College Whistleblower Wins in Court
Thu, Mar08, 2007 - Category: University
On March 6, The Michigan Court of Appeals overturned
an earlier court decision to dismiss a former Ave
Maria College (MI) employee's wrongful termination
suit.
Statement released by Katherine M. Ernsting (former AMC employee):
"I am happy that the Michigan Court of Appeals saw fit to further define the Michigan Whistleblower Protection Act and to see that it's protection for employees in Michigan remains intact and keeps protecting the people the law was intended to protect. "
Statement released by Katherine M. Ernsting (former AMC employee):
"I am happy that the Michigan Court of Appeals saw fit to further define the Michigan Whistleblower Protection Act and to see that it's protection for employees in Michigan remains intact and keeps protecting the people the law was intended to protect. "
In July 2004, Katherine Ernsting was fired as
"Special Assistant to the President" of Ave Maria
College (AMC; Ypsilanti, MI). That firing came
shortly after Ernsting was interviewed by the
Inspector General's arm of the federal Department of
Education. The feds were investigating Ave Maria for
financial aid fraud. Ernsting filed a wrongful
termination suit under the Michigan Whistleblower's
Protection Act (WPA).
Tom Monaghan's legal team filed for summary disposition in trial court claiming that the WPA didn't apply in Ernsting's case because it "did not involve a report to a public body"; Monaghan's team alleged that the Inspector General's arm of the DOE was NOT "a law enforcement agency". In March 2005, Judge Timothy P. Connors bought Monaghan's argument and the case was dismissed.
Now, two years later, Connors' judgement was overturned in Michigan's Court of Appeals (full document here). The Appeals court agreed with Ernsting that "the trial court erred in finding that the plaintiff [Ernsting] was not engaged in a protected activity under the WPA." The court upheld the notion that the federal Department of Education is a "public body" and that the DOE's Inspector General arm is "a law enforcement agency".
As a college employee who helped oversee federal money given to the institution, Ernsting was required, by law, to report Ave Maria's financial aid mismanagement to the DOE. In 2005, the DOE forced Ave Maria to repay the government nearly $260,000 after learning that University students in Florida were illegally receiving federal financial aid given to the College in Michigan.
Ave Maria has a history of intimidating employees who report activity to the Inspector General. Two AMC employees were threatened with termination if they refused to sign a prepared memo recanting their testimony to the federal DOE (story here). A second wrongful termination suit against Ave Maria was filed by another AMC employee in 2005; like Ernsting, this suit was also dismissed as unapplicable to the WPA. The status of this second suit, in light of Ernsting's recent victory, is unclear.
Tom Monaghan's legal team filed for summary disposition in trial court claiming that the WPA didn't apply in Ernsting's case because it "did not involve a report to a public body"; Monaghan's team alleged that the Inspector General's arm of the DOE was NOT "a law enforcement agency". In March 2005, Judge Timothy P. Connors bought Monaghan's argument and the case was dismissed.
Now, two years later, Connors' judgement was overturned in Michigan's Court of Appeals (full document here). The Appeals court agreed with Ernsting that "the trial court erred in finding that the plaintiff [Ernsting] was not engaged in a protected activity under the WPA." The court upheld the notion that the federal Department of Education is a "public body" and that the DOE's Inspector General arm is "a law enforcement agency".
As a college employee who helped oversee federal money given to the institution, Ernsting was required, by law, to report Ave Maria's financial aid mismanagement to the DOE. In 2005, the DOE forced Ave Maria to repay the government nearly $260,000 after learning that University students in Florida were illegally receiving federal financial aid given to the College in Michigan.
Ave Maria has a history of intimidating employees who report activity to the Inspector General. Two AMC employees were threatened with termination if they refused to sign a prepared memo recanting their testimony to the federal DOE (story here). A second wrongful termination suit against Ave Maria was filed by another AMC employee in 2005; like Ernsting, this suit was also dismissed as unapplicable to the WPA. The status of this second suit, in light of Ernsting's recent victory, is unclear.