Contreras v. Ferro Corp.

652 N.E.2d 940, 73 Ohio St. 3d 244, 10 I.E.R. Cas. (BNA) 1754, 1995 Ohio LEXIS 1681
CourtOhio Supreme Court
DecidedJuly 28, 1995
DocketNo. 94-32
StatusPublished
Cited by92 cases

This text of 652 N.E.2d 940 (Contreras v. Ferro Corp.) is published on Counsel Stack Legal Research, covering Ohio Supreme Court primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Contreras v. Ferro Corp., 652 N.E.2d 940, 73 Ohio St. 3d 244, 10 I.E.R. Cas. (BNA) 1754, 1995 Ohio LEXIS 1681 (Ohio 1995).

Opinions

Douglas, J.

Appellant presents two issues for our consideration. The first is whether the court of appeals erred in finding that appellees were entitled to summary judgment on Contreras’s claim for violations of R.C. 4113.52, Ohio’s Whistleblower Statute. The second is whether the court of appeals erred in finding that appellees were entitled to summary judgment on Contreras’s cause [246]*246of action for wrongful discharge premised upon violations of public policy. For the reasons that follow, we affirm the judgment of the court of appeals but we decide only the first issue as our decision on the first issue moots the second issue.

I

Appellant’s Statutory Claim

Ohio’s Whistleblower Statute, R.C. 4113.52,1 provides specific procedures an employee must follow to gain statutory protection as a whistleblower. R.C. 4113.52(A)(1)(a) addresses the situation where an employee in the course of his or her employment becomes aware of a violation of any state or federal statute or [247]*247any ordinance or regulation of a political subdivision that the employer has the authority to correct, and the employee reasonably believes that the violation either is a criminal offense that is likely to cause an imminent risk of physical harm or a hazard to public health or safety or is a felony. Under such circumstances, R.C. 4113.52(A)(1)(a) requires that the employee orally notify his or her supervisor or other responsible officer of the employer of the violation and subsequently file with that person a written report that provides sufficient detail to identify and describe the violation. If these requirements have been satisfied and the employer does not correct the violation or make a reasonable and good faith effort to correct the violation within twenty-four hours after the oral [248]*248notification or the receipt of the written report, whichever is earlier, the employee may then file a written report with the prosecuting authority of the county or municipal corporation where the violation occurred or with some other appropriate person specified in R.C. 4113.52(A)(1)(a).

Clearly, the provisions of R.C. 4113.52(A)(1) contemplate that the employer shall be given the opportunity to correct the violation. The statute mandates that the employer be informed of the violation both orally and in writing. An employee who fails to provide the employer with the required oral notification and written report is not entitled to statutory protection for reporting the information to outside authorities. If the employee provides the employer with oral notification and a written report, the employee may be entitled to the protections of the whistleblower statute for reporting the information to outside authorities only if the employer has failed to correct the violation or make a reasonable and good faith effort to correct the violation within twenty-four hours after the oral notification or the receipt of the written report, whichever is earlier. R.C. 4113.52(A)(1)(b) contemplates that the employer will apprise the employee of its efforts to correct the violation. That provision mandates that if an employee makes a report to his or her employer under R.C. 4113.52(A)(1)(a), the employer, within twenty-four hours after the oral notification was made or the report received or by the close of business on the next regular business day, whichever is later, must provide written notice to the employee of any efforts the employer made to correct the alleged violation or hazard or of the absence of the alleged violation or hazard. Only after all these various procedures and requirements have been satisfied, and only if the employer has not corrected the violation or made a reasonable and good faith effort to correct the violation may the employee report the violation to outside authorities — but only those authorities specified in R.C. 4113.52(A)(1)(a).

Therefore, to restate, R.C. 4113.52(A)(1) protects an employee for reporting certain information to outside authorities only if the following requirements have first been satisfied: (1) the employee provided the required oral notification to the employee’s supervisor or other responsible officer of the employer, (2) the employee filed a written report with the supervisor or other responsible officer, and (3) the employer failed to correct the violation or to make a reasonable and good faith effort to correct the violation. Further, R.C. 4113.52(A)(1)(a) sets forth the sole acceptable manner in which the employee may “blow the whistle” to outside authorities. Specifically, the employee may file a written report that provides sufficient detail to identify and describe the violation with the proper prosecuting authority or other appropriate official or agency with regulatory

[249]*249authority over the employer and the industry, trade or business in which the employer is engaged. An employee who fails to follow the specific requirements of the statute is not a protected whistleblower and, accordingly, may not bring a wrongful discharge action pursuant to R.C. 4113.52.

Here, the situation encountered by Contreras was covered by the terms of R.C. 4113.52(A)(1)(a). That is, Contreras became aware in the course of his employment of an illegal inventory diversion that his employer had the authority to correct. However, Contreras did not orally notify his superior or other responsible officer of the corporation of the illegal inventory diversion before he involved outsiders to the corporation in an investigation of the criminal activity. Nor did Contreras provide the employer with a written report of the criminal activity until well after the matters had been revealed to a number of sources outside Ferro. Contreras never provided his employer with the opportunity to correct the illegal inventory diversion. Accordingly, Contreras clearly did not comply with any of the requirements of R.C. 4113.52(A)(1)(a) and, thus, may not avail himself of the protections of the Whistleblower Statute.

Nevertheless, Contreras suggests that this case is governed by the provisions of R.C. 4113.52(A)(3), not 4113.52(A)(1)(a). However, we find that the provisions of R.C. 4113.52(A)(1)(a) are clearly applicable in the case at bar. Further, we note, in passing, that it is difficult to imagine a whistleblower fact pattern that would fall exclusively under the provisions of R.C. 4113.52(A)(3) without also involving the provisions of R.C. 4113.52(A)(1).

Appellees contend that Contreras was not “an employee [who became] aware in the course of his employment of a violation” within the meaning of R.C. 4113.52, since Contreras was the recipient of information (as opposed to a provider of information) concerning the illegal inventory diversion. However, we find that this distinction ignores the undisputed fact that Contreras was also in a position to be a reporter of information (and was, in fact, a reporter of information) when he reported the illegal inventory diversion to his superiors. Appellant was clearly an “employee” within the meaning of R.C. 4113.52 because he performed services for the corporation for wages or other remuneration.2 R.C. 4113.52 contemplates that there may be more than one protected reporter of information for any given event. Clearly, each employee in the chain of command

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Cite This Page — Counsel Stack

Bluebook (online)
652 N.E.2d 940, 73 Ohio St. 3d 244, 10 I.E.R. Cas. (BNA) 1754, 1995 Ohio LEXIS 1681, Counsel Stack Legal Research, https://law.counselstack.com/opinion/contreras-v-ferro-corp-ohio-1995.