Court Reverses Dismissal of Retaliation Claim in Hostile Work Environment Case

Plaintiff's retaliation claim against employer allowed to proceed, but hostile work environment claim dismissed

Published on Mar. 2, 2026

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The Michigan Court of Appeals has ruled that a trial court erred in granting summary disposition on a plaintiff's retaliation claim, but correctly dismissed the plaintiff's hostile work environment claim. The plaintiff, Felicia Scotland, had alleged age, gender and race discrimination, hostile work environment, and retaliation under the Elliott-Larsen Civil Rights Act against her employer, DTE Energy Corp. Services, LLC.

Why it matters

This case highlights the challenges employees face in proving hostile work environment claims, but also demonstrates that courts will closely scrutinize retaliation claims to ensure employers are not improperly terminating or taking other adverse actions against workers who engage in protected activities like filing discrimination complaints.

The details

The court found that while Scotland lacked sufficient evidence to establish a hostile work environment claim, there were genuine issues of material fact regarding her retaliation claim. The court adopted a six-factor balancing test from a prior Sixth Circuit case to evaluate whether Scotland's disclosure of confidential documents to her attorney was a protected activity, despite the employer's policies. Factors such as how the documents were obtained, to whom they were disclosed, and the content's relevance to the discrimination claims were considered. Ultimately, the court determined that the balance of factors favored Scotland and that her termination could be viewed as retaliation for her ongoing protected activities, including this litigation.

  • Plaintiff Felicia Scotland filed her initial civil complaint on January 31, 2020.
  • The trial court granted the defendant's motion for summary disposition on December 6, 2023.

The players

Felicia Scotland

The plaintiff who brought claims of age, gender and race discrimination, hostile work environment, and retaliation against her employer, DTE Energy Corp. Services, LLC.

DTE Energy Corp. Services, LLC

The defendant employer in the case.

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What they’re saying

“We find the balancing test adopted by the Sixth Circuit in Niswander to be persuasive. Niswander appropriately identifies some factors courts should consider when an employee's conduct that is otherwise in violation of an employer's reasonable and valid policies may constitute protected activity sufficient to garner protection under the ELCRA.”

— The Michigan Court of Appeals (Michigan Lawyers Weekly)

What’s next

The case has been remanded to the trial court for further proceedings consistent with the appeals court's opinion.

The takeaway

This case demonstrates the nuanced analysis courts will undertake in evaluating retaliation claims, weighing an employer's legitimate business needs against an employee's right to be protected from adverse actions for engaging in protected activities like discrimination complaints. Employers must be cautious in terminating workers who have raised such concerns.