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Suchodolski v. Gas Co.

Supreme Court of Michigan
Mar 2, 1982
412 Mich. 692 (Mich. 1982)

Summary

holding that an at-will employee may have a cause of action for wrongful discharge "when the reason for a discharge was the employee's exercise of a right conferred by a well-established legislative enactment"

Summary of this case from Harper v. Autoalliance Intern., Inc.

Opinion

Docket No. 64822.

Argued April 7, 1981 (Calendar No. 4).

Decided March 2, 1982.

Donnelly Associates, P.C. (by Timothy G. Hagan), for plaintiff.

Dykema, Gossett, Spencer, Goodnow Trigg (by Seth M. Lloyd and Richard L. Hurford) for defendant.


At issue in this appeal is whether the circuit court properly granted summary judgment as to the plaintiff's claim that his discharge from his employment with Michigan Consolidated Gas Company was improper as contrary to public policy. The Court of Appeals affirmed the judgment for the defendant. We agree that summary judgment was appropriate and affirm.

I

The plaintiff began working for Michigan Consolidated Gas Company in September, 1972, as a senior auditor. He was discharged in January, 1976, and brought this action in 1978, stating various theories of recovery in a six-count complaint. Only one count is relevant to the present appeal. Count V of the complaint said, in part:

The circuit court entered judgment for the defendant on all six counts. The Court of Appeals reversed the decision as to the count claiming age discrimination on the authority of our decision in Strachan v Mutual Aid Neighborhood Club, Inc, 407 Mich. 928 (1979), rev'g 81 Mich. App. 165; 265 N.W.2d 66 (1978), but affirmed as to the other five counts.
The plaintiff has not appealed the judgment as to four of the counts.

"34. That plaintiff, in the course of his employment for defendant corporation, had discovered and reported poor internal management of defendant corporation.

"35. That plaintiff was terminated for attempting to report and correct such questionable procedures as the shifting of losses from appliance sales to the rate payers, uncollectable accounts receivable and the selling of automobiles and office equipment to employees of defendant corporation for very low prices.

"36. That defendant's discharge of plaintiff for attempting to report and correct the aforementioned practices was retaliatory and against the public policy of this state."

In affirming the summary judgment, the Court of Appeals noted that a "public policy" exception has developed to the general rule that either party to an employment contract for an indefinite term may terminate it at any time for any reason. The Court discussed at length the decision in Sventko v Kroger Co, 69 Mich. App. 644; 245 N.W.2d 151 (1976). In that case, the plaintiff claimed that she was discharged because she had filed a claim for workers' compensation benefits. The Court held that this stated a claim for which relief could be granted.

However, in an unpublished per curiam opinion, the Court of Appeals found Sventko inapplicable:

"We think that the Sventko case is factually distinguishable from the present case which involves a corporate management dispute and no clear mandate of public policy."

We granted leave to appeal.

II

In general, in the absence of a contractual basis for holding otherwise, either party to an employment contract for an indefinite term may terminate it at any time for any, or no, reason. See generally Toussaint v Blue Cross Blue Shield of Michigan, 408 Mich. 579; 292 N.W.2d 880 (1980). However, an exception has been recognized to that rule, based on the principle that some grounds for discharging an employee are so contrary to public policy as to be actionable. Most often these proscriptions are found in explicit legislative statements prohibiting the discharge, discipline, or other adverse treatment of employees who act in accordance with a statutory right or duty.

E.g., MCL 37.2701; MSA 3.548(701) (Elliott-Larsen Civil Rights Act); MCL 37.1602; MSA 3.550(602) (Handicappers' Civil Rights Act); MCL 408.1065; MSA 17.50(65) (Occupational Safety and Health Act); MCL 15.362; MSA 17.428(2) (The Whistleblowers' Protection Act).

The courts have also occasionally found sufficient legislative expression of policy to imply a cause of action for wrongful termination even in the absence of an explicit prohibition on retaliatory discharges. Such a cause of action has been found to be implied where the alleged reason for the discharge of the employee was the failure or refusal to violate a law in the course of employment. Thus, in Trombetta v Detroit, T I R Co, 81 Mich. App. 489; 265 N.W.2d 385 (1978), the Court said that it would have been impermissible to discharge an employee for refusing to falsify pollution control reports that were required to be filed with the state.

See also Petermann v International Brotherhood of Teamsters, Chauffeurs, Warehousemen Helpers of America, Local 396, 174 Cal.App.2d 184; 344 P.2d 25 (1959) (discharge because employee refused to give false testimony before legislative committee); McNulty v Borden, Inc, 474 F. Supp. 1111 (ED Pa, 1979) (discharge for refusal to participate in illegal price-fixing scheme).

