State Ex Rel. McBee v. Industrial Commission
132 Ohio St. 3d 209
| Ohio | 2012Background
- McBee received temporary total disability compensation (TTC) Oct 30, 2004–Mar 9, 2006 while unpaidly helping his wife’s business.
- The Industrial Commission determined those unpaid activities constituted work and offset TTC, declaring an overpayment and finding fraud for certifying he was not working.
- The Franklin County Court of Appeals upheld that McBee worked while receiving TTC but overturned the fraud finding for lack of proof he knew unpaid activities could be work.
- This Court reviews whether unpaid activities can be “work” and whether McBee knowingly misrepresented his work status to obtain TTC.
- Ford Motor Co. v. Indus. Comm. (unpaid activities that directly generate income for a separate entity may constitute work) guides the analysis; Griffith defines work as generally remunerated labor.
- McBee’s knowledge of the potential for unpaid activities to be considered work is the critical element for fraud liability; evidence does not show such knowledge.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether unpaid activities qualify as work for TTC eligibility | McBee’s unpaid tasks for his wife’s company directly generated income | Ford exception allows unpaid activities that directly generate income to be work | Yes, unpaid activities can be work in appropriate circumstances |
| Whether McBee knowingly misrepresented not working to obtain TTC | McBee believed he was not working while receiving TTC | Knowledge of the Ford exception is required for fraud | No evidence McBee knew unpaid activities could be work; fraud not proven |
Key Cases Cited
- State ex rel. Griffith v. Indus. Comm., 109 Ohio St.3d 479 (2006-Ohio-2992) (work generally requires remuneration, with exceptions for certain unpaid activities)
- Ford Motor Co. v. Indus. Comm., 98 Ohio St.3d 20 (2002-Ohio-7038) (unpaid activities that directly generate income may be considered work)
- Gaines v. Preterm-Cleveland, Inc., 33 Ohio St.3d 54 (1987) (fraud requires knowing misrepresentation of a material fact)
- State ex rel. Lawson v. Mondie Forge, 104 Ohio St.3d 39 (2004-Ohio-6086) (agency may draw inferences, but not unlimitedly)