Leace v. Unemployment Compensation Board of Review
2014 Pa. Commw. LEXIS 309
| Pa. Commw. Ct. | 2014Background
- BLJ Sales Group, Inc. was created by Claimant to serve a single customer through Riviera Trading for Target Corporation.
- BLJ Sales lost its contract with Riviera, its sole customer, leading to claimant filing for unemployment benefits.
- Local Center initially found claimant ineligible under 402(h) due to 50% ownership and substantial control over BLJ Sales.
- Claimant testified he was president and 50% owner; his wife held the other 50%; Riviera controlled product decisions while BLJ Sales acted as a conduit.
- Claimant last worked March 31, 2012; BLJ Sales continued to exist but had no meaningful value or revenue after Riviera loss.
- Board affirmed the referee, adopting findings that claimant was an unemployed businessperson, not an employee of Riviera.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether claimant was self-employed under 402(h). | Leace contends Riviera control did not create an employee relationship. | Board concluded claimant, as BLJ Sales president, had substantial control and was unemployed. | Affirmed: claimant is an unemployed businessperson, not an employee. |
Key Cases Cited
- Baer v. Unemployment Compensation Board of Review, 739 A.2d 216 (Pa.Cmwlth.1999) (control over management and policyShows unemployed businessperson)
- Leary v. Unemployment Compensation Board of Review, 322 A.2d 749 (Pa.Cmwlth.1974) (positive acts establish independent business)
- LaChance v. Unemployment Compensation Board of Review, 987 A.2d 167 (Pa.Cmwlth.2009) (incorporation as positive act in independent enterprise)
- Beacon Flag Car Company, Inc. (Doris Weyant) v. Unemployment Compensation Board of Review, 910 A.2d 103 (Pa.Cmwlth.2006) (two-prong test to exclude independent contractors)
- Peak v. Unemployment Compensation Board of Review, 501 A.2d 1383 (Pa.) (Board as ultimate fact-finder; substantial evidence standard)
- Brannigan v. Unemployment Compensation Board of Review, 887 A.2d 841 (Pa.Cmwlth.2005) (Board findings binding where supported by substantial evidence)
- Jia v. Unemployment Compensation Board of Review, 55 A.3d 545 (Pa.Cmwlth.2012) (two-prong test required for self-employment)