Vanhorn v. Bassett Furniture Industries, Inc.

333 S.E.2d 309, 76 N.C. App. 377, 1985 N.C. App. LEXIS 3883
CourtCourt of Appeals of North Carolina
DecidedAugust 20, 1985
Docket8425SC1137
StatusPublished
Cited by4 cases

This text of 333 S.E.2d 309 (Vanhorn v. Bassett Furniture Industries, Inc.) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Vanhorn v. Bassett Furniture Industries, Inc., 333 S.E.2d 309, 76 N.C. App. 377, 1985 N.C. App. LEXIS 3883 (N.C. Ct. App. 1985).

Opinion

COZORT, Judge.

On 3 September 1982, Howard H. White, Vice President of Bassett Furniture Industries, fired claimants Franklin Vanhorn and Willard Whisenant for converting Bassett property to their own use. When claimants filed for unemployment benefits with the Employment Security Commission, an adjudicator determined that both men were entitled to benefits. Respondent Bassett Industries appealed the adjudicator’s determination, and an appeals referee held a separate evidentiary hearing for each claimant on 18 November 1982. The referee determined that claimant Van-horn qualified for benefits but claimant Whisenant did not. Ap *378 peal was made to the Employment Security Commission; Bassett appealed the Vanhorn decision, and Whisenant appealed the decision denying him benefits. On 17 June 1983, the Commission entered findings of fact based upon the transcripts from the evi-dentiary hearings and memoranda of law concluding that both claimants were disqualified for unemployment benefits. Claimants joined in giving timely notice of appeal to the superior court where the two cases were combined for review. Judgment was entered 24 May 1984 affirming the decisions of the Commission disqualifying both claimants for benefits. On appeal to this Court, we affirm.

There is no dispute about the events leading up to the dismissals. Claimants worked at the Hickory plant of Bassett Industries, Whisenant as plant manager, and Vanhorn as a supervisor of operations. Both men had been working at this particular plant when Bassett acquired it in 1974 and had continued in their positions until they were fired on 3 September 1982.

In February 1982, Bassett purchased a used molder machine and had it shipped directly to the Hickory plant. When the machine was delivered it was accompanied by two boxes of molder knives of a type which, for safety reasons, were not used by Bassett. The driver who delivered the machine refused to return the two boxes of molder knives, and the boxes were set near the back door of the plant to facilitate their removal. Whisenant, as plant manager, directed Vanhorn to get rid of the knives in any way he saw fit.

In late June 1982, Fred Cochran of Drexel Heritage Furnishings, Inc., which had a plant “two doors below” the Bassett plant, learned that Bassett had some molder knives they were not using. He and another Drexel employee went to the Bassett plant and asked Whisenant if they could look at the knives. Vanhorn was told to show the men the boxes of discarded molder knives. Vanhorn and Cochran agreed upon a $200.00 purchase price for the knives. A Drexel employee picked up the knives during regular working hours. Drexel issued a check for $200.00 made out to Vanhorn which was delivered to the business office at the Bassett Hickory plant. The business office gave the check to Whisenant who gave it to Vanhorn. Vanhorn cashed the check and offered some of the proceeds to Whisenant who at first refused and then accepted the offered sum.

*379 In early September 1982, Bassett Vice President White, who was responsible for the Hickory plant among others, learned that some “surplus” molder knives had been sold to Drexel. White traveled from corporate headquarters in Virginia to the Hickory plant, and on 3 September 1982 questioned Vanhorn and Whise-nant about the matter. Claimants explained to White that Whise-nant had told Vanhorn to “throw the knives in the trash” and the men had considered the knives scrap. The men admitted the knives had been sold to Drexel for $200.00 and that the men had shared the money. White fired the men on the spot.

The claimants’ argument before this Court is that the conduct described above did not constitute “misconduct” so as to disqualify them for unemployment benefits. Claimants excepted only to the judgment of the trial court, taking no exceptions to any findings of fact. On appeal from a decision of the Employment Security Commission, the findings of fact made by the Commission are conclusive if they are supported by competent evidence. G.S. 96-15(i). Where no exception is taken to the findings, they are presumed to be supported by the evidence and are binding on appeal. In re Hagan v. Peden Steel Co., 57 N.C. App. 363, 291 S.E. 2d 308 (1982).

The Commission made the following pertinent findings of fact with regard to claimant Whisenant.

2. The claimant was discharged from this job for wilfully and without good cause participating in the sale of surplus employer property (molder knives) for $200. He, the plant manager, was aware of the transaction and subsequently accepted $90 or $95 of it from the supervisor, his subordinate, who arranged it. The molder knives were sold to Drexel Heritage, a neighboring business. As soon as the employer, through its Group Vice President, learned of this transaction, both this claimant and the supervisor were discharged. Before September 3, 1982, this claimant never had attempted to see that the employer received the proceeds from the sale of its property.
3. While the molder knives were considered by the employer as surplus to it since they were not used in its operations, this claimant knew or should have known that converting the employer’s property to his personal benefit *380 was not permitted. He knew the molder knives were the employer’s property and value was received from their sale, and has offered nothing to show that the employer had approved or authorized the sale of its property with the proceeds going to employees.

and the following findings with regard to claimant Vanhorn:

2. The claimant was discharged from this job for wilfully and without good cause participating in the sale of surplus employer property (molder knives) for $200. He, a supervisor, received the entire sum and subsequently gave $90 or $95 of it to his supervisor, the plant manager. The molder knives were sold to Drexel Heritage, a neighboring business. As soon as the employer, through its Group Vice President, learned of this transaction, both this claimant and the plant manager were discharged. Before September 3, 1982, this claimant never had attempted to see that the employer received the proceeds from the sale of its property.
3. While the molder knives were considered by the employer as surplus to it since they were not used in its operations and while the plant manager had told this claimant to get rid of them, this claimant knew or should have known that converting the employer’s property to his personal benefit was not permitted. He knew the molder knives were the employer’s property and value was received from their sale, and has offered nothing to show that the employer had approved or authorized the sale of its property with the proceeds going to employees.

With no exception taken to these findings of fact, the sole question to be considered is whether these findings sustain the Commission’s conclusion that the claimants were disqualified from receiving unemployment compensation benefits by virtue of G.S. 96-14, which provides in pertinent part:

An individual shall be disqualified for benefits:

* * * *
(2) . . .

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Bluebook (online)
333 S.E.2d 309, 76 N.C. App. 377, 1985 N.C. App. LEXIS 3883, Counsel Stack Legal Research, https://law.counselstack.com/opinion/vanhorn-v-bassett-furniture-industries-inc-ncctapp-1985.