MINO v CLIO SCHOOL DISTRICT
Docket No. 232279
Michigan Court of Appeals
Submitted November 13, 2002. Decided January 14, 2003
255 MICH APP 60
Leave to appeal sought.
The Court of Appeals held:
1. The trial court did not err in summarily dismissing the breach of contract claim.
2. The trial court did not err in summarily dismissing the defamation claims. Because Dr. Mino was a public figure, the plaintiffs had to establish actual malice to maintain the defamation claims. Clear and convincing evidence of actual mаlice, i.e., that the defendants made the alleged defamatory statements with knowledge that they were false or in reckless disregard for the truth, was lacking with respect to the alleged defamatory statements. Additionally, with respect to Peacock, her letter made no reference to Dr. Mino in stating why she voted against a contract with the union.
3. The trial court did not err in summarily dismissing the claim of tortious interference with a business relationship or expectancy. Latture and Peacock did not instigate the Pocatello search committee‘s investigation. The evidence provided by the plaintiffs failed to demonstrate any affirmative acts by Latture or Peacock done with malice or without justification.
4. The trial court did not err in summarily dismissing the claim оf intentional infliction of emotional distress. The conduct of Latture, Peacock, and Emmerling cannot be described as extreme or outrageous.
5. The trial court did not err in summarily dismissing the claim of loss of consortium. A derivative claim of loss of consortium stands or falls with the primary claims in the complaint.
Affirmed.
WHITE, J., concurring in part and dismissing in part, disagreed that the severance agreement violates
SCHOOLS — SEVERANCE AGREEMENTS — CONFIDENTIALITY CLAUSES. The board or an official of a school district may not enter into a severance agreement with an employee that has the effect of suppressing information about unprofessional conduct by the employee; any such agreement is void and unenforceable (
MCL 380.1230b[6] ).- LIBEL AND SLANDER — ACTIONS — PUBLIC FIGURES.
A plaintiff establishes a defamation claim regarding a statement by showing a false and defamatory statement concerning the plaintiff, an unprivileged publication to a third party, fault amounting at least to negligence on the part of the publisher, and either actionаbility of the statement irrespective of special harm (defamation per se) or the existence of special harm caused by the publication (defamation per quod); where the plaintiff is a public figure, the plaintiff must prove by clear and convincing evidence that the publication was a defamatory falsehood and was made with actual malice, i.e., with knowledge of falsity or with reckless disregard for the truth.
- TORTS — INTERFERENCE WITH BUSINESS RELATIONSHIP OR EXPECTANCY.
The elements of tortious interference with a business relationship or expectancy are the existence of a valid business relationship or expectancy, knowledge of the relationship or expectancy on the part of the defendant, intentional interference by the defendant inducing or causing a breach or termination of the relationship or expectancy, and resultant damage to the plaintiff; to establish that a lawful act was done with malice and without justification, the plaintiff must demonstrate, with specificity, affirmative acts by the defendant that corroborate the improper motive of the interference; where the defendant‘s actions were motivated by legitimate business reasons, the defendant‘s actions would not constitute improper motive or interference.
- TORTS — INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS.
A plaintiff in an action for intentional infliction of emotional distress must establish extreme and outrageous conduct, intent or recklessness, causation, and severe emotional distress; liability for intentional infliction of emotional distress has been found only where the сonduct complained of has been so outrageous in character, and so extreme in degree, as to go beyond all possible bounds of decency, and to be regarded as atrocious and utterly intolerable in a civilized community.
Cox, Hodgman & Giarmarco, P.C. (by Timothy J. Mullins and Stephen R. Estey), for the defendants.
Before: O‘CONNELL, P.J., and WHITE and B. B. MACKENZIE*, JJ.
O‘CONNELL, P.J. Plaintiffs Keith E. Mino, Jr.,1 and Nancy S. Mino appeal as of right the circuit court‘s order granting summary disposition pursuant to
* Former Court of Appeals judge, sitting on the Court of Appeals by assignment.
I. THE ISSUE
This case presents a question of first impression in this state regarding the legality of a confidentiality clause in an employment severance agreement that essentially prohibits the parties from disparaging each other after the employment relationship terminates.
