Jonathan Todd Morris v. Labor Industry and Review Commission ( 2024 )


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  •      COURT OF APPEALS
    DECISION                                                  NOTICE
    DATED AND FILED                              This opinion is subject to further editing. If
    published, the official version will appear in
    the bound volume of the Official Reports.
    April 9, 2024
    A party may file with the Supreme Court a
    Samuel A. Christensen                  petition to review an adverse decision by the
    Clerk of Court of Appeals               Court of Appeals. See WIS. STAT. § 808.10
    and RULE 809.62.
    Appeal No.        2022AP1865                                                    Cir. Ct. No. 2022CV972
    STATE OF WISCONSIN                                             IN COURT OF APPEALS
    DISTRICT I
    JONATHAN TODD MORRIS,
    PLAINTIFF-APPELLANT,
    V.
    LABOR INDUSTRY AND REVIEW COMMISSION, WISCONSIN DEPARTMENT OF
    WORKFORCE DEVELOPMENT AND BREDAN MECHANICAL SYSTEMS, INC.,
    DEFENDANTS-RESPONDENTS.
    APPEAL from an order of the circuit court for Milwaukee County:
    PEDRO A. COLÓN, Judge. Affirmed.
    Before White, C.J., Donald, P.J., and Geenen, J.
    Per curiam opinions may not be cited in any court of this state as precedent
    or authority, except for the limited purposes specified in WIS. STAT. RULE 809.23(3).
    No. 2022AP1865
    ¶1     PER CURIAM. Jonathan Todd Morris appeals the decision of the
    circuit court affirming the decision of the Labor and Industrial Review
    Commission (LIRC), which found him ineligible for unemployment insurance
    benefits due to “misconduct” connected with his employment. The Department of
    Workforce Development (DWD) issued an initial decision that found Morris
    ineligible for benefits because he was discharged for “substantial fault” connected
    with his work. Morris appealed to an administrative law judge (ALJ), sitting as an
    appeal tribunal, who affirmed DWD’s decision but modified the basis for
    ineligibility from “substantial fault” to “misconduct.”     Morris petitioned for
    review of the ALJ’s decision to LIRC, and LIRC affirmed.
    ¶2     Morris contends that LIRC erred when it affirmed the ALJ’s
    determination that Morris was ineligible for benefits because he was discharged
    for “misconduct.” He argues that several of LIRC’s material factual findings were
    not supported by substantial and credible evidence and that LIRC erred in
    concluding that his actions constituted “misconduct.” Morris further argues that
    the modification from “substantial fault” in the DWD decision to “misconduct” in
    the ALJ’s decision denied him due process, and he was prejudiced by the ALJ’s
    decision to exclude certain evidence at the appeal hearing. We disagree and affirm
    LIRC’s decision.
    BACKGROUND
    ¶3     For fourteen years, Jonathan Todd Morris was the vice president of
    finance and operations for his employer, Bredan Mechanical Systems, Inc.
    (Bredan). Morris’s primary responsibility was to assure the financial health of the
    company. Bredan terminated Morris’s employment on October 26, 2020, the day
    2
    No. 2022AP1865
    after he reported to Bredan that he lost at least $394,000 of the company’s money
    over the course of the previous month in an internet-based wire transfer scam.
    ¶4     On September 17, 2020, Morris received an email that appeared to
    be from NTS IT Care (NTS), an internet technology service provider with which
    Bredan had previously done business. The email said that NTS was going to
    charge Bredan $399.99 for services unless Morris called to get the charge credited.
    Morris called the phone number listed in the email and spoke with Peter Tweed,
    who Morris believed worked for the provider, about the refund. Tweed told
    Morris that Morris needed to give him remote access to Morris’s work computer
    and then log into Bredan’s bank account so that he could walk Morris through the
    credit process. Morris complied, giving Tweed remote access and then logging
    into Bredan’s Chase bank account with Tweed watching. When a dialogue box
    appeared on the screen, Tweed told Morris to type “$499.00” into the box—the
    $399 amount plus a $100 cancellation fee Tweed said NTS would “probably”
    charge—so that the credit request could be processed.
