Minnesota Court of Appeals, 1986 The Minnesota Court of Appeals affirmed denial of unemployment benefits to a discharged skycap, holding that his deliberate violations of the employer's ticket-verification and excess-baggage rules constituted disqualifying misconduct.

The Minnesota Court of Appeals affirmed denial of unemployment benefits to a discharged skycap, holding that his deliberate violations of the employer's ticket-verification and excess-baggage rules constituted disqualifying misconduct.

Dean v. Allied Aviation Fueling Co.
Minnesota Court of Appeals · Decided February 11, 1986 · Leslie, Parker, Crippen
381 N.W.2d 80; 1986 Minn. App. LEXIS 3977 (North Western Reporter, Second Series)

Outcome: Affirmed for employer.

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Counsel

James A. Jorgensen, St. Paul, for relator., Hubert H. Humphrey, III, Atty. Gen., Laura E. Mattson, Sp. Asst. Atty. Gen., St. Paul, for respondents.

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Dean v. Allied Aviation Fueling Co.

What happened

The facts of the case, in plain language.

Allied's Policy and Procedures Manual required skycaps to request and verify each passenger's ticket, count baggage accurately, and report excess baggage to the airline, and provided that failure to report excess baggage constituted cause for immediate discharge without progressive discipline; Dean was aware of these rules.

On March 23, 1985, Dean made out 15 baggage claim checks and stapled them all to the one ticket jacket he had inspected, without checking the other four jackets presented by the group.

A Department referee determined that Allied had failed to prove Dean engaged in misconduct, but a Commissioner's representative reversed on appeal, concluding that Dean had violated Allied's excess baggage policy and was guilty of misconduct.

Even if the traveling group had comprised five passengers with two carry-on pieces, three pieces would have remained as excess baggage, and even if those bags had been taped together, one piece would have remained unchecked in violation of Allied's excess baggage policy.

On appeal Dean did not dispute the Commissioner's representative's finding that he gave the passengers their baggage claim stubs before escorting them to a ticket agent for payment of the excess baggage charge.

What the court decided

Russell Dean worked as a skycap for Allied Aviation Fueling Co. from July 1983 until April 4, 1985, when he was fired after an incident in which he checked baggage for a group without verifying each passenger's ticket and before excess-baggage charges were paid. Allied's manual made failure to report excess baggage cause for immediate discharge. After a referee found no misconduct, a Commissioner's representative reversed and disqualified Dean from unemployment benefits, and Dean appealed by writ of certiorari. The Court of Appeals, bound by the Commissioner's factual findings but exercising independent judgment on whether they amounted to misconduct, concluded they did: even assuming five passengers and carry-on items, unverified excess baggage remained, and Dean admittedly violated policy by checking only one of five ticket jackets and releasing claim stubs before payment. The court affirmed.

  1. An employee's deliberate violation of known employer work rules constitutes misconduct disqualifying the employee from unemployment benefits under Minn. Stat. § 268.09, subd. 1(2). (*84)
  2. A determination that an employee engaged in misconduct is a legal conclusion upon which the reviewing court exercises independent judgment, while the Commissioner's underlying factual findings bind the court. (*83)
  3. Violation of an employer's rules by other employees is not a valid defense to a claim of misconduct. (*83)
  4. An employer has the right to expect scrupulous adherence to work rules that protect its financial interests, even where the employees subject to those rules do not directly handle money. (*84)

How the court reached its decision

The court's reasoning, step by step.

Whether the Commissioner's representative's factual findings legally support the determination that Dean was discharged for misconduct. Even accepting Dean's account that the group comprised five passengers with two carry-on pieces, at least one piece of excess baggage remained unreported in violation of policy; Dean admitted he inspected only one of five ticket jackets, stapled fifteen claim checks to the single verified ticket, and released the claim stubs before escorting the passengers to a ticket agent for payment of the excess-baggage charge. Dean's admitted, deliberate violations of Allied's ticket-verification and excess-baggage rules, committed with knowledge of the rules, evinced willful disregard of the employer's interests and constituted misconduct supporting denial of benefits.

