Phillip Nichols Jr v. Diversified Engineering & Plastics LLC

Michigan Court of Appeals·Decided July 21, 2026·No. 374959·Unpublished

Opinion

If this opinion indicates that it is “FOR PUBLICATION,” it is subject to revision until final publication in the Michigan Appeals Reports.

STATE OF MICHIGAN

COURT OF APPEALS

PHILLIP NICHOLS, JR., UNPUBLISHED July 21, 2026 Plaintiff-Appellee, 1:55 PM

v No. 374959 Jackson Circuit Court DIVERSIFIED ENGINEERING & PLASTICS, LC No. 24-000634-CD LLC,

Defendant-Appellant.

Before: M. J. KELLY, P.J., and PATEL and KOROBKIN, JJ.

PER CURIAM.

In this wrongful termination action, defendant appeals by leave granted the trial court’s order granting summary disposition to plaintiff as to defendant’s liability on plaintiff’s claim under the Whistleblowers’ Protection Act (WPA), MCL 15.369 et seq., and denying summary disposition to defendant on the issue of damages.1 We affirm the trial court’s denial of defendant’s motion for summary disposition, but reverse the trial court’s grant of summary disposition to plaintiff on the issue of liability because a genuine issue of material fact exists regarding whether plaintiff was “about to” report defendant’s safety violations to the Michigan Occupational Safety and Health Administration (MIOSHA).

I. BACKGROUND

Plaintiff was hired by defendant as a tool room lead in August 2022. Within his first month of employment, plaintiff had safety concerns. For example, one of the injection molding machines had a broken limit switch so a crowbar had to be jammed into a hole to hold the limit switch down. Bypassing the safety feature meant that the safety door was open while the machine was running, which exposed any individuals in the area to potential injury. Other machines required operators to be on top of them without any guardrails or safety platforms to prevent the operators from

1 Nichols v Diversified Engineering & Plastics, LLC, unpublished order of the Court of Appeals, entered October 12, 2025 (Docket No. 374959).

-1- falling. And because there were no ladders on the machines, plaintiff explained that the operators “would have to climb the machine basically like a monkey to get to the top of it where we need to do our work . . . .” Additionally, multiple robot cages did not have a proper disconnect key, which meant the cages could be opened while the press was running. Another example plaintiff provided was one of the presses required crawling into an unmarked confined space underneath the press to change out tools. Plaintiff maintained that he feared for his physical safety and, at times, his life. Plaintiff’s safety concerns caused him anxiety and impacted his attendance.

The employee handbook required employees to immediately report any unsafe practices or safety hazards to their supervisor, department manager, or the HR manager. Plaintiff reported his safety concerns to Bob Osterberg, defendant’s operations manager, and four other leaders under Osterberg—John Signs, Brad Keehn, Aaron Davis, and Ryan Bailey. Osterberg and plaintiff had multiple conversations about plaintiff’s safety concerns. Osterberg repeatedly indicated that defendant would address plaintiff’s concerns. When the safety issues persisted, Osterberg explained that it was not in the budget but defendant would try to get a plan together and would get back to plaintiff. However, no one spoke to plaintiff about a plan.

Plaintiff knew that he could contact MIOSHA about his safety concerns. On several occasions plaintiff became frustrated that the safety concerns had not been addressed and told Osterberg that he would not have any problem contacting MIOSHA. Plaintiff searched for MIOSHA’s number online and “had it ready.” But Osterberg always talked plaintiff out of contacting MIOSHA by telling him that defendant would address his safety concerns. Because plaintiff believed Osterberg and thought he needed more time to address the issues, he did not contact MIOSHA. Plaintiff testified that no one threatened him with disciplinary action if he called MIOSHA.

In approximately October 2023, Osterberg left the company and Arden Stebbins became plaintiff’s supervisor. Plaintiff reported safety concerns to Stebbins. Stebbins testified that plaintiff only reported issues regarding three machines, and those concerns were remedied. Plaintiff acknowledged that Stebbins addressed one of his safety concerns but testified that he reported other safety issues to Stebbins that were not addressed. Stebbins denied that plaintiff reported any other safety concerns to him.

In December 2023, Stebbins told plaintiff that he would like him to consider a position change to a full-time process technician. When Stebbins first discussed the position change with plaintiff, he told him that his hourly rate would remain the same. But Stebbins later learned from Anita Quillen, defendant’s president and CEO, and LynnAnn Sell, the human resource manager, that plaintiff’s hourly rate would decrease from $28 to $22 with the position change because of the pay scale for that position. Stebbins met with plaintiff and informed him of the decreased pay and the expectations for the position. At plaintiff’s request, Stebbins gave him time to consider the change.

On January 9, 2024, Stebbins and plaintiff met to formalize the position change. Unbeknownst to Stebbins, plaintiff recorded the meeting on his phone.2 After some discussion

2 At the beginning of the meeting, Stebbins offered to record the meeting but plaintiff declined.

-2- between Stebbins and plaintiff about the decreased pay, Sell joined the meeting at plaintiff’s request. Although plaintiff was unhappy with the decreased pay, he agreed to the position change, which was to be effective January 12, 2024. Later in the meeting, plaintiff stated that their conversations led him to “understand and realize” that Osterberg and others had not brought his safety concerns to upper management. He explained that there were safety concerns that were not taken seriously at defendant’s workplace:

We have to climb on top of these presses, there’s no guardrails, there’s no ladders. . . . [W]e have to climb under these presses. . . . [M]y concern for safety has been there. I’ve reported it to people I’m supposed to. They are supposed to bring it to you guys, talk about it, build a plan and address it.

* * *

You guys have a 10:00 meeting every[]day. You’re not talking about issues in the plant. So, like, if I report it to somebody—okay. And maybe I failed by not coming to you or coming to HR. But I’m reporting it to the leadership of the company, are they not coming to you either? It’s apparent they’re not.

So that leaves me in a place do I need to go further and take better steps to get this addressed. I have no problem calling [MI]OSHA, none.

* * *

That’s where I’m at with it.

Sell acknowledged plaintiff’s safety concerns, informed him that there was a safety committee, noted that Osterberg had been “in charge of most of that” because Sell was unable to do it herself, and conceded that “it hasn’t been done properly” since Osterberg left. Stebbins also acknowledged that “[t]he safety items just need to be heightened” and volunteered to be a safety coordinator or lead the safety meetings. Plaintiff told Stebbins and Sell that he would volunteer to be on a safety committee, stating, “I just want safety that’s all.” Stebbins assured plaintiff that he really wanted him as a full-time process technician. Plaintiff reiterated his agreement to the position change and stated he would complete the required training but noted that he believed the change was retaliation for his attendance issues. Plaintiff signed the required paperwork, the parties discussed the next steps, and the meeting ended amicably.

But after the meeting, Stebbins and Sell, with the approval of Quillen, decided to terminate plaintiff’s employment.

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