Prebula v. Arizona Department of Economic Security

672 P.2d 978, 138 Ariz. 26, 1983 Ariz. App. LEXIS 591
CourtCourt of Appeals of Arizona
DecidedOctober 27, 1983
Docket1 CA-UB 305
StatusPublished
Cited by24 cases

This text of 672 P.2d 978 (Prebula v. Arizona Department of Economic Security) is published on Counsel Stack Legal Research, covering Court of Appeals of Arizona primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Prebula v. Arizona Department of Economic Security, 672 P.2d 978, 138 Ariz. 26, 1983 Ariz. App. LEXIS 591 (Ark. Ct. App. 1983).

Opinion

OPINION

OGG, Judge.

This is an appeal from an Unemployment Insurance Appeals Board decision finding that the appellant-employee is disqualified from receiving unemployment benefits. Appellant claims that the Appeals Board was not justified in making supplemental findings and corrections, claiming they were not supported by the record. Secondly, appellant claims the Appeals Board erred in finding that appellant’s activities within a fraternal organization constituted misconduct sufficiently connected with his employment so as to disqualify him from receiving unemployment benefits. We disagree with appellant as to both claims.

We begin by briefly reviewing the facts. Appellant was employed by Phelps Dodge Corp. as the manager’s secretary from August 10, 1961 to August 7, 1981. In this capacity his duties included typing, greeting visitors and answering the telephone. The record also indicates that he had access to substantial amounts of confidential company information. Apparently, appellant faithfully performed his duties for nearly twenty years.

On August 7, 1981, appellant was called into the office of Carl Forstrom, manager of the New Cornelia branch of Phelps Dodge Corp. Mr. Forstrom told appellant that he was concerned about rumors that appellant had embezzled money from the Ajo Elks Lodge, a fraternal organization of which appellant was the secretary. Appellant admitted to Mr. Forstrom that he was responsible for taking the money. 1 Appellant was then given the option of resigning or being fired. He chose resignation.

*28 Appellant subsequently applied to the Arizona Department of Economic Security (DES) for unemployment benefits. His request was denied upon a finding by a DES deputy that appellant was disqualified pursuant to A.R.S. § 23-775(2). Appellant then appealed the deputy’s determination to a DES appeal tribunal. The tribunal reversed the deputy’s determination, finding that appellant was discharged 2 for reasons other than misconduct connected with his work. Phelps Dodge appealed the tribunal’s decision to the DES appeals board, claiming that the factual findings were not supported by the evidence and the decision was contrary to the applicable law. The appeals board reversed the appeal tribunal’s decision, finding that appellant was discharged for misconduct connected with his work. The board adopted the appeal tribunal’s findings of fact but also made supplemental findings and corrections. 3 Appellant’s subsequent request for review was denied and he timely filed an application for appeal to this court pursuant to A.R.S. § 41-1993.

As to appellant’s contention that the appeals board was not justified in making supplemental findings and corrections, we find consideration of this issue is not properly before this court. A.R.S. § 41-1993 reads in pertinent part:

No issue may be raised on appeal which has not been raised in the request for review before the unemployment insurance appeals board.

Having reviewed appellant’s request for review, we find no reference to appellant’s newly raised contention. We are statutorily prohibited from considering this claim. 4

Hence, the sole issue before this court is whether the appeals board erred in finding that appellant's discharge was for misconduct connected with his work such that he is disqualified from receiving unemployment compensation benefits.

Appellant was denied unemployment compensation benefits pursuant to A.R.S. § 23-775, which provides in pertinent part:

An individual shall be disqualified for benefits:
* sj: sjs sf: s}: *
2. For the week in which he has been discharged for wilful or negligent misconduct connected with the employment, and in addition to the waiting week, for the duration of his unemployment and until he has earned wages in an amount equivalent to five times his weekly benefit amount otherwise payable. (Emphasis added)

Wilful or negligent misconduct is described in A.R.S. § 23-619.01 which in pertinent part provides:

B. “Wilful or negligent misconduct connected with the employment” includes, *29 but under no circumstances is limited to the following:
* * * * * *
6. Admission of or conviction for any felony or crime related to the employer’s business or to the employment or which could have a substantial adverse effect on the employer’s interest, public relations or trust, unless the employer had actual knowledge of such admission or conviction at the commencement of the employment. (Emphasis added)

The DES policy rules define misconduct as follows:

a. “Misconduct connected with the work” means any act or omission by an employee which constitutes a material or substantial breach of the employee’s duties or obligations pursuant to the employment or contract of employment or which adversely affects a material or substantial interest of the employer.
b. American Jurisprudence defines “Misconduct Precluding Payment of Unemployment Insurance” 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 willful 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.” (Emphasis added)

A.C.R.R. R6-3-5105(A)(l). 5

The case at bar concerns misconduct while away from the job. We find the following rule instructive on this point:

B. Generally, what a worker does when he is off-work is of no concern to the employer and the employer has no basis for holding him accountable for his off-duty conduct. However, when a worker’s off-duty conduct bears such a relationship to his job as to render him unsuitable to continue in his job because of the adverse effect it would have on the employer’s operation, such off-duty action would be connected with the work.

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Bluebook (online)
672 P.2d 978, 138 Ariz. 26, 1983 Ariz. App. LEXIS 591, Counsel Stack Legal Research, https://law.counselstack.com/opinion/prebula-v-arizona-department-of-economic-security-arizctapp-1983.