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NO. COA02-39
NORTH CAROLINA COURT OF APPEALS
Filed: 31 December 2002
RONALD H. SACK,
Petitioner-Appellee,
v
.
NORTH CAROLINA STATE UNIVERSITY; MARYE ANNE FOX, CHANCELLOR;
UNIVERSITY OF NORTH CAROLINA;
Respondents-Appellants.
Appeal by respondents from order entered 1 October 2001 by
Judge Howard E. Manning, Jr., in Wake County Superior Court. Heard
in the Court of Appeals 9 October 2002.
Capitol District Law Offices, by Reagan H. Weaver and Robert
J. Harris, for petitioner-appellee.
Attorney General Roy Cooper, by Assistant Attorney General
Joyce S. Rutledge, for respondents-appellants.
BIGGS, Judge.
Respondents (N.C. State University; Marye Anne Fox, Chancellor
of N.C. State University; University of North Carolina) appeal from
an order vacating their dismissal of petitioner's grievance. For
the reasons that follow, we reverse.
This appeal arises from a grievance filed by petitioner
challenging a decision not to recommend him for a discretionary
salary increase. The evidence in the record tended to show the
following: Petitioner was employed by North Carolina State
University (the university) as a history professor in 1971, and was
tenured in 1974. In 1996, 'academic enhancement' funds were made
available to the university for discretionary pay raises to 50% of
the history faculty. The purpose of the academic enhancementfunds was to reward highly productive faculty who [were] likely to
receive counter offers elsewhere, [and] who could not be easily
replaced because of the talents they had. Dean Zahn, the Dean of
the College of Humanities and Social Sciences, asked Dr. Riddle,
the chair of the history department, to identify the top 50% of the
history faculty. Dr. Riddle was directed to consider several
objective and subjective factors in making this determination,
including: the number and quality of recent publications; service
to the university and the community; special talents brought to the
department; level of scholarship; likelihood of receiving an offer
from another university; and the need to remedy existing salary
inequities among history faculty. Dr. Riddle submitted his
recommendations to Dean Zahn, who made the final decisions and
awarded the discretionary salary enhancements. Petitioner was not
among those recommended by Dr. Riddle.
In December, 1996, petitioner filed a grievance against Dr.
Riddle, and requested a hearing before the university faculty
grievance committee. He alleged that Dr. Riddle had (1) treated
him unfairly for personal reasons with regards to scheduling of
classes and had (2) deliberately overlooked him when making his
recommendations regarding the discretionary salary enhancements,
again for purely personal reasons. Petitioner was granted a
hearing, and on 29 December 1997, the committee submitted its
report and recommendation to Chancellor Monteith, then Chancellor
of the university. The committee was unanimous in concluding that
[petitioner] was treated fairly with regard to both the schedulingof classes and the determination of who Dr. Riddle would recommend
for a salary enhancement. The committee acknowledged that it had
spoken by telephone with Dean Zahn to clarify the time period
during which faculty publications were evaluated. The committee
also offered an opinion that perhaps if Dr. Riddle had been more
forthright with petitioner, the issue of salary enhancement would
have been resolved and would have not resulted in a grievance.
In June, 1998, Chancellor Monteith accepted the committee's
finding on [the] issue of class schedules. With regards to the
issue of salary enhancement, Chancellor Monteith noted that the
committee's ex parte phone conversation with Dean Zahn violated the
university's grievance procedure, which requires that all decisions
of the committee shall be based solely on material presented in
the hearings. To correct this error, Chancellor Monteith remanded
the grievance for the limited purpose of receiving Dean Zahn's
testimony on the record and providing each party the opportunity to
cross-examine. Petitioner then wrote to university administrators
asking whether he would be permitted to offer evidence to rebut
Dean Zahn's testimony, and was informed that the committee may
entertain a request . . . to present rebuttal to any relevant
testimony that Dean Zahn may present regarding the issue of how
enhancement monies were allocated.
The committee conducted its remand hearing in December, 1998,
and submitted an addendum to its earlier report in May, 1999. The
committee again concluded that petitioner was treated fairly and
properly with regard to the manner by which he was evaluated in1996 for a salary enhancement. The committee also repeated its
concerns about the manner by which Dr. Riddle dealt with
[petitioner] concerning this issue.
