In the years prior to Claimant’s Unemployment Insurance claim, Claimant had filed a lawsuit against her employer Deluxe “alleging a virtual smorgasbord of discrimination claims.” The discrimination lawsuit was resolved with a release of claims against Deluxe, where Claimant agreed to voluntarily separate from Deluxe for a $57,000.00 payment, among other things.
Upon signing the settlement agreement, Claimant filed a Delaware Unemployment Insurance claim arising from what she considered to be a constructive discharge.
Claimant’s case was heard at a lower authority appeal hearing, where the Claimant argued “that she was ‘coerced’ into signing the settlement agreement and it was therefore a nullity.” Claimant attempted to make an argument concerning evidence of duress, but the appeals referee pointed to a provision in the settlement agreement that spoke to Claimant’s voluntary resignation from Deluxe. Claimant remained disqualified from receipt of unemployment benefits.
The Unemployment Insurance Appeal Board reached the same conclusion as the appeals referee.
Claimant then appealed to the Delaware Superior Court, alleging that she had presented materials to the Board that were not in the record. The Superior Court suggested that Claimant’s proposition had some support the record, but that Claimant ultimately did not offer any evidence to the appeals referee about her duress claim. Further, Claimant “made no effort to ensure that whatever evidence she offered was preserved for the record.”
The Superior Court noticed a hearing concerning Claimant’s appeal, but Claimant was unable to attend the hearing due to the alleged start of a new job. The Superior Court allowed the Claimant “to place whatever she wanted considered on the docket.” The Superior Court reviewed the documents and held that none of Claimant’s filings showed coercion or duress as it related to the settlement agreement at issue.
Ultimately, The Superior Court affirmed the Unemployment Insurance Appeal Board’s Decision because “Claimant accepted the benefits of the settlement agreement, to wit, a $58,000 [sic] check, a letter of reference, and other benefits. She has not returned them.” Moreover, the Court reasoned that Claimant could not accept the benefits of the settlement agreement and ignore the settlement agreement’s voluntary resignation provision.
If you have any questions concerning this case or the Delaware Unemployment Insurance claim procedure, please contact an attorney in our liability department.
Constance Gary v. Wausau Financial Systems Inc./ Deluxe Corp. & Unemployment Insurance Appeals Board; C.A. No. N24C-04-006 CEB (Del. Super. November 7, 2024).
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