Former White Lake grant writer gets $85K in settlement

An article by Angela Niemi    No Comments

Lawsuits filed against White Lake Township and its clerk in the fall of 2010 quietly came to a conclusion a few months ago.

Kelly Knight, a former employee of White Lake Township, sued the township for alleged violations of the Family and Medical Leave Act (FMLA) of 1993, and Clerk Terry Lilley in both his individual and official capacities as township clerk.

This past July both suits were dismissed after Knight and the township reached a settlement agreement paying Knight $85,000, which included all of Knight’s attorney and court costs, according to White Lake Township Attorney Greg Need.

The township didn’t have to cut Knight a check: The Michigan Municipal Risk Management Authority (MMRMA), the township’s insurance provider, covered the settlement payment. Need said it’s unknown how, if at all, the payment will impact the township’s insurance premiums.

Knight began working for the township in April 2008 as a grant and community administrator. According to her lawsuit, Knight was diagnosed in June 2010 with a “cyst-like structure” on her spinal cord which required a leave of absence from work, which she was granted under the FMLA.

Knight had been three weeks into her medical leave when she was fired. The White Lake Township Board of Trustees held a special meeting on July 13, 2010, at which time the board unanimously voted to eliminate the position of grant writer — Knight’s position — effective July 14, 2010, according to the minutes for that meeting.

The board also decided at that meeting to eliminate the secretarial positions in the Clerk’s Office and the Assessing Office, in addition to other measures to help trim the township budget.

Knight and her attorney then filed suit in federal district court against White Lake Township for allegedly engaging in conduct prohibited under the FMLA. She was also suing the township for violation of her civil and constitutional rights under the Articles 1 and 17 of the Michigan Constitution, as she claimed she was “terminated without proper notice or hearing.”

Knight also claimed she had been deprived of her rights guaranteed by the 14th Amendment to the U.S. Constitution, as the board allegedly engaged in conduct “publicly stigmatizing her, not allowing her an opportunity to publicly answer Defendant Lilley’s accusations, thus interfering with her career and depriving her of her liberty interest in her reputation.”

At the time the township denied all allegations.

However, now that the case has been settled, both parties agree that neither has done anything wrong, according to Need.

“They decided to settle the suit to avoid the uncertainty and costs of litigation,” Need said.

Knight’s attorney, Jeffrey Buehner, was unavailable for comment prior to press time.