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PRINCE WILLIAM CTY. SERV. AUTH. v. Harper

Court: Supreme Court of Virginia
Date filed: 1998-09-18
Citations: 504 S.E.2d 616
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Present:   All the Justices

PRINCE WILLIAM COUNTY
SERVICE AUTHORITY, ET AL.
                              OPINION BY JUSTICE LEROY R. HASSELL, SR.
v.   Record No. 971519               September 18, 1998

LORRAINE HARPER

                  FROM THE COURT OF APPEALS OF VIRGINIA

      We consider whether an employee's false statement on an

employment application, that she had not been convicted of a

felony, bars her receipt of workers' compensation benefits.

      Lorraine M. Harper pled guilty to the felonies of insurance

fraud and criminal conspiracy in the Commonwealth of Pennsylvania

on June 5, 1992.    On July 30, 1993, she completed an application

for employment with the Prince William County Service Authority.

The employment application contained the following question:    "Have

you ever been convicted of a law violation, including moving

traffic violations but excluding offenses committed before your

eighteenth birthday which were finally adjudicated in a Juvenile

Court or under a Youth Offender Law?    You may omit traffic

violations for which you paid $30.00 or less."    Harper responded,

"no" when she answered this question.    The employment application

also contained the following certification:    "I hereby certify that

this application is a complete record and that all entries given

are true and accurate to the best of my knowledge.    I understand

that any attempt to practice deception or fraud in this application
is grounds for disqualification or dismissal."   Harper concealed

her felony convictions when she completed the employment

application.

     Harper, who was hired as a wastewater treatment plant operator

trainee with the Prince William County Service Authority, sustained

injuries to her left wrist and coccyx while performing her duties

on June 14, 1994.   Harper and the Authority executed agreements

providing for the payment of disability benefits for certain time

she missed from work.

     In February 1995, Harper filed an application for benefits

based upon a change in condition with the Workers' Compensation

Commission (Commission), seeking disability benefits for various

periods from January 1995 through July 1995.   During the course of

that proceeding, the Authority learned that Harper had failed to

disclose her felony convictions.

     At a hearing before a deputy commissioner, Sherry Boyce,

personnel director for the Authority, testified that the Authority

does not automatically disqualify employment applicants who have

felony convictions, but that each applicant with a felony

conviction is considered on "a case-by-case basis."   Boyce

testified that the Authority would not have hired Harper had she

disclosed her felony convictions because of the nature and recent

date of the convictions.




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     Harper resigned from her employment with the Authority before

it became aware of her felony convictions.   Boyce testified that

had Harper been employed at the time the Authority learned of her

misrepresentations, it would have terminated her employment.

     The Authority asserted before the deputy commissioner that

Harper is barred from receiving workers' compensation benefits

because of her false representations.   The deputy commissioner,

rejecting the Authority's assertion, concluded that Harper's

"felony conviction[s] would not have automatically resulted in the

[Authority's] rejection of her employment application.   The

falsehood itself did not contribute to the nature of her injury,

which would prevent benefits as in those cases where a claimant

lied about her physical condition."   The deputy commissioner

entered an award in favor of Harper against the Authority.

     The Authority appealed the deputy commissioner's determination

to the Commission which also rejected the Authority's contention.

The Authority appealed the Commission's award to the Court of

Appeals, which affirmed the Commission's decision, holding that the

evidence of record failed to demonstrate that "the

misrepresentation, that Harper had not committed a crime, was

causally related to Harper's injury."   Prince William County Serv.

Auth. v. Harper, 25 Va. App. 166, 170, 487 S.E.2d 246, 248 (1997).

The Authority appeals.




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     Relying upon Marval Poultry Co. v. Johnson, 224 Va. 597, 299

S.E.2d 343 (1983), the Authority argues that since Harper obtained

employment through fraud or material misrepresentation, she is

barred from receiving workers' compensation benefits because there

is no valid contract of hire and she may not benefit from her

fraudulent conduct.   Continuing, the Authority asserts that a

causal relationship exists between Harper's misrepresentation and

her work-related injury because had she revealed her felony

convictions, she would not have been hired and the employer-

employee relationship would not have existed.   We find no merit in

the Authority's contentions.

     In Falls Church Constr. Co. v. Laidler, 254 Va. 474, 477-78,

493 S.E.2d 521, 523 (1997), we stated the following principles

which are pertinent here:

          "An employee's false representation in an employment
     application will bar a later claim for workers'
     compensation benefits if the employer proves that 1) the
     employee intentionally made a material false
     representation; 2) the employer relied on that
     misrepresentation; 3) the employer's reliance resulted in
     the consequent injury; and 4) there is a causal
     relationship between the injury in question and the
     misrepresentation."

     Applying these principles, we hold that Harper is not barred

from receiving workers' compensation benefits because the Authority

failed to adduce evidence which established a causal relationship

between her work-related injury and her misrepresentation of her

criminal record.   Boyce's testimony that the Authority would not


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have hired Harper had it been aware of her felony convictions is

not sufficient to demonstrate the existence of a causal

relationship between Harper's work-related injury and her

misrepresentation.

       We reject the Authority's contention that our decision in

Marval bars Harper's receipt of workers' compensation benefits.     In

Marval, we considered whether an employee was entitled to workers'

compensation benefits after the employee was discharged by his

employer for dishonesty.   As we recently explained, "[o]ur holding

in Marval did not address issues of reliance or causation.    Rather,

we held only that the justified termination of an employee for

dishonesty barred his later claim for benefits under a change in

condition application."    Laidler, 254 Va. at 478, 493 S.E.2d at

523.   Hence, Marval is inapposite to this case in which the issue

of causation is dispositive.

       For the foregoing reasons, we conclude that the Court of

Appeals properly affirmed the Commission's decision.    See Code

§ 65.2-706.   Therefore, we will affirm the judgment of the Court of

Appeals.

                                                             Affirmed.




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