hear

you saying that I am fired." Administrative Record ( AR) at 22. She later asserted that she

believed Yamaguchi' s request that she either work three days per week or accept work as a

substitute hygienist meant that he was firing her due to her disability because she did not have a meaningful choice that would allow her to maintain her employment.

Yamaguchi' s wife, the office manager, told Darkenwald that a replacement hygienist had

been hired and asked Darkenwald to continue working until August 23, the replacement' s start date. On August 2, Darkenwald returned to work but sent a letter to Yamaguchi stating that she had been fired and declining to work after that date. The letter did not mention any health concerns or request consideration of any other alternatives. Yamaguchi' s office records reflect that the reason for Darkenwald' s separation was "[ d] ischarge" and stated that "[ s] he refused to

work three days. She could not do three days a week." AR at 131. Darkenwald later stated that

she could not have worked three days per week because of her health and that she did not want to

accept the substitute dental hygienist position because it would have amounted to a significant

reduction in her hours, no paid holidays, and no reliable shifts.

In contrast, Yamaguchi claimed that he did not intend to fire Darkenwald and that she

quit voluntarily. He stated that he asked her if she could work three days per week, but she said that she could not. He then asked if she could work Fridays, and she said she could not because of her husband' s schedule. Darkenwald did not tell Yamaguchi that she could not work three

days per week because of her health condition. Yamaguchi stated that after their conversation,

he did not believe that Darkenwald' s employment had terminated and that he wanted her to work for him as a substitute dental hygienist.

Darkenwald filed a claim for unemployment benefits with the Department. She did not

mention her disability in her initial application. The Department denied her claim, stating that she quit for personal reasons and therefore did not have good cause to terminate her employment. Darkenwald appealed to an administrative law judge ( ALJ). The ALJ ruled that Darkenwald

voluntarily quit employment without good cause under RCW 50. 20.050, and therefore she was not entitled to unemployment benefits. Although disqualification from benefits is not required if

a claimant quits due to " illness or disability" under RCW 50.20. 050( 2)( b)( ii), the ALJ ruled that Darkenwald " has not established that her medical condition was the reason she was not able to

i'

work on Fridays. AR at 92. Darkenwald petitioned for review by the Department' s

Commissioner. The Commissioner affirmed the ALJ' s decision and adopted the ALJ' s findings and conclusions.

Darkenwald then petitioned for review by the superior court. The superior court concluded that the Commissioner' s findings were not supported by substantial evidence and that Darkenwald quit with good cause, and therefore was entitled to unemployment benefits. The superior court reversed the Commissioner' s denial of benefits and directed the Department to

grant Darkenwald unemployment benefits. The superior court also awarded Darkenwald

attorney fees.

1 The ALJ also ruled that Darkenwald was not available for employment because she was unwilling to work on Fridays, and therefore was ineligible for unemployment benefits under RCW 50. 20. 010( 1)( c). However, the superior court later reversed this ruling by stipulated order.

The Department appealed the superior court' s order reversing the Commissioner' s decision. After the Department filed its notice of appeal, it made the benefit payments to

Darkenwald in compliance with the superior court' s ruling.

ANALYSIS

A. MOTION TO DISMISS APPEAL

As a threshold matter, Darkenwald moves to dismiss the Department' s appeal under RAP

2

17. 1 and RAP 17. 4( d). She argues that because the Department' s payments to her after it filed

its notice of appeal constituted a final determination of her benefit eligibility, RCW 50. 20. 160( 3) precludes the Department from recouping those benefits and this appeal is moot. We disagree.

A case is moot if a court " ` cannot provide the basic relief originally sought ... or can no

longer provide effective relief.' " Bavand v. OneWest Bank, F.S.B., 176 Wn. App. 475, 510, 309 P. 3d 636 ( 2013) ( alteration in original) ( internal quotations marks omitted) ( quoting

Dioxin / Organochlorine Ctr. v. Pollution Control Hearings Bd., 131 Wn.2d 345, 350 -51, 932

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