Okay, I'll bite. How many times on these boards have you seen someone say, "I got a traffic citation and took it to traffic court and lost my case, when can I get it before the Supreme Court?"
There is no protection for "whistle blowers" in private industry situations like this one you have described. Whether or not the employee used that defense in his hearing wouldn't matter one tiny bit. The Board of Review can elect to admit new evidence if they want to, but they will only do so if it is going to make a significant difference in the argument. (Classic example is when someone produces previously unseen video of the incident) They refused to accept the new evidence because it was not going to make any difference at this point anyhow. He chose, or his attorney chose to argue it in the hearing as a constructive discharge based on the argument that he was being "forced to quit" because of the transfer. This was determined not to be the case. His unemployment insurance has now been denied twice. The attorney, who may or may not be to experienced in employment law (and all attorneys aren't) was doing just exactly the right thing to try to maintain that the employer had "forced a quit" (I prefer that term to "constructive discharge" but they're generally the same thing) What his alleged motive for trying to force the quit was isn't relevent in this situation.
From the evidence presented, it must have sounded, both times it has been heard so far, as though the employee had not exhausted all his alternatives, or the commute to the transfer site wasn't determined to be excessive when he quit the job, and thus was considered to have voluntarily quit. After reporting the wrongdoing to the supervisor, did he then report it to the higher office, the compay owner, did he make other efforts to be heard? They would have had the option of stopping his transfer or improving the treatment if they'd wanted to.
What difference would you think it would make in the unemployment hearing if he had said, "And the reason they were mad at me and the reason they wanted to get rid of me was because I had reported to them that some of their friends were stealing something from the company" ? Do you really believe that would cause them to say, "Oh, gee, in that case!!!!!!************** Whether or not your friend was "whistle blowing" (or trying to tattle on his co-workers) doesn't matter. If he'd been reporting violations of safety regs to OSHA it might have been a slightly different situation, but he wasn't.
Whistleblowing is a term sort of like "wrongful discharge." Because it does exist, and people are vaguely familiar with it, they think that they're right up there with the fearless when they report to their private employer that Joe CoWorker is smoking pot on the job, and they can't be fired, and they can't be mistreated if they've done that. They're dead wrong. Vermont is an "at-will" state. That means they can fire you at will, and you have the right to quit the job at will. Your friend exercised his right to quit, (because of his being transferred and the supposed way he was being treated) and it has been determined that he voluntarily left the job and is not eligible for unemployment benefits.
Your friend should definitely have been told this by his attorney. He has lost the appeal. There is the alternative if he went before a civil court, they might, one in a million, sometimes overturn the decision of the whole unemployment system, and then he might keep appealing, but let's face it. There is NO case here, has never been, and the person does not need a new hearing, there is NO possibility that there's going to be a different outcome, so the people who DO have the knowledge of the law, which is definitely not you, are not going to go back and demand that this person be approved for benefits, no matter what.
If you're such a wonderful friend, are you going to pay for his attorney fees and court costs, which are going to be far more than his whole unemployment insurance claim would be worth IF he did actually get approved to keep chasing this dead dog through the courts? No reputable attorney would take his case. You don't know more than his attorney that he had in the hearing. You are certainly wrong about how you think this appeal thing is going to go if you think the Supreme Court of this land is going to quit looking at the issues like Health Care reform and death penalty cases and start looking at your buddy's denial of unemployment benefits anytime in the next century based on your misconception about whistleblower protections.
The Supreme Court (and I am assuming you mean the big one, not just the state supreme court) even the state supreme court, if they actually DID ever ever consider taking the time to go into individual unemployment hearing decisions, (which I can assure you ain't going to happen, do you realize how many hundreds of thousands of these are held in each state every month?) does not take cases that have been determined to have no merit in lower courts, and I promise that is what happens if your friend were to try another appeal.