’WPCä …UNV %¤ 0(Ŗw@Ņ4&5 0l= 0D© 0Jķ 0T7 0^‹ 0hé 0rQ 0|Ć 0†? 0Å 1uU 0dŹ U >. B)l DC• AMŲ U*% OŅ[u-ń¢Ė“v~^ BÜ D3łvÓ, 0@’ AO?ʎ 0DT D/˜ BĒ(ÖĆ9 Z ‹6Times New Roman RegularX($”” ÅDĘDĒČDÉŹĖĢeĶӀםDŅ 3|x×((3śŻ$¤¤Ż ƒ!ŻŻ  Żą  ąņņŚ  Ś0Ś  Śóó(#Ć$ņņŚ  Ś0Ś  Śóó2 ’’0Indent1Ō2ŌŌ3  Ō2" ’’0Indent2ą0 ąŌ2ŌŌ3  Ō2, ’’0Indent3ą0 ąą0 ąŌ2ŌŌ3  Ō26 ’’0Indent4ą0 ąą0 ąą0 ąŌ2ŌŌ3  Ō2@ ’’0Indent5ą0 ąą0 ąą0 ąą0 ąŌ2ŌŌ3  Ō2J ’’0Indent6ą0 ąą0 ąą0 ąą0 ąą0 ąŌ2ŌŌ3  Ō2T ’’0Indent7ą0 ąą0 ąą0 ąą0 ąą0 ąą0 ąŌ2ŌŌ3  Ō2^ ’’0Indent8ą0 ąą0 ąą0 ąą0 ąą0 ąą0 ąą0 ąŌ2ŌŌ3  Ō  ’’?AGMSYaioIndent0I.A.1.a.(1)(a)i)a)P ’’8Mac DefaultMac DefaultÓ ` °šXÓ< Œ 9p`(&Times New Roman% Line 7 d7Border 1dd€- Cž’ << G’’< Œ 9p`(Arial Ż ƒ!ŻŃ  ŃŃ#€d#ŃŌ€ŌŻ  ŻŌ€"ŌŌ€"ŌÓ  Óņ ņŌ YYY ŌFILEDŌ€"XŌĢĢMay€30,€1997ĢĢCecil€W.€CrowsonĢAppellate€Court€ClerkŌ  Ōó ó ČŻ ƒ!ŻŃ#€d#ŃŌ€ŌŻ  ŻŻ ƒ $Żą ąņņŚ  ŚŚ  ŚóóŻ  Ż€€š š(a)€€ņņDisqualifying€Events.óó€€A€claimant€shall€be€disqualified€for€benefits:€.€.€.€(2)€If€theĻcommissioner€finds€that€a€claimant€has€been€discharged€from€such€claimant's€most€recent€work€forĻmisconduct€connected€with€such€claimant's€work€.€.€.€.šš€€Tenn.€Code€Ann.€šš€50„7„303(a)(2)Ļ(Supp.€1996).Ģ kŻ ƒ!ŻŃ#€d#ŃŌ€ŌŻ  ŻŻ ƒ $Żą ąņņŚ  ŚŚ  ŚóóŻ  Ż€€This€finding€appears€in€both€the€findings€of€fact€and€the€conclusions€of€law€portions€ofĻthe€Appeals€Tribunalššs€decision.€€It€is€the€opinion€of€this€court€that€this€is€a€finding€of€fact,€not€aĻconclusion€of€law.€Ģ ēŻ ƒ!ŻŃ#€d#ŃŌ€ŌŻ  ŻŻ ƒ $Żą ąņņŚ  ŚŚ  ŚóóŻ  Ż€€Mr.€Gilley€argues€there€was€insufficient€evidence€to€support€the€finding€that€Mr.€GilleyĻwas€involved€in€š šseveralšš€accidents€because€the€evidence€only€showed€that€Mr.€Gilley€was€at€faultĻin€two€of€the€accidents.€€Mr.€Gilleyššs€arguments€are€without€merit.€€Regardless€of€whether€he€wasĻat€fault,€he€was€involved€in€three€accidents.Ģ ĮŻ ƒ!ŻŃ#€d#ŃŌ€ŌŻ  ŻŻ ƒ $Żą ąņņŚ  ŚŚ  ŚóóŻ  Ż€€š š(a)€€ņņDisqualifying€Events.óó€€A€claimant€shall€be€disqualified€for€benefits:€€(1)€If€theĻcommissioner€finds€that€the€claimant€has€left€such€claimant's€most€recent€work€voluntarily€withoutĻgood€cause€connected€with€such€claimant's€work.šš€€Tenn.€Code€Ann.€šš€50„7„303(a)(1)€(Supp.Ļ1996).Ģ€€ĢPtPtHHŚ(’į’āłFG(üHHŚ(d'h d))))'’’dxdStyl{WP}01•ĆĆĆĆĆĆĆĆĆĆĆĆĆĆĆĆĆĆĆ ĆĆ ĆĆ ĆĆ ĆĆ ĆĆĆĆĆĆĆĆĆĆĆŠ ŠŠHHŠŠ  ŠŠ2ŠŠ’’øę$’ŠŠHHŠŠŠŠŠŠŠŠ  ŠŠ ŠŠ ŠŃŃŃGenevaŃŃ ŃŃ € ŃŃ<Px–ČŃŅŅŅ443!#4ŅŅ$ *$ŅŅ$*$ŅŅ ’KK ŅŅ  Geneva ŅŅ  Geneva ŅÓ.,ÓÓÓÓ6ÓÓ ÓßßßßßßßßßßßßßßßßßßŃGenevaŃŃ ŃŅ  h HD: Geneva ŅŅ  h HD: Geneva Ņ("’’$££Ņ  ŅŅ  Ņ€-‚ƒCž’<< C’’ƒLevel 1Level 2Level 3Level 4Level 5($$””ņ ņŚ  Ś1Ś  Śó ó„„'÷’ dxdü’P PdŻ ƒ!