YOLANDRA BEST and ROY HUDSON,
Petitioners,
v
.
DEPARTMENT OF HEALTH AND HUMAN SERVICES, JOHN UMSTEAD HOSPITAL,
Respondent.
Attorney General Roy Cooper, by Special Deputy Attorney
General Richard E. Slipsky, for respondent-appellant.
Grafstein & Walczyk, P.L.L.C., by Lisa Grafstein and Konrad
Schoen, for petitioner-appellees.
HUDSON, Judge.
Respondent, the Department of Health and Human Resources (the
Department), appeals an Order entered 24 October 2000 by Judge
Abraham Penn Jones in the superior court which reversed and
remanded the decision of the State Personnel Commission (SPC).
For the reasons discussed herein, we affirm the superior court's
order.
We begin with a brief summary of the pertinent facts.
Petitioners Yolandra Best (Ms. Best) and Roy Hudson (Mr.
Hudson) were employed by respondent-appellant Department of Health
and Human Services at John Umstead Hospital (JUH) beginning 4
March 1987 and 15 October 1992, respectively. Both worked as
Health Care Technicians at JUH until they were discharged fromtheir jobs on 19 February 1997. On Saturday, 15 February 1997,
petitioners were on the job at JUH.
Ms. Amanda Blanks, a Rehabilitation Therapy Coordinator at
JUH, was also at work that day, even though it was her scheduled
day off. She initiated the chain of events which has culminated in
these proceedings.
According to Ms. Blanks, on 15 February 1997, at around 9:30
a.m., she went through the nurses' workstation to the chart room.
As she entered the chart room, she ran into or saw Mr. Hudson
initially, and Mr. Coles, who was also the healthcare tech on the
ward, sitting at the counter. Ms. Blanks testified that a few
minutes later I saw Yolandra Best come out [of the chart room].
In the chart room, Ms. Blanks noticed on the counter a set of
keys, pack of cigarettes, and a straw about three to four inches
long, with a white residue in one end of it. Shortly
thereafter, Ms. Blanks left the chart room to take a telephone call
at the nurses' station. While she was in the process of getting
off the phone, Mr. Hudson walked back into the nurse's station,
asked where his keys were, stepped in to the chart room, and
immediately exited the chart room with a set of keys and the pack
of cigarettes that had been laying on the counter. When Ms.
Blanks re-entered the chart room, she noticed that the keys, the
cigarettes, and the straw that [she] had seen earlier were all
missing. She look[ed] around for these items, but could not
find them. On direct-examination Ms. Blanks testified that she did
not see anyone else enter the chart room during that time, however,on cross-examination she admitted that she was not facing the chart
room during the entire telephone conversation and may not have seen
everyone in the area. Based on these observations, Ms. Blanks
reported to her supervisor, Ms. Jo Schuchardt, that she suspected
Mr. Hudson and Ms. Best of using the straw with illegal drugs.
Later that morning, Ms. Schuchardt informed Ms. Blanks that
Dr. Patricia Christian (director of JUH), Mr. Sandy Brock (director
of human resources at JUH), and Officer Pendleton (Butner Public
Safety) were on their way to JUH. Officer Pendleton arrived first;
when he did, Ms. Blanks related to him what she had seen and what
she suspected. She gave Mr. Brock the same report when he arrived.
Officer Pendleton waited for Ms. Best and Mr. Hudson, who had gone
to lunch. When they returned, Officer Pendleton identified himself
to them and asked Mr. Hudson to empty his pockets and show him the
contents. Mr. Hudson complied; upon seeing a yellow straw from Mr.
Hudson's front right pocket, Officer Pendleton seized [the straw].
I picked it up. I looked at it, observed a white powdery substance
inside the straw, and I seized it. Officer Pendleton and Ms.
Blanks both testified that the straw seized had a bend in it and
was not the one Ms. Blanks saw in the chart room. Officer
Pendleton submitted the straw from Mr. Hudson's pocket to the SBI
lab for analysis, which later revealed no controlled substance on
the straw.
Officer Pendleton testified that he frisked [Mr. Hudson]
around his waist band and pulled his pant legs up and looked around
the cuff of his shoes, and that was it . . . . Mr. Hudson,however, testified that as part of the search Officer Pendleton's
hands were down right far into my underclothes. He was going into
my genital area. . . . Then he checked my socks and my shoes. . .
. Then he told me to stand at the front of the truck facing the
building, and he was going to search my truck. He asked me to
unlock my truck. Mr. Hudson complied with all of these requests.
