Unemployment Insurance Commission v. Cochran Foil Co.

331 S.W.2d 903
CourtCourt of Appeals of Kentucky
DecidedFebruary 5, 1960
StatusPublished
Cited by6 cases

This text of 331 S.W.2d 903 (Unemployment Insurance Commission v. Cochran Foil Co.) is published on Counsel Stack Legal Research, covering Court of Appeals of Kentucky primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Unemployment Insurance Commission v. Cochran Foil Co., 331 S.W.2d 903 (Ky. Ct. App. 1960).

Opinions

CULLEN, Commissioner.

On this motion for an appeal some troublesome questions of interpretation of the Unemployment Compensation Act, KRS Ch. 341, are presented.

Mrs. Rebecca Kistner presented a claim for unemployment insurance benefits. The Unemployment Insurance Commission entered an order allowing the claim, payable from the reserve account of Mrs. Kistner’s most recent employer, the Cochran Foil Company. On proceedings for judicial review the circuit court set aside the order and entered judgment holding that Mrs. Kistner was not entitled to any unemployment insurance benefits and that the Commission could not award her any benefits from either the employer’s reserve account or the pooled account. The basis for the judgment was that Mrs. Kistner had “voluntarily quit her employment without good cause.” The Unemployment Insurance Commission has moved for an appeal.

Mrs. Kistner had worked for the Cochran Foil Company in Louisville, under a union contract, for some 16 months prior to March 17,1952. On that date she was laid off pursuant to a general reduction of force. She continued in the laid-off status throughout the balance of the year 1952 and did not apply for unemployment insurance benefits. In January 1953 her husband was transferred by his employer from an office in Louisville to an office in Texas. Mrs. Kistner did not immediately move to Texas with him, it being her initial intention to stay in Louisville at least until the current school year was completed.

In February 1953 Mrs. Kistner made inquiry at the plant of the Cochran Foil Company as to the prospects for her being returned to work. She was given no assurance of a return in the immediate future. Shortly thereafter she moved to Texas to join her husband.

On March 20, 1953, the Cochran Foil Company notified Mrs. Kistner, in accordance with the union contract, that they were calling back some of the laid-off workers and that she could resume work. She refused to return to Louisville and resume her job. Shortly thereafter, invoking procedures that were available by reason of reciprocity statutes and agreements, she filed through the Texas Unemployment Commission, as agent for the Kentucky Commission, her claim for unemployment insurance benefits. Under the Unemployment Compensation Law this claim could be only for weeks of unemployment occurring after the claim was filed, because the law does not provide for the receipt of any benefits for a period of unemployment preceding the date of the filing of a claim.

The first question to he considered is whether Mrs. Kistner is entitled to receive any benefits chargeable to the reserve account of the Cochran Foil Company. The applicable statute, KRS 341.-530(3), provides in substance that benefits are not chargeable against the employer’s reserve account if the employe “voluntarily left his most recent work with such employer without good cause attributable to the employment.” So our question is whether Mrs. Kistner’s conduct brought her within the quoted phrase.

It seems to us that the question can be approached only from the standpoint of the [905]*905employe’s status immediately preceding the application for unemployment benefits. If at that time the employe is in a laid-off status, there is no bar to the charging of benefits against the employer’s reserve account. Likewise, if at that time he is in the status of having terminated his employment because the prospect of an indefinite lay-off is facing 'him, it would seem reasonable to conclude that the termination was for a “good cause attributable to the employment” and therefore such as to pre-: sent no bar to a charge against the reserve account. But if, at the time he seeks unemployment benefits, he is in the status of having refused for personal reasons to continue his employment status in an available job of work with his most recent employer, then he must be considered to come within the clause of KIRS 341.530(3) that precludes the charging of the reserve account.

This reasoning would seem to be consistent with the apparent philosophy of the Unemployment Compensation Act. The employer has an obligation to continue to provide suitable work under satisfactory working conditions, for his employes. If he fails to do so, his reserve account should be chargeable. But if, after a period of failure to provide continuing work, he again offers continuing work, and the employe waits until after the offer of continuing work has been made before terminating his employment and seeking unemployment benefits, there is no reason to impose a charge on the employer’s reserve account.

Here, Mrs. Kistner did not seek unemployment benefits during the lay-off period. Nor did she quit her job during that period and seek other employment. On the contrary, she elected to wait until after the offer to resume work was made, and then she rejected it and terminated her employment.

It is suggested in argument that Mrs. Kistner, in effect, quit her job when she moved to Texas, and that there was good cause for her to quit at that time because the company was holding out no prospect of work .being available in the reasonable future. But the fact is that she gave no notification to the company of any intention to terminate her employment contract, nor did she perform any other act, until after the offer to return to work had been made, to indicate that she was surrendering her rights under the .employment contract. Surely, if the company had taken other employes back in violation of her seniority rights, it would have furnished a feeble defense, in a suit by her for breach of contract, for the company to assert that they assumed she had quit because they had heard a. rumor that she .had -moved to Texas. Until Mrs. Kistner .rejected the call back to work the company still considered her to be its employe, and it is clear that the lay-off itself did not terminate the employment. See North Whittier Heights Citrus Ass’n v. National Labor Relations Board, 9 Cir., 109 F.2d 76; Fishgold v. Sullivan Drydock & Repair Corp., 328 U.S. 275, 65 S.Ct. 1105, 90 L.Ed. 1230.

Even if it should be considered that Mrs. Kistner did quit her job when she moved to Texas, the fact remains that the avowed reason for her quitting was her desire to be with her husband, and not the absence of available work in her employment with the Cochran Foil Company. She had intended to quit in any event at the end of the school year, so at the most the lack of work in February merely accelerated her decision to move to Texas.

We think it is beyond question that the cause for Mrs. Kistner’s termination of her employment, namely, her having placed herself, for family reasons, at too great a distance from the place of employment, cannot be considered a cause “attributable to the employment.”

Our conclusion is that any benefits to which Mrs. Kistner might be entitled cannot be charged against the employer’s reserve account, because she left her employment without good cause attributable to the employment. KRS 341.530(3). To [906]*906that extent the judgment of the circuit court is correct.

The question remains as to whether Mrs.

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Bluebook (online)
331 S.W.2d 903, Counsel Stack Legal Research, https://law.counselstack.com/opinion/unemployment-insurance-commission-v-cochran-foil-co-kyctapp-1960.