ŻŌ . ŌŌ€ŌŻ  Ż›Ń\R AŲ'\ŃÓ  ÓŃ\R AŲ'\ŃŌ€¼ŌŃ7€usXXdģdČ7ŃŃ  ŃœŽ ŽĢAubrey›€L.€Gilley,ą ąą ąą ąą ą)ą ąAppeal€No.Ģą ąPetitioner/Appellant,ą ąą ą)ą ą01„A„01„9611„CH„00521Ģv.ą ąą ąą ąą ąą ąą ą)̜Ł€€ŁßR€!# A1-j|z”` ē `€€@’RߛMargaret€Culpepper,€as€Commissioner)ą ąĢof€the€Tennessee€Department€of€ą ą)ą ąRule€No.ĢEmployment€Security€and€Forkliftsą ą)ą ą95„3496„IIĢUnlimited,€Inc.ą ąą ąą ąą ą)Ģą ąRespondents/Appelleesą ąą ą)ą ąĢĢĢą@ ąCOURT€OF€APPEALS€OF€TENNESSEEĢĢą@ ąMIDDLE€SECTION€AT€NASHVILLEĢĢą@ ąAPPEAL€FROM€THE€CHANCERY€COURT€OF€DAVIDSON€COUNTYĢĢą@ ąTHE€HONORABLE€ELLEN€HOBBS€LYLE,€CHANCELLORĢĢĢJEFFREY€RAPPUHNĢWillis€&€KnightĢ215€Second€Avenue€NorthĢNashville,€Tennessee€37201Ģą ąATTORNEY€FOR€PETITIONER/APPELLANTĢĢĢGEORGE€E.€COPPLE,€JR.ĢSuite€218,€172€Second€Avenue,€NorthĢNashville,€Tennessee€37201Ģą ąATTORNEY€FOR€RESPONDENT/APPELLEEĢą ąFORKLIFTS€UNLIMITED,€INC.ĢĢĢCHARLES€W.€BURSONĢAttorney€General€and€ReporterĢĢKIMBERLY€M.€FRAYNĢAssistant€Attorney€GeneralĢ2nd€Floor,€Cordell€Hull€Bldg.Ģ426€Fifth€Avenue,€NorthĢNashville,€Tennessee€37243„0499Ģą ąATTORNEYS€FOR€RESPONDENT/APPELLEEĢą ąMARGARET€C.€CULPEPPER,€as€Commissioner€ofĢą ąthe€Tennessee€Department€of€Employment€SecurityĢĢĢĢą@ ąREVERSED€AND€REMANDEDĢĢĢĢą ąą ąą ąą ąą ąą ąą ąą ąSAMUEL€L.€LEWIS,€JUDGEĒą@ ąŌ€„ŌņņOŌ€¼ŌPINIONóóĢĢÓ€ÓĢą ąThis€is€an€appeal€by€petitioner/appellant,€Aubrey€L.€Gilley,€from€theĻdecision€of€the€chancery€court€affirming€the€decision€of€the€Board€of€Review€forĻrespondent€/appellee,€the€Tennessee€Department€of€Employment€Security,€to€denyĻMr.€Gilley€unemployment€compensation€benefits.€€The€facts€out€of€which€thisĻmatter€arose€are€as€follows.ĢĢą ąRespondent/appellee,€Forklifts€Unlimited,€Inc.€(š šForkliftsšš),€employed€Mr.ĻGilley€from€3€September€1993€through€8€November€1994.€€Prior€to€SeptemberĻ1993,€Mr.€Gilley€was€convicted€of€reckless€driving€and€was€ordered€to€pay€a€fineĻand€court€costs€of€more€than€$700.00.€€Mr.€Gilley€made€minimal€payments€of€tenĻto€twenty€dollars€each€month.€€In€late€1993€or€early€1994,€Mr.€Gilley€experiencedĻsevere€financial€difficulties€as€a€result€of€a€divorce.€€He€quit€making€the€monthlyĻpayments,€and€the€State€suspended€his€licence€in€either€August€or€SeptemberĻ1994.ĢĢą ąMr.€Gilley€drove€to€various€job€sites€as€part€of€his€job;€thus,€a€condition€ofĻhis€employment€was€that€he€have€a€valid€driverššs€license.