Simon

This is an appeal from a judgment granting a writ of mandate and ordering the California Unemployment Insurance Appeals Board to pay disability benefits to claimant Josefa Simon.

Facts

For several years, Josefa Simon worked for Winchell’s Donut Shop. As an employee, she was required to contribute to the State Disability Fund through the deduction of payroll taxes (SDI). In May 1983, Simon quit her job at Winchell’s in order to open her own independent donut shop. Although the concern did not open as soon as expected, she was operating her own donut shop by October 1983.

In November 1983, Simon was injured in an automobile accident and became disabled. As a result of her disability, she sold her shop in February 1984. Simon then applied for state unemployment disability benefits. In her application she declared she had been self-employed when injured and intended to remain self-employed when her disability ended. The Employment Development Department denied her application, stating: “You had withdrawn from the labor market prior to the date you became disabled because you were self-employed for profit. Therefore, you are not suffering a loss of wages due to your…