Thomas D Esordi v. MacOmb Township

Michigan Court of Appeals
FOR PUBLICATION, August 29, 2025, 10:36 AM (2025)
ELI5:

Rule of Law:

An employment contract for a public officer that provides for 'just cause' termination but has no fixed term is void as against public policy because it impermissibly binds successor governmental boards. Additionally, a whistleblower claim requires clear causation beyond mere temporal proximity, and state public policy claims for retaliation are preempted by the Whistleblowers' Protection Act if they arise from the same facts.


Facts:

  • In January 2017, Thomas D. Esordi was hired by the Township of Macomb as a full-time employee in a newly-created dual position of general counsel and human resources director, with an employment contract providing for “just cause” termination and no specific term of employment.
  • In October 2019, Janet Dunn, the township supervisor, told Esordi that in 2016, former trustee Dino Bucci gave her an envelope of money from developers, which she distributed to people in need and to her church.
  • The day after his conversation with Dunn, Esordi reported the information about Dunn receiving money to the Department of Justice (DOJ).
  • On January 10, 2020, Dunn emailed certain township employees to complete anonymous evaluations of Esordi, which were returned by January 17, 2020, and indicated most employees thought Esordi was incompetent and unprofessional; plaintiff conceded that the negative results were shared with him before January 22, 2020.
  • On January 22, 2020, Esordi emailed the Township Board a confidential memorandum stating he had reported possible crimes involving a current Board member to federal authorities, referring to Dunn receiving money from Bucci.
  • The same day or the day after sending the memorandum, Dunn placed Esordi on paid administrative leave, telling him it was due to the memo, which she described as “insubordination and blackmail,” though she later testified it was also based on negative evaluations and his attempt to access surveillance footage.
  • In November 2020, following a new Township Board election, the new supervisor, Frank J. Viviano, directed Esordi to go home, and the Board subsequently voted to dissolve the combined general counsel/HR director position due to potential conflicts of interest, leading to Esordi's termination as he did not apply for the separate roles.
  • Esordi's compensation and benefits remained the same during his administrative leave and upon his brief return to employment in May 2020.

Procedural Posture:

  • Thomas D. Esordi filed suit in Macomb Circuit Court (the trial court) on April 20, 2020, alleging violation of the Whistleblowers' Protection Act (WPA), violation of public policy, and breach of contract.
  • After a Loudermill hearing occurred on April 29, 2020, Esordi amended his complaint to add a claim for "retaliation in violation of Michigan's WPA/public policy."
  • After Esordi's employment was terminated in November 2020, he was allowed to amend his complaint again to add a count for denial of due process in violation of 42 USC § 1983.
  • The due process claim was removed to federal district court, which then remanded Esordi's remaining state-law claims (WPA, public policy, breach of contract) back to the Macomb Circuit Court.
  • The Township of Macomb, Janet I. Dunn, and Kristi L. Pozzi (defendants) moved for partial summary disposition of Esordi’s claims for breach of contract, public policy, and WPA/public policy retaliation.
  • The trial court granted defendants summary disposition of the breach-of-contract claim (finding the contract void against public policy) and the public policy-based claims (finding them preempted by the WPA).
  • Esordi moved under MCR 2.604(A) to set aside the order dismissing his breach-of-contract claim, which the trial court denied.
  • Subsequently, each defendant separately moved for summary disposition of Esordi's last remaining claim under the WPA.
  • The trial court granted defendants summary disposition of Esordi’s WPA claims.
  • Esordi, as plaintiff-appellant, appealed these decisions to the Michigan Court of Appeals.

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Issue:

1. Is a public employee's 'just cause' employment contract without a termination date void as against public policy because it deprives a successor township board of its statutory power to appoint and remove public officers? 2. Did the plaintiff establish a prima facie case under the Whistleblowers' Protection Act (WPA) against the Township of Macomb, Janet I. Dunn, or Kristi L. Pozzi? 3. Are the plaintiff's public policy-based retaliation claims preempted by the WPA when they arise from the same factual allegations as his WPA claim?