Whether deliberate violation of work rules protecting the employer's revenue constitutes disqualifying misconduct where the employee does not directly handle money. Although skycaps do not handle excess-baggage payments, their accurate counting of baggage and verification of each ticket jacket are essential to ensuring the airlines receive proper reimbursement, so Allied could require scrupulous observance of those rules; Dean's justification that other skycaps behaved the same way and that he chose to trust the passengers did not excuse his direct contravention of policy. Dean's failure to check each ticket jacket, coupled with his undisputed release of the baggage claim stubs before payment of the excess-baggage charge, constituted sufficient misconduct to uphold the Commissioner's representative's denial of benefits.

Key quotes from the opinion

Notable passages from the opinion, in the court's own words.

“conduct evincing such wilful or wanton disregard of an employer’s interests as is found in deliberate violations or disregard of standards of behavior which the employer has the right to expect of his employee, or in carelessness or negligence of such degree or recurrence as to manifest equal culpability, wrongful intent or evil design”
Tilseth/Boynton Cab definition of misconduct for unemployment-compensation disqualification — *83
“A decision of the Commissioner that an individual has engaged in misconduct is a legal conclusion upon which this court is free to exercise its independent judgment.”
Misconduct determination reviewed by independent judgment while factual findings bind the court —
“Where there is any evidence reasonably tending to sustain the findings of the [Commissioner] they will not be disturbed on review.”
Limited judicial review of the Commissioner's factual findings —

Cases the court relied on

Earlier decisions the court cited as authority for its ruling.

  • Tilseth v. Midwest Lumber Co. (295 Minn. 372, 204 N.W.2d 644) — Supplies the controlling Minnesota Supreme Court definition of misconduct that the court applies in concluding that Dean's deliberate rule violations disqualified him from benefits.
  • McDonald v. PDQ (341 N.W.2d 892) — Court of Appeals decision treating violation of work rules protecting the employer's finances as misconduct, which this court extends by analogy to skycaps who do not directly handle money.
  • Smith v. Employers' Overload Co. (314 N.W.2d 220) — Establishes the division of review under which the misconduct determination is a legal conclusion receiving independent judgment while the Commissioner's factual findings bind the court.
  • Chellson v. State Division of Employment & Security (214 Minn. 332, 8 N.W.2d 42) — Limits judicial review to whether any evidence reasonably tends to sustain the Commissioner's findings and confirms that the representative's decision, not the referee's, is the one reviewed.
  • Boynton Cab Co. v. Neubeck (237 Wis. 249, 296 N.W. 636) — Wisconsin decision whose definition of misconduct was adopted in Tilseth and quoted verbatim as the governing standard for disqualification.

Minnesota statutes cited

Sections of the Minnesota Statutes this opinion cites.

Cases that cite this one

19 later published cases cite this decision.

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Full opinion

The complete text of the court's opinion as published.

Opinion

OPINION

LESLIE, Judge.

Relator appeals by writ of certiorari from a determination that he was discharged for misconduct. We affirm.

FACTS

Relator Russell Dean was employed by the respondent, Allied Aviation Fueling Co., (Allied) as a skycap from July 1983 through April 4, 1985. Skycaps assist some airline travelers by bringing their luggage to the appropriate ticket counters, and assist other passengers who already have tickets by preparing baggage claim checks. Each passenger is allowed to check three pieces of luggage and carry one bag on the airplane. When checking baggage, Dean was responsible for ascertaining that each passenger had a ticket and counting the number of bags or parcels belonging to that passenger. If the passenger had excess baggage, Dean was required to escort him or her to the appropriate ticket agent for payment of an additional fee prior to completing the checking process. Allied’s Policy and Procedures Manual required that skycaps request and verify each passenger’s ticket, that baggage be counted accurately, and that excess baggage be reported to the airline. Failure to report excess baggage to the airline constituted cause for immediate discharge without progressive discipline. Dean was aware of these rules.

