Legal Newspapers Now Watching Ave

The activities of Tom Monaghan have the attention of Michigan's legal community, and beyond. Last week's edition of Michigan Lawyers Weekly (subscription) covered the case of Kate Ernsting, a former AMC employee who is seeking protection under the Whistleblowers Protection Act (see this AveWatch article for background). Ernsting was fired by Monaghan shortly after she provided the U.S. Department of Education (DOE) with information requested by the DOE concerning Ave Maria operations. That investigation ultimately caught Ave Maria in a financial aid sleight of hand that was benefiting the start-up Ave Maria University in Florida. Monaghan was forced to pay over $250,000 back to the government.

K.L. Bogas, President of the National Employment Lawyers Association:
"The purpose of the WPA is to provide protection to an employee who stands up against the illegal activity of her employer. It takes a lot of courage to do that, so to put up roadblocks in the path of those brave employees, such that they have no job protection, flies in the face of the very purpose of the act."

If Monaghan refuses to allow the merits of Ernsting's wrongful-termination suit to be judged, and instead appeals the recent decision to allow Ernsting to claim protection under the Act, then the Whistleblower debate will garner more headlines as it rises to the Michigan Supreme Court.
Employers are not permitted to terminate an employee who reports "a violation or a suspected violation of a law or regulation or rule ... to a public body, unless the employee knows the report is false." But is the federal DOE a "public body" in the sense of a "law enforcement agency or any member or employee of a law enforcement agency."?

Judge Kurtis T. Wilder of the Michigan Court of Appeals said that "given the broad grant of statutory authority to detect and punish violations relating to the DOE's operations, we conclude the DOE is a 'law enforcement agency'."

It was also emphasized that the DOE conducts investigations through an arm of the Inspector General (IG). The Inspector General Act of 1978 was enacted by the US Congress to combat fraud, abuse, and mismanagement.

Judge Wilder concluded that Monaghan's lawyers were wrong in their argument that Ernsting's wrongful-termination suit should be dismissed.

Michigan Lawyers Weekly is part of Lawyers Weekly, "the nation's premier source of legal information for practicing attorneys."