Public Officers and Employees--termination--insubordination--
evidence insufficient
The trial court correctly reversed a decision of the State
Personnel Commission, which had upheld the termination of
petitioner's employment, where petitioner had worked as an
habilitation assistant providing care in the home of a severely
disabled client; petitioner complained of sexual harassment by
the father of the client; respondent allowed petitioner to take
vacation time and to care for the client in petitioner's own home
while undertaking an investigation; respondent concluded that
petitioner's allegations were without merit and asked petitioner
to resume caring for the client in the client's home; and
petitioner's employment was terminated when she refused.
Petitioner had the burden of proving that her termination was not
for just cause; respondent contended that petitioner was
dismissed for insubordination following her failure to attend a
meeting with her supervisors and her refusal to provide service
to her client. Based upon a de novo review of the proceeding,
the refusal to attend the meeting did not constitute
insubordination because she had a reasonable understanding from
State Personnel Guidelines that she was entitled to an initial
meeting with only her immediate supervisor rather than a joint
meeting with several people, one of whom she perceived to be
hostile, when she was not aware that her claims had been
investigated and feared that she might lose her job.
Furthermore, her refusal to comply with the directive to return
to the client's home was reasonable under circumstances in which
she was not aware that her complaints had been investigated and
was given no alternative to returning to what she considered an
unacceptable working environment.
Judge EDMUNDS dissenting prior to 31 December 2000.
Legal Services of the Blue Ridge, by Charlotte Gail Blake, for
petitioner-appellee.
McElwee Firm, PLLC, by Elizabeth K. Mahan and William H.
McElwee, III, for respondent-appellant.
WYNN, Judge.
Respondent New River Area Mental Health appeals from the trial
court's order reversing its termination of petitioner Betty J.
Souther. We affirm.
New River employed Souther in September 1988 as an
habilitation assistant for the Community Alternatives Program For
People With Mental Retardation. The Community Alternatives Program
allows disabled individuals to avoid institutionalization by
receiving care at home. Under the program, habilitation assistants
provide personal and respite care to the disabled participants.
The assistants typically serve one client at a time.
During Souther's employment with New River, Randy Johnson was
her immediate supervisor; Suzanne Tate was the Director of
Developmental Disabilities and Johnson's supervisor; and, Dorothy
Beamon was the Area Director and supervisor of New River's mental
health programs.
In 1988, New River assigned Souther to care for Robinette
Jenkins, the daughter of Lester and Virginia Jenkins. Robinette
was severely disabled and required constant assistance with
personal maintenance. In late June or early July 1993, Souther
informed Lester Jenkins that she was having trouble with her
neighbors; so, he allowed her to move her trailer onto his lot.
Later in 1993, Souther complained to her immediate supervisor,
Johnson , that Mr. Jenkins was sexually harassing her and expressed
concerns about working in the Jenkins' home. Upon receiving these
complaints, New River allowed Souther to take vacation time and tocare for Robinette in her own home; at the same time, New River
undertook an investigation of her complaints. New River's
investigation concluded that Souther's allegations were without
merit. Accordingly, at a meeting on 20 September 1993, Beamon
asked Souther to resume assisting Robinette in the Jenkins' home.
Souther, however, refused. Thereafter, New River terminated her
employment.
Souther appealed to the Office of Administrative Hearings.
After conducting an evidentiary hearing, the assigned
Administrative Law Judge entered a Recommended Decision to affirm
the dismissal for just cause. Souther appealed to the State
Personnel Commission, which conducted a whole record review and
adopted the recommended findings and conclusions of the
Administrative Law Judge and recommended that New River find and
conclude that it had just cause to terminate Souther for her
unacceptable personal conduct due to her refusal to obey a
reasonable work [order]. Thereafter, Souther brought a Petition
for Judicial Review before the Superior Court in Wilkes County.
The trial court granted the petition and, after hearing the
arguments of counsel and reviewing the official record, including
the transcript of the administrative hearing, and the memoranda
submitted by counsel, found that New River's decision to terminate
Souther was arbitrary and capricious and not supported by
substantial evidence in light of the whole record. From the trial
court's order reversing Souther's termination, New River appeals.
Our review of a superior court order regarding an agency
decision consists of: '(1) determining whether the trial courtexercised the appropriate scope of review and, if appropriate, (2)
deciding whether the court did so properly.' ACT-UP Triangle v.
Commission for Health Services, 345 N.C. 699, 706, 483 S.E.2d 388,
392 (1997) (quoting Amanini v. N.C. Dep't of Human Resources, 114
N.C. App. 668, 675, 443 S.E.2d 114, 118-19 (1994)).