II. BASIC FACTS AND PROCEEDINGS
Dr. Mino began his employment as superintendent of the Clio School District during the last week of June 1997. In September 1997, problems developed in Dr. Mino‘s performance as superintendent. Superintendent secretary Diane Schaupp felt that Dr. Mino did not take charge of the position because he did not attempt to meet with staff and did not attend organizational meetings. She also testified that Dr. Mino received excessive telephone calls from his former place of employment. In addition, Schaupp observed Dr. Mino speak loudly and angrily with public relations director Wanda Emmerling regarding a district publication and heard Dr. Mino say he could fire her despite the fact that her husband was a school board member.
In addition, there were difficulties between Dr. Mino and assistant superintendent Fay Latture. According to Schaupp, Latture had to assume extra duties that Dr. Mino was supposed to perform. Latture informed her secretary that Dr. Mino was having an extramarital affair and that Dr. Mino made sexual telephone calls. In 1997 and 1998, Latture also
In January 1998, Dr. Mino decided to look for work outside the school district. In April 1999, Dr. Mino and the district entered into a “letter of understanding” establishing a severance agreement. It stated, in part: “Unless required by law to do so, the Clio Area Schools will not disseminate negative information about Dr. Mino to any person or organization inside or outside of the Clio Area Schools.” (Emphasis in original.) The severance agreement also included a release of claims against both parties, and effected a “buyout” of Dr. Mino‘s three-year contract.4
After fielding other job inquiries, in May 1999, Dr. Mino went to Pocatello, Idaho, to interview for a superintendent position. The Pocatello Board of Education appointed four people to a search committee to go to Michigan in order to investigate Dr. Mino. One committee member testified that board members at Dr. Mino‘s former place of employment said that
Pocatello trustee J. Thomas Bernasek testified that during a special meeting with the school board, the search committee informed the board of the rumors they heard, but stated that the rumors were unsubstantiated and maintained that they did not recommend Dr. Mino because of his leadership style only. Bernasek stated that the school board did not want to hire a superintendent “with that type of baggage” regardless of its truth, noting that the Pocatello School District already had its own problems with public perception. On June 2, 1999, the Pocatello School District informed Dr. Mino that he was not being offered the superintendent position.5
III. BREACH OF CONTRACT
A trial court‘s grant or denial of summary disposition under
On appeal, plaintiffs allege breach of contract against Latture and Peacock (involving her conversation with the Pocatello search committee) for “disseminat[ing] negative information about Dr. Mino[.]”7 Plaintiffs point to the following instances: (1) Lloyd‘s testimony that Peаcock raised concerns about leadership style and how the money was being managed for the school district; (2) Lloyd‘s testimony that Peacock told her there were unsubstantiated or alleged rumors that Dr. Mino engaged in sexual improprieties; (3) Lloyd‘s testimony that Peacock could not give the committee her personal view because a “gag order” was in place; (4) Lloyd‘s testimony that Latture stated that her leadership style was almost the exact opposite of Dr. Mino‘s leadership style in that she was “hands on,” interested in minute detail, and interested in complying with stated standards; and (5) Clio School District trustee David Hemingway‘s testimony that a committee member indicated that Latture informed them of the “buyout, the gag order,” and
The primary goal of statutory interpretation is to give effect to the intent of the Legislature. Lamp v Reynolds, 249 Mich App 591, 597; 645 NW2d 311 (2002), citing In re Messer Trust, 457 Mich 371, 379-380; 579 NW2d 73 (1998). To determine legislative intent, a reviewing court must first look to the statutory language. Lamp, supra at 597, citing Charboneau v Beverly Enterprises, Inc, 244 Mich App 33, 40; 625 NW2d 75 (2000). Statutory language should be construed reasonably, keeping in mind the purpose of the act. Draprop Corp v Ann Arbor, 247 Mich App 410, 415; 636 NW2d 787 (2001). Accordingly, “[i]f the plain and ordinary meaning of the statute‘s language is clear, judicial construction is inappropriate.” Lamp, supra at 597.
(6) The board or an official of a school district, local act school district, public school academy, intermediate school district, or nonpublic school shall not enter into a collective bargaining agreement, individual employment contract, resignation agreement, severance agreement, or any other contract or agreement that has the effect of suppressing information about unprofessional conduct of an employee or former employee or of expunging information about that unprofessional conduct from personnel records. Any provision of a contract or agreement that is contrary to this subsection is void and unenforceable. This subsection does not restrict the expungement from a personnel file of infor-
mation about alleged unprofessional cоnduct that has not been substantiated.