At the conclusion of the search, Officer Pendleton told Mr. Hudson,
[t]hey're going to ask you to take a drug screen.
While Officer Pendleton was searching Mr. Hudson and his
truck, Ms. Blanks and Ms. Schuchardt conducted a strip search of
Ms. Best in a ladies' restroom. Ms. Best removed all of her outer
garments while standing in the open portion of the restroom in
front of Ms. Blanks and Ms. Schuchardt. Ms. Best testified in
response to direct examination:
Q. How did they search you?
A. She told me to take off my sweater. I
did.
THE COURT: Who told you to take it
off? Who told you to take
off your sweater?
A. Jo asked me to take off my sweater, and I
did. Then she asked me to undo my
blouse; I did. She asked me to undo my
bra; I did.
Q. As you undid each article of clothing
what did you do with them?
A. I opened them up. My blouse was buttoned
in the front, and I opened it up and
picked up the back part of the blouse. I
did the same thing with my bra and opened
it up and took to the back.
Q. And then what?
A. I had to pull down my pants and my
pantyhose.
Ms. Best was visibly upset and crying during and after the search,
in which no drugs or paraphernalia were found. Neither Ms. Blanks,Ms. Schuchardt, Mr. Brock, nor Officer Pendleton saw any evidence
of abnormal or erratic behavior, nor did any of them see any
indication that either petitioner was impaired. Mr. Hudson also
described what sort of activities usually took place in the chart
room and how straws were normally found in the chart room:
Q: Tell us -- we've heard a lot about
the chart room. Can you describe,
briefly, the dimensions of it and
generally what it's used for?
A: Yes. It's a room that's probably
about 5 by 9 or so. It has charts
in there. It has equipment that's
used for drawing blood. It has some
manuals in there for that. I know
that because they generally pertain
to me because I (inaudible) that
board. It has patients' charts,
patient belongings, and food items
and staff belongings. It's normally
an all-purpose.
Q: People keep their stuff in there?
Their food in there?
A: At times, yes.
Q: Did anybody ever mix medications in
there?
A: Yes, it has been used for that.
Q: Okay. Did you all ever use straws
to mix medications?
A: Yes. I did not, but I have others
do so, yes.
After completing both searches, Mr. Brock, Ms. Blanks, and Ms.
Schuchardt met with Ms. Best and Mr. Hudson in Ms. Schuchardt's
office. During the meeting, Mr. Hudson asked Ms. Schuchardt for a
copy of the Department of Human Resources workplace drug policy,
Directive No. 47 (Directive 47). Ms. Schuchardt told Mr. Hudson
that she did not know where a copy of the policy was located, and
neither Mr. Hudson nor Ms. Best saw Directive 47 at any time on 15
February 1997. Mr. Brock testified that he left the room to call Dr.
Christian, that he told her about the straw Ms. Blanks saw, and
that the one seized was not the same one as seen in the chart room,
but they agreed they had reasonable cause to request a drug test
of petitioners. Mr. Brock informed Ms. Best and Mr. Hudson that
under the policy, they were expected to take a drug screening test
and that failure to comply with the requested drug screen could
lead to a dismissal. The policy also required that petitioners be
advised of the basis for reasonable cause; Mr. Brock testified
that to comply, he told petitioners only about the straw that Ms.
Blanks had seen.
Ms. Best and Mr. Hudson left the room after signing forms
indicating that they did not consent to a drug test. Ms. Best
explained: I thought it (the drug test) couldn't have been [fair]
because what they were doing to me wasn't fair. Mr. Hudson
explained during his testimony that he did not consent to the drug
test because, I did not understand what was going on. I did not
know why this was happening to me, and I was actually -- I was
afraid of them at that time. . . .and I just said no. After
petitioners refused to consent to the drug tests, [t]hey told us
(Mr. Hudson and Ms. Best) to go home.
Petitioners made appointments with Butner Creedmoor Family
Medicine for drug screening tests on Tuesday morning, 18 February
1997, three days after the incident at JUH. Both tested negative
and brought their test results with them to their pre-dismissal
conferences on that same day. Mr. Hudson and Ms. Best weredismissed, effective 20 February 1997, for refusing to submit to a
blood test for drugs in violation of DHR Directive 47.