    ¶5     According to Morris, as he entered the credit amount, his computer
    screen went blank. When the screen turned back on moments later, Tweed asked
    Morris what he had done. Tweed claimed that Morris had not requested a credit
    but instead had transferred $49,999.99 of NTS’s money into Bredan’s account.
    Because Morris was still logged into Bredan’s bank account, he could see that it
    showed a $49,999.99 deposit into Bredan’s savings account.
    3
    No. 2022AP1865
    ¶6      Tweed was very upset but explained that Morris could correct the
    error by going to the bank to request a wire transfer of $49,400.1 Tweed gave
    Morris instructions for the wire transfer, which included the name of Tweed’s
    bank—the Bank of Bangkok. Tweed also told Morris that when he transferred the
    money to make sure that the reason for the transfer was listed as “personal family
    reasons.”
    ¶7      Morris recognized while he was still on the phone and computer
    with Tweed that the transfer request was suspicious and likely illegal. Morris
    testified that he became “concerned” that a foreign bank account was involved and
    suspected a possible money laundering scheme. He further testified that he “just
    want[ed] to get [him]self the hell out of the loop[.]” He added that by giving
    Tweed remote access to his computer, he placed Bredan’s computers at risk of a
    ransomware attack. Morris said that he complied with Tweed’s requests in order
    to get Tweed off of his computer.
    ¶8      Even though Morris “knew it was a scam” or money laundering
    scheme, suspected that Tweed was not who he said he was, and feared Tweed
    could launch a ransomware attack against Bredan’s computers and digital assets,
    Morris physically went to a Chase bank location and, after transferring $49,000
    from Bredan’s savings account to its checking account, wired $49,000 to Tweed’s
    account. While he recognized that Tweed was engaged in suspicious or illegal
    activity, Morris hoped that complying with Tweed’s demands would resolve the
    situation. It did not.
    1
    The amount of the first wire transfer varies in the record, but the inconsistencies are
    minor and immaterial.
    4
    No. 2022AP1865
    ¶9     The next day, Tweed called Morris and said that the wire transfer
    never went through, and instead, more of NTS’s money was deposited into
    Bredan’s savings account. Tweed insisted that Morris reverse the deposit by
    sending two additional $49,000 transfers to two new bank accounts. Morris made
    those transfers on September 23, 2020. The pattern continued. Tweed would call
    with various excuses about wire transfer failures or inadvertent deposits, telling
    Morris to send new wire transfers of $49,000 each. Tweed’s claims corresponded
    with entries in Bredan’s Chase bank account showing credits to the savings
    account. Tweed also showed Morris bank statements that appeared to show these
    NTS deposits into Bredan’s savings account.      In reality and unbeknownst to
    Morris, the bank statements were falsified: the deposits had come from Bredan’s
    own checking account, not NTS.
    ¶10    On Monday, September 28, 2020, after Morris had made six
    transfers totaling $294,000 from Bredan’s checking account to Tweed’s various
    bank accounts in Bangkok and Hong Kong, Tweed told Morris that they had been
    scammed, and the money had been stolen. Morris realized that all of the money
    he transferred was Bredan’s money and that it had been stolen via the wire
    transfers. Tweed told Morris that the bulk of the funds were permanently lost and,
    after speculating that Morris would likely be fired for losing Bredan’s money,
    Tweed suggested a way Morris could possibly obtain a partial refund.
    ¶11    Morris transferred yet more money to various overseas bank
    accounts over the next three weeks. Morris, with Tweed’s help, recovered some
    funds—apparently a technique in furtherance of the scam—but proceeded to wire,
    and then lose, even more money than he recovered. Finally, and only after he lost
    his personal funds to the scam, Morris reported the scam to the FBI on or around
    October 17, 2020.
    5
    No. 2022AP1865
    ¶12    Morris did not notify Bredan of the scam or stolen money until
    October 20, 2020, at the earliest. In total, Morris made nine wire transfers from
    Bredan’s bank account, causing a financial loss to Bredan of at least $394,000.
