Shaw v. City of Ecorse

770 N.W.2d 31, 283 Mich. App. 1
CourtMichigan Court of Appeals
DecidedMarch 19, 2009
DocketDocket 279997 and 280693
StatusPublished
Cited by81 cases

This text of 770 N.W.2d 31 (Shaw v. City of Ecorse) 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
Shaw v. City of Ecorse, 770 N.W.2d 31, 283 Mich. App. 1 (Mich. Ct. App. 2009).

Opinion

Per Curiam.

These consolidated appeals arise out of plaintiffs’ claims of adverse employment actions. In Docket No. 279997, plaintiff John Bedo appeals by leave granted the trial court order granting defendant, city of Ecorse, summary disposition with regard to his claim under the Whistleblowers’ Frotection Act (WFA), MCL 15.361 et seq. In Docket No. 280693, defendant appeals as of right the jury verdict in favor of plaintiff Robert *3 Shaw on his claims of age discrimination and breach of contract and the trial court’s order denying its motion for a new trial or remittitur. In Docket No. 279997, we reverse and remand for further proceedings. In Docket No. 280693, we affirm.

I. FACTUAL BACKGROUND

A. FACTS IN DOCKET NO. 279997

Bedo worked for the city of Ecorse Fire Department from 1973 to 2006. In the 1990s, he was promoted to fire captain, and in 2003 and 2004 he temporarily served as fire chief. In mid-2004, he returned to his position as fire captain. On June 9, 2006, Fire Chief Ronald French issued a command reducing the number of firefighters required to be on duty. Later that day, Bedo objected to the command in a department report, stating, “Per your Directive dated 6/9/06,1 believe both Mayor Salisbury and Interim Chief French [have] jeopardized our Citizens’ and Firefighters’ safety In the event of either the Citizens’, Firefighters’, or my injury or death, caused by these actions, I will hold you both responsible.”

On June 13, 2006, Bedo testified in a case initiated by former Fire Chief Ronald Lammers against defendant in which racial discrimination and breach of contract were alleged. Both Bedo and Fire Captain Arthur Andring were subpoenaed to testify on behalf of Lammers. On June 20,2006, the jury returned a verdict in favor of Lammers and awarded him $600,000. According to Bedo and Andring, immediately after the trial, Fire Chief French and the former president of the firefighters’ union told them that they were “in trouble” and that defendant would “go after them” because of their testimonies in the Lammers case.

*4 On June 23, 2006, Mayor Larry Salisbury filed departmental charges against Bedo, including: (1) conduct unbecoming an officer; (2) insubordination; (3) failing to follow a chain of command; (4) dissuading firefighters from performing their duties; and (5) criticism/ridicule. Police Chief George Anthony conducted disciplinary hearings on the charges on June 30, 2006, July 6, 2006, and July 14, 2006. The evidence presented at the hearings focused on the department report Bedo had submitted to Fire Chief French, but a substantial portion of the evidence suggested that Bedo was responsible for the death of a firefighter in the early 1990s.

According to Bedo, he was “forced to retire” in late July 2006 because of the “stress created by the mayor’s actions after [he] testified for the Plaintiff against the City of Ecorse in [the] Lammers trial.” Defendant denied Bedo’s requests for a “cash out,” his pension, and to transfer pension plans. On July 21, 2006, Bedo filed suit against defendant, raising a claim under the WPA. Bedo claimed that defendant brought the departmental charges against him, subjected him to the disciplinary hearings, forced him to retire, and withheld his benefits because of his testimony at the Lammers trial.

On August 15, 2006, Police Chief Anthony submitted his findings to Mayor Salisbury. On the basis of the evidence presented at the disciplinary hearings, he upheld four out of the five charges filed against Bedo and issued this decision: “Captain John Bedo should not be assigned to any command or supervisors'- level position. I direct that Captain John Bedo be immediately demoted from the rank of captain to firefighter. In addition, I further direct that Captain Bedo undergo a physical and psychological examination to determine his continued fitness for duty.”

*5 B. FACTS IN DOCKET NO. 280693

Shaw was born on March 18,1938. He worked for the city of Ecorse Police Department from 1968 to 2004. He became deputy chief in 1999. In 2001, when Shaw was 63 years old, defendant appointed him as police chief. In June 2004, John Clark, an attorney working on a contractual basis for defendant, sent a letter to Mayor Salisbury and the city council stating that under the city charter, “[a]ny Fireman or Policeman who attains the age of sixty (60) years shall be retired and pensioned as herein provided,” that pursuant to that provision, Shaw should be “considered retired effective immediately,” and that any further contractual relationship with Shaw would be in violation of the charter. Shaw responded to the letter, stating that he had no intention of retiring as police chief before August 2005 and that he disagreed with Clark’s reading of the charter. Shaw explained, “Mr. Clark’s opinion ignores the fact that you hired me [on a contractual basis] when I was over age 60.1 believe that I will have claims against the City if I am wrongfully removed from my position.”

On August 2, 2004, the city council voted to relieve Shaw of his duties as police chief. The resolution stated that pursuant to the city charter, Shaw had been serving on a month-to-month basis since November 2001 and that he served “at the pleasure of the Mayor and council.” Council members Brenda Banks, Nathaniel Elem, Gerald Strassner, and Arnold Lackey voted to remove Shaw. Councilwoman Julie Cox voted against removing him. Councilwoman Theresa Pegúese was not present for the vote.

Later on August 2, Shaw received a telephone call from a coworker informing him that the city council had voted to remove him from his position. At the time, Shaw was in Nebraska for his grandson’s brain surgery. *6 More than two weeks later, on August 20, 2004, Shaw wrote the mayor and city council a letter, stating the following:

It has been brought to my attention that I have been removed from my position as Chief of Police with the city of Ecorse even though I have received no official written or verbal notice to this effect. If this is indeed the fact, I am hereby requesting that I begin receiving my retirement benefits immediately. Since it is not my choice to retire at this time, I make this request under protest.

Shaw subsequently requested “back pay,” a “cash out” of leave already accrued, and a pension plan transfer. Defendant offered at least two pension plans to its employees: the City Charter Pension Plan (Charter plan) and the MERS (Municipal Employees Retirement System) plan. Retirees were entitled to 65 percent of their final average compensation (FAC) under the Charter plan and 80 percent of their FAC under the MERS Plan, based on a 36-month period selected by the retiree. Shaw was a member of the Charter plan at the time of his retirement and requested to be transferred to the MERS plan. He believed he could make such a transfer under defendant’s agreement with the Police Officers Association of Michigan (the POAM contract). Defendant initially denied all of Shaw’s requests. In April 2005, several months after Shaw gave his notice of retirement, the board of trustees for the city retirement system adopted a resolution stating that Shaw was entitled to 50 percent of his FAC based on the period of its choosing.

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Bluebook (online)
770 N.W.2d 31, 283 Mich. App. 1, Counsel Stack Legal Research, https://law.counselstack.com/opinion/shaw-v-city-of-ecorse-michctapp-2009.