The former CEO of Starline Ferry Company, one of two major passenger ferries to Mackinac Island, is suing its new owners.
The suit was filed in the U.S. District Court for Western Michigan by an attorney representing Jerry Fetty. The former CEO is alleging wrongful termination, breach of contract and defamation.
Starline, now called the Mackinac Island Ferry Co., was sold to the Hoffmann Family of Companies earlier this summer. Hoffmann is a Florida-based private equity firm that also bought Shepler’s Ferry in 2022 — the only other major passenger ferry to the island.
The sale was finalized on June 26. Three weeks later, Jenny Gazella, the president of Hoffmann’s marine endeavors, sent an email to MIFC staff that Fetty was no longer CEO.
Gezella thanked him for his years of service. Soon after, Hoffmann put Chris Shepler in charge of operations of both ferry company fleets.
While Hoffmann was allowed to fire Fetty without cause, his lawsuit argues he was wrongfully terminated because Hoffmann did not provide 30 days notice before the announcement, as stated in his employee contract.
“Whatever their reasons are, and we lay out some of the theories in the lawsuit, Hoffman is trying to get out of their contractual obligations to Jerry Fetty,” said Fetty’s attorney Nick Roumel.
The other part of the lawsuit alleges defamation. In August, Hoffmann revealed some of the Starline fleet had structural issues that would require millions of dollars to repair.
Shepler's Mackinac Island Ferry — which is also owned by Hoffmann — stepped in to handle traffic through the end of peak tourism season. The Mackinac Island city council had to approve upping Shepler's ferry schedule to account for increased volume at an Aug. 14 meeting.
The city council agreed to revisit the ferry schedule for October and develop plans for the off-season at a later date.
Fetty took issue with how Hoffmann representatives talked about the mechanical issues. His lawsuit argues Jenny Gezella and Chris Shepler blamed him for the issues in media interviews with outlets like the Detroit News and MLive.
According to the lawsuit, “both Shepler’s and Gezella’s statements indicate surprise, and implicate Mr. Fetty for having neglected and concealed repair issues, when the reality is that Hoffmann had full access to the MIFC fleet, docks, and bilgewater operations before purchase for unfettered inspections as part of its due diligence.”
According to court records, a summons was issued to Jenny Gezella, Hoffmann Marine, Hoffmann Star Line LLC, Mackinac Island Ferry Co. and Chris Shepler Tuesday afternoon.
Judge Robert J. Jonker will preside over the case.
Jonathan Kok of Warner, Norcross + Judd LLP issued a statement on Hoffman’s behalf.
“Mr. Fetty was terminated for cause and we are disappointed in his decision to prolong the event with a baseless lawsuit. More importantly, we look forward to restoring Mackinac Island Ferry Company vessels and operations to provide the first-class service that our loyal customers deserve.”
Hoffmann now owns nearly 50 vessels across seven states.
Hoffmann also owns two local newspapers, the Mackinac Island Town Crier and St. Ignace News. The firm claims it’s the largest owner of real estate parcels in the Mackinac area.
Starline was founded in the late 1970s and has nearly a dozen ferries in its fleet. Over a million people visit the island per year, according to the Mackinac Island Tourism Bureau.