    Tweed had access to Morris’s work computer and bank account information for at
    least four weeks.
    ¶13    Bredan subsequently terminated Morris’s employment.            Morris
    applied for unemployment insurance benefits from the DWD. After completing its
    investigation, DWD issued its initial determination concluding that although
    Morris was not discharged for “misconduct,” he was nonetheless ineligible for
    benefits because he had been discharged for “substantial fault” connected with his
    employment.
    ¶14    Morris appealed the determination, arguing that DWD’s decision
    was internally inconsistent and in conflict with controlling law. DWD issued
    notice of a hearing on the appeal. The notice described the issue for hearing as:
    [Whether] the circumstances surrounding the employee’s
    separation from employment … disqualify the employee
    from receiving unemployment benefits.      WIS. STAT.
    §§ 108.04(1)(b), (5), (5g), (7) & (7m) and WIS. ADMIN
    CODE § DWD 132 & 133[.]
    ¶15    An ALJ held a hearing on Morris’s appeal. Morris testified at the
    hearing, as did Bredan’s CEO, Dan Rogers, and its president, Michael Gaggioli.
    The ALJ concluded that Morris was ineligible for benefits. Specifically, the ALJ
    noted that Morris continued making large wire transfers after he knew that the
    employer’s money had been stolen, did not notify his supervisors despite
    mounting losses, and that there was, therefore, no reasonable justification for
    Morris’s conduct.     The ALJ determined that these actions constituted an
    6
    No. 2022AP1865
    intentional and substantial disregard of Morris’s duties and obligations to Bredan
    and satisfied the “general misconduct” standard.
    ¶16      Morris appealed the ALJ’s decision to LIRC. He contended that his
    conduct could not be reconciled with the definition of “misconduct” under WIS.
    STAT. § 108.04(5) (2021-22).2 LIRC disagreed and affirmed the appeal tribunal
    decision, finding that:
    The employee testified at the hearing that he was
    the victim of a scam and that he did not intentionally take
    money from the employer’s accounts.… However, the
    employee felt, from the very first day, that the situation was
    a scam. He had allowed a third party access to the
    employer’s computer and logged into the employer’s bank
    account while the third party had remote access to the
    employee’s work computer.          The employee did not
    immediately inform the employer of his actions or his
    suspicions but continued to allow this stranger access to his
    work computer and the employee continued to wire large
    sums of money to foreign bank accounts. His actions in
    this regard were intentional and the decision not to
    immediately inform the employer of the problem was
    detrimental to the employer’s interests. Further, the
    employee’s actions in continuing to wire money to foreign
    banks in the hopes that an unknown individual would
    return the money was so negligent as to evince a willful
    and substantial disregard of the employer’s interest as to
    amount to misconduct connected with his work.
    ¶17      Morris appealed LIRC’s decision to the circuit court, which affirmed
    LIRC’s decision. Morris now appeals LIRC’s determination that he was ineligible
    for unemployment benefits due to “misconduct” connected with his employment.
    2
    All references to the Wisconsin Statutes are to the 2021-22 version unless otherwise
    noted.
    7
    No. 2022AP1865
    DISCUSSION
    ¶18     Morris argues that several of LIRC’s factual findings are not
    supported by substantial and credible evidence. He further contends that LIRC
    erred when it concluded that the actions resulting in his termination constituted
    “misconduct” under WIS. STAT. § 108.04(5). Finally, Morris raises two issues that
    he could have, but did not, raise on appeal to LIRC, including an alleged due
    process violation and several alleged evidentiary errors.3
    A. Standard of review
    ¶19     On appeal, we review LIRC’s decision, not the decision of the
    circuit court. Friendly Vill. Nursing & Rehab, LLC v. DWD, 
    2022 WI 4
    , ¶13,
    
    400 Wis. 2d 277
    , 
    969 N.W.2d 245
    . Because we review LIRC’s decision directly,
    we do not address Morris’s claims regarding alleged circuit court errors.
