Gary & Leo's Fresh Foods, Inc. v. State, Department of Labor & Industry

Summary

The Montana Supreme Court affirmed the District Court’s reversal of the Board of Labor Appeals’ award of unemployment benefits to Kaylee Reed. The Court held that the Department of Labor and Industry failed to preserve its hearsay challenge to customer complaint reports and concluded that Reed’s recurring poor customer service and inappropriate conduct, despite repeated warnings, constituted misconduct under Montana’s carelessness standard.

Holdings

1. The Department failed to preserve its argument that the customer-complaint reports were inadmissible hearsay because it did not raise that argument before judgment in the District Court; the issue was therefore not properly before the Supreme Court.
2. An employee's recurring poor customer service and inappropriate language, continuing after repeated written warnings, constituted carelessness or negligence showing disregard of the employer's interest under Admin. R. M. 24.11.460(1)(d). The Board erred as a matter of law by failing to analyze the established facts under that standard.

Questions Presented

1. Whether the Department properly preserved its argument that the customer complaints were inadmissible hearsay.
2. Whether Reed's recurring conduct, after repeated written warnings, constituted misconduct under the carelessness standard in Admin. R. M. 24.11.460(1)(d).

Disposition

affirmed