Following an incident on March 23, 1985, Dean was discharged for attempting to check excess baggage without notifying the airline. He applied for unemployment compensation, and a claims deputy determined that he was disqualified from receiving benefits. Dean appealed, and a hearing was held before a Department referee. At the hearing, Dean testified that on March 23, 1985, while he was on duty, a vehicle arrived at the airport terminal entrance at approximately 12:00 noon. Two women and a man exited the vehicle, and the man asked for Dean’s assistance. Dean asked what airline the group was flying on and how many were in the group. The man responded that there were five of them flying on Midway Airlines.

Dean proceeded to unload a large quantity of luggage and boxes, and the man drove off to park the car. When Dean asked to see the travelers’ tickets, one of the women held out five ticket jackets. Dean checked inside only one of the jackets, found a valid ticket, and thereupon *82 made out 15 claim checks, stapling them all to that ticket. The two women signed the 15 checks. There were five pieces of luggage remaining, two of which the women said they intended to carry on the airplane. The man who had previously driven off to park the car then returned, and asked Dean how much he owed him. Dean believed the three remaining pieces could be taped together, and informed the man that he could reduce the excess baggage to one piece. He filled out three more claim checks for those pieces, and obtained the man’s signature on all three. He then asked the man to meet him at the Midway Airline’s counter so that the excess baggage charge could be paid.

Dean finished servicing another separate passenger whom he had been assisting at the same time, and began pushing the group’s baggage towards the Midway counter. His supervisor, Darold Short, who had been observing him from a distance, approached and asked Dean how many passengers were in the group. Dean responded that there were five and explained the situation, but when he turned to ask the man for verification, he discovered that the man had disappeared.- Dean and Short looked for the passengers at the gate, but were unable to locate them. The passengers did not respond to a page. Dean and his supervisor then returned to the Midway counter to determine what should be done about the baggage. Midway decided to send the baggage through, but to have the bags detained at their destination to see how many passengers would be there to pick them up. Dean therefore made out claim checks for the remaining parcels. When the bags arrived, only one person claimed them. That person was not questioned.

Because Short had not overheard any of Dean’s conversations with the group of passengers, he was only able to testify concerning his observations, which generally corresponded with Dean’s story. However, Short also testified that when he asked Dean how many passengers were in the group, Dean initially responded “three”, but then amended his answer to five.

Allied also entered into evidence a passenger name list (PNL) and a document entitled “Other Service Information” which indicated that one of the three passengers was traveling in a business group. However, neither document indicated how many passengers were in the group, and the PNL listed one of the passengers’ names twice.

A representative from Midway testified at the hearing that the airline did not make further inquiries of the passengers because theirs was a “no hassle airline” and the group was representing an employer who was a “pretty big account” of Midway.

After listening to the parties’ testimony, the referee determined that Allied had failed to prove Dean had engaged in misconduct. Allied appealed, and a Commissioner’s representative reversed, concluding that Dean had violated Allied’s excess baggage policy and was guilty of misconduct. Dean has appealed.

ISSUE

Do the factual findings of the Commissioner’s representative support his determination that Dean was discharged for misconduct?

ANALYSIS

Individuals who are otherwise eligible to receive benefits may be disqualified from receiving them if they are discharged from their employment for misconduct. Minn. Stat. § 268.09, subd. 1(2) (1984). “Misconduct” has been defined by the Minnesota Supreme Court as follows:

[T]he intended meaning of the term ‘misconduct’ * * * is limited to conduct evincing such wilful or wanton disregard of an employer’s interests as is found in deliberate violations or disregard of standards of behavior which the employer has the right to expect of his employee, or in carelessness or negligence of such degree or recurrence as to manifest equal culpability, wrongful intent or evil design, or to show an intentional and *83 substantial disregard of the employer’s interests or of the employee’s duties and obligations to his employer. On the other hand mere inefficiency, unsatisfactory conduct, failure in good performance as the result of inability or incapacity, inad-vertencies or ordinary negligence in isolated instances, or good-faith errors in judgment or discretion are not to be deemed ‘misconduct’ * * *.

Tilseth v. Midwest Lumber Co., 295 Minn. 372, 374-75, 204 N.W.2d 644, 646 (1973) (quoting Boynton Cab Co. v. Neubeck, 237 Wis. 249, 259, 296 N.W. 636, 640 (1941)). An employer must establish by a preponderance of the evidence that an employee was discharged for misconduct. Lumpkin v. North Central Airline, Inc., 296 Minn. 456, 459, 209 N.W.2d 397, 400 (1973).