    ¶20     Administrative decisions concerning unemployment insurance
    benefits are governed by Chapter 108 of the Wisconsin statutes. A reviewing
    court may set aside LIRC’s order if it depends on a material and controverted
    finding of fact not supported by credible and substantial evidence, or if it is
    otherwise issued in excess of LIRC’s authority.              WIS. STAT. §§ 108.09(7)(f),
    108.09(7)(c)6.a.; Xcel Energy Servs., Inc. v. LIRC, 
    2013 WI 64
    , ¶55, 
    349 Wis. 2d 234
    , 
    833 N.W.2d 665
    . “LIRC’s findings of fact are upheld if they are supported
    by substantial and credible evidence.” Operton v. LIRC, 
    2017 WI 46
    , ¶18, 
    375 Wis. 2d 1
    , 
    894 N.W.2d 426
     (citations omitted). Credible and substantial evidence
    3
    Morris asks that this court “reverse and order that Mr. Morris be paid all state and
    federal supplemental unemployment benefits due him.” As a matter of law, however, this court’s
    role is confined to affirming or setting aside LIRC’s decision. WIS. STAT. § 108.09(7)(c)6.
    8
    No. 2022AP1865
    is that which is “sufficient to exclude speculation or conjecture” and is less
    demanding than proof by a preponderance of the evidence. Bumpas v. DILHR,
    
    95 Wis. 2d 334
    , 343, 
    290 N.W.2d 504
     (1980). The burden of showing that
    LIRC’s decision was not supported by credible and substantial evidence is on the
    party seeking to set aside LIRC’s findings and order. Bretl v. LIRC, 
    204 Wis. 2d 93
    , 99, 
    553 N.W.2d 550
     (Ct. App. 1996).
    ¶21     LIRC’s legal conclusions are reviewed de novo. Mueller v. LIRC,
    
    2019 WI App 50
    , ¶17, 
    388 Wis. 2d 602
    , 
    933 N.W.2d 645
    . We afford no deference
    to the agency’s interpretation of law. WIS. STAT. § 227.57(11). However, in
    evaluating the persuasiveness of the agency’s arguments, we will give “due
    weight” to LIRC’s experience, technical competence, and specialized knowledge,
    as well as to the discretionary authority conferred upon it, while still exercising
    independent judgment in deciding the legal question.4 Sec. 227.57(10); Tetra
    Tech EC, Inc. v. DOR, 
    2018 WI 75
    , ¶78, 
    382 Wis. 2d 496
    , 
    914 N.W.2d 21
    .
    B. LIRC’s findings of fact are supported by substantial and credible
    evidence.
    ¶22     LIRC’s conclusion that Morris engaged in general misconduct
    within the definition of WIS. STAT. § 108.04(5) rested on a handful of key findings
    of fact that Morris argues are unsupported by credible and substantial evidence.
    We disagree.
    4
    As required by Tetra Tech EC, Inc. v. DOR, 
    2018 WI 75
    , ¶79, 
    382 Wis. 2d 496
    , 
    914 N.W.2d 21
    , LIRC “explain[ed] how its experience, technical competence, and specialized
    knowledge give its view of the law a significance or perspective unique amongst the parties, and
    why that background should make the agency’s view of the law more persuasive than others.”
    We agree, but we note that our decision would be the same whether or not “due weight” is given
    to LIRC.
    9
    No. 2022AP1865
    ¶23    First, Morris contends that LIRC concluded that Morris “suspected
    the scam itself” on day one. It did not. Morris testified that he suspected a scam,
    was suspicious of Tweed, and was “concerned” by the foreign bank account even
    before he made the first transfer. He “knew it was a scam” or a money laundering
    scheme, even if he did not know it was the scam. There is credible and substantial
    evidence that Morris suspected a scam on the first day.
    ¶24    Morris next argues that LIRC erred when it found that Morris knew
    he had repeatedly successfully wired money overseas. Again, LIRC never made
    such a finding. Morris changes LIRC’s actual conclusion by adding “successful,”
    but regardless, there is no dispute that by September 28, 2020, Morris knew that
    the transfers of Bredan’s money were successful and that the money was stolen,
    yet he continued to make wire transfers after that date.
