Larry W. Dudley v. Review Board of the Indiana Department of Workforce Development and TC Heartland, LLC ( 2014 )


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  • Pursuant to Ind.Appellate Rule 65(D),
    this Memorandum Decision shall not be
    regarded as precedent or cited before                                         Oct 07 2014, 8:59 am
    any court except for the purpose of
    establishing the defense of res judicata,
    collateral estoppel, or the law of the case.
    APPELLANT PRO SE:                                   ATTORNEYS FOR APPELLEE REVIEW
    BOARD OF THE INDIANA DEPARTMENT
    LARRY W. DUDLEY                                     OF WORKFORCE DEVELOPMENT:
    Indianapolis, Indiana
    GREGORY F. ZOELLER
    Attorney General of Indiana
    KYLE HUNTER
    Deputy Attorney General
    Indianapolis, Indiana
    IN THE
    COURT OF APPEALS OF INDIANA
    LARRY W. DUDLEY,                                    )
    Appellant-Petitioner,                           )
    )
    vs.                                  )   No. 93A02-1405-EX-326
    )
    REVIEW BOARD OF THE INDIANA                         )
    DEPARTMENT OF WORKFORCE                             )
    DEVELOPMENT and TC HEARTLAND, LLC,                  )
    Appellee-Respondent.                           )
    APPEAL FROM THE REVIEW BOARD OF THE
    DEPARTMENTOF WORKFORCE DEVELOPMENT
    Steven F. Bier, Chairperson
    George H. Baker, Member
    Larry A. Dailey, Member
    Cause No. 14-R-673
    October 7, 2014
    MEMORANDUM DECISION - NOT FOR PUBLICATION
    BAILEY, Judge
    Case Summary
    Larry Dudley (“Dudley”) appeals the decision of the Review Board of the Indiana
    Department of Workforce Development (“the Board”), concluding that Dudley is disqualified
    from receiving unemployment insurance benefits because he was discharged for just cause,
    pursuant to Indiana Code Section 22-4-15-1(d), from the employment of TC Heartland, LLC
    (“Heartland”). Dudley presents the sole issue of whether the decision is contrary to law
    because it lacks evidentiary support. We affirm.
    Facts and Procedural History
    On September 21, 2012, Dudley began full-time employment as a forklift operator for
    Heartland. On June 26, 2013, he signed the Heartland Standards of Conduct Rules and
    Regulations Policy.
    On August 12, 2013, Dudley received a written warning for alleged misuse of
    company time. On August 14, 2013, he received a written warning for an alleged safety
    violation. On September 5, 2013, he received a written warning outlining seven and one-half
    occurrences of attendance policy violations. On October 25, 2013, he received another
    written warning detailing an additional attendance policy violation. On January 29, 2014, he
    received a third written warning with regard to attendance policy violations.
    On February 3, 2014, Dudley’s supervisor observed Dudley in the break room both
    before and after he had clocked in and out for lunch. On that date, Dudley received written
    notice that his employment was terminated. The notice stated that Dudley had been given
    five written warnings and subsequently engaged in “a misuse of company time.” (Tr. 35.)
    2
    Dudley was advised: “Based on the sustained violations of our Standards of Conduct and the
    pattern of poor behavior, Heartland has no choice but to terminate your employment as of
    02/03/2014.” (Tr. 35.)
    On February 9, 2014, Dudley filed for unemployment insurance benefits but a claims
    deputy of the Indiana Department of Workforce Development determined that Dudley was
    discharged for good cause and should be denied benefits.            Dudley appealed.      An
    administrative hearing was conducted by telephone on March 11, 2014, in which Dudley
    participated as well as Hope Shank (“Shank”), Heartland’s Human Resources Generalist.
    Kevin Williams (“Williams”), Heartland’s Shipping Supervisor, also testified at the
    telephonic hearing. The ALJ affirmed the deputy’s decision and Dudley appealed to the
    Board.
    On April 17, 2014, the Board adopted and incorporated the ALJ’s findings and
    affirmed the decision of the ALJ. This appeal ensued.
    Discussion and Decision
    Standard of Review
    The Indiana Unemployment Compensation Act (“the Act”), Indiana Code art. 22-4,
    provides that “[a]ny decision of the review board shall be conclusive and binding as to all
    questions of fact.” Ind. Code § 22-4-17-12(a). Indiana Code Section 22-4-17-12(f) provides
    that when the Board’s decision is challenged as contrary to law, the reviewing court is
    presented with a two part inquiry into: (1) “the sufficiency of the facts found to sustain the
    decision”; and (2) “the sufficiency of the evidence to sustain the findings of facts.” Under
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    this standard, courts are called upon to review (1) determinations of specific or “basic”
    underlying facts, (2) conclusions or inferences from those facts, sometimes called “ultimate
    facts,” and (3) conclusions of law. McClain v. Review Bd. of Ind. Dep’t of Workforce Dev.,
    
    693 N.E.2d 1314
    , 1317 (Ind. 1998).
    Review of the Board’s findings of basic fact is subject to a “substantial evidence”
    standard of review. Stanrail Corp. v. Review Bd. of Ind. Dep’t of Workforce Dev., 
    735 N.E.2d 1197
    , 1202 (Ind. Ct. App. 2000), trans. denied. In this analysis, the appellate court
    neither reweighs the evidence nor assesses the credibility of witnesses and considers only the
    evidence most favorable to the Board’s findings. 
    Id. We will
    reverse the decision only if
    there is no substantial evidence to support the Board’s findings.         