Opinions:

Majority - GADOLA, C.J.

1. Yes, a public employee's 'just cause' employment contract without a termination date is void as against public policy because it deprives a successor township board of its statutory power to appoint and remove public officers. The court affirmed the trial court's grant of summary disposition on the breach-of-contract claim. Citing Hazel Park v Potter, the court held that a public officer's employment contract that extends beyond the term of the board approving it and provides for just-cause termination, thus lacking a specific end date, is void because it infringes upon a successor board's right to select and appoint its own employees as provided by MCL 41.75a, which states that employees "shall serve at the pleasure of the township board." The court distinguished Davis v Pub Sch of Escanaba, noting that Davis concerned a fixed-term contract for a school superintendent under a repealed statute and did not involve an indefinite "just cause" provision. The court clarified that public policy must be rooted in the state or federal constitution, state statute, or common law, concluding that the Potter rule aligns with common law and the Michigan Constitution's grant of legislative powers to cities, thus not running afoul of Terrien v Zwit or Ingham Co v Mich Co Rd Comm Self-Ins Pool. The court also found Esordi's position to be governmental, not proprietary, subject to the Potter rule. 2. No, the plaintiff did not establish a prima facie case under the Whistleblowers' Protection Act (WPA) against the Township of Macomb, Janet I. Dunn, or Kristi L. Pozzi. Against the Township (for November 2020 termination): While Esordi engaged in protected activity (reporting to the DOJ in October 2019, followed by the memo in January 2020) and suffered an adverse employment action (termination), he failed to establish a causal connection. The termination occurred 10 months after his memo, by a newly elected Board whose members testified they voted to dissolve his dual position due to legitimate conflicts of interest, not his reporting. The court reiterated that "something more than a temporal connection" is required for causation. Against Dunn (for administrative leave and subsequent actions): Esordi engaged in protected activity. However, being placed on paid administrative leave did not constitute an adverse employment action as he received full pay and benefits and returned to the same position with the same pay and benefits. Alleged changes to his work conditions upon return (new computer/phone, lack of certain software, not receiving a credit card, requirement of another employee during meetings) were not deemed adverse employment actions under the WPA. Furthermore, Dunn's development and review of performance evaluations occurred before Esordi sent his memorandum, thus lacking a causal connection to his protected activity. The hiring of attorney Yeotis by Dunn and Pozzi to review evaluations also lacked causation beyond mere temporal proximity, as it was based on negative evaluations and not directly on Esordi's protected activity. Against Pozzi: The court affirmed that Pozzi was not an "employer" or "agent of an employer" under the WPA. Applying the "economic-reality" test and the Elezovic v Bennett standard for "agent" (delegation of general supervisory power), the court found Pozzi lacked control over Esordi's duties, payment of wages, or authority to hire, fire, or discipline him; these decisions were within the Board's discretion and his day-to-day duties were supervised by Dunn. 3. Yes, the plaintiff's public policy-based retaliation claims are preempted by the WPA because they arise from the same factual allegations as his WPA claim. The court held that the WPA provides the exclusive remedy for retaliatory discharge and preempts common-law public policy claims arising from the same activity. Distinguishing Janetsky v Saginaw Co* (Janetsky I), where the public policy claim was factually distinct from the WPA claim, the court found Esordi's public policy claims in Counts II and IV relied on the exact same general allegations and facts (reporting suspected criminal activity and alleged retaliation in response) as his WPA claim in Count I. Thus, summary disposition of these claims was proper.



Analysis:

This case reinforces the limitations on employment contracts for public officials, emphasizing that provisions like "just cause" termination without a fixed term are void if they infringe on the successor government's legislative authority to appoint and remove employees. It also clarifies the stringent causation requirement for WPA claims, particularly when there is a significant temporal gap or an intervening change in the employer's decision-making body, highlighting that legitimate business reasons, even if known after protected activity, can defeat a claim if they are the actual motivators. Furthermore, it narrows the scope of independent public policy claims in retaliation cases by reaffirming WPA's preemption where claims are not factually distinct.

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