A decision of the Commissioner that an individual has engaged in misconduct is a legal conclusion upon which this court is free to exercise its independent judgment. Smith v. Employers’ Overload Co., 314 N.W.2d 220, 221 (Minn. 1981). However, this court is bound by the factual findings of the Commissioner. Id. It is the decision of the Commissioner’s representative, rather than that of the referee, which must be reviewed. Chellson v. State Division of Employment and Security, 214 Minn. 332, 335, 8 N.W.2d 42, 44 (1943).

Judicial review of a decision of the Commissioner’s representative is limited:

Where there is any evidence reasonably tending to sustain the findings of the [Commissioner] they will not be disturbed on review.

Id. at 336, 8 N.W.2d at 45. Determinations regarding credibility lid particularly within the province of the Commissioner’s representative. Winkler v. Park Refuse Service, Inc., 361 N.W.2d 120, 123 (Minn.Ct.App. 1985).

Dean challenges the following determinations by the Commissioner’s representative:

[T]he employer presented eyewitness testimony and documentary proof that there were only three passengers and twenty items of baggage involved in the incident and that no excess baggage payment had been made; and we found the claimant’s explanations to be weak and confused. For example, he testified that two of the items (picture frames) were carry-on items, but none of the three passengers took any carry-on items with them when they left the claimant; and even if they were carry-on items there were still several pieces of excess baggage left. He also claimed that he intended to tape two or three boxes together to make one item, but if so he violated policy by attaching a claim check to each of the 20 items. The claimant also admittedly violated policy by neglecting to check all five ticket jackets and only checked one of them; he violated policy by attaching 15 claim checks to the one ticket that he saw; and he violated policy by giving the passengers their baggage claim stubs before escorting them to a ticket agent for payment of excess baggage charges. The claimant knew the policy and procedure, and his conduct clearly evinced a willful disregard of the employer’s interests, constituting misconduct as defined in Tilseth * * *.

Dean first argues that Allied’s evidence that there were only three passengers in the group was weak. However, even if there had been five passengers in the group, and even if two of the pieces had been intended for carry-on luggage, three pieces would have remained as excess baggage. Further, even if those bags had been taped together, one piece of excess baggage would have remained, which was not checked in accordance with Allied’s excess baggage policy.

Dean admits he only looked in one ticket jacket, in violation of Allied’s rules. He defends this action by claiming that other skycaps do the same, and that he tried to trust the passengers.

Violation of an employer’s rules by other employees is not a valid defense to a claim of misconduct. While Dean’s attempt to *84 trust his fellow human beings may be admirable, his actions were nonetheless in direct contravention of Allied’s policy.

Upon several occasions this court has held that violation of an employer’s work rules constitutes misconduct. In McDonald v. PDQ, 341 N.W.2d 892 (Minn.Ct.App. 1984), an employee was found to be guilty of misconduct when he violated his employer’s policy requiring cashiers to ring up sales immediately. The McDonald court noted that the PDQ policy “was important to ensure that money was not misplaced or stolen” and held that an employer “has the right to expect scrupulous adherence to procedure by employees handling the employer’s money.” Id. at 893.

Although skycaps do not actually handle the money for excess baggage, their observation of the rule requiring correct counting of baggage and checking of each ticket jacket is important to ensure that the airlines receive proper reimbursement for excess baggage. Allied therefore had the right to expect its skycaps to scrupulously observe that rule.

On appeal, Dean does not dispute the Commissioner’s representative’s finding that he violated airline policy by giving the passengers their baggage claim stubs before escorting them to a ticket agent for payment of the excess baggage charge. This further violation of policy, when coupled with his failure to check the ticket jackets, constitutes sufficient misconduct to uphold the Commissioner’s representative’s denial of benefits.

DECISION

Dean was aware of Allied’s rules requiring skycaps to check each passenger’s ticket and to require payment of excess baggage charges before giving passengers their baggage claim stubs. Violation of those rules by Dean constituted misconduct.

Affirmed.

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