Court Opinion

ID: 9513407
Source: CourtListenerOpinion
Date Created: 2023-08-06 22:35:21.724358+00
Date Added: 2024-06-11T09:05:51.244810
License: Public Domain

KAPSNER, Justice,
dissenting.
[¶ 26] I respectfully dissent. In my opinion, Johnson’s conduct may have been grounds for termination, but it was not misconduct which, as a matter of law, disqualified Johnson from receiving Job Service benefits.
[¶ 27] An isolated incident constitutes disqualifying misconduct under N.D.C.C. § 52-06-02(2) only when the facts and circumstances of a case require it. Hulse v. Job Service North Dakota, 492 N.W.2d 604, 608 (N.D.1992). “Where the conduct in question is an isolated incident, the connection between the conduct and the impact or potential impact on the employer’s interests must be especially close.” Hins v. Lucas Western, 484 N.W.2d 491, 496 (N.D.1992). As the majority recognizes, an isolated incident must violate an important employer interest, or an explicit policy. Holiday Inn v. Karch, 514 N.W.2d 374, 377 (N.D.1994). However, that decision should have been made using the four-factor analysis applied in Hulse, at 608. Hulse requires an examination of whether Johnson’s refusal to answer questions without an attorney representing her interests at the September 20, 1997, meeting demonstrated: (1) willful or wanton disregard of the Council’s interests; (2) such careless or negligent conduct making the refusal a willful or wanton disregard of the Council’s interests; (3) wrongful or evil intent; or (4) an intentional or substantial disregard of Johnson’s duties and obligations or the Council’s interests. Id. “Absent evidence of culpability rising to one of these rigorous levels, one episode of poor judgment does not constitute misconduct.” Id.
[¶ 28] Job Service argues Johnson’s conduct evidenced a willful or wanton disregard of the Council’s interests because the Board’s directive she “appear and answer questions concerning the investigation was reasonable under the circumstances.” Athough I agree the Council’s request was reasonable, Johnson’s refusal under the circumstances to answer questions without an attorney present was not such a willful and wanton disregard of the employer’s interest as to constitute disqualifying misconduct as a matter of law.
[¶ 29] Job Service asserts “Johnson’s refusal, as Executive Director of the Council, to provide the Board critical and essential information in its attempt to resolve the grievance and audit concerns constitutes a substantial disregard of her employer’s interests.” Johnson’s position as the executive director was important, and I agree with Job Service that Johnson’s responsibilities required her to answer reasonable questions asked by the Board. However, “[m]isconduct which may justify discharge may not justify a denial of benefits under our unemployment compensation laws,” Olson v. Job Service North Dakota, 379 N.W.2d 285, 287 (N.D.1985). The record indicates Johnson did not unequivocally refuse to answer the Board’s questions on September 20, 1997; she expressed discomfort in answering questions without an attorney present.
[¶ 30] Athough the Board directed Johnson to bring any documentation she determined may be “helpful” to the meeting on September 20, 1997, the majority fails to consider the Board locked all offices on September 11, 1997. Johnson did not have access to any documentation she may have found “helpful” to defend herself against the grievance or to respond to issues involving office operations. Johnson was not given the results of the audit, so she would not have known in advance the specific operational issues the Board wanted to address. The fact, however, that the Board had already taken the drastic action of locking offices and directing staff to leave and take their personal effects would clearly signal the seriousness of the Board’s concerns. It was reasonable for Johnson to feel uncomfortable answering questions without legal representation and without access to her records, considering the severity of the situation and the fact legal counsel for the Board was attempting to question her.
[¶ 31] There is no evidence in the record Johnson’s conduct was so careless or negligent it made her refusal a willful or wanton disregard of the Council’s interests. John*884son received the letter on Thursday, September 18, directing her to appear at the meeting scheduled for Saturday, September 20. Johnson testified she contacted four attorneys prior to the meeting, but was unsure which attorney she wanted to represent her. After observing the presence of the Board’s attorney at the meeting, she felt legal representation was necessary. She asserts, and a letter from one of the attorneys corroborates, the attorney “advised [Johnson] to attend the hearing and recommended that if she felt she needed an attorney to represent her interests that she should request an extension of time to allow her to have an attorney present.” Johnson’s decision to act on this advice was not careless or negligent and was not made with wrongful or evil intent.
[¶ 32] The majority notes Johnson had not provided a written response to the grievance. It fails to note Johnson received the grievance on September 10. On September 11 the offices were locked leaving Johnson with no access to records to prepare a response. The majority states Johnson did not offer an alternative proposal for a meeting time when an attorney could be present. Johnson testified she was not given an opportunity to do so at the meeting on Saturday, September 20, and her employment was terminated on Monday, September 22.
[¶ 33] Job Service argues “Johnson’s refusal could have caused the Council to lose f .-al funding and delayed the Board of Directors’ ability to resolve the pending issues so the Council could continue its operation and address any public perception concerns raised by the issues under investigation.” I agree an episode which jeopardizes the interests of the employer is disqualifying misconduct and this court has so held. Schadler v. Job Service North Dakota, 361 N.W.2d 254, 257 (N.D.1985). However, the operations of the Council had effectively been terminated by locking the offices several days earlier and there is no suggestion in the record of how a delay to allow Johnson to have an attorney present impacted on the Council’s continued operation. There is insufficient evidence to prove Johnson’s refusal to answer was an intentional or substantial disregard of her duties as executive director, or of the Council’s interests. I agree the Board needed information from Johnson to further its investigation. But Johnson never unequivocally refused to answer questions. She expressed only concern, understandable under the circumstances, about answering questions without legal counsel. The claims deputy recognized the meeting could have been rescheduled permitting Johnson an opportunity to have counsel present and I agree.
[¶ 34] There is insufficient evidence in the record to prove Johnson’s isolated incident of poor judgment constituted disqualifying misconduct. Johnson’s conduct may have been unsatisfactory, and it may have been grounds to terminate her employment, but it was a good faith error in judgment. In my opinion, under the undisputed facts of this case, Job Service’s conclusion that Johnson’s acts were disqualifying misconduct cannot be sustained as a matter of law.
[¶ 35] Carol Ronning Kapsner