Did "Terrorists" Violate Agreement?

Tom Monaghan has a long history of demanding that Ave Maria enterprises use "at will" employment contracts. It removes the obligation to offer any justification for firing people. Termination can come without notice. The employee can then be coerced into signing a non-disparagement agreement (or worse); fired employees who need to care for self and family are more likely to sign gag orders.

On August 27, 2007, in a gathering (with media) on the first day of class at AMU, Monaghan saw fit to call former Ave Maria College employees "academic terrorists". Later in the day, Monaghan again broadcast that notion to the world by reiterating the phrase on the radio (WDEO, hour #2 of "Kresta in the Afternoon"). The terrorist label was met with strong criticism (1,2,3)

Name-calling and labels have been exchanged by supporters and critics alike; thus, AveWatch didn't make much of this story. But, an important question has arisen. Did Tom Monaghan's remarks about College employees - given the remark's repetition, public nature, lack of necessity, and career-oriented injurious effect - violate his non-disparagement agreement with former College employees? If so, what are the ramifications? Are those individuals now free to speak?

Canon Lawyer Calls Monaghan To Task

During yesterday's opening ceremonies at Ave Maria University, Tom Monaghan's classy panache shined through as he saw fit to call former Michigan college faculty employees "academic terrorists".

One of the most prominent canon lawyers in America, Edward Peters, asks "why".

Excerpt: "Tom Monaghan, in contrast, seems to think that his paterfamilias style of philanthropy permits him to show continual scorn for the vanquished, those who dared to question his judgment about various projects, projects to which they, often as much and sometimes more than he, contributed, but in which he allowed them little or no voice."

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Whistleblower Legal Fund Announced


Bleed 'em to death in court.

That's the deep-pockets approach to Catholic social justice of billionaire Tom Monaghan. AveWatch has been following Monaghan's attempt to block Katherine Ernsting's wrongful termination suit from going to trial [1,2,3] . Ernsting was fired from Ave Maria shortly after she reported illegal distribution of student federal aid on the start-up Florida campus. Her reports to federal investigators lead, in part, to a $259,000 payback levied by the Department of Education against Monaghan.

Ernsting fulfilled her duty as Financial Aid Officer and saved many thousands of dollars in illegal taxpayer aid from propping billionaire Monaghan's Florida venture. Unlike Tom Monaghan, Ernsting does not have a donor base that will fund stall tactics in court. Unlike Monaghan, she does not have booming for-profit businesses, personal investments, and a bank tied to south Florida's real estate development. Many of Ernsting's Ave Maria colleagues are limited in their ability to help after their signing of a non-disparagement agreement to secure severance payment from Ave.

With one hand, Tom Monaghan equates donations to himself as donations to "the Church" that are "for the good of your soul". With the other hand, Monaghan denies a fellow Catholic and dedicated employee the justice of having her case heard before a judge. When asked about examining the merits of Ernsting's case in court, Monaghan's lawyer admitted "We hope we don't get to that point" (Naples News, March 24, 2007). Will Catholics be content to stand for this duplicity?

Today, Ernsting's friends announce the creation of a legal expense fund to help cover the costs incurred to get the case before a judge (which, after two years and thousands in court costs, still has not happened).

This is an opportunity to have Tom Monaghan and his administrators explain their governance and employee treatment tactics under oath. Light disinfects.

Click below for additional information on how to help.More...

Monaghan Preps for Supreme Court

The stage is set for even more eyes to be firmly fixed on Tom Monaghan's 2-year attempt to prevent the merit's of a College employee's wrongful-termination suit from being evaluated in trial court (background). Yesterday, the Michigan Court of Appeals denied Monaghan's request to have the Court reconsider its recent decision to allow Kate Ernsting to seek relief under Michigan's "Whistleblower Protection Act". For years, Monaghan has claimed that Ernsting cannot seek protection as "whistleblower" because the investigators that she reported to - officials from the Department of Education's Office of Inspector General - are not "law enforcement", and thus excluded are from the Whistleblower Protection Act.

According to Paul Fransway in the Naples News, Monaghan's legal team indicated that they will file an appeal to the Michigan Supreme Court.

If the Supreme Court rejects, or decides not to hear, Monaghan's appeal, then a trial court will evaluate Ernsting's claim that she was fired for providing evidence to federal investigators. That investigation resulted in Monaghan having to pay-back over a quarter-million dollars to the government for illegal distribution of financial aid.

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.More...

Monaghan Stalls Employee Justice

“The [Ave Maria] administration asked me to stop talking to the Department of Education, but I couldn’t do that. They [Ave] threatened my job if the outcome of the [DoE] investigation didn’t come out right. .. We’ll see whether the law is interested in letting someone with a lot of money hold all the cards.”

Monaghan appears to be using a legal stall tactic - and his deep pockets - to bleed Ernsting dry financially before she can have the merits of her case evaluated in court. Monaghan claims that the federal Department of Education's Office of Inspector General is not a law enforcement agency and, thus, is excluded from Michigan's "Whistleblower Protection Act", which Ernsting seeks relief under. (To note, agents of the Inspector General carry badges, guns, and have the authority to arrest individuals). When asked about examining the merits of Ernsting's case, Monaghan's lawyer even admitted "We hope we don’t get to that point."

Monaghan's lawyers also claim that “Ms. Ernsting’s employment was terminated when the department in which she worked was eliminated as part of the planned wind-down." If so, why does Monaghan not stand with Ernsting as an equal before a judge and allow the case to be decided? Why all the appeals, possibly all the way to the Michigan Supreme Court? It is AveWatch's understanding that, in fact, another person was hired to replace Ernsting as chief financial aid officer of the College; if an institution like Ave Maria receives federal financial aid, then a person at the College must oversee the distribution of that aid, and that person is bound by law to report violations involving federal aid to the Department of Education. At the time of Ernsting's firing, the school still had about 200 students.

Naples News - full story | AveWatch archive - Whistleblower Wins in Court

Faculty coerced

Two AMC faculty were given a choice - sign a letter retracting their report to federal investigators (i.e. lie) or be kicked off the payroll.More...

Who is AMC President?

According to the Michigan Department of Labor, it is Tom Monaghan.More...