€€Forklifts€learned€theĻState€had€suspended€Mr.€Gilleyššs€license€and€informed€Mr.€Gilley€it€would€haveĻto€terminate€him€if€he€did€not€get€his€license€reinstated.€€Mr.€Gilley€did€not€haveĻthe€money€to€reinstate€his€license,€and€Forklifts€terminated€him.ĢĢą ąMr.€Gilley€applied€for€unemployment€benefits€on€20€June€1995.€€TheĻTennessee€Department€of€Employment€Security€denied€Mr.€Gilleyššs€request€forĻbenefits€on€3€July€1995.€€The€agency€found€as€follows:€€š šClaimant€was€dischargedĻfrom€most€recent€employment€because€driverššs€license€was€suspended.€€EvidenceĶshows€that€the€job€required€a€valid€driverššs€license.€€This€is€considered€work„related€misconduct.€€Claim€is€denied€under€TCA€50„7„303.šš€€Mr.€Gilley€appealed.€ĻThe€Appeals€Tribunalššs€decision€provided,€in€part,€as€follows:ĢÓÓą8 ąFINDINGS€OF€FACT:€.€.€.€The€claimant€was€involved€in€severalĻaccidents€while€on€the€job.€€He€had€also€received€a€traffic€citation€forĻreckless€driving€prior€to€his€employment.€€As€a€result,€the€claimantššsĻdriverššs€license€was€suspended€and€the€employerššs€insuranceĻcompany€refused€to€cover€the€claimant€while€driving€a€companyĻvehicle.€.€.€.ĢĢą8 ąCONCLUSIONS€OF€LAW:€.€.€.€The€issue€is€whether€the€claimantĻwas€discharged€for€misconduct€connected€with€work€and€therefore€isĻdisqualified€for€benefits,€as€provided€in€TCA€50„7„303(a)(2).× ƒ$ ××  ׀€TheĻclaimantššs€employment€was€contingent€upon€him€having€a€driverššsĻlicense.€€His€driverššs€license€was€suspended€because€he€received€aĻcitation€for€reckless€driving€and€because€he€was€involved€in€severalĻaccidents.€.€.€.€The€claimant€lost€his€job€because€his€driverššs€licenseĻwas€suspended€as€a€result€of€the€manner€in€which€he€operated€motorĻvehicles.€€Misconduct€is€intentional€behavior€that€materially€breachesĻa€duty€the€employee€owes€the€employer.€€The€claimant€owed€theĻemployer€a€duty€of€driving€in€such€a€manner€so€as€to€keep€hisĻlicense.ĢÓ€ÓĢÓ€ÓThereafter,€the€Appeals€Tribunal€affirmed€the€agencyššs€decision.€€Mr.€Gilley€thenĻappealed€to€the€Board€of€Review€(š šthe€Boardšš).€€The€Board€adopted€the€AppealsĻTribunalššs€findings€of€fact€and€conclusions€of€law€and€affirmed€the€AppealsĻTribunalššs€decision.ĢĢą ąNext,€Mr.€Gilley€filed€a€petition€for€writ€of€certiorari€in€the€chanceryĻcourt.