Peter McCreedy Trucking Co v MESC – 2.11

By | August 26, 1994

Peter McCreedy Trucking Co v MESC
Digest no. 2.11

Sections 15, 18

Cite asPeter McCreedy Trucking Co v MESC, unpublished memorandum of the Court of Appeals of Michigan, issued August 26, 1994 (Docket No. 156798).

Appeal pending: No
Claimant: N/A
Employer: Peter McCreedy Trucking Company
Docket no.: L90-11810-RO1-2187
Date of decision: August 26, 1994

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COURT OF APPEALS HOLDING: Circuit Court applied incorrect legal standard when it decided that maximum tax rate could not be imposed pursuant to Section 18(d)(2) unless MESC found that employer’s failure to file quarterly reports was “willful” pursuant to Section 15 of the Act.

FACTS: Employer failed to file required quarterly reports for the years 1986, 1988 and 1989. The reports were not filed within 30 days of notice of contribution rate as required for recomputation of the rate. The employer’s contribution rate was increased by the MESC pursuant to Section 18(d)(2). There was no evidence of misfeasance or malfeasance by the employer.

DECISION: Employer not entitled to redetermination of its contribution rate.

RATIONALE: Section 18 is a definitional section applicable to all employers. Section 15 is primarily a penalty section which sets forth alternative remedies available to the MESC when the employer’s contribution remains unpaid. The sections have different purposes and both are to be applied as written.

Digest Author: Board of Review (original digest here)
Digest Updated: 7/99