MNH Truck Leasing Co., L.L.C. v. Dir., Ohio Dept. of Job & Family Servs.
2017 Ohio 442
Ohio Ct. App.2017Background
- MNH Truck Leasing audited after an ex-worker claimed unemployment benefits; ODJFS concluded MNH was an employer, misclassified 41 workers, and underreported ~$2.5M in wages for 2009–2011.
- ODJFS issued liability and maximum penalty contribution-rate determinations for 2012 and 2013 for failure to timely file quarterly wage reports; director affirmed on reconsideration.
- MNH appealed to the Unemployment Compensation Review Commission (UCRC); a telephonic hearing was held where ODJFS counsel identified exhibits and relied on two affidavits; counsel offered limited testimony summarizing exhibits and reconsideration bases.
- MNH objected to ODJFS counsel testifying (hearsay, improper), and contested classification of some drivers as independent contractors but provided little documentary support at the hearing.
- UCRC upheld the director on all three matters (penalty rates and covered-employee determinations), finding MNH exercised control over workers; MNH appealed to the common pleas court, which affirmed after independent review.
- MNH appealed to the Tenth District Court of Appeals, raising (1) objection to ODJFS counsel testifying/hearsay/due process and (2) claim that the trial court wrongly said MNH failed to dispute factual findings.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Admissibility of ODJFS counsel testimony/ hearsay at UCRC hearing | Counsel’s testimony recounting auditor conversations was improper hearsay and violated due process | Administrative hearings may admit hearsay if reliable; exhibits were supported by affidavits and counsel’s testimony was limited and duplicative | Court upheld admission; counsel’s limited testimony plus affidavits/exhibits provided reliable probative evidence; no due process violation |
| Whether MNH disputed director/UCRC factual findings sufficiently | MNH contends it did challenge auditor’s characterizations and the classification findings | ODJFS/UCRC point to MNH’s failure to produce substantive contrary evidence at hearing; trial court independently reviewed record | Court found trial court’s statement (that MNH offered nothing to dispute facts) did not cause reversible error because the court independently reviewed and found UCRC’s conclusions supported by reliable, probative, substantial evidence |
Key Cases Cited
- Lorain City Bd. of Edn. v. State Emp. Relations Bd., 40 Ohio St.3d 257 (Ohio 1988) (appellate courts may not reweigh evidence on administrative review)
- Tzangas, Plakas & Mannos v. Ohio Bur. of Emp. Servs., 73 Ohio St.3d 694 (Ohio 1995) (reviewing courts must determine whether agency decision is supported by the record)
- Hayward v. Summa Health Sys./Akron City Hosp., 139 Ohio St.3d 238 (Ohio 2014) (de novo review for legal issues on administrative appeal)
- Korn v. State Medical Bd., 61 Ohio App.3d 677 (10th Dist. 1988) (agency must provide notice and an opportunity to be heard to satisfy due process)