Cleveland Stegall v. Resource Technology Corporation

CourtMichigan Supreme Court
DecidedJuly 22, 2024
Docket165450
StatusPublished

This text of Cleveland Stegall v. Resource Technology Corporation (Cleveland Stegall v. Resource Technology Corporation) is published on Counsel Stack Legal Research, covering Michigan Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Cleveland Stegall v. Resource Technology Corporation, (Mich. 2024).

Opinion

Michigan Supreme Court Lansing, Michigan

Syllabus Chief Justice: Justices: Elizabeth T. Clement Brian K. Zahra David F. Viviano Richard H. Bernstein Megan K. Cavanagh Elizabeth M. Welch Kyra H. Bolden

This syllabus constitutes no part of the opinion of the Court but has been Reporter of Decisions: prepared by the Reporter of Decisions for the convenience of the reader. Kathryn L. Loomis

STEGALL v RESOURCE TECHNOLOGY CORPORATION

Docket No. 165450. Argued on application for leave to appeal April 17, 2024. Decided July 22, 2024.

Cleveland Stegall brought an action in the Oakland Circuit Court against Resource Technology Corporation, doing business as Brightwing, and FCA US, LLC, alleging that his employment had been terminated in violation of both public policy and the Whistleblowers’ Protection Act (WPA), MCL 15.361 et seq. Plaintiff had been hired to work at an FCA vehicle assembly plant in 2013 through Brightwing, a staffing agency. In late 2015, FCA announced its plans to eliminate plaintiff’s shift at the plant the following summer, but plaintiff claimed he was led to believe that he and the other employees would be offered jobs at another plant. In April 2016, plaintiff raised concerns about asbestos in the workplace to one of his FCA supervisors. According to plaintiff, the supervisors indicated that they would conduct air quality tests and provide plaintiff with the results. Through the months of May and June, plaintiff made periodic requests for the air quality test results but did not receive them. Plaintiff sent another communication to his supervisors about not receiving the results of the air quality tests and threatened to file complaints with the federal Occupational Safety and Health Administration and the Michigan Occupational Safety and Health Administration (the Michigan OSHA). Plaintiff was terminated on June 17, 2016, and he was instructed that his employment ended effective the day that FCA ceased operations on his second shift. On July 6, 2016, plaintiff filed a discrimination complaint with the Michigan OSHA, naming defendants in the complaint. Thereafter, plaintiff brought this action, claiming that his employment had been terminated by defendants in retaliation for his failure or refusal to violate the law and for exercising a right conferred by well-established legislative enactment, including occupational safety laws. Plaintiff later withdrew his WPA claim against FCA. Defendants separately moved for summary disposition pursuant to MCR 2.116(C)(10). The trial court, Martha D. Anderson, J., granted summary disposition for both defendants, ruling that defendants had not violated the law, that plaintiff’s public-policy claim was preempted by the WPA, and that a public-policy claim could not be maintained on the basis of internal complaints. Plaintiff appealed, and the Court of Appeals, JANSEN, P.J., and METER, J. (GLEICHER, J., dissenting), affirmed the circuit court’s decision in an unpublished per curiam opinion. Plaintiff applied for leave to appeal in the Supreme Court, and the Supreme Court ordered that oral argument be heard on the application. 508 Mich 986 (2021). Following oral argument, the Supreme Court reversed the part the Court of Appeals judgment holding that a public-policy claim could not be based on retaliation for internal reporting, remanded to the Court of Appeals for further consideration of plaintiff’s public-policy claim, and denied leave in all other respects. 509 Mich 1086 (2022). On remand, the Court of Appeals, JANSEN, P.J., and BORRELLO, J. (GLEICHER, C.J., dissenting), concluded that summary disposition in favor of defendants was appropriate because plaintiff’s public-policy claim was preempted by the Occupational Safety and Health Act (OSHA), 29 USC 651 et seq., and the Michigan Occupational Safety and Health Act (MiOSHA), MCL 408.1001 et seq. 345 Mich App 416 (2023). The majority acknowledged that under Suchodolski v Mich Consol Gas Co, 412 Mich 692 (1982), which set forth a public-policy exception to the rule that an at-will employment contract may be terminated at any time for any reason, there was an implied prohibition on retaliatory discharges when the reason for a discharge was the employee’s exercise of a right conferred by a well-established legislative enactment. However, Dudewicz v Norris Schmid, Inc, 443 Mich 68 (1993), overruled in part on other grounds by Brown v Detroit Mayor, 478 Mich 589 (2007), subsequently held that a public-policy claim is sustainable only if there also is not an applicable statutory prohibition against discharge in retaliation for the conduct at issue. Relying on Dudewicz, the majority concluded that because both OSHA and MiOSHA included an antiretaliation provision, that remedy was exclusive and, therefore, plaintiff’s public-policy claim was preempted. Plaintiff again sought leave to appeal in the Supreme Court, which ordered oral argument on the application and directed the parties to address (1) whether a public-policy claim for retaliation based on a statute that has an antiretaliation provision still exists under Suchodolski after the Court’s decision in Dudewicz, and (2) whether the Court of Appeals correctly held that plaintiff’s public-policy claim was preempted by OSHA and MiOSHA or whether the claim was not preempted because the remedy provided by the statutes was inadequate. 513 Mich 885 (2023).

In an opinion by Justice BOLDEN, joined by Justices BERNSTEIN, CAVANAGH, and WELCH, the Supreme Court held:

Generally, a cause of action based on a discharge in violation of public policy is predicated on a failure or refusal to violate a law or on the exercise of a right conferred by a well-established legislative enactment. Such a claim may be asserted despite the applicability of a statute that has an antiretaliation provision only where the remedies in the subject statute are cumulative and not exclusive. The remedies provided under OSHA and MiOSHA are inadequate to constitute exclusive remedies that preempt public-policy claims because they fail to provide employees with sufficient redress. Given that the remedies under OSHA and MiOSHA are therefore cumulative, plaintiff’s public-policy cause of action was not preempted. The case was remanded to the trial court to consider whether there is a genuine issue of material fact as to plaintiff’s claim that he was discharged in violation of public policy.

1. As a general rule, an employee subject to an at-will employment contract may be terminated at any time for any reason. However, an exception to that rule was recognized in Suchodolski based on the principle that some grounds for discharging an employee are so contrary to public policy as to be actionable. In particular, courts may imply a public-policy cause of action for wrongful termination for the failure or refusal to violate a law and for the exercise of a right conferred by a well-established legislative enactment. In Dudewicz, however, the Supreme Court held that a public-policy claim is sustainable only where there also is not an applicable statutory prohibition against discharge in retaliation for the conduct at issue. While this holding, read in isolation, seemingly invalidated a public-policy cause of action where the underlying statute has an antiretaliation provision, when read in the proper context, Dudewicz limits the public-policy exception to the at-will employment rule only where a legislative enactment has not only explicitly prohibited the discharge of an employee acting in accordance with a statutory right or duty, but also provided an exclusive remedy for violation of that explicit prohibition. In other words, when examining whether a public-policy claim based on alleged retaliatory action by the employer may be asserted, the threshold inquiry is whether the public-policy claim is based on a statute that has an antiretaliation provision.

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Cleveland Stegall v. Resource Technology Corporation, Counsel Stack Legal Research, https://law.counselstack.com/opinion/cleveland-stegall-v-resource-technology-corporation-mich-2024.