The Department has established a multi-step appeal procedure
for a terminated employee. Step 1 requires the employee to file
a grievance with his/her immediate supervisor. At Step 2 and
Step 3, the employee files an Employee Grievance Filing Form
with a specific authorized person in the Unit Personnel Office; at
Step 3, the Department provides a hearing. Petitioners Hudson
and Best appealed their dismissal by following these procedures.
Their Step 3 hearing was held 14 May 1997 before Ann Stone, a
Department hearing officer. Ms. Stone issued a recommended
decision in favor of petitioners. By letters dated 17 June 1997,
H. David Bruton, M.D., Secretary of the Department, informed
petitioners that he did not adopt the recommended decision.
Instead, he concluded there was reasonable cause to test
[petitioners] for drugs on the morning of February 15, 1997, and
that Hospital management's instruction to [petitioners] to take a
drug test was reasonable under the circumstances.
In July 1997, Ms. Best and Mr. Hudson filed Petition[s] For
A Contested Case Hearing with the Office of Administrative
Hearings, challenging their dismissals from JUH. Petitioners'
cases were heard together on 19-20 March 1998 before Administrative
Law Judge Sammie Chess, Jr. (ALJ), who issued a recommended
decision on 13 August 1998. The ALJ proposed extensive findings of
fact and concluded as law, inter alia, that [t]he request that
Petitioners immediately submit to drug screens was not reasonableunder the circumstances; that Petitioners' refusals of the drug
screens were reasonable refusals under the circumstances; and that
Petitioners made reasonable efforts to comply with Respondent's
request [for a drug screen]. He finally concluded that
Respondent had no just cause to discharge Petitioners for failing
to submit to drug screens that were ordered in violation of the
Fourth Amendment prohibition against unreasonable searches, and
recommended that both Petitioners be reinstated with back pay and
benefits from the date of termination, and attorneys fees.
The Department disagreed with the ALJ's recommended decision,
and submitted a Proposed Decision and Order to the SPC. The SPC
considered the case on 10 December 1998 and declined to adopt the
ALJ's recommended decision, but instead adopted some of the
recommended findings and conclusions, and changed many. In part,
the SPC concluded that the Department did have reasonable cause to
request a drug test and that, Petitioners blatantly refused to
comply with the reasonable request of the Respondent and therefore
engaged in insubordination and personal misconduct. Petitioners
were not entitled to unilaterally determine which of the
Respondent's directives they would comply with, when, and on what
terms. The SPC also concluded that Respondent had just cause to
discharge Petitioners for failing to submit to drug screens. The
SPC finally ordered that Respondent's disciplinary action with
regard to the Petitioners' employment be affirmed and the
Commission hereby finds that the Petitioners failed to meet their
burden of proof showing that the Respondent lacked just cause fortheir dismissals for personal misconduct.
Petitioners filed a joint Petition for Judicial Review of
the SPC's order in Superior Court alleging that a number of the
SPC's findings of fact and the decision to reverse the
recommendations of the ALJ were not supported by the record, and
[were] arbitrary and capricious. Petitioners also alleged that
the SPC's conclusions of law and decision were affected by errors
of law. Both sides filed extensive briefs with the Superior
Court, addressing the facts, the law, and the applicable standards
of review.
On 9 December 1999, Superior Court Judge Abraham Penn Jones
heard argument on the Petition for Judicial Review and, on 24
October 2000, issued an Order reversing the decision of the SPC.
The court reviewed the conclusions of law and statements of law
contained in the Decision and Order de novo, and determined that
the Commission's decision was affected by errors of law. The
superior court also reviewed de novo the pertinent constitutional
issues, specifically Fourth Amendment search and seizure
implications, and concluded that the SPC's decision was affected by
errors of law. Next, the superior court employed the 'whole
record' test in reviewing Petitioners' contention that the [SPC's]
decision was not supported by substantial evidence in the record,
and determined that the [SPC's] decision was not supported by
substantial evidence in the record. The Court employed the
'whole record' test in reviewing the Petitioners' contention that
the [SPC's] decision was arbitrary and capricious, and determinedthat the [SPC's] decision was arbitrary and capricious. The
superior court ordered that the Decision and Order of the [SPC] is
reversed and this matter is remanded to the [SPC] for further
proceedings consistent with this Order.
On 16 November 2000, the Department appealed to this Court,
alleging that (1) the SPC's decision was not affected by errors of
law, and (2) the SPC's decision and order was supported by
substantial evidence in the record. We affirm the superior court.