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(8) As used in this section:
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(b) “Unprofessional conduct” means 1 or more acts of misconduct; 1 or more acts of immorality, moral turpitude, or inappropriate behavior involving a minor; or commission of a crime involving a minor. A criminal conviction is not an essential element of determining whether or not a particular act constitutes unprofessional conduct. [Emphasis added.]
The confidentiality clause in the contract in question states:
7. Unless required by law to do so, the Clio Area Schools will not disseminate negative information about Dr. Mino to any person or organization inside or outside of the Clio Area Schools. Unless required by law to do so, Dr. Mino will not disseminate negative information about the Clio Area Schools .... [Emphasis in original.]
In the context of emplоyment actions, our Supreme Court has defined “misconduct” in the following manner:
“The term ‘misconduct’ ... is limited to conduct evincing such willful or wanton disregard of an employer‘s interests as is found in deliberate violations or disregard of standards of behavior which the employer has the right to expect of his employee, or in carelessness or negligence of such degree or recurrence as to manifest equal culpability, wrongful intent or evil design, or to show an intentional and substantial disregard of the employer‘s interests or of the employee‘s duties and obligations to his employer.” [Carter v Employment Security Comm, 364 Mich 538, 541; 111
NW2d 817 (1961) (unemployment action), quoting Boynton Cab Co v Neubeck, 237 Wis 249, 259-260; 296 NW 636 (1941).]
It is clear that the contractual phrase “negative information” generally encompasses the statutory phrase “unprofessional conduct.” See Random House Webster‘s College Dictionary (2000) (definition of “negative“); Lamp, supra at 597 (statute‘s plаin language controls). The confidentiality clause in the severance agreement precludes the “dissemination of negative information” about Dr. Mino except in circumstances “required by law....”
IV. DEFAMATION9
On this claim, the circuit court determined that it was impossible to conclude from the record that anyone made alleged defamatory statements and that there was no evidence of actual malice. In addition to citing the release of claims provision, the circuit court found that there was a qualified privilege to speak in meetings. Regarding the statements made to the Pocatello search committee after the severance agreement was signed, the circuit court determined that they were insubstantial.
“A communication is defamatory if, under all of the circumstances, it tends to so harm the reputation of an individual that it lowers the individual‘s reputаtion in the community or it deters others from associating or dealing with the individual.” Kefgen v Davidson, 241 Mich App 611, 617; 617 NW2d 351 (2000). In order to establish a claim of defamation, a plaintiff must show: (1) a false and defamatory statement concerning the plaintiff; (2) an unprivileged publication to a third party; (3) fault amounting to at least negligence on the part of the publisher; and (4) either actionability of the statement irrespective of special harm (defamation per se) or the existence of special harm caused by publication (defamation per quod). Id. “When addressing a defamation claim, a reviewing court is required to make an independent examination of the record to ensure against forbidden intrusions into the field of free expression.” Id.
A. PLAINTIFFS’ DEFAMATION CLAIM AGAINST THE CLIO PRINCIPALS
We disagree with plaintiffs’ contention that there are genuine issues of material fact that preclude summary disposition of the defamation claim against Clio principals Bruce Fairweather, Judith Barrett, Vern Kamp, Ron Maygar, and Rich Lutgens. Plaintiffs have failed to meet their burden to demonstrate by clear and convincing evidence that the statement made in the principals’ letter was a defamatory falsehood and that it was made with actual malice through knowledge of its falsity or through reckless disregard for the truth. Id. at 624. First, there is no evidence that the statement was false or defamatory because it is unlikely that the challenged statement alone would harm Dr. Mino‘s reputation in the community or deter others from associating or dealing with him. See id.
We would like to state, for the record, that we feel that every member of the board of education was committed to gathering all of the information he or she could, and agonized over finding the best solution fоr the good of the community and Clio students. There were no easy choices, and the solution arrived at was probably the best of several tough alternatives. Contrary to some perceptions, the concerns over the leadership being provided by Dr. Mino came from many people and much of the information gathered by the board was received in confidence.