    Id. The Board’s
    determinations of ultimate facts involve an inference or a deduction based upon the findings
    of basic fact, and the ultimate facts are typically reviewed to ensure that the Board’s
    inference is reasonable. 
    Id. We examine
    the logic of the inference drawn and impose any
    applicable rule of law. 
    Id. Some questions
    of ultimate fact are within the special competence
    of the Board, and it is therefore appropriate for us to accord greater deference to the
    reasonableness of the Board’s conclusion. 
    Id. However, as
    to ultimate facts which are not
    within the Board’s area of expertise, we are more likely to exercise our own judgment. 
    Id. Finally, we
    review conclusions of law to determine whether the Board correctly
    interpreted and applied the law. 
    Id. “In sum,
    basic facts are reviewed for substantial
    evidence, conclusions of law are reviewed for their correctness, and ultimate facts are
    reviewed to determine whether the Board’s finding is a reasonable one.” 
    Id. 4 Analysis
    The Act provides benefits to persons who are out of work through no fault of their
    own. Giovanoni v. Review Bd. of Ind. Dep’t of Workforce Dev., 
    927 N.E.2d 906
    , 908 (Ind.
    2010). Unemployment insurance benefits are not an unqualified right and may be denied to
    claimants who are disqualified by an exception provided in ch. 22-4-15. 
    Id. An individual
    is
    disqualified if discharged for “just cause,” Ind. Code § 22-4-15-1, defined in subsection
    (d)(2) to include a “knowing violation of a reasonable and uniformly enforced rule of an
    employer.”
    The employer bears the initial burden of establishing that an employee was terminated
    for just cause. Coleman v. Review Bd. of Indiana Dept. of Workforce Dev., 
    905 N.E.2d 1015
    , 1019 (Ind. Ct. App. 2009). Where violation of an employer’s rule is at issue, the
    employer must show not merely that the employee’s conduct violated a known rule, but that
    the employee knowingly violated the rule. 
    Id. at 1020.
    When the employer meets its burden,
    the employee must then present evidence to rebut the employer’s prima facie showing. 
    Id. Heartland introduced
    exhibits to show Dudley’s knowledge of Heartland’s rules and
    policies. Dudley had signed a copy of Heartland’s Standards of Conduct, which included the
    following language:
    The following work conduct infractions are considered serious and generally
    result in corrective action:
    Failure to adhere to starting time, quitting time, or break time policies, or
    wasting time.
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    (Tr. 26.) Shank testified that the rule regarding the misuse of company time was “applicable
    to all employees” and that all employees were “subject to discharge for violation of that
    rule.” (Tr. 5.) She further testified that Dudley had previously received a written warning for
    misusing company time. With regard to the incident of February 3, 2014, she testified:
    [B]asically, on Monday, February 3rd, Larry was observed and witnessed by his
    supervisor in the break room at 1:55 p.m. He was observed again by his
    supervisor at 2:37 p.m. in the break room eating his lunch. Our time keeping
    system reflects that he clocked out for lunch at 2:00 p.m. and he clocked back
    in from lunch at 2:26 p.m., in which he continued to stay in the break room
    after clocking back in, which is a misuse of company time which is in violation
    to [sic] our Standards of Conduct.
    (Tr. 5.) Williams testified briefly in corroboration, indicating that he was the person who had
    seen Dudley in the break room at “1:55, before the punch out, and then at 2:37 he was still
    eating his lunch.” (Tr. 12.)
    Dudley testified that Heartland employees were treated uniformly under the Standards
    of Conduct. Concerning the events of February 3, 2014, Dudley testified that he had not
    been in the break room at 1:55 and “was on the floor logging in my product at 1:58.” (Tr.
    10.) Given the opportunity to make a closing statement, Dudley argued: “Mainly that that’s
    not true about none of this, and I did everything that I was supposed to do for the company.”
    (Tr. 13.)
    As such, the parties agreed that Heartland had a uniformly enforced rule prohibiting
    misuse of company time;1 they disagreed as to whether Dudley was present in the break room
    1
    Dudley did not challenge the reasonableness of the rule.
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    while clocked in for work. In essence, the ALJ was required to make a determination of
    credibility because the witnesses testified in direct contradiction to one another.
    On appeal, Dudley assumes that he was discharged for absenteeism and argues that he
    had not accrued sufficient occurrences to warrant termination. He further complains that his
    version of events was ignored. To the extent that Dudley argues a lack of evidentiary support
    for the ALJ findings because he had not garnered seven attendance occurrences in a rolling
    twelve-month period, we observe that the ALJ found that Dudley was discharged for misuse
    of company time as opposed to violation of the attendance policy. To the extent that Dudley
    asserts that Heartland exaggerated violations and his own explanation of conduct was
    ignored, the argument does not comport with our standard of review. We may not reweigh
    evidence or reassess witness credibility and we review the Board’s inferences for
    reasonableness without reassessing inferences in favor of one or another party. McHugh v.
    Review Bd. of Ind. Dept. of Workforce Dev., 
    842 N.E.2d 436
    , 440 (Ind. Ct. App. 2006).
    There is substantial evidence of record to support the ALJ’s basic findings of fact that
    Dudley violated a reasonable and uniformly enforced company rule prohibiting misuse of
    company time and that he did so knowingly. This supports the ultimate finding of fact and
    conclusion of law that Dudley was discharged for good cause pursuant to Indiana Code
    Section 22-4-15-1(d).
    Affirmed.
    NAJAM, J., and PYLE, J., concur.
    7