Denise M Koets v. American Legion Department of Michigan

CourtMichigan Court of Appeals
DecidedAugust 8, 2017
Docket333347
StatusUnpublished

This text of Denise M Koets v. American Legion Department of Michigan (Denise M Koets v. American Legion Department of Michigan) is published on Counsel Stack Legal Research, covering Michigan Court of Appeals primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Denise M Koets v. American Legion Department of Michigan, (Mich. Ct. App. 2017).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

DENISE M. KOETS and SCOTT A. KOETS, UNPUBLISHED August 8, 2017 Plaintiffs-Appellants,

v No. 333347 Ingham Circuit Court THE AMERICAN LEGION, DEPARTMENT OF LC No. 15-000010-CD MICHIGAN

Defendant-Appellee.

Before: CAVANAGH, P.J., and M. J. KELLY and SWARTZLE, JJ.

PER CURIAM.

Plaintiffs appeal as of right the summary dismissal of their claims against defendant, including a claim of retaliatory discharge under the Whistleblower Protection Act (WPA), MCL 33315.361 et seq., arising from the termination of employment. We affirm.

Defendant is a non-profit organization that provides services to veterans, including assisting veterans with applying for various benefits from the U.S. Department of Veterans Affairs (VA). In January 2011, plaintiff Denise Koets (plaintiff) was hired by defendant as a Financial Administrative Assistant and Human Resources Administrator. In that capacity, she was to perform confidential administrative, bookkeeping, and human resources functions in support of defendant’s Adjutant, Patrick Lafferty. Some of her job duties included the daily banking, processing travel vouchers for reimbursement, performing functions for and attending executive meetings, maintaining employee files, overseeing membership events like the yearly raffle, and assisting in any audit coordination and administration.

In March 2012, plaintiff’s husband, Scott Koets, applied for disability benefits from the VA with defendant’s assistance. By September 2012, he still had received no correspondence regarding the status of his claim. During plaintiff’s efforts to determine the status of her husband’s claim, plaintiff allegedly discovered that defendant’s Veterans Affairs and Rehabilitation (VA&R) division was mishandling veterans’ claims by losing them and causing veterans to miss out on benefits. Plaintiff reported the mishandling of her husband’s claim, as well as the mishandling of other claims in general, to several of defendant’s high-level employees, including Lafferty, the VA&R Director, the Public Relations Director, defendant’s State Commander, and a chairman of defendant’s Finance Committee. In November 2012, plaintiff discovered that her husband’s application for benefits was never submitted to the VA

-1- and, in December 2012, defendant finally submitted her husband’s claim. By November 2013, the VA approved his claim but, while the VA backdated his benefits to the December 2012 application date, plaintiff’s husband lost nine months of disability pay benefits.

In April 2013, plaintiff received an excellent work performance review. However, according to Lafferty, a few months after the VA approved plaintiff’s husband’s claim, plaintiff’s work performance began to deteriorate. In particular, plaintiff was not depositing daily accounts correctly and chairmen were complaining to Lafferty. Plaintiff also complained that she was overwhelmed with her job duties, but her workload had not changed. Plaintiff became increasingly isolated from coworkers, who complained about her. For example, Lafferty, who was slated to retire, received an email warning against correspondence going to plaintiff concerning Lafferty’s job because plaintiff was the “least confidential,” was a “sneaky employee,” and the “biggest problem in this office.” Lafferty testified that he spoke to plaintiff about the issues with her job duties as they arose, but the problems persisted.

In May 2014, plaintiff’s husband’s attorney sent defendant a demand letter requesting that defendant compensate him for the disability benefits he lost as a result of defendant failing to file his original application. According to plaintiff, she was ousted from executive committee meetings without reason as soon as defendant received the demand letter. However, a reprimand letter in plaintiff’s personnel file indicates that she was excluded from these meetings starting in June because defendant believed plaintiff was “talking openly to Legion employees concerning the actions of the Finance Committee in executive sessions.”

In June 2014, plaintiff was responsible for compiling financial packets for defendant’s summer state convention. Two versions of the packets were to be created: one for defendant’s Finance Committee containing confidential budgetary information, including employee salaries, and the other containing no such information for defendant’s general membership. However, plaintiff switched the packets and the general membership received the packets containing the confidential information. As a result of plaintiff’s mistake, according to Lafferty, he received numerous emails from various employees complaining about her breach of confidentiality and requesting her immediate termination.

Meanwhile, plaintiff continued to make complaints about defendant’s mishandling of veterans’ claims and the misuse of defendant’s funding. For example, sometime after July 2014, plaintiff apparently complained to the new VA&R director that defendant was mismanaging veterans’ claims. She also told the Grant Administrator of the Michigan Veterans Affairs Agency (MVAA) that defendant was mishandling both veterans’ claims and funding monies. Apparently, around the same time, plaintiff brought the misuse of funds issue to Lafferty’s attention, as well as to the attention of defendant’s outside auditor.

Shortly after defendant’s summer state convention, on July 21, 2014, defendant issued plaintiff a negative written performance review detailing her shortcomings, including her repeated accounting mistakes, poor time management, and unwillingness to work with coworkers. Plaintiff also received a reprimand letter placing her on probation. The letter referred to plaintiff’s breach of confidentiality which resulted in her exclusion from the executive sessions of the Finance Committee and plaintiff’s release of confidential employee salary information to defendant’s general members at the summer state convention. Defendant

-2- considered this breach to be a lack of judgment and a total failure of plaintiff’s job responsibilities. The letter further noted the complaints received from defendant’s employees, chairmen, and members with respect to attempts to secure financial assistance from plaintiff.

On August 29, 2014, Roland Runyan replaced Lafferty as Adjutant. According to Runyan, he almost immediately experienced problems with plaintiff’s work performance. For example, Runyan found that plaintiff could not accurately answer questions regarding budgeted items that were part of her job duties; she was incorrectly allocating money and vouchers; and she sent defendant’s financial information to the IRS for an audit in an untimely and unsecure fashion, i.e., a CD-ROM via US mail. Subsequently, at a meeting of defendant’s Finance and Personnel Committee held on September 25, 2014, Runyan recommended that the Committee dismiss plaintiff from her employment. The meeting minutes stated: [Plaintiff] continues to be difficult to manage. She doesn’t get along well with co-workers. Her financial abilities seem limited. She continually causes problems with the staff. Department’s finance and payroll could function okay without [plaintiff] present. . . . Ron Runyan stated that he can’t seem to get efficient answers from [plaintiff] regarding financial issues. . . . A motion was made . . . to release [plaintiff] from employment because of inadequate performance of her duties. The motion passed.

The meeting minutes also noted that plaintiff’s husband’s claim had been settled.

Plaintiff was not immediately informed of defendant’s termination decision. Instead, on September 27, 2014, she attended defendant’s fall state convention where a raffle was conducted as part of the events.

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Denise M Koets v. American Legion Department of Michigan, Counsel Stack Legal Research, https://law.counselstack.com/opinion/denise-m-koets-v-american-legion-department-of-michigan-michctapp-2017.