OK, the story in short (or I'll try to keep it short). I was terminated from a place of business in November 2006. With my last paycheck, they accidentally direct deposited it and gave me a paper check(paying me twice). They discovered their error and called to try to get it back. Being that I was recently terminated and could use the money I told them that it was already spent and I would pay it back over time (I agree it was wrong on my part). Within a couple weeks they had already filed it in small claims court. I was never served the paperwork and therefore didn't show up. They also did not show up. When I checked on the case it was listed as "Case Close - No one Appeared". I've also been getting unemployment since being terminated. I have also been working a side job while getting unemployment (but I HAVE been claiming the wages I have earned, thereby reducing my unemployment benefits).
The issue at hand is that my former employer filed a grievence with the Unemployment office stating that I was working and earning money. In order to continue being paid my benefits I have to fill out a redetermination form and they told me it will talk several weeks for the finding. I am confident that they will find in my favor due to me claiming all my wages, but I really can't afford to wait over a month to keep receiving the benefits.
I called my former employer to try and be civil with them and explain that I have been claiming the wages and have done nothing deceiving. Hopefully to have them withdraw the grievence. What he basically said was if I signed something to payback the double payment that he would call the Unemployment office and withdraw it.
My first question is, can they still take the double payment to court, being that they already did once and never served the paperwork or showed up to the hearing?
Secondly if I decide to fill out the form and wait the several weeks for the determination, is there anything open on my side to take my former employer to court for defamation or slander? In addition to saying if I paid the amount they would drop the greivence, they've also called up to my current employer "several times"(in his own words), and asked "if I was working" "when do I work" "how often do I work there" etc... Somehow they also found out where I live (even though it's not my permanent address, just somewhere I'm staying for now). It just seems somehow illegal to say "If you pay back this amount, we'll drop the greivence" because they know it has no basis.
Thanks in advance for any help. I tried to keep it short, but there were a lot of details.
Thanks,
Kevin in Michigan.