Before reaching the Department's assignments of error, we
address the standard of review this Court applies in cases governed
by the Administrative Procedure Act (APA). See N.C. Gen. Stat.
§§ 150B-1 to -52 (1999). On review, we are required to examine[]
the trial court's order for error[s] of law by (1) determining
whether the trial court exercised the appropriate scope of review
and, if appropriate, (2) deciding whether the court did so
properly. Amanini v. N.C. Dept. of Human Resources, 114 N.C. App.
668, 675, 443 S.E.2d 114, 118-19 (1994); see also Act-up Triangle
v. Commission for Health Services, 345 N.C. 699, 706, 483 S.E.2d
388, 392 (1997). [T]he proper manner of review depends upon the
particular issues presented on appeal. Id. at 674, 443 S.E.2d at
118 (citing In re Appeal by McCrary, 112 N.C. App. 161, 165, 435
S.E.2d 359, 363 (1993)). If the petitioner alleges that the
agency's decision was based on an error of law, then the superior
court applies de novo review. See id. De novo review requires the
court to consider a question anew, as if not considered or decided
by the agency. Id. If the petitioner alleges either that theagency's decision was not supported by the evidence, or that the
agency's decision was arbitrary and capricious, then the superior
court applies the whole record test. See id.; see also N.C. Gen.
Stat. § 150B-51(b) (1999). The 'whole record' test requires the
reviewing court to examine all competent evidence (the 'whole
record') in order to determine whether the agency decision is
supported by 'substantial evidence.' Amanini, 114 N.C. App. at
674, 443 S.E.2d at 118 (quoting Rector v. N.C. Sheriffs' Educ. and
Training Standards Comm., 103 N.C. App. 527, 532, 406 S.E.2d 613,
616 (1991)).
[W]hile [t]he nature of the contended error
dictates the applicable scope of review, this
rule should not be interpreted to mean the
manner of . . . review is governed merely by
the label an appellant places upon an
assignment of error; rather, [the court] first
determine[s] the actual nature of the
contended error, then proceed[s] with an
application of the proper scope of review.
In re Appeal of Willis, 129 N.C. App. 499, 501, 500 S.E.2d 723,
725-26 (1998) (citing Utilities Comm. v. Oil Co., 302 N.C. 14, 21,
273 S.E.2d 232, 236 (1981); Amanini, 114 N.C. App. at 675, 443
S.E.2d at 118) (internal quotations omitted)).
Accordingly, the first question we reach is whether the trial
court exercised the appropriate scope of review. See Act-up, 345
N.C. at 706, 483 S.E.2d at 392. We noted in Willis, 129 N.C. App.
at 503, 500 S.E.2d at 726-27, and Hedgepeth v. N. C. Div. of Servs.
for the Blind, 142 N.C. App. 338, 348, 543 S.E.2d 169, 175 (2001),
that in reviewing a decision from an agency, a superior court's
order must: (1) set out the appropriate standards of review, and(2) delineate which standard the court utilized in resolving each
separate issue raised by the parties. Without these two necessary
steps, this Court is unable to make the requisite threshold
determination that the trial court 'exercised the appropriate scope
of review.' See Hedgepeth, 142 N.C. App. at 348, 543 S.E.2d at
175 (quoting Willis, 129 N.C. App. at 503, 500 S.E.2d at 726-27).
Here, there are multiple issues on appeal, some requiring de novo
review and others requiring the whole record test. See McCrary,
112 N.C. App. at 165, 435 S.E.2d at 363 (A reviewing court may
even utilize more than one standard of review if the nature of the
issues raised so requires. (emphasis omitted)). The superior
court properly set out the appropriate standards of review and
delineated which standard of review it was applying to each error
alleged. See Gray v. North Carolina Dept. of Environment, Health,
and Natural Services, ___ N.C. App. ___, 560 S.E.2d 394 (2002);
Act-up, 345 N.C. at 706, 483 S.E.2d at 392.
At the heart of the Department's arguments on appeal lies the
issue of whether JUH had reasonable cause to request that
petitioners submit to drug tests. In its Decision and Order, the
SPC concluded that it did; the superior court concluded that it did
not. If JUH did not have reasonable cause, the petitioners were
entitled to refuse to submit to the drug tests. As a direct result
of their refusal to submit to the drug test, the Department fired
petitioners. The SPC determined that Respondent had just cause to
discharge Petitioners for failing to submit to drug screens. The
superior court reversed the termination. Consequently, theultimate determination of whether the Department was justified in
dismissing petitioners from their jobs stems from the determination
of reasonable cause. We review the burden of proof of reasonable
cause, and then address the law defining reasonable cause.