    ¶25    Morris also takes issue with LIRC’s finding that he “repeatedly”
    gave Tweed access to his computer. To the extent Morris did not actively give
    Tweed repeated access to his computer, he is correct. However, Tweed did not
    have to repeatedly be granted access. LIRC also found that Morris “continued to
    allow this stranger access to his work computer,” and Morris admitted that Tweed
    did have access to his work computer on and after September 17, 2020,
    maintaining access throughout the duration of the scam despite Morris’s claimed
    concern of preventing a ransomware attack.
    ¶26    Morris also argues that there is no evidence that he was required to
    immediately report any suspicious activity to management. While this statement
    is correct, LIRC did not find otherwise. Instead, it concluded that Morris’s failure
    to immediately notify Bredan of the scam or Tweed’s access to his work computer
    was detrimental to Bredan. Morris also argues that this finding is not supported by
    10
    No. 2022AP1865
    credible and substantial evidence, but we reject his assertion out of hand. Bredan
    lost $394,000 because of Morris’s conduct, including $98,000 after Morris was
    told that the first $296,000 in wire transfers was stolen.
    ¶27    In sum, we conclude that the challenged LIRC findings are
    supported by substantial and credible evidence.
    C. LIRC correctly concluded that Morris’s actions constituted
    “misconduct” under WIS. STAT. § 108.04(5).
    ¶28    Morris argues that LIRC erred when it found his actions constituted
    “misconduct” under WIS. STAT. § 108.04(5) because the record establishes that he
    did not act with “wrongful intent or evil design,” but instead, acted in “good
    faith.” Morris’s understanding of “misconduct” is incomplete and specifically
    ignores the operative language of the statute relied upon by LIRC. We agree with
    LIRC that Morris’s actions constituted “misconduct” disqualifying Morris from
    receiving unemployment benefits.
    ¶29    Although     Wisconsin’s      unemployment       compensation        statutes
    embody a strong public policy in favor of compensating the unemployed,
    employees may be disqualified from receiving unemployment benefits under WIS.
    STAT. § 108.04.     Operton, 
    375 Wis. 2d 1
    , ¶¶32-33.            An employee may be
    disqualified from receiving unemployment benefits if their employment is
    terminated due to misconduct connected with their employment. Sec. 108.04(5).
    While misconduct usually involves intentional acts, the statute makes clear that
    unintentional conduct can also amount to misconduct. It defines “misconduct” as:
    [O]ne or more actions or conduct evincing such willful or
    wanton disregard of an employer’s interests as is found in
    deliberate violations or disregard of standards of behavior
    which an employer has a right to expect of his or her
    employees, or in carelessness or negligence of such degree
    or recurrence as to manifest culpability, wrongful intent, or
    11
    No. 2022AP1865
    evil design of equal severity to such disregard, or to show
    an intentional and substantial disregard of an employer’s
    interests, or of an employee’s duties and obligations to his
    or her employer.
    
    Id.
     “[A] recurrent pattern of negligent acts, so serious as to amount to gross
    negligence” can constitute “misconduct.” McGraw-Edison Co. v. DILHR, 
    64 Wis. 2d 703
    , 712, 
    221 N.W.2d 677
     (1974). It is the repeated nature of the
    negligent acts in disregard of the employer’s interest that distinguishes gross
    negligence from “mere inefficiency, unsatisfactory conduct, failure in good
    performance as the result of inability or incapacity, inadvertencies or ordinary
    negligence in isolated instances, or good faith errors in judgment or discretion,”
    which is not “misconduct” sufficient to disqualify a terminated employee from
    receiving unemployment benefits. Boynton Cab Co. v. Neubeck, 
    237 Wis. 249
    ,
    260, 
    296 N.W. 636
     (1941); see also Operton, 
    375 Wis. 2d 1
    , ¶¶43-46.
