Patrick H. Horan, Relator v. Department of Employment and Economic Development
A16-675
Minn. Ct. App.Dec 27, 2016Background
- Horan received Social Security early-retirement benefits in April 2013; those were converted to disability benefits in Sept. 2013 when he began working.
- From Sept. 2013 to March 2015 Horan received disability benefits; upon turning 66 in March 2015 his disability benefits were terminated and he began receiving old-age (retirement) benefits.
- Horan worked as a bus driver through Dec. 2014 and was terminated in Jan. 2015; he applied for Minnesota unemployment benefits during the relevant base period (Oct. 1, 2014–Sept. 30, 2015).
- The Department reduced Horan’s weekly unemployment benefits by 50% of the weekly equivalent of his Social Security old-age benefit under Minn. Stat. § 268.085 because he did not earn all his wage credits while receiving old-age benefits (and did not meet the disability-exemption requirements).
- The ULJ affirmed; this court previously reversed a related ULJ misconduct denial and here affirms the benefit reduction on certiorari review.
Issues
| Issue | Horan's Argument | Department's Argument | Held |
|---|---|---|---|
| Whether § 268.085 requires a 50% deduction when claimant received both disability and old-age benefits during the base period | Statute is ambiguous and should cover claimants who received both benefits; he should get full benefits | Plain text requires deduction unless claimant earned all wage credits while on old-age benefits or SSA approved disability collection for each employed month | The statute’s plain language applies; 50% deduction required because Horan did not meet either exemption |
| Whether omission of an exemption for mixed-benefit claimants renders the statute ambiguous | Legislative silence creates ambiguity that should favor relief | Omission is a deliberate bright-line rule; courts cannot rewrite statute | Not ambiguous; court will not supply omitted exemption |
| Whether applying § 268.085 to Horan violates equal protection | He is similarly situated to claimants who earned most or all wage credits while on benefits and thus faces arbitrary discrimination | Horan is not similarly situated to exempt groups because he earned fewer months of credits while on old-age/disability benefits | Horan fails the similarly situated threshold; equal-protection challenge fails |
| Standard of review for statutory construction and constitutionality | N/A (argues for favorable construction) | Statutory construction and constitutionality reviewed de novo; statutes presumed constitutional | De novo review applied; statute upheld as rational and constitutional |
Key Cases Cited
- Emerson v. School Bd. of Indep. Sch. Dist. 199, 809 N.W.2d 679 (Minn. 2012) (statutory-construction standard)
- Bolter v. Wagner Greenhouses, 754 N.W.2d 665 (Minn. 2008) (court must not supply legislative omissions)
- State Farm Mut. Auto. Ins. Co. v. Lennartson, 872 N.W.2d 524 (Minn. 2015) (silence requires ambiguity to look beyond text)
- Rohmiller v. Hart, 811 N.W.2d 585 (Minn. 2012) (courts may not supply what legislature omitted)
- Haugen v. Superior Dev., Inc., 819 N.W.2d 715 (Minn. App. 2012) (constitutional-review standard)
- State v. Barker, 705 N.W.2d 768 (Minn. 2005) (presumption of statutory constitutionality)
- State v. Johnson, 813 N.W.2d 1 (Minn. 2012) (equal-protection principles and similarly situated requirement)
- State v. Garcia, 683 N.W.2d 294 (Minn. 2004) (invidious discrimination standard for equal protection)