€€The€petition€alleged€the€Board€misapplied€Tennessee€law€for€determiningĻan€individualššs€entitlement€to€unemployment€compensation€benefits,€the€BoardššsĶdecision€was€arbitrary€and€capricious,€and€the€Boardššs€findings€were€notĻsupported€by€substantial€and€material€evidence.€€After€a€hearing,€the€courtĻaffirmed€the€Boardššs€decision.€€The€court€found€š š[t]he€petitionerššs€license€wasĻsuspended€by€the€State€of€Tennessee€in€November€1994€and€for€that€reason€theĻpetitioner€was€terminated.šš€The€court€then€concluded€as€follows:€€š šTheĻmisconduct€in€this€case€was€failing€to€pay€a€fine€to€maintain€a€driverššs€license.€.€.€.ĻGiven€these€circumstance,€this€Court€can€not€say€that€the€decision€of€the€Board€ofĻReview€is€arbitrary€or€is€unsupported€by€substantial€and€material€evidence.šš€€Mr.ĻGilley€filed€a€timely€motion€to€alter€or€amend€claiming€the€Boardššs€decision€wasĻwithout€basis€in€law€or€fact.€€The€court€denied€the€motion€on€28€August€1996.€ĻMr.€Gilley€filed€a€timely€notice€of€appeal.ĢĢņ ņI.ą ąThe€Standard€of€Reviewó óĢĢą ąThe€standard€of€review€in€cases€such€as€this€is€set€forth€in€Tennessee€CodeĻAnnotated€section€50„7„304(I).€€This€section€provides:ĢÓÓą8 ą€€(2)€The€chancellor€may€affirm€the€decision€of€the€board€or€theĻchancellor€may€reverse,€remand€or€modify€the€decision€if€the€rightsĻof€the€petitioner€have€been€prejudiced€because€the€administrativeĻfindings,€inferences,€conclusions€or€decisions€are:Ģą8 ąą ą(A)€In€violation€of€constitutional€or€statutory€provisions;Ģą8 ąą ą(B)€In€excess€of€the€statutory€authority€of€the€agency;Ģą8 ąą ą(C)€Made€upon€unlawful€procedure;Ģą8 ąą ą(D)€Arbitrary€or€capricious€or€characterized€by€abuse€ofĻdiscretion€or€clearly€unwarranted€exercise€of€discretion;€€orĢą8 ąą ą(E)€Unsupported€by€evidence€which€is€both€substantial€andĻmaterial€in€the€light€of€the€entire€record.Ģą8 ą€€(3)€In€determining€the€substantiality€of€evidence,€the€chancellorĻshall€take€into€account€whatever€in€the€record€fairly€detracts€from€itsĻweight,€but€the€chancellor€shall€not€substitute€the€chancellor'sĻjudgment€for€that€of€the€board€of€review€as€to€the€weight€of€theĻevidence€on€questions€of€fact.€€No€decision€of€the€board€shall€beĻreversed,€remanded€or€modified€by€the€chancellor€unless€for€errorsĶwhich€affect€the€merits€of€the€final€decision€of€the€board.€€€ĢÓ€ÓĢÓ€ÓTenn.€Code€Ann.€šš€50„7„304(i)(2)&(3)€(Supp.€1996).€€The€same€standard€appliesĻto€this€court.€€ņņņ ņArmstrong€v.€Neeló óóó,€725€S.W.2d€953,€955€n.1€(Tenn.€App.Ļ1986).