When read in context, the paragraph confirms the principals’ testimony that the letter was written to support the actions of the school board rather than to attack Dr. Mino‘s leadership qualities. Second, even if the statement was false or defamatory, plaintiffs have failed to show by clear and convincing evidence that the statement was made with aсtual malice. Id. Plaintiffs present no evidence that the principals made up the statement. Further, plaintiffs have demonstrated nothing more than insufficient investigation of the statement by some of the principals, and this Court in Ireland, supra at 622, specifically stated insufficient investigation does not establish reckless disregard. Accordingly, the circuit court properly granted defendants’ motion for summary disposition regarding this claim.
B. PLAINTIFFS’ DEFAMATION CLAIM AGAINST EMMERLING
Plaintiffs contend that school board public relations director Emmerling defamed Dr. Mino by circulating a memorandum she wrote to a union representative in which she attacked Dr. Mino‘s leadership
In our view, plaintiffs have failed to demonstrate actual malice by clear and convincing evidence. At the outset, we note that there is some support for Emmerling‘s assertion. See id. at 616, 617. Schaupp testified that during the incident, she told Emmerling that Dr. Mino stated about her, “I don‘t care if her husband is a member of the board of education, I could fire her right now.” Schaupp also testified that Dr. Mino initially spoke to Emmerling in a loud manner and Dr. Mino was angry. Plaintiffs merely contend that there is a question of fact whether Emmerling fabricated the story, which is tantamount to a reckless disregard for the truth. “‘Reckless disregard for truth is not established merely by showing that the statements were made with preconceived objectives or insufficient investigation.‘” Id. at 622 (quotation omitted). Further, reckless disregard is measured by whether the publisher entertained serious doubts con-
C. PLAINTIFFS’ DEFAMATION CLAIM AGAINST PEACOCK
Plaintiffs state that Peacock published a document following the signing of the severance agreement that made unfounded allegations where it was clear from the context of the letter that she was referring to Dr. Mino. Finally, plaintiffs contend that Peacock made defamatory statements to the Pocatello search committee. We also disagree with these claims.
The challenged June 10, 1999, letter — addressed to the employees of the Clio schools — reads in relevant part:
I am writing this letter to address some of the rumors that are circulating around the district. I am very disheartened that some people in leadership positions would spread such rumors. ...
First, I am pro-eduсation. ... The problem I do have with (and the only reason I voted against) the contract with the [union] is that I believe it is [sic] violation of the law. According to the State Director of School Improvement and Accountability Programs, Barb Knutson, and the GISD Staff Development Coordinator, Traci Valentine, the Revised School Code states that the school district shall provide 2 days of professional development in 1998-99, 3 days in 1999-2000, 4 days in 2000-01, and 5 days in each of 2001-2008. Call the ISD. We do not have these provisions and are in violation. I brought this up at several executive session discussions of negotiations but was repeatedly told that it was ok because there was no one to check up on us so it wouldn‘t matter. I do not believe this is the right thing to
teach our students, nor is it the right thing for our staff! [Emphasis in оriginal.]10
The circuit court properly granted defendants’ motion for summary disposition with respect to this issue. The letter does not concern Dr. Mino and makes no reference to Dr. Mino. The letter clearly addresses Peacock‘s position regarding why she voted against a contract with the union and her belief that the contract did not contain a provision for certain development days. Further, even if the statements were defamatory, plaintiffs have failed to show actual malice by clear and convincing evidence. See Ireland, supra at 622. Accordingly, the circuit court did not err in granting defendants’ motion for summary disposition with respect to this claim either.
Moreover, regarding plaintiffs’ claim that Peacock made defamatory statements to the Pocatello search committee, plaintiffs were unable to show this by clear and convincing evidence. Lloyd testified that Peacock voiced her concerns over Dr. Mino‘s leadership style and the management of the school budget. In order for a statement to be actionable, the statement must be provable as false. Id. at 616, 617. These statements were subjective opinions and are not provable as false. Id. Regarding Peacock‘s statements about rumors concerning sexual improprieties, plaintiffs do not deny that there were certain rumors about Dr. Mino. Thus, plaintiffs have failed to demonstrate that Peacock‘s statements were defamatory falsehoods and that the statements were made with actual malice through knowledge of their falsity or through
V. TORTIOUS INTERFERENCE WITH BUSINESS RELATIONSHIP OR EXPECTANCY
Plaintiffs claim that Dr. Mino had the expectancy of obtaining employment as the superintendent of the Pocatello School District, that Latture and Peacock were aware of that expectancy, that Latture and Peacock intentionally provided negative information about Dr. Mino to the Pocatello search committee, and that Dr. Mino did not obtain employment with the Pocatello School District. We disagree.