In addition, the courts have found implied a prohibition on retaliatory discharges when the reason for a discharge was the employee's exercise of a right conferred by a well-established legislative enactment. See, e.g., Sventko v Kroger Co, supra; Hrab v Hayes-Albion Corp, 103 Mich. App. 90; 302 N.W.2d 606 (1981). Both cases involved allegations of discharges in retaliation for having filed workers' compensation claims.

Most of the cases in other jurisdictions also involve allegations of discharge in retaliation for filing workers' compensation claims. E.g., Frampton v Central Indiana Gas Co, 260 Ind. 249; 297 N.E.2d 425 (1973); Kelsay v Motorola, Inc, 74 Ill.2d 172; 384 N.E.2d 353 (1979).

The plaintiff relies on two sources to establish that a "public policy" would be violated by allowing his discharge to stand. First, he argues that the Code of Ethics of the Institute of Internal Auditors is such an expression of public policy. Second, he points to the extensive regulation of the accounting systems of public utilities by the Public Service Commission. E.g., MCL 483.113; MSA 22.1323. He maintains that his complaints about the internal accounting practices of the defendant, which he alleges led to his discharge, related to matters that could have interfered with the Public Service Commission's ability to perform its regulatory functions.

We agree with the Court of Appeals that this case involves only a corporate management dispute and lacks the kind of violation of a clearly mandated public policy that would support an action for retaliatory discharge. The code of ethics of a private association does not establish public policy. Nor is the regulation of public utilities sufficient to sustain the plaintiff's action. The regulation of the accounting systems of utilities is not, as is the workers' compensation statute, directed at conferring rights on the employees. Finally, we note that the plaintiff does not claim that his discharge arose from his refusal to falsify reports or documents required by the Public Service Commission.

The judgment of the Court of Appeals is affirmed.

COLEMAN, C.J., and KAVANAGH, WILLIAMS, LEVIN, FITZGERALD, RYAN, and BLAIR MOODY, JR., JJ., concurred.


Summaries of

Suchodolski v. Gas Co.

Supreme Court of Michigan
Mar 2, 1982
412 Mich. 692 (Mich. 1982)

holding that an at-will employee may have a cause of action for wrongful discharge "when the reason for a discharge was the employee's exercise of a right conferred by a well-established legislative enactment"

Summary of this case from Harper v. Autoalliance Intern., Inc.

holding that even in an at-will employment relationship, "some grounds for discharging an employee are so contrary to public policy as to be actionable"

Summary of this case from Hein v. All America Plywood Co.

finding that "[t]he code of ethics of a private association does not establish public policy"

Summary of this case from Spratt v. FCA US LLC

finding "an exception has been recognized" to the "rule" that "either party to an employment contract for an indefinite term may terminate it at any time for any, or no, reason"

Summary of this case from In re Ajay Sports, Inc.

In Suchodolski, the Michigan Supreme Court described three situations when Michigan courts have found that termination of an at-will employee violated public policy.

Summary of this case from Hoven v. Walgreen Co.

In Suchodolski v. Michigan Consolidated Gas Co., 412 Mich. 692, 316 N.W.2d 710 (1982), the Michigan Supreme Court recognized a "public policy" exception to the general rule that at-will employees may be terminated at any time and for any reason. This exception is based on the principle that "some grounds for discharging an employee are so contrary to public policy as to be actionable."

Summary of this case from Pratt v. Brown Mach. Co.

In Suchodolski v. Michigan Consolidated Gas Co., 412 Mich. 692, 695, 316 N.W.2d 710, 711 (1982) (per curiam), the Supreme Court of Michigan recognized an exception to the general rule that an employment contract for an indefinite term is terminable at will "based on the principle that some grounds for discharging an employee are so contrary to public policy as to be actionable."

Summary of this case from Wiskotoni v. Michigan Nat. Bank-West

In Suchodolski, supra, the plaintiff employee had attempted to report and correct questionable internal accounting procedures of the defendant public utility.

Summary of this case from Wiskotoni v. Michigan Nat. Bank-West

In Suchodolski, the Michigan Supreme Court described three situations when Michigan courts have found that termination of an at-will employee violated public policy.

Summary of this case from Stone v. Zeta Glob. Corp.

In Suchodolski, the Michigan Supreme Court made clear the kinds of public policy mandates that may constitute a viable claim: legislatively enacted policies stating that it is contrary to public policy to terminate employees on the basis of certain protected characteristics.