€€ĢĢą ąThis€statute€not€only€sets€forth€the€standard€of€review,€but€it€also€establishesĻwhich€decision€the€court€is€to€review.€€Based€on€the€plain€language€of€the€statute,Ļthis€courtššs€role€is€to€review€the€Boardššs€decision,€not€the€chancery€courtššsĻdecision.€€Thus,€in€this€case,€we€must€look€to€the€Appeal€Tribunalššs€reasoningĻbecause€the€Board€adopted€that€reasoning€as€the€basis€of€its€decision€to€affirm.ĢĢą ąThis€is€an€important€distinction€because€the€various€bodies€examining€theĻevidence€in€this€case€have€come€to€different€conclusions.€€To€explain,€the€agencyĻinitially€determined€Mr.€Gilley€was€discharged€because€his€driverššs€license€wasĻsuspended.€€The€agency€did€not€provide€any€further€explanation.€€The€AppealsĻTribunal€also€found€Mr.€Gilley€lost€his€job€because€his€driverššs€license€wasĻsuspended.€€In€addition,€the€Appeals€Tribunal€found€the€suspension€was€the€resultĻof€Mr.€Gilley€receiving€a€reckless€driving€citation€and€having€several€accidentsĻwhile€on€the€job.× ƒ% ××  ׀€The€Board€adopted€and€affirmed€this€finding€of€fact.€€Finally,Ļthe€chancery€court€also€agreed€Mr.€Gilley€was€discharged€because€his€driverššsĻlicense€was€suspended.€€The€chancery€court,€however,€concluded€the€license€wasĻsuspended€because€Mr.€Gilley€had€failed€to€pay€the€fine€resulting€from€hisĻreckless€driving€citation.€€The€Appeals€Tribunalššs€decision€does€not€even€mentionĻMr.€Gilleyššs€failure€to€pay€the€fine.ĢĢņ ņII.ą ąFindings€of€Factó óĢĢą ąThe€evidence€in€this€case€consisted€of€the€testimony€of€Mr.€Gilley€and€Mr.ĻDouglas€Carrigan,€the€president€of€Forklifts.€€The€administrative€record€alsoĻincluded€the€documents€completed€by€Mr.€Gilley€when€he€applied€forĻunemployment€and€a€statement€from€Mr.€Carrigan€regarding€Mr.€GilleyššsĻtermination.€€Finally,€there€was€a€letter€from€State€Farm,€Forkliftsšš€insuranceĻcompany,€to€Mr.€Carrigan€regarding€State€Farmsšš€inability€to€insure€Mr.€Gilley.ĢĢą ąThe€administrative€findings€were€all€supported€by€substantial€and€materialĻevidence€save€one.€€Specifically,€the€finding€that€the€State€suspended€Mr.€GilleyššsĻlicense€as€a€result€of€Mr.€Gilley€receiving€a€reckless€driving€citation€and€havingĻseveral€accidents€while€on€the€job€is€not€supported€by€any€evidence.€€There€isĻsubstantial€and€material€evidence€that€Mr.€Gilley€received€a€citation€and€a€fine€forĻreckless€driving.€€There€is€also€substantial€and€material€evidence€that€Mr.