Harlan Vermilya v. Delta College Board of Trustees

CourtMichigan Court of Appeals
DecidedNovember 4, 2014
Docket315403
StatusUnpublished

This text of Harlan Vermilya v. Delta College Board of Trustees (Harlan Vermilya v. Delta College Board of Trustees) 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
Harlan Vermilya v. Delta College Board of Trustees, (Mich. Ct. App. 2014).

Opinion

STATE OF MICHIGAN

COURT OF APPEALS

HARLAN VERMILYA, DEBBIE SAWYER, UNPUBLISHED HERMAN DESHAW, LILLIAN DESHAW, November 4, 2014 KELLY BUCZEK, RICK BUCZEK, BILL BLANCHARD, and LAURA ANKLAM,

Plaintiffs/Counter-Defendants- Appellants,

and

KIM A. HIGGS,

Plaintiff/Third-Party Defendant- Appellant,

v No. 315403 Bay Circuit Court DELTA COLLEGE BOARD OF TRUSTEES, LC No. 09-003024-CZ DELTA COLLEGE PRESIDENT’S COMPENSATION COMMITTEE, JACK R. MACKENZIE, DR. THOMAS H. LANE, and KAREN L. LAWRENCE-WEBSTER,

Defendants/Counter-Plaintiffs/ Third-Party Plaintiffs-Appellees,

DELTA COLLEGE PRESIDENT,

Defendant/Counter-Plaintiff- Appellee,

MICHIGAN COMMUNITY COLLEGE RISK MANAGEMENT AUTHORITY,

Defendant-Appellee,

-1- and

CUMMINGS, MCCLOREY, DAVIS & ACHO,

Defendants.

Before: FITZGERALD, P.J., and GLEICHER and Ronayne-KRAUSE, JJ.

PER CURIAM.

Plaintiffs appeal as of right from an order of dismissal entered on March 12, 2013, in this action alleging violations of the Open Meeting Act (OMA), MCL 15.261 et seq., as well as unlawful expenditures of public funds. We affirm in part, reverse in part, and remand.

Over the course of three amended complaints, plaintiffs averred that defendants Delta College Board of Trustees (the Board) and the Delta College Presidents Compensation Committee (the Compensation Committee) had committed multiple violations of the OMA and that the Board, the Delta College President, and the Michigan Community College Risk Management Authority (MCCRMA) had made unlawful expenditures of public funds. Plaintiff Kim A Higgs, who originally represented the sole plaintiff, Harlan Vermilya, is an elected member of the Board. Higgs was eventually added as a party plaintiff and was disqualified from representing the other plaintiffs in this case.

I. FACTS AND PROCEDURAL HISTORY

In 2008, the Board appointed defendant Trustees Jack R. MacKenzie, Dr. Thomas H. Lane, and Karen Lawrence-Webster to the Compensation Committee, a subcommittee formed to negotiate the renewal terms of an employment contract with the college president, Dr. Mary Jean Goodnow, and make a recommendation to the Board regarding a proposed contract.1

There is no dispute that the Board and the Compensation Committee are public bodies pursuant to the OMA. See MCL 15.262(a). The Compensation Committee held three special meetings on September 2, October 10, and November 3, 2008. A public notice of each of these committee meetings was posted and published before each meeting took place.

Higgs and Board member Earl Selby also attended the October 10 and November 3 committee meetings. During these meetings, Higgs apparently expressed concern about the legality of a proposed contract provision that would have made the president’s compensation retroactive to July 1, 2008, as well as a provision to indemnify the president for personal income tax liability in the event that the IRS determined that the housing provided to her by the college

1 Dr. Goodnow had been appointed as President in 2005 and initially served under a three-year contract that expired on July 1, 2008.