The proper standard for the superior court to
apply depends upon the issues presented on
appeal. Where the petitioner alleges that the
agency decision was either unsupported by the
evidence, or arbitrary and capricious, the
superior court applies the whole record test
to determine whether the agency decision was
supported by substantial evidence contained in
the entire record. Where the petitioner
alleges that the agency decision was based on
error of law, the reviewing court must examine
the record de novo, as though the issue had
not yet been considered by the agency.
Avant v. Sandhills Center for Mental Health, 132 N.C. App. 542,
546, 513 S.E.2d 79, 82 (1999) (internal citations omitted).
Both parties contend the superior court, in reviewing the
Administrative Law Judge's decision, appropriately employed the
whole record standard. However, this Court has held that a
superior court's determination of whether a termination was for
just cause based upon personal misconduct is a question of law,
and that questions of law are to be reviewed de novo. See Amanini,
114 N.C. App. at 677, 678, 443 S.E.2d at 119, 120. A de novo
review requires a court to consider a question anew, as if not
considered or decided by the agency. Id. at 674, 443 S.E.2d at
118.
We note that the Amanini court observed that [s]eparate
panels of this Court [] appear to have reached differing
conclusions concerning the proper standard of appellate review oforders of the superior court affirming or reversing a decision of
an administrative agency. Id. at 675, 443 S.E.2d at 118. After an
extended review and discussion of the issue, the Amanini court held
that the proper standard of review is whether the superior court
applied the proper scope of review and did so properly. Id. at
675-76, 443 S.E.2d at 118-19. Despite some continuing
inconsistencies within the court, see Mendenhall v. N.C. Dep't of
Hum. Res., 119 N.C. App. 644, 650, 459 S.E.2d 820, 824 (1995)
(citation omitted) (When an appellate court reviews the decision
of a lower court (as opposed to reviewing an administrative
agency's decision on direct appeal), the scope of review is the
same as for other civil cases. However, this review also requires
an examination of the entire record.), we believe that the
analysis in Amanini is persuasive. We will employ the proper
standard of review regardless of that employed by the reviewing
trial court. See Amanini, 114 N.C. App. at 675, 677, 443 S.E.2d at
118, 119 ([T]he manner of our review is [not] governed merely by
the label an appellant places upon an assignment of error; rather,
we first determine the actual nature of the contended error, then
proceed with an application of the proper scope of review. []
[W]here the initial reviewing court should have conducted de novo
review, this Court will directly review the State Personnel
Commission's decision under a de novo review standard.)
A state employee may be dismissed only for just cause. N.C.
Gen. Stat. § 126-35 (1995). An employee challenging his or her
termination for just cause has the burden of proving that the
agency's decision was improper. As our Supreme Court has said: [A]n employee terminated pur
suant to the just
cause provision of N.C.G.S. § 126-35 should
bear the burden of proof in an action
contesting the validity of that termination.
Petitioner, the terminated employee, is the
party attempting to alter the status quo. The
burden should appropriately rest upon the
employee who brings the action, even if the
proof of that position requires the
demonstration of the absence of certain events
or causes. Neither party in a just cause
termination dispute has peculiar knowledge not
available to the opposing party. A terminated
employee may readily utilize the procedures
outlined in chapter 126 and section 1A-1 of
the North Carolina General Statutes, as well
as title 26 of the North Carolina
Administrative Code, to obtain any and all
necessary information to establish and
advocate his or her position.
Peace v. Employment Sec. Comm'n of North Carolina, 349 N.C. 315,
328, 507 S.E.2d 272, 281-82 (1998). Just cause may result either
from unacceptable job performance or unacceptable personal conduct.
See Amanini at 679, 443 S.E.2d at 120. The difference is important
because an employee must receive certain warnings before being
terminated for unsatisfactory job performance, while no warnings
are required for termination based on personal misconduct. See id.
at 679, 443 S.E.2d at 121. However, [t]he categories are not
mutually exclusive, as certain actions by employees may fall into
both categories, depending upon the facts of each case. N.C.
Admin. Code tit. 25, r. 1J.0604 (June 2000).
Although New River never specifically stated the grounds for
Souther's dismissal, Beamon's letter terminating petitioner read in
pertinent part:
Over the past weeks, your relationship with
your client's family has deteriorated to the
point that you refuse to provide in-home
services to your client in her home. As you
have been aware, the main purpose of the workyou do for us is to enable clients to live in
their own homes.
You refused to meet with me and your
supervisor on 9-15-93, after being required by
your supervisor to do so for the purpose of
getting services flowing to your client again.