    ¶30    Morris argues that because he did not intend to become a victim of a
    scam when he made the first transfer on September 17, 2020, the “intent”
    requirement cannot be met to find “misconduct,” but this framing of the issue
    misses the point and mischaracterizes the basis for LIRC’s legal conclusion. To
    the contrary, the record demonstrates that Morris recognized from the very first
    day that something was off with the transaction; he testified that he suspected a
    scam (not the scam) or money laundering scheme. He also testified that he made
    the first wire transfer at least in part because he feared a ransomware attack after
    he gave Tweed access to his work computer, yet he made no effort to restrict
    Tweed’s access. Morris continued to make wire transfers to foreign banks at
    Tweed’s direction, citing “personal family reasons” for the transfers. Even after
    Tweed confirmed that nearly $300,000 was stolen less than two weeks into the
    scam, Morris transferred more money at Tweed’s direction without telling
    12
    No. 2022AP1865
    Bredan’s ownership until several weeks later, after Bredan had suffered additional
    losses.       This conduct is objectively unreasonable and actively disregards the
    employer’s interests.
    ¶31     LIRC’s findings of fact are supported by substantial and credible
    evidence. We agree with LIRC’s conclusion that by “continuing to wire money to
    foreign banks in the hopes that an unknown individual would return the money,”
    Morris’s actions were “so negligent as to evince a willful and substantial disregard
    of [Bredan’s] interest as to amount to misconduct connected with his work.”
    D. Morris’s remaining claims fail due to lack of prejudice.
    1. Due process
    ¶32     Morris argues that he was denied due process because the ALJ
    denied benefits on a different basis than the DWD, and for a different reason than
    the one Bredan cited when it terminated his employment. Specifically, Morris
    complains that “at no time before the ALJ’s June 26, 2021 Decision had [he] ever
    been notified that he did not qualify for benefits because he was expected to
    promptly report any suspicious activity to management and had failed to report the
    scam to management quickly enough.”5
    ¶33     “The fundamental requirements of procedural due process are notice
    and an opportunity to be heard.” Zimbrick v. LIRC, 
    2000 WI App 106
    , ¶10, 
    235 Wis. 2d 132
    , 
    613 N.W.2d 198
     (citation omitted). The notice must be reasonably
    calculated to inform the person of the pending proceeding and to afford them an
    Although Morris’s due process claim could be deemed forfeited by his failure to raise
    5
    the issue before LIRC, we nonetheless reject his claim on the merits. See State v. Ndina, 
    2009 WI 21
    , ¶¶28-30, 
    315 Wis. 2d 653
    , 
    761 N.W.2d 612
    .
    13
    No. 2022AP1865
    opportunity to object and defend their rights. 
    Id.
     Here, because the notice issued
    by DWD included whether Morris was terminated for “misconduct” under WIS.
    STAT. § 108.04(5) as an issue for hearing before the ALJ, we are not persuaded
    that notice was inadequate or violated due process.
    ¶34     However, even if a notice is insufficient, reversal of the commission
    decision based on a due process violation for insufficient notice requires a
    showing of prejudicial error. Zimbrick, 
    235 Wis. 2d 132
    , ¶18. Thus, a reversal of
    LIRC’s decision based on a due process violation for insufficient notice “at least
    requires a showing that the ALJ did not have all of the relevant evidence before
    him in the record (which would include relevant testimony from claimant), or that
    the ALJ did not consider all of the evidence in the record in reaching his decision.”
    
    Id.
     (citation omitted).
    ¶35     Morris has not identified any relevant evidence or argument he could
    have offered or that the ALJ did not consider due to lack of notice. The evidence
    Morris does identify—a copy of a statement that Bredan made to DWD during the
    initial investigation—is not part of the hearing record,6 and in any event, the
    statement contradicts Morris’s argument because it identifies as among the reasons
    for Morris’s termination was that “he failed to inform the owner of the wire
    transfers for over 30 days.” Accordingly, we reject Morris’s due process claim.
    6
    “A party is precluded from offering evidence he failed to offer before the commission.”
    Weibel v. Clark, 
    87 Wis. 2d 696
    , 708, 
    275 N.W.2d 686
     (1979); Kenwood Merch. Corp. v. LIRC,
    
    114 Wis. 2d 226
    , 236, 
    338 N.W.2d 312
     (Ct. App. 1983).
