Melia v. Employment Security Commission

78 N.W.2d 273, 346 Mich. 544, 1956 Mich. LEXIS 345
CourtMichigan Supreme Court
DecidedSeptember 4, 1956
DocketDocket 39, Calendar 46,705
StatusPublished
Cited by148 cases

This text of 78 N.W.2d 273 (Melia v. Employment Security Commission) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Melia v. Employment Security Commission, 78 N.W.2d 273, 346 Mich. 544, 1956 Mich. LEXIS 345 (Mich. 1956).

Opinion

Smith, J.

[dissenting). We must here determine the meaning of an amendment * to the Michigan employment security act. The plaintiff, Mary E. Melia, sought and obtained an adjustment in her unemployment compensation by virtue of such amendment. Appealing the order of the circuit court is her employer, Universal Products Company, Inc., a Delaware corporation. Joining as amici curiae are the Michigan Employers’ Unemployment Compensation Bureau, Inc., and the Budd Company. Also before us is the Michigan employment security commission, as interested party which, with the appeal board of such commission, was a defendant below. The commission asserts that, “though nominally an *548 appellee herein, [it] agrees with the appellant, Universal Products Company, Inc., in its contention that the plaintiff and appellee, Mary Melia, is not legally entitled to the payment of the additional benefits provided in sections 27 and 50 of PA 1954, No 197, during her current and unexpired benefit year.”

There is no dispute as to the facts. Mrs. Melia had worked for Universal Products Company for about a year when she was laid off for lack of work. She filed her claim for unemployment compensation benefits on October 2, 1953, and it was determined that she was entitled to $27 per week for 20 weeks, and that she had a current and unexpired benefit year beginning September 27, 1953 and ending September 25, 1954. Her 20th cheek for such sum was received by her on May 14, 1954, at which time she also received Form UC 530, entitled “Notice to Claimant of Exhaustion of Benefits.”

On May 7,1954, the governor signed PA 1954, No 197, which was ordered to take immediate effect. Section 60(a) thereof (the transition section), which has provoked this controversy, provides as follows:

“If this amendatory act takes effect before May 15,1954, then each individual for whom there is current an unexpired benefit year established prior to June 27, 1954, shall receive an adjustment reflecting any increase in his weekly benefit rate and/or maximum amount of benefits which will result from applying sections 27 and 50 of this act, as amended, on that portion of his benefit rights which were not exhausted prior to June 27, 1954; and in the case of benefit years established on or after June 27, 1954, the weekly benefit rate and maximum amount of benefits shall he computed in accordance with sections 27 and 50 of this act, as amended. If this amendatory act does not take effect before May 15, 1954, then the provisions of sections 27 and 50 of this act, as amended, relating to the weekly benefit rate and maximum amount' of benefits,- shall be ap *549 plicable only to benefit years established after the effective date of this amendatory act.”

Subsequent thereto, and on several occasions, Mrs. Melia applied for “the extended 6 weeks” (of benefits), basing her claim upon “the new law.” During this time she was looking for work, and wanted to work “but they wouldn’t even hire men. They laugh at you and you go looking for work, especially woman.” On July 19th the commission issued its notice of determination, denying her claim in the following terms:

“Tour claim for benefits for weeks ending July 3 and July 10, 1954, is denied under the provisions of section 60(a) of the Michigan employment security act. Tour benefits for the benefit year ending September 24, 1954, were exhausted by the payment made on May 14, 1954 for week ending May 8, 1954, which was prior to June 27,1954, the date the amendments to sections 27 and 50 of the act became effective.”

A notice of redetermination was issued on July1 26th, affirming the original determination of denial, following which a referee’s ruling also denied Mrs. Melia’s claim. This ruling was affirmed by a majority of the appeal board. Appellee’s petition for writ of certiorari to the circuit court for Wayne county resulted in a reversal by the circuit court of the appeal board and the case comes to us as a general appeal upon leave granted. (It is unnecessary to this determination to trace appellant’s steps of intervention, concerning which no question is raised.)

The positions of appellant, the amici curiae, and the nominal appellee Michigan employment security commission, are variously stated but they all reduce to 1 basic assertion, namely, that (in the words of Universal Products Company, Inc., appellant):

*550 “Appellee exhausted on May 14, 1954, her benefit rights under the act prior to its amendments * * * and, therefore, was not entitled to receive the adjustment in benefit rights provided for by the amendéd act.”

Or, as put by amici curiae, “an individual’s benefit rights,(are) exhausted after he draws the maximum amount of benefits to which he is then entitled under the law.”

This exhaustion, it is said, came on May 14, 1954, since on that date “she was paid by the Michigan employment security commission, and she thereafter cashed, her twentieth unemployment compensation benefit check, thereby exhausting the benefits to which she was entitled under the old law during the benefit year ending September 25, 1954.” Thus it is urged in substance that the act equates money payments to benefit rights and the exhaustion of the one parallels the exhaustion of the other. Claimant’s position, on the other hand, is that rights under the act must not bé confused with (or equated to) money payments made to those, and only those, having a right thereto.

It is a truism that we seek the legislative intent, General Motors Corporation v. Unemployment Compensation Commission, 321 Mich 724. In such search courts have been guided since ancient times by a consideration of the “mischief and defect” * sought *551 to- be attacked by the legislature in the act under examination. We do not lack for enlightenment with respect thereto. The statutory scheme here involved is not peculiar to this jurisdiction. It had its birth in the great depression of the late twenties and early thirties under circumstances described by Mr. Justice Cardozo in the following words:

“During the years 1929 to 1936, when the country was passing through a cyclical depression, the number of the unemployed mounted to unprecedented heights. Often the average was more than 10 million; at times a peak was attained of 16 million or more. Disaster to the breadwinner meant disaster to dependents. Accordingly the roll of the unemployed, itself formidable enough, was only a partial roil of the destitute or needy. The fact developed quickly that the States were unable to give the requisite relief. The problem had become national in area and dimensions.' There was need of help from the nation if the people were not to starve.” Steward, Machine Co. v. Davis, 301 US 548, 586 (57 S Ct 883, 81 L ed 1279, 109 ALR 1293).

Michigan’s policy with respect to the evil, and the threat imposed thereby was, and is, clear, and clearly stated:

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Bluebook (online)
78 N.W.2d 273, 346 Mich. 544, 1956 Mich. LEXIS 345, Counsel Stack Legal Research, https://law.counselstack.com/opinion/melia-v-employment-security-commission-mich-1956.