Pennsylvania Superior Court Reverses Course on the Preclusive Effect of Unemployment Compensation Referees' Findings

The Pennsylvania Superior Court recently issued an important decision on the preclusive effect of an unemployment compensation referee's determination on subsequent court actions. In Rue v. K-Mart Corp., No. 02531 PHILA. 1995, 1997 WL 126045 (Pa. Super. March 20, 1997), the full court unanimously held that determinations of an unemployment compensation referee and the Unemployment Compensation Board of Review do not merit the application of the doctrine of issue preclusion or collateral estoppel. The opinion in Rue recognizes the distinctions between unemployment compensation hearings and civil court actions and reserves a controversial decision in the case by a panel of the Superior Court. However, the Court reaffirmed that other administrative proceedings may have a preclusive effect in subsequent lawsuits.