Wisconsin Labor and Industry Review Commission --
Summary of Wisconsin Court Decision relating to Unemployment Insurance


Subject: Jeanette A. Goetsch  v. State of Wisconsin, DWD, LIRC & Fort James Operating Company, Case 00-CV-599 (Wis. Cir. Ct., Marathon Co., July 31, 2001)

Digest Codes: MC 630.01 - Dishonesty - General; PC 749 LIRC Review, Miscellaneous - making false claim for Workers Compensation benefits - UC ALJ finding claim was not brought in good faith -- effect of decision by WC ALJ that claim had been brought in good faith - neither LIRC nor court are required to give weight to the WC decision

The employee was a production worker for the employer. In the fall of 1998, she claimed an injury which she said was related to not being able to leave her work station for four straight hours, but a videotape revealed that on at least two occasions she had gone outside the plant to have a cigarette. The employer was about to terminate her for this incident when a union grievance procedure was filed and resulted in a Last Chance Agreement signed by the employer and the employee on 10/23/98. The agreement provided that the employee would be suspended without pay until 11/19/98, and upon her return, would be subject to termination for any subsequent rule violation. The Last Chance Agreement was to remain in effect until 5/19/2000.

In early 1997 the employee filed a worker's compensation claim for an alleged work injury to her neck, as well as alleged work-related bilateral carpal tunnel syndrome. Worker's compensation hearings were held before ALJ Janine Smiley, who issued a decision finding that the employee's carpal tunnel syndrome was work related but that her neck condition was not. Shortly thereafter, the employer discharged the employee allegedly for lying at the worker's compensation hearing regarding the alleged neck injury.

Subsequently, another worker's compensation hearing was held before ALJ Smiley, this time for a claim of unreasonable refusal to rehire under Wis. Stat. § 102.35(3). The legal issue was whether the employer had reasonable cause for firing the employee, and the factual issue was whether the employee had deliberately falsified her neck claim. ALJ Smiley found that the employee had brought her neck claim in good faith, and that the discharge was unreasonable.

The employee alleged that the neck injury had occurred when she was working on machines which the employer's production records demonstrated had not even been in operation during the employee's shift on the date in question. In addition, the employee had sought medical treatment with a physician several days after the alleged neck injury, and had told him that she awoke the previous morning with neck pain not attributable to any history of trauma or injury. Furthermore, the employee had signed and completed an application for sickness and accident benefits indicating that her neck trouble was not related to her employment. It was not until a subsequent MRI revealed a cervical disc problem that the employee changed her neck claim from a non-work claim to a work-related claim.

The initial determination found no misconduct but ALJ David Jenkins held a hearing and reversed that determination. He cited the above-mentioned factors in finding that the employee had deliberately falsified her neck claim. This finding was directly contrary to ALJ Smiley's finding in the worker's compensation claim under Wis. Stat. § 102.35(3). The commission affirmed ALJ Jenkins' finding of misconduct. The employee appealed and argued that she had not dishonestly claimed the neck injury, and that ALJ Smiley's worker's compensation decision should be given more weight than ALJ Jenkins' unemployment insurance decision.

Held: The finding of misconduct is affirmed. Credible evidence supports ALJ Jenkins' and the commission's findings. Neither the commission nor the court was required to give any weight to the worker's compensation decision. Amsoil v. LIRC, 173 Wis. 2d 154, 166, 496 N.W.2d 150 (Ct. App. 1992).


[Appealed to Court of Appeals.  Affirmed April 16, 2002 , sub nom. Goetsch v. DWD, LIRC, and Ft. James Operating Co., 2002 WI App 128, 646 N.W.2d 389]

Please note that this is a summary prepared by staff of the commission, not a verbatim reproduction of the court decision.

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uploaded 2001/09/07