Henry G. Mack v. South Bay Beer Distributors, Inc., Dba Bay Beer Distributors, a California Corporation

South Bay Beer Distributors, Inc. (“South Bay”) fired Henry Mack. Mack was subsequently denied state unemployment insurance benefits. The California Unemployment Insurance Appeals Board (“Board”) affirmed the denial of benefits, finding that South Bay fired Mack for misconduct. Instead of appealing the Board’s denial of unemployment benefits in state court, Mack brought suit in federal district court against South Bay for age discrimination under the Age Discrimination in Employment Act (the “Act”) and for breach of an employment contract under California law. The district court held that the Board’s decision should be accorded collateral estoppel effect and dismissed Mack’s action. Mack appealed. We reverse the district court’s dismissal of Mack’s federal age discrimination claim.

BACKGROUND

Mack worked for South Bay as a sales representative for 18 years. In May 1982, South Bay fired Mack, who was then 53 years old. Mack applied for unemployment benefits under the California Unemployment Insurance Code § 1256. After a hearing, the Administrative Law Judge (“ALJ”) denied Mack benefits because he found that South Bay fired Mack for “misconduct connected with his work” and for…