Summary of this case from Jarvis v. Oakland-Macomb Obstretrics

In Suchodolski v. Michigan Consol. Gas Co., 316 N.W.2d 710, 712 (Mich. 1982), the Michigan Supreme Court held that an employee may bring a claim for wrongful discharge in violation of public policy where his employer fires him for his "exercise of a right conferred by a well-established legislative enactment."

Summary of this case from Hasanaj v. Detroit Pub. Sch. Cmty. Dist.

In Suchodolski, the Michigan Supreme Court described the implied cause of action as arising from "the failure or refusal to violate a law."

Summary of this case from Giron v. Tyco Elecs. Corp.

In Suchodolski v. Michigan Consolidated Gas Co., 412 Mich. 692, 316 N.W. 2d 710 (1982), Michigan's Supreme Court recognized three examples of public policy exceptions to an employer's right to discharge an at-will employee under the employment at will doctrine.

Summary of this case from Hendricks v. Bronson Methodist Hosp., Inc.

In Suchodolski v. Michigan Consolidated Gas Co., 412 Mich. 692, 695, 316 N.W.2d 710, 711 (1982), the Michigan Supreme Court recognized a "public policy" exception to the general rule that at-will employees may be terminated at any time and for any reason. The exception is "based on the principle that some grounds for discharging an employee are so contrary to public policy as to be actionable."

Summary of this case from L.S.D. v. Genesee County Community Mental Health

In Suchodolski, the Michigan Supreme Court suggested that the term "legislative enactment" does not encompass all statutes, but only statutes "directed at conferring rights on employees."

Summary of this case from Grant v. Dean Witter Reynolds, Inc.

In Suchodolski v. Michigan Consolidated Gas Company, 412 Mich. 692, 695, 316 N.W.2d 710 (1982), the Michigan Supreme Court recognized that while generally "either party to an employment contract for an indefinite term may terminate it at any time for any, or no, reason" (citing Toussaint v. Blue Cross Blue Shield of Michigan, 408 Mich. 579, 292 N.W.2d 880 (1980)), "some grounds for discharging an employee are so contrary to public policy as to be actionable."

Summary of this case from Melchi v. Burns Intern. Sec. Services, Inc.

In Suchodolski, we reaffirmed that in addition to a statutory cause of action, courts may imply a public-policy cause of action for wrongful termination for (1) the "failure or refusal to violate a law" and for (2) the "exercise of a right conferred by a well-established legislative enactment."

Summary of this case from Stegall v. Res. Tech. Corp.

relying on a professional organization's code of ethics and general regulations of the Public Service Commission

Summary of this case from Stegall v. Res. Tech. Corp.

listing the three exceptions

Summary of this case from Stegall v. Res. Tech. Corp.

In Suchodolski v Michigan Consolidated Gas Co, 412 Mich. 692, 694-695; 316 NW2d 710 (1982), this Court held that while either party to an employment contract for an indefinite term may generally terminate the employment at any time for any, or no, reason, "some grounds for discharging an employee are so contrary to public policy as to be actionable."

Summary of this case from McNeil v. Charlevoix Co.

In Suchodolski, supra at 695-696, our Supreme Court provided three examples of public-policy exceptions to an employer's right to discharge an at-will employee under the employment at will doctrine.

Summary of this case from McNeil v. Charlevoix Co.

In Suchodolski, this Court recognized exceptions to the at-will doctrine "based on the principle that some grounds for discharging an employee are so contrary to public policy as to be actionable."

Summary of this case from McNeil v. Charlevoix Co.

In Suchodolski, 412 Mich. at 695, our Supreme Court recognized a public-policy exception to the general rule that an employment-at-will contract may be terminated by either party to the employment contract at any time for any or no reason.

Summary of this case from Stegall v. Res. Tech. Corp.

In Suchodolski, the Supreme Court explained that "some grounds for discharging an employee are so contrary to public policy as to be actionable." Id. at 695.

Summary of this case from Stegall v. Res. Tech. Corp.

In Suchodolski, 412 Mich. at 695-696, the Supreme Court provided a nonexhaustive list "of public policies that might forbid termination of at-will employees."

Summary of this case from Piecka v. Genesys Reg'l Med. Ctr.
Case details for

Suchodolski v. Gas Co.

Case Details

Full title:SUCHODOLSKI v MICHIGAN CONSOLIDATED GAS COMPANY

Court:Supreme Court of Michigan

Date published: Mar 2, 1982

Citations

412 Mich. 692 (Mich. 1982)
316 N.W.2d 710

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