The SPC concluded that [t]he burden of proof lies on the
Petitioners to prove the Respondent lacked just cause for their
dismissals. Petitioners did not meet their burden of proof. The
Petitioners must prove that there was not substantial evidence in
the findings of fact which would support these conclusions.
Walker v. N.C. Dept. of Human Resources, 100 N.C. App. 498, 503-04,
397 S.E.2d 350, 354 (1990), disc. rev. denied, 328 N.C. 98, 402
S.E.2d 430 (1991); see also Employment Security Comm. v. Peace, 128
N.C. App. 1, 12, 493 S.E.2d 466, 473 (1997) (noting that in just
cause dismissal cases, an employee might have the burden of
proving a negative), aff'd in part, 349 N.C. 315, 507 S.E.2d 272
(1998). While we recognize that proving a negative may be
difficult, the Supreme Court has approved placing this burden of
proof on the employee in State personnel just cause dismissal
cases. See, e.g., Soles v. City of Raleigh Civil Service Comm.,
345 N.C. 443, 448-50, 480 S.E.2d 685, 688-89 (1997); Peace v.
Employment Sec. Comm'n, 349 N.C. 315, 507 S.E.2d 272 (1998). In
Peace, a divided Court stated that placing the burden of proof on
the employee does not violate due process because, [t]he statutory
protections afford a terminated State employee a comprehensive and
effective deterrent against erroneous decisions. A terminated
employee may avail himself not only of administrative reviewincorporating full discovery of information and an evidentiary
hearing, but may also obtain judicial review of the final agency
decision. 349 N.C. at 327, 507 S.E.2d at 280. Here, the SPC
properly required the petitioners to prove the absence of
substantial evidence of just cause for their termination.
The central issue in this case, therefore, is whether the
Petitioners carried their burden of proving that there was not
substantial evidence of reasonable cause to justify JUH's request
that Petitioners submit to drug tests. The Department contends
that the evidence established reasonable cause for it to request a
drug test. The SPC agreed with the Department, but the superior
court did not. The issue of reasonable cause is a legal issue
and is subject to de novo review by this Court. For the reasons
explained below, we conclude that JUH did not have reasonable cause
to request a drug test of petitioners.
In 1989, the United State Supreme Court, in Skinner v. Railway
Labor Exec. Assn., declared that urine tests on employees, for the
purpose of indicating the use of controlled substances, are
searches regulated by the Fourth Amendment of the United States
Constitution. See Skinner, 489 U.S. 602, 617, 103 L. Ed. 2d 639,
660 (1989). The Court in Skinner noted that the Fourth Amendment
does not proscribe all searches and seizures, but only those that
are unreasonable. Id. at 619, 103 L. Ed. 2d at 661. Further,
[t]he essential purpose of the Fourth Amendment is to 'impose a
standard of reasonableness upon the exercise of discretion by
government officials . . . in order to safeguard the privacy andsecurity of individuals against arbitrary invasions by governmental
officials. Boesche v. Raleigh-Durham Airport Authority, 111 N.C.
App. 149, 153, 432 S.E.2d 137, 140 (1993) (quoting Delaware v.
Prouse, 440 U.S. 648, 653-54, 59 L. Ed. 2d 660, 667 (1979); Camara
v. Municipal Court, 387 U.S. 523, 528, 18 L. Ed. 2d 930, 935
(1967)). What is reasonable depends on the privacy and
governmental interests involved in the individual case. See
Treasury Employees v. Von Raab, 489 U.S. 656, 671, 103 L. Ed. 2d
685, 706 (1989) (noting that certain types of public employees,
like Customs agents, have diminish[ed] privacy expectations even
with respect to such personal searches.).
The petitioners here are subject to a drug-free workplace
policy as state employees. To implement this policy, JUH must
comply with the minimum protections against unreasonable search and
seizure provided by the Fourth Amendment to the United States
Constitution. Within our federal system the substantive rights
provided by the Federal Constitution define only a minimum. State
law may recognize liberty interests more extensive than those
independently protected by the Federal Constitution. Mills v.