    14
    No. 2022AP1865
    2. Evidentiary issues
    ¶36     Morris’s final argument is that the ALJ made a series of evidentiary
    errors, including: (1) refusing to allow him to testify about his post-termination
    offers to help Bredan with their investigation into the scam; (2) refusing to allow
    him to testify about certain details of an earlier ransomware attack Bredan
    experienced to shed light on Morris’s concern about a new ransomware attack by
    Tweed; and (3) refusing to admit and view a YouTube video about how the
    purported scam worked. Morris argues that because the refused evidence was
    relevant to his “intent” and “good faith” in dealing with Tweed, it is therefore
    relevant to the misconduct standard. However, aside from Morris’s conclusory
    statement that the ALJ’s refusal to allow the evidence was plain and reversible
    error and highlighting that there was no objection to the rejected evidence, Morris
    provides no legal support for his claims and fails to sufficiently allege that the
    ALJ’s evidentiary rulings harmed him.7
    ¶37     The lack of a party’s objection to evidence does not make evidence
    admissible. Appeal tribunals have a duty to secure the facts in as direct and simple
    a manner as possible. WIS. ADMIN. CODE §§ DWD 140.15(2) and 140.16(1).
    Evidence having reasonable probative value is admissible, but irrelevant,
    immaterial, and repetitive evidence is not. WIS. ADMIN. CODE § DWD 140.16(1).
    ¶38     Our review of the record does not support Morris’s conclusion that
    the ALJ committed any error, let alone plain or reversible error.                   The ALJ
    disallowed details of the prior ransomware attack, which were not relevant to
    7
    Like his due process argument, Morris could have but did not raise these evidentiary
    issues before LIRC, and therefore, the issues could be deemed forfeited. See Ndina, 
    315 Wis. 2d 653
    , ¶¶28-30. Nonetheless, we reject Morris’s evidentiary issues on the merits.
    15
    No. 2022AP1865
    Morris’s termination, but allowed his testimony about the fact that such an attack
    occurred. That Morris offered his services to Bredan after he was terminated is
    also not relevant to or probative of the circumstances surrounding the termination.
    ¶39    Morris argues that the details about a past ransomware attack and his
    post-termination cooperation with the employer are relevant to his intent and the
    “good faith” nature of his actions, and that the YouTube video provided an
    explanation of the scam. However, the record reflects that Morris offered other
    testimony that covered these bases, rendering any error in the ALJ’s evidentiary
    rulings harmless.
    ¶40    By statute, we disregard any irregularity or error of the commission
    unless Morris was damaged by it. WIS. STAT. § 108.09(7)(dm). Morris offered
    other evidence about his intent and justifications for his conduct, and the ALJ
    heard about the existence of a previous ransomware attack. The exclusion of the
    YouTube video is equally harmless because Morris explained how the scam
    worked in great detail based on his personal experience having fallen victim to it.
    Thus, even if we accept that the challenged evidentiary rulings were all erroneous,
    we conclude that Morris suffered no harm as a result. LIRC’s conclusions that
    Morris committed misconduct when he did not notify his employer about the scam
    until all of the money was lost and that he had allowed a third party access to the
    employer’s computer, creating the risk of a ransomware attack, are not
    undermined by the ALJ’s alleged errors.
    CONCLUSION
    ¶41    For the foregoing reasons, we conclude that: (1) LIRC’s factual
    findings are supported by substantial and credible evidence; (2) LIRC correctly
    applied the law to the facts in concluding that Morris was terminated for
    16
    No. 2022AP1865
    “misconduct”; and (3) Morris was not harmed by any alleged due process
    violation or evidentiary errors.
    By the Court.—Order affirmed.
    This    opinion      will   not    be   published.   See   WIS. STAT.
    RULE 809.23(1)(b)5.
    17
    

Document Info

Docket Number: 2022AP001865

Filed Date: 4/9/2024

Precedential Status: Non-Precedential

Modified Date: 9/9/2024