Legal Question in Business Law in California

If any of you have ever filed unemployment in California then you are very familiar with the frustrating phone system. It is nearly impossible to reach an operator no matter what time of day and numerous attempts. I am a seasonal firefighter so I must file every winter, but this year I was not able to get through until a month after my final work day. When I finally spoke with someone she told me she could backdate it two weeks, but if I wanted to appeal the decision and have it backdated the full month then I would be ineligible for the two weeks she was offering should my appeal be rejected. Well I decided to challenge it and was of course rejected. Now I am wondering what leg I have to stand on to get the two weeks that was originally offered. I seem to remember this being an illegal offer of sorts from my business law class, but I am having difficulty remembering where I would be able to cite it. If you have any insight into this matter I would be very appreciative.

Best regards,

Frustrated in California


Asked on 1/09/10, 7:18 pm

1 Answer from Attorneys

Bryan Whipple Bryan R. R. Whipple, Attorney at Law

I think the controlling legal principle is the doctrine of "estoppel" and where estoppel can be asserted and where it cannot.

Estoppel works sort of like this, in very simple terms. If X relies on Y's assertion that something is so, and it's a subject where Y should be knowledgable, but it turns out to X's detriment that Y is wrong, Y sometimes cannot change his tune in court. For example, if Y tells X, "That's your land, go ahead and build your garage on it!" then later sues X for trespass because it really was Y's land all along and Y knew or should have known it, the court may rule that Y is estopped to change his story and assert ownership.

Unfortunately, there are cases holding that estoppel cannot be used against public employees for making goof-ups in advising the public. One that I remember involved a citizen who called the IRS and got tax advice. The IRS agent's advice was wrong, the citizen underpaid his tax, and the IRS moved in to collect taxes, interest and penalties. The citizen got the agent to testify as to the advice he was given, and argued to the judge that the IRS should be estopped from changing its tune and should be bound by the bad advice. The court ruled in favor of the IRS, on the theory that government agencies must enforce the law and rules as written, and that incorrect advice of a low-ranking employee does not bind the agency or modify the law.

I don't see a contract issue here. There was no contract between you and the clerk who advised you, nor between the unemployment board and you. First, the clerk clearly lacks the power to make a contract on behalf of the agency. Second, a contract requires an offer and an acceptance. Even if the clerk made an offer, you failed timely to accept it. Sorry. Maybe there is an appeal process. It seems to me that justice is on your side.

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Answered on 1/14/10, 7:41 pm


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