Recently, you have spent a great deal of time
and energy discussing with various staff how
stressful it is for you to work here.
Thus, New River's finding of just cause was based on
(1) petitioner's refusal to provide service to her client, and
(2) petitioner's failure to attend the 15 September 1993 meeting
with her supervisors.
New River contends that these reasons for dismissal constitute
insubordination. Insubordination is defined as the refusal to
accept a reasonable and proper assignment from an authorized
supervisor. Mendenhall, 119 N.C. App. at 651, 459 S.E.2d at 824
(citation omitted). Insubordination has been defined more broadly
as 1. A willful disregard of an employer's instructions . . . .
2. An act of disobedience to proper authority; esp. a refusal to
obey an order that a superior officer is authorized to give.
Black's Law Dictionary 802 (7th ed. 1999). Thus, insubordination
involves two elements: (1) A reasonable and proper instruction or
assignment by an authorized supervisor; and (2) A willful or
intentional refusal to comply with such instruction or assignment.
We must therefore determine the reasonableness of the requests made
by New River for Souther to return to the Jenkins' home and to
attend the 15 September 1993 meeting, and the reasonableness of
Souther's failure to comply with those requests. We note that,
because insubordination is a form of personal misconduct, see
Amanini, 114 N.C. App. at 679, 334 S.E.2d at 121, if Souther'sconduct constituted insubordination, then New River was not
required to provide warnings to her before her discharge.
We first consider the 15 September 1993 meeting, which was
called for the purpose of reviewing the results of the
investigation into petitioner's allegations and to re-establish
service to Robinette. We assume arguendo that the request by
Beamon and Johnson that Souther attend the meeting was reasonable
and proper. Our inquiry thus proceeds to whether Souther's refusal
to comply with this reasonable request was willful.
The conduct of an employee cannot be termed willful
misconduct if it is determined that the employee's actions were
reasonable and taken with good cause. Urback v. East Carolina
Univ., 105 N.C. App. 605, 608, 414 S.E.2d 100, 102, disc. review
denied, 331 N.C. 291, 417 S.E.2d 70 (1992). What constitutes a
reasonable action by petitioner is necessarily a subjective
determination. See, e.g., Mendenhall (holding that under whole
record test, a petitioner was improperly terminated for
insubordination where petitioner refused to care for AIDS patient
on the basis of legitimate and reasonable health concerns).
Therefore, we will review the record in some detail to determine
the reasonableness of Souther's actions.
The record shows that on 14 September 1993, Johnson and Beamon
met with Tate to discuss Souther's allegations and the results of
Johnson's abbreviated investigation into those allegations. At
that meeting, Beamon, the Area Director, decided on the basis of
Johnson's investigation and report that Lester Jenkins had not
sexually harassed Souther and that Souther's allegations wereunfounded. Following the 14 September 1993 meeting, Beamon called
Souther to arrange for a meeting with Beamon and Johnson.
According to Souther's account of this telephone call from
Beamon on 14 September 1993, Beamon was very angry with Souther and
spoke rudely to her. Beamon informed Souther during this call that
she did not believe Souther's account of the events concerning
Lester Jenkins. Souther testified that she was worried about
meeting with Beamon and Johnson together on 15 September.
Furthermore, she understood from her copy of the State Employees'
Grievance Policy that she first was entitled to a meeting alone
with her immediate supervisor, Johnson, rather than a joint meeting
with both Johnson and Beamon.
On 15 September 1993, Souther sent a letter to Johnson asking
for his help in resolving her complaint. When Souther failed to
show up for the 15 September meeting, Beamon called Souther again.
According to Beamon's notes from this conversation, Souther
repeatedly expressed her reservations about meeting with the
supervisors without an attorney present, and indicated that she
could not meet with the supervisors without an attorney.
The North Carolina Administrative Code, as it existed in 1993,
provided that [p]rior to dismissal of a permanent employee on the
basis of personal conduct, there shall be a pre-dismissal
conference between the employee and the person recommending
dismissal. This conference shall be held in accordance with the
provision of 25 NCAC 1J .0606(2), (3). 25 NCAC 1J .0608(c)
(effective 1 July 1989). The requirements for the pre-dismissal
conference provided in part that [t]he Supervisor or designatedmanagement representative shall schedule and conduct a pre-
dismissal conference with the employee. Advance notice of the pre-
dismissal conference must be given to the employee. A second
management representative or security personnel may be present at
management's discretion. 25 NCAC 1J .0606(2) (effective 1
September 1991).