-2- constituted taxable income. In light of these concerns, Delta College General Counsel Leslie Myles-Sanders employed the assistance of outside counsel, Janet Lanyon, to draft contact language for the employment agreement. She provided Lanyon with copies of the committee meeting minutes, as well as a memo dated August 25, 2008, that was prepared by Dr. Goodnow and presented to the committee at the September 2, 2008, meeting. Lanyon drafted the language to be included in the agreement, and the final contract language was provided by Lanyon to Miles-Sanders on the night of November 11, 2008, just before the regular meeting of the Board at which the Board was to vote on ratification of the contract. The Board as a whole considered and voted on the president’s final employment agreement on November 11, 2008. The Board voted 6 to 1 to ratify the employment agreement as presented, with Higgs being the sole “no” vote.

On January 13, 2009, Higgs, as the attorney for Harlan Vermilya, filed the present action against the Board, the Compensation Committee, and committee members MacKenzie, Lane, and Lawrence-Webster, alleging two violations of the OMA. On January 26, 2009, after being served with the initial complaint, the Board posted notice and held a special meeting for the purpose of entering a closed session to discuss the litigation with its counsel. The Board ultimately did not enter a closed session because Higgs, at that time the attorney for the sole plaintiff, refused to leave the room to allow the Board to consult confidentially with its counsel.

On February 13, 2009, the complaint was amended to add 46 more plaintiffs, as well as defendants Dr. Goodnow, the law firm of Cummings, McClorey, Davis & Acho, P.C., and the college’s self-insurance pool, MCCRMA. The first amended complaint added two more claims alleging violations of the OMA against the Board regarding the notice provided for the January 26, 2009, meeting and for allegedly failing to post timely its regular meeting schedule for 2009. The first amended complaint also pleaded two claims of illegal expenditure of public funds in the employment agreement between the Board and Dr. Goodnow and in the MCCRMA’s defense of Higgs’ 2007 litigation against the Board for alleged violations of the OMA, and the MCCRMA’s appointment of the law firm for that purpose.

The trial court granted plaintiffs leave to amend their complaint again on June 4, 2009. The second amended complaint omitted most of the plaintiffs, leaving a total of eight plaintiffs, and dismissed the law firm from the matter. A third amended complaint was filed to add Higgs as a party plaintiff.

All defendants filed their motions for summary disposition on December 28 and 29, 2011. Plaintiff Higgs also filed dispositive motions, one with regard to the Delta College defendants and one with regard to the MCCRMA. After a hearing on February 2, 2012, the court issued an opinion and order. The trial court denied plaintiffs’2 motion in its entirety, granted summary disposition of all claims against the MCCRMA,3 and granted summary disposition to

2 Plaintiff Higgs filed the motion for summary disposition and, despite the fact that Higgs was disqualified from representing the other plaintiffs, the trial court considered the motion as being filed on behalf of all plaintiffs. 3 Plaintiffs have not appealed this ruling.

-3- the Delta College defendants on all claims except for the allegation that the Compensation Committee had conducted deliberations constituting a “meeting” outside an open and properly posted meeting in violation of the OMA, and leaving that lone issue for trial. In an order dated September 13, 2012, the trial court also denied Higgs’ motion to allow him to be substituted as counsel for the remaining plaintiffs.

The lone surviving claim under the OMA against the Compensation Committee proceeded to a bench trial on September 19 and 20, 2012, and resulted in a directed verdict and judgment in favor of defendants.4 Following the trial, defendants sought and were awarded taxable costs. The trial court also granted defendants’ request for 1-1/2 times the taxable costs pursuant to MCL 600.2411(1) for actions against public officials alleging failure to perform a duty. Defendants were awarded costs of $719.48.5

II. THE OCTOBER 10, 2008 COMPENSATION COMMITTEE MEETING

Plaintiffs first argue that the trial court erred by finding that the OMA was not violated when a quorum of the Board attended the October 10, 2008, committee meeting that was noticed as a special board subcommittee meeting.

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Harlan Vermilya v. Delta College Board of Trustees, Counsel Stack Legal Research, https://law.counselstack.com/opinion/harlan-vermilya-v-delta-college-board-of-trustees-michctapp-2014.