Adams v. Unemployment Compensation Board of Review

In Adams v. Unemployment Compensation Board of Review, 40 Pa. Commw. 486, 397 A.2d 861 (Pa. Cmwlth. 1979), the claimant had been employed as a claims adjustor by an insurance company. He left that employment and became a claims manager for another company. After working for approximately five months in that position, the new employer indefinitely suspended the claimant following his conviction on charges of conspiracy and mail fraud that arose in relation to his involvement in a fraudulent automobile accident claim while he worked for his previous employer. The referee denied benefits on the basis of Section 3 of the UC Law, and the Board affirmed. On appeal, this Court affirmed the order of the Board, concluding that the situation was one in which Section 3 was properly relied upon as a basis for the denial of benefits. The Court noted that Section 3 "has been given substantive effect and application and sets forth a substantive basis upon which to deny compensation in addition to those specifically enumerated bases for disqualification in Section 402 of the Act." Adams, 397 A.2d at 862. The Court held that the claimant's conduct which led to his convictions constituted fault which was incompatible with his job responsibilities for the new employer. In other words, as the claimant was unemployed through his own fault, he was ineligible for benefits.