Rogers, 457 U.S. 291, 300, 73 L. Ed. 2d 16, 23 (1982) (citing
Greenholtz v. Nebraska Penal Inmates, 442 U.S. 1, 7, 60 L. Ed. 2d
668, 675 (1979); Oregon v. Hass, 420 U.S. 714, 719, 43 L. Ed. 2d
570, 575 (1975)). Moreover, a State may confer procedural
protections of liberty interests that extend those minimally
required by the Constitution of the United States. Id. at 300, 73
L. Ed. 2d at 24 (emphasis omitted). The Department contends that JUH based its request that
petitioners take a drug test on the Alcohol and Drug Free
Workplace Policy (Directive 47) promulgated by the Department,
which does comply with Fourth Amendment standards. Directive 47
states: [w]hen management has reasonable cause to believe an
employee is using or is under the influence of alcohol or a
controlled substance in violation of this policy, the employee may
be required to submit to a drug and/or alcohol test. (emphasis
added). The policy further defines testing based on reasonable
cause as follows:
testing based on a belief that an employee is
using or has used alcohol or drugs in
violation of the department's policy drawn
from specific objective and articulable facts
and reasonable inferences drawn from those
facts in light of experience. Among other
things, such facts and inferences may be based
on, but not limited to, one of the following:
[A.] Direct observation of abnormal conduct
or erratic behavior by the employee which
may render the employee unable to perform
his/her duties or which may pose a threat
to safety or health.
[B.] A report of observed alcohol or drug use
provided by a reliable and credible
source.
[C.] An on-the-job accident or occurrence
where there is evidence to indicate the
accident or occurrence, in whole or in
part, may have been the result of the
employee's use of a controlled substance
or alcohol.
[D.] Evidence that an employee is involved in
the use, possession, sale, solicitation,
or transfer of drugs or alcohol while
working or while on the employer's
premises or operating the employer's
vehicle, machinery, or equipment.
Directive 47 requires specific objective and articulable
facts and reasonable inferences before requesting a drug test of
an employee. The Federal Courts have approved a requirement of
reasonable suspicion. American Federation of Government
Employees, AFL-CIO v. Roberts, 9 F.3d 1464, 1468 (9th Cir. 1993).
The Court in Roberts noted that '[a]lthough reasonable suspicion
does not require certainty, mere 'hunches' are not sufficient to
meet this standard.' Roberts, 9 F.3d at 1468 (quoting American
Fed. of Gov't Employees, Local 2391 v. Martin, 969 F.2d 788, 790,
n.1 (9th Cir. 1992)). While reasonable cause is a less demanding
standard than probable cause, it does require articulable suspicion
based on reliable information. See Garrison v. Department of
Justice, 72 F.3d 1566, 1569 (Fed. Cir. 1996), cert. denied, 519
U.S. 948, 136 L. Ed. 2d 250 (1996). We conclude that JUH's
application of reasonable cause here did not comply with even the
minimum protections afforded by the Fourth Amendment of the United
States Constitution.
We have carefully reviewed information known to JUH's
officials when they requested the drug tests, to determine whether
they had reasonable cause at the time under these standards. See
id. at 1568. Information they learned after the fact may not form
the basis for reasonable cause. See id. At the relevant time, Ms.
Blanks suspected that petitioners had some involvement with illegal
drug use, because she observed a yellow straw about three to four
inches long . . . and it had a white residue in one end of it in
the chart room. She believed that the straw was used bypetitioners, but she observed no erratic behavior by petitioners
and she did not believe that either petitioner appeared to be under
the influence of any substances. Searches revealed no substances
on either petitioner, but did reveal a straw on Mr. Hudson, which
Ms. Blanks indicated was not the straw she saw earlier in the chart
room. Other information purportedly relied on by SPC, such as the
suggestion that Ms. Best instigated the telephone call to draw Ms.
Blanks out of the chart room, was not discovered until later.
The superior court noted the following in its Order:
Commission Findings 91, 92, 93 and 94, that
Respondent had objective and articulable
grounds for requesting that Petitioners submit
to drug testing, are not supported by
substantial evidence. The record shows that
Mr. Brock did not consult with Dr. Christian
prior to requesting that the Petitioners
submit to drug testing. (T.Vol.IIB,pp. 227,
237, 240.) The reasons for Dr. Christian
requesting the drug tests put forth by the
Respondent and adopted by the Commission were
not matters known to Dr. Christian prior to
Mr. Brock's request that the Petitioners
submit to testing, but were reasons developed
by the Respondent after the fact in order to
justify the drug testing request. (T.Vol.IIA,
pp. 159-66.) The record shows that the
Respondent's request for drug testing relied
on speculation that the straw contained
contraband and that the Petitioners were
responsible for the straw. Based on this
Court's review of the whole record, the
Commission's Findings 91, 92, 93 and 94 were
not supported by substantial evidence.
