Natasha Henderson v. City of Flint, Mich.

Court of Appeals for the Sixth Circuit·Decided September 20, 2018·No. 17-2031·Unpublished

Opinion

NOT RECOMMENDED FOR PUBLICATION File Name: 18a0476n.06

No. 17-2031

UNITED STATES COURT OF APPEALS FILED FOR THE SIXTH CIRCUIT Sep 20, 2018 DEBORAH S. HUNT, Clerk

NATASHA HENDERSON, )

)

Plaintiff-Appellant, )

ON APPEAL FROM THE

)

UNITED STATES DISTRICT

v. )

COURT FOR THE EASTERN

)

DISTRICT OF MICHIGAN

CITY OF FLINT, MICHIGAN; KAREN WEAVER, )

)

OPINION

Defendants-Appellees. )

)

BEFORE: CLAY, STRANCH, and LARSEN, Circuit Judges.

STRANCH, J., delivered the opinion of the court in which CLAY, J., joined except as to Part II.B., with respect to which CLAY, J. (pp. 17–22), delivered a separate dissenting opinion. LARSEN, J. (pp. 18–31), delivered a separate opinion dissenting in part and concurring only in the judgment regarding the issue discussed in Part II.B.

JANE B. STRANCH, Circuit Judge. Plaintiff Natasha Henderson alleges she was wrongfully terminated from her position as City Administrator of the City of Flint for reporting the potentially unethical or unlawful behavior of Flint’s Mayor, Karen Weaver. Henderson brought a First Amendment retaliation claim and a claim under Michigan’s Whistleblower Protection Act (WPA). Henderson appeals the district court’s grant of summary judgment in favor of the Defendants. Because Henderson has failed to demonstrate that her report occurred in her capacity as a private citizen, we AFFIRM with respect to the First Amendment claim. Because disputed issues of material fact exist with respect to the Defendants’ motivation for firing Henderson, we REVERSE with respect to the WPA claim.

I. BACKGROUND

The crux of this case is Henderson’s allegation that she was fired because she urged Flint’s Interim Chief Legal Officer Anthony Chubb to investigate potentially unethical conduct by Mayor Weaver. According to Henderson, Weaver directed that private donations be funneled to an organization she formed under 26 U.S.C. § 527 (527 Organization) rather than a City-approved nonprofit fund administered by the Community Foundation of Greater Flint. Henderson alleges that Chubb informed Weaver of Henderson’s request for an investigation and that this caused her to be fired.

The City of Flint was under continuous receivership from November 2011 through April 2015. During that period, an Emergency Manager held the managerial authority normally vested in elected officials, such as the city’s mayor. This receivership period coincided with the widely publicized water crisis in Flint, in which residents were exposed to highly elevated levels of lead in Flint’s drinking water and suffered through an outbreak of Legionnaires’ Disease that resulted in the death of at least 10 residents and sickened many more.1 In December 2014, Flint’s Emergency Manager, Darnel Early, appointed Natasha Henderson as the City Administrator. She began serving in that post in February 2015. In November 2015, Karen Weaver was elected Mayor of Flint. Weaver’s election marked a transitional period for Flint’s local government. In April 2015, the Emergency Manager had issued Orders 3 and 20, which restored some of the Mayor’s executive authority. Order 3 specified that the City Administrator served “at the pleasure of the Mayor, City Council and Emergency Manager

1 Legionnaires’ Disease is a form of pneumonia caused by the Legionella bacteria, which is frequently found in untreated water or soil. See Legionnaires’ Disease, Mayo Clinic (Jan. 11, 2018), https://www.mayoclinic.org/diseases-conditions/legionnaires-disease/symptoms-causes/syc-20351747.

or Receivership Transition Advisory Board [(RTAB)].”2 (R. 29-6, PageID 330) Order 20, however, specified that the City Administrator could not be terminated without the approval of RTAB. In January 2016, RTAB further expanded the Mayor’s authority and passed resolution 2016-1, which empowered the Mayor to appoint the City Administrator and the heads of the city’s executive departments. Thus, by January 2016, Weaver’s authority to select agency department heads and the City Administrator was re-established and limitations upon the Mayor’s executive authority to hire and fire employees had been greatly curtailed.

In December 2015, in response to the water crisis, Weaver declared a state of emergency.

Henderson initially expressed concerns that the declaration would undermine support from the governor and the state, but she ultimately acceded to Weaver’s insistence on the necessity of the declaration and, in fact, wrote much of the actual declaration. (R. 33-10, PageID 789–90)

After the Mayor declared a state of emergency, many individuals contacted the Mayor’s office to donate funds to assist those affected by the water crisis. In response, Flint established the Safe Water/Safe Homes initiative, administered by the Community Foundation of Greater Flint. (R. 33-5, PageID 729; R. 33-10, PageID 796) At approximately the same time, the Mayor was involved in creating the 527 Organization, the Caring for Flint Fund, occasionally referred to as the Karen About Flint Fund. (R. 33-17, PageID 884–904) The 527 Organization was formed as part of a strategy to secure resources for lead abatement and community development projects in Flint. Its mission included hiring lobbyists to secure funding for Flint and conducting public outreach in support of lead abatement efforts.

2 Under Michigan’s emergency management statute, emergency managers are empowered to assist local municipalities to transition from emergency management to independent governance. See Mich. Comp. Laws § 141.1562. To facilitate such transitions, emergency managers are authorized to recommend to the Michigan governor when municipalities are ready to transition out of emergency management. Id. The statute provides for the Governor to appoint Receivership Transition Advisory Boards that maintain fiscal management and oversight as municipalities transition to full autonomy. Id. § 141.1563.

On February 9, 2016, Maxine Murray, Weaver’s secretary, privately approached Henderson at work and expressed concern that the Mayor had instructed her to direct potential donors from the Safe Water/Safe Homes Fund to the Mayor’s 527 Organization. (R. 29-11, PageID 364) Henderson emailed Chubb the following day to express concern and to request that he initiate an investigation. (R. 29-11, PageID 364) Henderson contacted Chubb again on February 12 to inquire about the status of his investigation. (R. 29-11, PageID 366) Chubb informed Henderson that he had contacted the state ethics board due to his concern that investigating Mayor Weaver might present a conflict of interest for Chubb and his staff. (R. 29- 11, PageID 366)

On February 12, the Mayor terminated Flint’s Chief of Police and Fire Chief. That afternoon, Henderson arrived at the Mayor’s office to find the Mayor, Chubb, and Interim Human Resources Director Charlie McClendon in a meeting together. Henderson was provided a written termination letter, dated the previous day, which gave no reason for her firing. (R. 29-10, PageID 359) Henderson asked why she was being terminated. According to Henderson, the Mayor first responded that the State of Michigan would no longer pay for her salary. (R. 33-13, PageID 860) When Henderson responded that her salary was paid by Flint, not the state, Weaver responded that Henderson was being terminated for her alleged failure to provide timely information to her about the Legionnaires’ Disease outbreak. (R. 33-13, PageID 860; R. 29-5, PageID 318)

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Natasha Henderson v. City of Flint, Mich., (6th Cir. 2018).

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