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Newberry College v. S. C. Employment Security Commission

Citations: 286 S.C. 136; 333 S.E.2d 58; 1985 S.C. App. LEXIS 397Docket: 0470

Court: Court of Appeals of South Carolina; May 16, 1985; South Carolina; State Appellate Court

Narrative Opinion Summary

In a legal dispute involving Newberry College and the South Carolina Employment Security Commission, the court addressed the issue of unemployment compensation mistakenly paid to a part-time instructor, Christine Evans. Evans, who worked at both Newberry College and Lander College, claimed she was discharged due to lack of work. As a reimbursing employer, Newberry College was initially ordered by the Commission to reimburse the compensation paid to Evans. However, the College argued that it was not liable because it was not notified of Evans' claim, as required by Regulation 47-19, which allows employers to contest such claims. The court agreed, citing a lack of due process and fraudulent reporting by Evans, who had refused a teaching contract for the upcoming year. The appellate court affirmed the trial court's decision, stating that Newberry College was not at fault and was not liable for the compensation paid. The court rejected the Commission's argument that reimbursement was due because the funds came from a trust contributed to by employers, emphasizing that due process rights under the Constitution override the absence of specific statutory exemptions for reimbursing employers.

Legal Issues Addressed

Constitutional Mandates on Due Process

Application: The court found that the lack of statutory authority to exempt reimbursing employers is irrelevant, as due process is constitutionally mandated.

Reasoning: Both the U.S. and State Constitutions mandate due process without requiring specific statutes.

Due Process in Unemployment Compensation Claims

Application: The court emphasized that due process requires the Commission to notify reimbursing employers of claims so they can contest the eligibility of claimants.

Reasoning: Regulation 47-19 mandates that the Commission notify employers of claims, allowing them to contest the eligibility of the claimant.

Effect of Fraudulent Reporting by Claimant

Application: Newberry College was not held liable due to the claimant's fraudulent reporting of discharge, which disqualified her from benefits.

Reasoning: The trial court concluded that Newberry was not liable due to Evans' fraudulent reporting regarding her discharge.

Regulation Compliance and Employer Notification

Application: The Commission's failure to comply with its own regulations by not notifying Newberry of the claimant's eligibility resulted in the ruling against the Commission's claim for reimbursement.

Reasoning: The Commission is held responsible for payments made without due process, violating its own regulations.

Reimbursement by Reimbursing Employers

Application: The court ruled that Newberry College, as a reimbursing employer, is not liable for unemployment compensation mistakenly paid when they were not notified of the claim and could not contest it.

Reasoning: The ruling states that Newberry is not liable for any compensation paid, as it was not at fault and lacked notice of the claim.