We agree.
In sum, the whole record reveals that at the critical time,
officials at JUH knew that Ms. Blanks was suspicious of a straw
with a powder residue that she saw in the chart room, which she
connected to petitioners, and which she believed could indicatesome illegal drug activity. Ms. Blanks could not identify the
powder residue, and was not able to articulate any other basis for
her suspicion. No other JUH employee had similar suspicions and
the strip searches of petitioners revealed nothing improper or
illegal. Thus, we agree with the superior court that management at
JUH had no reasonable cause to believe that either petitioner
[was] using or [was] under the influence of alcohol or a
controlled substance. Directive 47.
As the officials at JUH had no reasonable cause to request
drug tests of petitioners, the Department had no basis to terminate
their employment for refusing to comply. See Gardner v. Broderick,
392 U.S. 273, 277, 20 L. Ed. 2d 1082, 1086 (1968); Fleckenstein v.
Dep't of the Army, 63 M.S.P.R. 470, 473-74 n.3 (1994). A person
may not be discharged for refusing to waive a right which the
Constitution guarantees to him. Gardner, 392 U.S. at 277, 20 L.
Ed. 2d at 1086. In Gardner, petitioner, a New York City police
officer, was fired for refusing to waive his privilege against
self-incrimination. See id. at 278, 20 L. Ed. 2d at 1087. The
United States Supreme Court held that discharging him solely for
his refusal to waive the immunity to which he is entitled under
the Constitution was improper. Id. Here, petitioners elected not
to waive their Fourth Amendment rights and refused to take the drug
test. Because there was no reasonable cause to request the test,
petitioners were improperly fired for refusing to submit to the
test.
Next, we address the Department's assertion that the SPC'sDecision and Order was supported by substantial evidence in the
record, and that the superior court's factual findings were not.
Because this case turns on the issue of reasonable cause, we
address only those findings of fact concerning whether JUH had
reasonable cause prior to its request that petitioners submit to
drug tests. We apply the whole record test to examine whether
the SPC's findings of fact were supported by the evidence. See
Amanini, 114 N.C. App. at 675, 443 S.E.2d at 118.
A number of the SPC's findings address the evidence that it
believed supported reasonable cause, including Findings of Fact
numbers 9, 12, 13, 19, 20, 21, 32, 43, 69, 73, 74, 84, 85, 86, 91,
92, 93, and 94. After reviewing the whole record, we note that Ms.
Blanks was the only witness presented who made pertinent
observations that formed the stated basis of reasonable cause prior
to JUH's request that petitioners submit to a drug test. Ms.
Blanks testified that she saw petitioners in the chart room, but
they left soon after she arrived. She saw a straw with powdery
residue which disappeared when Mr. Hudson retrieved his keys and
cigarettes. She clearly stated that the straw seized from Mr.
Hudson was not the same straw.
These observations constituted the entire basis for Ms.
Blanks' suspicion that petitioners were engaged in illegal drug
activity. Ms. Blanks testified that Mr. Hudson appeared laid
back during the meeting in Ms. Schuchardt's office, however, no
other employees corroborated this observation or articulated any
basis for suspicion of drug use by petitioners during the morningof 15 February 1997. In fact, Ms. Schuchardt, Mr. Hudson's
supervisor, testified:
Q. Okay. At any point during the time that
he was working for you, did you ever
believe him to be impaired by drugs or
alcohol while on duty?
A. No.
. . .
Q. Okay. And did [Ms. Blanks] tell you
about seeing a straw in the room?
A. Yes.
Q. And at that point you didn't have any
reason to believe that Mr. Hudson was
impaired that day.
A. No.
Ms. Blanks testified during cross-examination as follows:
Q. So they [petitioners] were behaving
normally in the [chart]room?
A. Yes, sir.
. . .
Q. Okay. Would there have been anything that
you saw them doing that you thought that
they should have been pulled off the
ward? Were they dangerous?
A. No, sir.
Q. Were they doing anything that would have
imperiled a patient?
A. Not that I observed.
Q. Okay. Did you actually see either of them
using drugs?
A. No, sir.
Q. Were they involved in any sort of
accident or occurrence during this time?
A. No, sir. Not of my awareness.
Q. Okay. Now, you didn't see anything that
showed that they were involved in drugs.
