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Shallal v. Catholic Social Services of Wayne County

7/30/1997

Docket No. 103125. Argued April 9, 1997 (Calendar No. 15). Decided July 30, 1997.


Wayne Circuit Court, John H. Hausner, J.


JANETTE SHALLAL, Plaintiff-Appellant, v. CATHOLIC SOCIAL SERVICES OF WAYNE COUNTY and THOMAS D. QUINN, Defendants-Appellees.


BEFORE THE ENTIRE BENCH


We granted leave to appeal in this case to determine whether the trial court abused its discretion in dismissing Janette Shallal's retaliatory discharge claim under the Whistleblowers' Protection Act. MCL 15.361 et seq.; MSA 17.428(1) et seq. We find no abuse of discretion and affirm the dismissal.


I.


Defendant Catholic Social Services of Wayne County (CSS) is a nonprofit social service agency that provides a wide range of services. Plaintiff Shallal worked for CSS as an adoption department supervisor under a termination "for cause" employment contract. This suit arises out of her claim against CSS for retaliatory discharge.


In late 1986, the CSS Board of Directors appointed defendant Thomas D. Quinn to the position of CSS president. Quinn's alleged lack of expertise prompted some members of the staff to write a letter to the board opposing the appointment. Despite the opposition, Quinn began his presidency in January 1987.


Approximately one year into Quinn's tenure, allegations arose that Quinn was drinking on the job and misusing agency funds in violation of agency rules. Shallal discussed the need to report to her supervisor and other staff members. She also discussed her concerns about Quinn's violations with an honorary CSS Board Member, Mr. Ryan. Ryan suggested that Shallal report Quinn's violations to the board and to accrediting bodies, presumably in the DSS. Shallal never took action, however, because she feared that her job would be jeopardized.


Before her employment with CSS was terminated, Shallal supervised the adoption of a baby, Ray Glover. Soon after the placement, Shallal learned that Ray's former foster mother had visited Ray and reported seeing bruises on his face, neck, and hands. In retrospect, it appears that Shallal should have reported the allegation to the DSS. A case worker did check on Ray within thirty days of the allegation; however, no official action was taken, there being only minor scratches visible on Ray. Several weeks later, however, Ray was rushed to the hospital, nearly dead from "shaken baby syndrome." Today, he remains in a chronic vegetative state with severe, permanent brain damage.


When Shallal notified the DSS about Ray's injuries, it investigated and cited CSS with violations of several agency rules and regulations. It criticized Shallal for her inadequate response to the first report of abuse, her approval of an inadequate adoption home evaluation, and her failure to coordinate house visits. The DSS faulted Shallal for placing improper emphasis on race in the placement process. The report was equally critical of CSS, listing several institutional failures.


As is their practice, DSS officials met with defendant Quinn before issuing a formal written report on April 19, 1991. They did not specifically recommend Shallal's dismissal. Shallal alleges that, in the past, comparable employee errors did not result in discharge.


After the meeting with DSS officials, Quinn called Shallal into his office. The ensuing Discussion became heated. Shallal stated her intention to report Quinn's abuses of alcohol and agency funds if he failed to, in her words, "straighten up."


Quinn decided to discharge Shallal, citing the DSS report as support. He ordered Timothy Kluka, plaintiff's direct supervisor, to fire her. Kluka refused, feeling he

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