€GilleyĻhad€several,€that€is€more€than€two,€accidents€while€on€the€job.× ƒ& ××  ׀€There€is,Ļhowever,€no€evidence€these€two€facts€were€the€reason€why€the€State€suspendedĻMr.€Gilleyššs€license.€€Mr.€Gilley€reported€in€his€application€for€unemploymentĻthat€his€license€was€revoked€because€he€š šgot€behind€in€a€wreckless€[sic]€drivingĻfine.šš€€He€later€testified€at€the€hearing€that€š š[t]he€suspension€came€as€a€result€ofĻfailing€to€make€monthly€payments.šš€€There€was€no€evidence€that€contradicted€Mr.ĻGilleyššs€statements.ĢĢņ ņIII.ą ąConclusionó óĢĢą ąPursuant€to€Tennessee€Code€Annotated€section€50„7„304(i)(3)€this€courtĻmay€not€reverse,€remand,€or€modify€a€decision€of€the€Board€unless€the€errorĻaffects€the€merits€of€the€case.€€It€is€the€opinion€of€this€court€that€this€error€isĻsignificant€and€certainly€affects€the€merits€of€this€case.€€To€explain,€the€BoardĻrelied€on€the€administrative€finding€at€issue€to€conclude€Mr.€Gilley€breached€aĻduty€owed€to€Forklifts.€€Because€Mr.€Gilley€breached€his€duty€to€Forklifts,€theĻBoard€held€he€was€guilty€of€misconduct€connected€with€work€and€denied€himĻbenefits€€pursuant€to€Tennessee€Code€Annotated€section€50„7„303(a)(2).ĢĢą ąThe€notice€of€in„person€hearing€sent€to€Mr.€Gilley€from€the€DepartmentĻcontained€a€statement€of€the€issues€in€the€case.€€This€statement€included€the€issuesĻof€whether€Tennessee€Code€Annotated€section€5„7„303(a)(1)× ƒ' ××  ׀or€(2)€exemptedĻMr.€Gilley€from€the€receipt€of€benefits.€€None€of€the€decisions€filed€in€€this€caseĻaddressed€the€issue€of€whether€Tenn.€Code€Ann.€šš€50„7„303(a)(1)€applied€to€theĻfacts€presented€here.€€Thus,€it€is€the€€opinion€of€this€court€that€the€case€should€beĻremanded€for€consideration€of€the€unaddressed€issue€and€for€any€furtherĻnecessary€proceedings.ĢĢą ąTherefore,€it€follows€that€the€decision€of€the€chancery€court€is€reversed,Ļand€the€case€is€remanded€to€the€Department€for€consideration€of€whetherĻTennessee€Code€Annotated€section€50„7„303(a)(1)€applies€to€Mr.€Gilleyššs€case€andĻfor€any€further€necessary€proceedings.€€Costs€on€appeal€are€taxed€toĻrespondents/appellees,€Margaret€Culpepper,€as€Commissioner€of€the€TennesseeĶDepartment€of€Employment€Security,€and€Forklifts€Unlimited,€Inc.ĢÓÓĢĢĢĢĢą ąą ąą ąą ąą ąą ąą ą_____________________________Ģą ąą ąą ąą ąą ąŌ€XŌą ąą ąSAMUEL€L.€LEWIS,€JUDGEĢĢCONCUR:ĢĢ_______________________________ĢBEN€H.€CANTRELL,€JUDGEĢĢWILLIAM€C.€KOCH,€JR,€JUDGE,ĢCONCURRING€IN€SEPARATE€OPINION€