Following the hearing of this matter, an Administrative Law
Judge issued a recommended decision which included findings of fact
and conclusions of law. In her conclusions of law, the
Administrative Law Judge found that [t]he presence of more than
one management person at the [20 September 1993] conference was a
violation of [State Personnel Commission] rules regarding who is to
attend pre-dismissal conferences. Nonetheless, the Administrative
Law Judge found that, because Souther was permitted to have her
attorney present at the 20 September meeting, she was not unduly
prejudiced by this procedural violation.
Souther's understanding that she was entitled, pursuant to
these State Personnel Commission guidelines, to an initial meeting
with only Johnson was not inherently unreasonable. Furthermore,
Souther was worried by what she perceived to be a hostile attitude
on behalf of Beamon, and feared that she might lose her job. It is
apparent from the record that Souther perceived that Beamon and
Johnson did not believe her allegations, and Souther was not aware
that her claims had been investigated at all. Moreover, the record
supports Souther's contention that she understood from Beamon's
telephone call on 14 September 1993 that Beamon, Tate and Johnson
(who were all present at the 14 September discussion) would all bepresent at the proposed 15 September meeting, which would have been
a clear violation of the requirements for the pre-dismissal
conference (as was the presence of all three at the 20 September
meeting). These facts indicate the basis of Souther's failure to
attend the 15 September 1993 meeting, which failure appears under
the circumstances to have been reasonable. Thus, Souther's refusal
to attend the meeting did not constitute insubordination.
We must next determine whether Souther's refusal at the 20
September 1993 meeting to re-establish in-house care for Robinette
amounted to insubordination. A careful review of the record on
appeal reveals the reasonableness of this action as well.
The investigation which was performed by New River into
Souther's allegations of sexual harassment by Lester Jenkins
appears to have been limited at best. Souther testified that she
initially believed that Lester Jenkins' comments that she should
get out and date, and asking for sex with her, were one big joke.
However, he persisted, and she testified that when Lester Jenkins
forthrightly stated without euphemisms that he wanted to have sex
with her, she knew his comments had not been a joke. According to
petitioner, she notified Johnson and asked him to talk to Lester
Jenkins. She wanted Johnson to tell [Lester Jenkins] that this
was bothering [her], and . . . to leave that kind of jokes alone
because . . . they weren't appropriate for the work.
On 17 August 1993, Souther first contacted Johnson regarding
her concerns, reporting, according to Johnson's notes from the
conversation, that Lester Jenkins had said or done something which
caused [Souther] emotional pain and hurt. Souther also expressedher desire to tell Johnson the details regarding the incident but
was hesitant to do so as she did not feel she would be believed.
At this point Johnson took no action, though he was clearly aware
that something had occurred between Souther and Lester Jenkins
which was causing Souther some distress.
On 19 August 1993, Souther again spoke with Johnson; and,
according to Johnson's notes, she informed Johnson that Jenkins
offered to help her complete moving into her new trailer if she
would repay him with sexual favors. According to Souther's
testimony before the Administrative Law Judge, she informed Johnson
that Lester Jenkins' comments were bothering her, and asked Johnson
to talk to Lester Jenkins alone as she did not want the situation
to hurt his wife, with whom Souther had become very close over the
years during which she had cared for Robinette. Johnson informed
both Tate and Beamon of Souther's allegations for the first time on
19 August 1993.
Later that same day, Johnson visited with Mrs. Jenkins at the
Jenkins' residence and, contrary to Souther's wishes, discussed
Souther's allegations with her. Mrs. Jenkins informed Johnson that
there had been some noticeable tension between Souther and her
husband, and that her husband had apparently remarked to Souther
that, Today, I'll help you move your bed into your new trailer. I
don't think anyone will say anything about us being in the bedroom
at the same time.
After meeting with Mrs. Jenkins, Johnson met with Souther at
her home. At that time, Souther informed Johnson in more detail
concerning the comments made to her by Lester Jenkins. They alsoagreed that Souther should take some leave time until 30 August, to
coincide with Johnson's vacation. Johnson was out of town on
vacation from 20 August until 30 August 1993. During this time,
neither Johnson nor Tate nor Beamon made any further attempts to
investigate Souther's allegations. Tate testified that she was in
Colorado attending training sessions from approximately 25 August
until 13 September 1993. Beamon testified that she had no contact
with Johnson regarding the matter between 19 August and
approximately 14 September 1993.
After Johnson returned from vacation on 30 August 1993,
Souther called Johnson to inform him that she still had some
reservations about caring for Robinette in the Jenkins' home, and
they arranged for Souther to temporarily care for Robinette in
Souther's home. The record shows that Souther's reservations at
this point were reasonable, as no further investigation had been
performed beyond Johnson's limited interview of Mrs. Jenkins on 19
August. Furthermore, Souther was unaware that any investigation
whatsoever had been performed. Johnson testified before the
Administrative Law Judge that he agreed that it was reasonable for
Souther to still have concerns about returning to work on 30 August
1993 as no work had been done on investigating her complaint at
that time.