Did you see the straw in their hand?
A. No, sir.
Q. Did you see the straw in their
possession?
A. No, sir.
Q. Did Mr. Hudson or Ms. Best come to you
and say we've got some drugs, would you
like to buy some?
A. No, sir.
Q. Okay. Did they say we've got some drugs,
would you like to use them with us?
A. No, sir.Q. Did you see them give anyone else any
drugs or drug paraphernalia?
A. No, sir.
Q. Did you see them do it while they were
operating a vehicle or equipment?
A. I didn't even observe that. Operating a
vehicle or equipment.
Counsel for petitioners also questioned Ms. Blanks concerning her
knowledge of drug paraphernalia and her ability to accurately
identify it. When asked whether knowledge of drug paraphernalia
was part of her job, Ms. Blanks responded:
A. I have training related to the drugs in
the workplace policy, and as a supervisor
of a staff who have CDL's that we've had
some special training on. Substance
abuse issues, plus patient programming.
I watch t.v. and things that give me some
general knowledge [] about dru[g]
paraphernalia.
Q. And it was based on your feeling, though,
that you determined that this was
contraband?
A. Yes, ma'am.
She also testified:
Q. What sort of training have you had in the
medical field?
A. Medical field?
Q. Yes.
A. None.
Q. You have no training in pharmacy or
pharmacal -- you have no training in
drugs?
A. No, sir. I mean, in terms of the
training and in terms of the policies and
those -- are you talking --
Q. If you have any familiarity at all with
drugs?
A. I guess no is the answer. I don't know.
Q. If I were to put down on the table a
thing of cocaine, a thing of saccharin[],
a thing of sugar, a thing of condensed
milk -- powder dry milk. Would you be
able to tell us without absolute doubt
which is which?
. . .A. No, I guess not.
This testimony reveals the absence of any specific objective
and articulable facts and reasonable inferences drawn to show
reasonable cause under Directive 47 or the Fourth Amendment of the
United States Constitution. We hold that petitioners carried their
burden of proving that JUH did not have reasonable cause to request
that they submit to drug testing. Without such reasonable cause,
the Department lacked just cause for terminating petitioners. We
affirm the superior court's Order.
AFFIRMED.
Judge TIMMONS-GOODSON concurs.
Judge TYSON dissents.
TYSON, Judge, dissenting.
Yolandra Best and Roy Hudson (collectively petitioners)
failed to show that the Department of Health and Human Services,
John Umstead Hospital (JUH) did not have reasonable cause to
suspect that petitioners were using or possessing drugs. Dr.
Patricia Christian (Dr. Christian), director of JUH, had
reasonable cause to request that petitioners submit to a drug
test. Petitioners' refusal to undergo drug testing was
insubordination that justified their termination. I would reverse
the superior court and affirm the State Personnel Commission's
(SPC) decision. I respectfully dissent.
I agree with the majority's statement of the appropriate
standard of review, and that petitioners have the burden of proofto show that respondent lacked just cause to terminate petitioners'
employment. I also agree with the majority's conclusion that
reasonable cause is a less demanding standard than probable cause
. . . .
I do not agree with the majority's conclusion that
application of 'reasonable cause' . . . did not comply with . . .
the minimum protections afforded by the Fourth Amendment of the
United States Constitution. The majority opinion does not
conclude that the reasonable cause standard in the Alcohol and
Drug Free Workplace Policy (Directive 47") violates the United
States and/or the North Carolina Constitutions. The majority
opinion holds that JUH did not have reasonable cause to request
that [petitioners] submit to drug testing.
Directive 47 provides that reasonable cause must exist
before any State employee is required to submit to a drug test.
When management has reasonable cause to
believe an employee is using or is under the
influence of alcohol or a controlled substance
in violation of this policy, the employee may
be required to submit to a drug . . . test.
Directive 47 defines reasonable cause:
Reasonable Cause Drug Testing means testing
based on a belief that an employee is using or
has used alcohol or drugs in violation of the
department's policy drawn from specific
objective and articulable facts and reasonable
inferences drawn from those facts in light of
experience. Among other things, such facts
and inferences may be based on, but not
limited to, one of the following:
. . . .
D. Evidence that an employee is involved in
the use, possession, sale solicitation,or transfer of drugs or alcohol while
working or while on the employer's
premisses or operating the employer's
vehicle, machinery, or equipment.
(Emphasis supplied).
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