2024 S.D. 19
S.D.2024Background
- Lonnie Reidburn, a self-employed insurance agent, received pandemic unemployment benefits (PUA) during COVID-19 due to income loss when clients refused in-person visits.
- The South Dakota Department of Labor later found him ineligible for most of the benefits, demanding repayment and citing that his loss was not a "direct" result of the pandemic.
- Reidburn appealed, arguing his loss was caused by COVID-19 restrictions and clients' fears, following all required procedures in good faith.
- The ALJ found Reidburn was not at fault, but considered his request for a waiver of repayment untimely and held him ineligible for most weeks.
- The circuit court affirmed the ALJ’s decision; Reidburn appealed to the Supreme Court of South Dakota.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Eligibility for PUA benefits under CARES Act | Loss directly linked to COVID-19 client refusals | Reduction was only indirect, insufficient proof, relied on incorrect legal standard | ALJ's denial reversed; eligibility standard clarified under Bracken |
| Sufficiency of evidence for eligibility | Testified truthfully, submitted tax info, clients’ refusals | No documentary/witness evidence, only personal testimony | Court refused to address; not preserved below |
| Timeliness of request for waiver of repayment | Timely appealed and requested waiver within 15 days | February 9 letter didn't explicitly request waiver, attorney’s letter was untimely | ALJ upheld untimeliness, court did not address directly (due to eligibility ruling) |
| Attorney fees and costs | Department acted improperly/frivolously | Actions had legal basis prior to Bracken; not frivolous or malicious | Denied; Department's actions had rational basis |
Key Cases Cited
- Bracken v. S.D. Dep't of Labor & Regulation, Reemployment Assistance Division, 991 N.W.2d 89 (S.D. 2023) (clarified standard for CARES Act eligibility; rejected "direct/indirect" causation language)
- Pirmantgen v. Roberts Cnty., 954 N.W.2d 718 (S.D. 2021) (sets standard for reviewing agency findings)
- Ridley v. Lawrence Cnty. Comm’n, 619 N.W.2d 254 (S.D. 2000) (definition of frivolous action for attorney fees)
- Stratmeyer v. Engberg, 649 N.W.2d 921 (S.D. 2002) (malicious purpose standard for attorney fees)