On 31 August 1993, Johnson spoke with Souther on the telephone
and again met with her in person to discuss her allegations in more
detail. Johnson did not investigate the matter further until 13
September 1993, when he met with the Jenkins' and their son, Ray
Jenkins, at the Jenkins' residence. At this meeting, Johnsonlearned that Lester Jenkins had indeed made comments of a sexual
nature to Souther, comments which Lester Jenkins considered to have
been made in a joking manner. Johnson also learned that Mrs.
Jenkins believed that Souther actually thought Lester Jenkins was
asking to have sex with Souther. Johnson himself testified that he
could understand how Lester Jenkins' comments could have been
interpreted by Souther to mean that he wanted to have sex with her.
No further action was taken until Johnson's meeting with Tate and
Beamon on 14 September.
From the evidence in the record, it appears that neither
Johnson nor anyone else from New River ever met with Lester Jenkins
alone to discuss Souther's allegations. Johnson acknowledged that
he considered the possibility that Lester Jenkins might be less
candid discussing the allegations in the presence of his wife.
Furthermore, Souther had asked that Johnson's inquiry be low-key,
and asked that Johnson not involve Mrs. Jenkins. Nonetheless,
Johnson first discussed Souther's allegations with Mrs. Jenkins
alone on 19 August, and later on 13 September with the Jenkins' and
their son. These were the only instances in which Johnson met with
the Jenkins'. Johnson testified that he asked Souther to meet with
him together with the Jenkins', a request with which Souther
refused to comply. Johnson admitted, however, that he did not
think it unusual that Souther might be hesitant to discuss her
allegations person to person with Lester Jenkins, particularly in
front of Mrs. Jenkins.
Johnson also testified that he never told or asked Lester
Jenkins to refrain from making any further jokes to Southerinvolving sexual connotations or innuendo. Johnson stated that he
did not inform Souther until 20 September 1993, at the pre-
dismissal conference immediately following which Souther was
dismissed, that he had talked with the Jenkins' concerning
Souther's allegations. According to Souther, she was never
informed by anyone at New River that her complaints had been
investigated, and was instead only informed that her allegations
were deemed unfounded and she was not believed.
In the hearing before the Administrative Law Judge, when asked
whether she felt that her complaint had been properly investigated,
Souther responded, to this day, if they've investigated it, I
don't know it. No one ever conveyed to Souther that Lester
Jenkins, in the 13 September 1993 meeting with Johnson, had offered
to apologize to Souther. Souther testified that if she had been
informed of the investigation and of Lester Jenkins' offer to
apologize, she would have returned to work as requested. There was
also testimony that Johnson suggested to Souther the option of
working with another family instead of the Jenkins. However, when
Souther requested that this option be pursued, Johnson informed her
that no other families were available.
At the 20 September 1993 meeting, Souther was given the
ultimatum of either returning to the Jenkins' home to provide in-
house care for Robinette or losing her job. See N.C. Gen. Stat. §
143-422.2 (1996) and Section 703(a)(1) of Title VII (as amended, 42
U.S.C.A. § 2000e-2(a)(1) (1994)). See 29 C.F.R. § 1604.11(a)
(1999) (Unwelcome sexual advances, requests for sexual favors, andother verbal or physical conduct of a sexual nature constitute
sexual harassment when (1) submission to such conduct is made
either explicitly or implicitly a term or condition of an
individual's employment, . . . or (3) such conduct has the purpose
or effect of unreasonably interfering with an individual's work
performance or creating an intimidating, hostile, or offensive
working environment.) Souther testified that she did not feel
safe in the Jenkins' home. Under these circumstances, unaware that
her complaints had been investigated and given no alternative to
returning to what she considered to be an unacceptable working
environment, Souther's refusal to comply with New River's directive
to return to the Jenkins' home was reasonable.
As noted above, petitioner has the burden of proving that her
termination was not for just cause. Based on all of the
testimony and following a de novo review of the proceedings, we
believe that Souther's refusal to attend the 15 September 1993
meeting and to return to work in the Jenkins' home was reasonable
and did not constitute insubordination. As Souther's conduct did
not amount to insubordination, New River lacked just cause to fire
her. The order entered by the trial court, reversing the decision
of the Commission, is therefore,
Affirmed.
Judge MARTIN concurs.
Judge EDMUNDS dissents in a separate opinion written prior to
31 December 2000.
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