The elements of tortious interference with a business relationship are the existence of a valid business relationship or expectancy, knowledge of the relationship or expectancy on the part of the defendant, an intentional interference by the defendant inducing or causing a breach or termination of the relationship or expectancy, and resultant damage to the plaintiff. To establish that a lawful act was done with malice and without justification, the plaintiff must demonstrate, with specificity, affirmative acts by the defendant that corroborate the improper motive of the interference. Where the defendant‘s actions were motivated by legitimate business reasons, its actions would not constitute improper motive or interference. [BPS Clinical Laboratories v Blue Cross & Blue Shield of Michigan, 217 Mich App 687, 698-699; 552 NW2d 919 (1996) (citations omitted).]
We have determined that the circuit court properly granted summary disposition of plaintiffs’ claims of tortious interference with a business relationship or expectancy. The record demonstrates that it was the Pocatello search сommittee that conducted an investigation of Dr. Mino. Latture and Peacock did not instigate this investigation. Further, the evidence pro-
VI. INTENTIONAL INFLICTION OF EMOTIONAL DISTRESS
Plaintiffs argue that, by spreading scandalous falsehoods and rumors about Dr. Mino, Latture, Peacock, and Emmerling engaged in conduct that was outrageous, at least reckless if not intentional, and caused Dr. Mino to suffer emotional harm, including depression. Again, we disagree.
In order to establish a valid claim of intentional infliction of emotional distress, a plaintiff must show: “(1) extreme and outrageous conduct, (2) intent or recklessness, (3) causation, and (4) severe emotional distress.” Graham v Ford, 237 Mich App 670, 674; 604 NW2d 713 (1999). The Graham Court further stated:
Liability ... has been found only where the conduct complained of has been so outrageous in character, and so extreme in degree, as to go beyond all possible bоunds of decency, and to be regarded as atrocious and utterly intol-
erable in a civilized community. ... It is not enough that the defendant has acted with an intent that is tortious or even criminal, ... or even that his conduct has been characterized by “malice,” or a degree of aggravation that would entitle the plaintiff to punitive damages for another tort. ... The test is whether ... an average member of the community would ... claim, “Outrageous!” [Id. at 674-675 (citations and quotations omitted).]
The circuit court also properly granted defendants’ motion for summary disposition with regard to plaintiffs’ claims for intentional infliction of emotional distress against these defendants. The challenged conduct, which plaintiffs have failed to specify either in their complaint or on appeal, cannot be describеd as extreme or outrageous. “Liability does not extend to mere insults, indignities, threats, annoyances, petty oppressions, or other trivialities.” Id. at 674. Accordingly, we find no error here either.
VII. LOSS OF CONSORTIUM
In Long v Chelsea Community Hosp, 219 Mich App 578, 589; 557 NW2d 157 (1996), this Court held that “[a] derivative claim for loss of consortium stands or falls with the primary claims in the complaint. Because plaintiff‘s other claims failed, the loss of consortium claim must likewise fail.” Likewise, in the instant case, Nancy‘s claim for loss of consortium must also fail in all respects.11
Affirmed.
B. B. MACKENZIE, J., concurred.
“Unprofessional conduct” means 1 or more acts of misconduct; 1 or more acts of immorality, moral turpitude, or inappropriate behavior involving a minor; or commission of a crime involving a minor. A criminal conviction is not an essential element of determining whether or not a particular act constitutes unprofessional conduct.
The majority states that it is clear that the contractual phrase “negative information” generally encompasses the statutory phrase “unprofessional conduct.” However, “unprofessional conduct” is defined by statute and encompasses a much narrower range of conduct than is defined by “negative information.” Plaintiffs allege that defendant school district‘s agents disseminated negative information that would not fall within the statutory definition of “unprofessional conduct,” including the definition of “misconduct” found in Carter v Employment Security Comm, 364 Mich 538, 541; 111 NW2d 817 (1961), e.g., information about Dr. Mino‘s leadership style and his management of the budget.
Plaintiffs’ remaining claims were properly dismissed.
