William W. Weller v. Morris James LLP, and Unemployment Insurance Appeal Board

Superior Court of Delaware·Decided November 30, 2023·No. N23A-03-007 FWW·Published

Opinion

IN THE SUPERIOR COURT OF THE STATE OF DELAWARE

WILLIAM W. WELLER, )

)

Appellant, )

)

v. ) C.A. No. N23A-03-007 FWW )

MORRIS JAMES LLP, and ) UNEMPLOYMENT INSURANCE ) APPEAL BOARD, )

)

Appellees. )

Submitted: August 25, 2023 Decided: November 30, 2023

MEMORANDUM OPINION

On Appeal from the Unemployment Insurance Appeal Board AFFIRMED

William W. Weller, pro se, 216 Oak Drive, Middletown, Delaware 19709, Appellant.

Jennifer C. Jauffret, Esquire, RICHARDS, LAYTON, & FINGER, P.A., 920 North King Street, Wilmington, Delaware 19801, Attorney for Appellee Morris James LLP.

Victoria W. Counihan, Esquire, Deputy Attorney General, DEPARTMENT OF JUSTICE, 820 North French Street, Wilmington, Delaware 19801, Attorney for Appellee Delaware Department of Labor, Division of Unemployment Insurance.

WHARTON, J.

I. INTRODUCTION.

This appeal is from a decision of the Unemployment Insurance Appeal Board (“UIAB”) affirming an Appeals Referee’s (“Referee”) decision finding Appellant William W. Weller (“Weller”) ineligible for unemployment benefits from September 17, 2022 to September 2, 2023.1 Weller and his former employer, the law firm Morris James, LLP (“Morris James”) entered into a Separation Agreement and Release (“Agreement”) on August 16, 2022, ending a nearly two decade employer/employee relationship.2 The Agreement required Morris James to pay Weller a lump sum of $94,450.00 (“Payment”) in exchange for multiple promises from Weller.3 At the end of his employment, Weller filed a claim to receive unemployment benefits from the Division of Unemployment Insurance (“Division”).4 A Claims Deputy denied his unemployment benefits claim, finding that the Payment, when pro-rated weekly, exceeded what he otherwise would have received in weekly unemployment benefits.5 The Referee affirmed the Claims Deputy’s determination.6 In turn, the UIAB affirmed the Referee.7 On appeal,

1 Weller v. Morris James, App. Docket No. 47115212 (UIAB Mar. 3, 2023), R. at 7. (UIAB’s Decision). 2 Agreement, R. at 104. 3 Id. at 104-105. 4 Claims Deputy’s Decision, R. at 118. 5 Id. 6 Referee’s Decision, R. at 100-02. 7 UIAB’s Decision, R. at 9.

Weller argues that the Referee and the UIAB committed various legal errors warranting reversal. After carefully considering Weller’s arguments, the Court disagrees. The UIAB’s decision is AFFIRMED.

II. FACTS AND PROCEDURAL HISTORY.

Weller was employed by Morris James as a paralegal for approximately 20 years from October 2002 to August 2022.8 On August 16, 2022, Weller signed the Agreement requiring Morris James to pay him $94,450.00 in exchange for certain promises from Weller.9 On September 11, 2022, he filed a claim to receive unemployment benefits.10 A Claims Deputy determined that Weller was ineligible for unemployment benefits due to him receiving $94,450.00 in severance pay.11 Weller appealed and testified at his hearing before the Referee that the Agreement was not a severance agreement, but rather, an agreement settling a whistleblower claim related to a complaint he had filed with the Office of Disciplinary Counsel against a Morris James attorney.12 In support of that argument, Weller attempted to introduce into the record an email labeled “Weller ODC” which the Referee declined to admit,13 the Agreement which the Referee admitted,14 and

8 Appellant’s Op. Br. at 3, D.I. 14. 9 Agreement, R. at 104-105. 10 R. at 113. 11 Claims Deputy’s Decision, R. at 118. 12 Hr’g. Tr. (Dec. 21, 2022), R. 54-83, passim. 13 Id. R. at 62. 14 Id. R. at 69.

notes and a video from his meeting with Morris James which the Referee declined to admit.15 The UIAB affirmed the Referee’s decision.16 It first observed that Weller’s principal dispute with the Referee’s decision was his belief that the Payment should not be viewed as severance, and thus, not affect his eligibility for uninsurance benefits.17 The UIAB was unpersuaded by Weller’s two arguments in support of that belief – first, that Morris James did not contest his unemployment filing, and second, that Morris James intended the Payment to be a settlement of his whistleblower claim.18 As to the first, the UIAB pointed out that only the Division and the UIAB are empowered to make eligibility determinations and that Morris James’ position does not control that determination.19 Similarly, as to the second, the UIAB did not find Morris James’ motivation determinative of Weller’s eligibility for benefits.20 Rather, it found that the appropriate analysis was to apply the facts to Delaware law.21

15 Id. R. at 70. 16 UIAB’s Decision, R. at 9. 17 Id. R. at 8. 18 Id. 19 Id. 20 Id. 21 Id.

When it performed that analysis, the UIAB found that the Payment was a severance.22 It found that Morris James paid Weller the equivalent of one year’s salary in connection with the termination of their employment relationship.23 Citing 19 Del. C. § 3302(18), the UIAB pointed out that wages are defined as ‘“all remuneration for personal services, including commissions, bonuses, dismissal payments, holiday pay, back pay awards.”’24 The UIAB “believe[d] that generally severance payments would be included in dismissal payments under § 3302(18).”25 Therefore, while the Payment was part of a settlement agreement that included the resolution of other charges, the UIAB did not find that fact sufficient to take the Payment out of the definition of “wages.”26 In sum, the UIAB found that Morris James’ payment of one year’s salary was a payment of wages under § 3302(18). 27 Additionally, the UIAB found that a contrary result “would not serve the spirit of the unemployment insurance law because [Weller] was not placed into the same

22 Id. 23 Id. 24 Id. (citing 19 Del. C. § 3302(18)). 25 Id. 26 Id. 27 Id.

economic instability as a worker terminated without any such payment.28 On March 10, 2023, Weller appealed the Board’s decision to this Court.29 III. THE PARTIES’ CONTENTIONS.

Weller contends that the Board’s decision was not free from legal error. It incorrectly affirmed the Referee who violated his due process rights by relying on a complete copy of the hearsay Separation Notice submitted by Morris James which was not provided to him prior the hearing.30 It failed to reverse the Referee who denied him an opportunity to present certain relevant evidence consisting of a video of a Morris James Executive Committee meeting, his notes for that meeting, and the ODC email.31 The Referee also improperly imposed an artificial hearing length and restricted Weller’s right to present evidence.32 The UIAB also committed legal error with respect to its findings concerning the intent of the Agreement.33 Weller also takes issue with the UIAB’s denial of unemployment benefits based on “public policy” and unemployment insurance law.34 Finally, Weller contends that since the

28 Id. at n. 3, R. 9 (quoting 19 Del. C. § 3301 ‘“As a guide to interpretation of this chapter, the public policy of this State is declared to be as follows: economic instability due to unemployment is a serious menace to the health, morals and welfare of the people of this State.”’) 29 R. at 4. 30 Appellant’s Op. Br. at 12-14, D.I. 14. 31 Id. at 15-17. 32 Id. 33 Id. at 17-20. 34 Id. at 21-23.

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William W. Weller v. Morris James LLP, and Unemployment Insurance Appeal Board, (Del. Ct. App. 2023).

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