O'Brien v. Director of the Division of Employment Security

472 N.E.2d 253, 393 Mass. 482, 1984 Mass. LEXIS 1876
CourtMassachusetts Supreme Judicial Court
DecidedDecember 11, 1984
StatusPublished
Cited by37 cases

This text of 472 N.E.2d 253 (O'Brien v. Director of the Division of Employment Security) is published on Counsel Stack Legal Research, covering Massachusetts Supreme Judicial Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
O'Brien v. Director of the Division of Employment Security, 472 N.E.2d 253, 393 Mass. 482, 1984 Mass. LEXIS 1876 (Mass. 1984).

Opinion

Lynch, J.

The plaintiff appeals from a judgment of a District Court judge that affirmed a decision of the Division of Employ[483]*483ment Security (division) denying the plaintiff unemployment compensation benefits. The plaintiff appeals.directly to this court pursuant to G. L. c. 151A, § 42. The plaintiff argues that the division’s decision was improper because the plaintiff was denied sufficient notice of the scope of inquiry at the hearing and because the decision was not supported by substantial evidence. We affirm the judgment of the District Court.

The plaintiff was hired as a salesman on December 14,1981, by Data Associates, Inc. (Data), a distributor of business forms. His salary was paid solely on a commission basis. During the period of his employment, the plaintiff consistently failed to meet the monthly sales quota set by Data, principally because of the plaintiff’s outside ventures and the state of the economy. Despite the contention of the plaintiff that he was terminated in October, 1982, the review examiner found that in August, 1982, Data terminated the plaintiff’s employment for failure to meet the sales quota.2 Following his termination by Data, the plaintiff continued to contact his personal business accounts on behalf of Diversified Business Systems (Diversified). The plaintiff’s only compensation for this solicitation was that a $5,700 debt owed to Diversified was reduced by the amount that the plaintiff normally would have earned as commission.

The plaintiff filed a claim for unemployment compensation benefits on October 7, 1982, and on November 5 the division approved the plaintiff’s application. Pursuant toG.L.c. 151A, § 39 (£>), Data requested a hearing on this determination. Notice of the hearing was sent to the parties, stating that the issue to be determined was whether the plaintiff was available for work and had made an adequate search for work. At the hearing Data was represented by its president and the plaintiff represented himself.

The review examiner (examiner) determined that the plaintiff was ineligible for unemployment insurance benefits. He found [484]*484that the plaintiff’s “search for work is of such a minimal amount that he is devoting the major portion of his time in self employment. ” Therefore the plaintiff was not in “total unemployment,” as that term is defined in G. L. c. 151A, § 1 (r), and hence was not entitled to benefits under G. L. c. 151A, § 29 (a). The plaintiff’s application for review by the board of review, pursuant to G. L. c. 151A, §§ 40 and 41, was denied.

On appeal to the District Court, the plaintiff argued that the notice of hearing failed to inform him adequately that the issue of his self-employment would be considered, and that the examiner’s decision was not supported by substantial evidence. The District Court judge rejected these arguments and the plaintiff reasserts them here on further appeal.

1. Notice. The notice of hearing received by the plaintiff advised him that the issue to be heard would be whether “the claimant was capable of and available for work and has made an adequate search for work. (Section 24 [b] MGL Chapter 151 A).”3 The plaintiff claims that this language failed to provide him with sufficient prior notice that the question of his self-employment would be considered at the hearing; as a result he was unprepared to present evidence or rebut allegations on this issue.4 Thus, the plaintiff argues that the decision was made [485]*485“upon unlawful procedure,” within the meaning of G. L. c. 30A, § 14 (7) (d). We conclude that the form notice sufficiently apprised the plaintiff that his self-employment would be an issue at the hearing.

Logically, a claimant cannot be “available for work” within the meaning of § 24 (b) if the claimant is already employed by another or is self-employed. Therefore, one aspect of the determination of the plaintiff’s availability for work must, of necessity, be whether the plaintiff was otherwise employed in some fashion. We hold that the examiner properly inquired into this issue.5

We note further that at the hearing the plaintiff never objected to the consideration of his availability for work, never expressed surprise that the issue was being considered, and never requested a continuance or additional time to provide evidence.6 In fact, the transcript establishes that the plaintiff was satisfied that he had presented all relevant evidence on this issue. The plaintiff cannot now be heard to complain that he was deprived of a fair hearing.

2. Substantial evidence. The examiner found that the plaintiff was not in “total unemployment,” as defined in G. L. c. 151 A, § 1 (r) (2), because the plaintiff spent “the major portion of his time in self employment.” The plaintiff contends that this conclusion was not supported by substantial evidence, within the meaning of G. L. c. 30A, § 14 (7) (e). We disagree.

[486]*486The Legislature has directed that in our review of decisions adopted by the division’s board of review, we are to “give due weight to the [board’s] experience, technical competence, and specialized knowledge ... as well as to the discretionary authority conferred upon it.” G. L. c. 30A, § 14 (7), as appearing in St. 1973, c. 1114, § 3. The decision that the plaintiff was not “available for work” is a question of fact entrusted to the informed judgment of the division. President & Fellows of Harvard College v. Director of the Div. of Employment Sec., 376 Mass. 551, 555 (1978). When, as here, the examiner decides that the plaintiff has failed to sustain his burden of persuasion in proving eligibility (Smith v. Director of the Div. of Employment Sec., 384 Mass. 758, 761 [1981]), we can set aside that finding only if it is unsupported by substantial evidence. Abramowitz v. Director of the Div. of Employment Sec., 390 Mass. 168, 173 (1983). Nantucket Cottage Hosp. v. Director of the Div. of Employment Sec., 388 Mass. 1006 (1983).

General Laws c. 151A, § 1 (r) (2), as appearing in St. 1951, c. 763, § 1, states that an individual is in total unemployment when “he performs no wage-earning services whatever, and for which he receives no remuneration, and in which, though capable of and available for work, his is unable to obtain any suitable work.” The plaintiff’s claim that there was no evidence as to the amount of time he spent in efforts to generate sales for Diversified is beside the point. From the plaintiff’s own statements at the hearing7 it is apparent that he was performing [487]*487some services for which he received remuneration. Furthermore, from his statement that he called on only about two prospective employers per week, the examiner could have inferred that the plaintiff was spending the major portion of his time in self-employment.

The plaintiff maintains, however, that since the commissions he would have received from Diversified were applied wholly to reduce a preexisting debt, he received no “remuneration,” within the meaning of § 1 (r) (2). “Remuneration” is defined by § 1 (r) (3), as amended through St. 1976, c.

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Bluebook (online)
472 N.E.2d 253, 393 Mass. 482, 1984 Mass. LEXIS 1876, Counsel Stack Legal Research, https://law.counselstack.com/opinion/obrien-v-director-of-the-division-of-employment-security-mass-1984.