In July, 1999, Chancellor Fox, who had succeeded Chancellor
Monteith, wrote to the committee, petitioner, and Dr. Riddle,
stating her intention to accept the committee's recommendation that
no remedial action [was] required on either of petitioner's
grievances. Before finalizing her decision, Chancellor Fox
requested that the committee prepare a memo clarifying why it had
neither permitted petitioner to present certain rebuttal testimony
on the issue of faculty scheduling of classes, nor considered
certain documents submitted by petitioner at the remand hearing.
Petitioner had proffered documents to show that, although Dr.
Riddle testified that he evaluated faculty publications for the
previous 2 years, he had recommended certain faculty members for
enhancement money whose publication records would not, standing
alone, have qualified them unless Dr. Riddle had included their
publications for the previous 3 years.
The committee responded that it excluded the testimony
regarding rescheduling of classes, because the proposed witness
was not involved in the decision making process . . . [and] was
not privy to [petitioner's] interactions with Dr. Riddle regarding
scheduling issues. The committee further explained that it
excluded petitioner's proffered documentation as irrelevant and
immaterial to its resolution of either of the issues it considered
dispositive: whether petitioner had shown by a preponderance of theevidence that Dr. Riddle acted out of deliberate, personal
malice, or whether Dr. Riddle's recommendations evidence[d]
unfairness to [petitioner]. The committee made findings of fact
that Dr. Riddle was directed to give very heavy weight to the
question of whether a given faculty member was both likely to be
lured away by another university and was worth retaining.
Therefore, the committee determined that Dr. Riddle's review of the
number of publications of each faculty member, whether for two or
three years, would not necessarily be the final word on even his
initial recommendation to the Dean. The committee also found that
the Provost's guidelines require[d] that Dr. Riddle exercise
reasonable judgment and make a broader assessment of an
individual faculty members overall likelihood of being made an
offer worth countering. Finally, the committee noted that it had
evaluated whether Dr. Riddle's recommendations to Dean Zahn
reflected a reasonable determination of [petitioner's] relative
value to his department[,] and agreed unanimously and without
reservation, that Dr. Riddle's recommendation was indeed reflective
of a reasonable determination. On 17 December 1999, Chancellor
Fox issued her final decision accepting the committee's
conclusions.
Petitioner then appealed to the President of the University of
North Carolina. He reiterated his original complaints, and added
new allegations of age discrimination, breach of contract, and
violation of his due process rights. President Broad found no
evidence that the process or decisions reached in [petitioner's]appeal were wrongly made or otherwise in error and, accordingly,
found no basis for reversing or otherwise modifying Chancellor
Fox's decision. President Broad declined to address petitioner's
age discrimination and breach of contract allegations, as these
were not raised before the committee. Thereafter, petitioner
appealed to the UNC Board of Governors, who referred the matter to
their Committee on University Grievance. That committee found no
compelling basis . . . for disturbing the president's decision and
recommended that the board sustain the president's decision and
dismiss petitioner's appeal. The Board of Governors approved the
recommendation on 10 November 2000.
From the decision of the Board of Governors, petitioner on 15
December 2000 appealed to the superior court for review.
Petitioner's appeal was heard in superior court on 7 June 2001. On
1 October 2001, the trial court issued an order vacating the Board
of Governors decision upholding Chancellor Fox's dismissal of
petitioner's grievance. The court remanded petitioner's grievance
to the Grievance Committee with instructions directing the
committee to list all history faculty publications between specific
starting and ending dates, and to assign points for publications
of various types, according to the system that Dr. Riddle testified
he used. The committee was ordered to prepare a master list of
all the faculty members . . . in rank order and determine the
position occupied by the Petitioner according to the point
system for the quantity of publications during the specified time
period. If petitioner was in the top half of this list, the courtordered that [petitioner's] name and position in the ranking will
be submitted to the Chancellor with a recommendation that he was
not treated fairly. Conversely, if petitioner was not in the top
50%, the court ordered that [petitioner's] grievance will be
recommended for dismissal[.] The court also ordered that the
Grievance Committee shall not consider the age of any faculty
member, or any other factor besides the publications each faculty
member had during the specified time period, and directed the
committee to take testimony and rebuttal evidence on the issue of
whether respondent had any legitimate business reason for
considering the age of faculty members. Finally, the trial court
ordered that [t]he Chancellor shall accept the recommendations of
the Grievance Committee . . . and shall issue her determination of
Petitioner's grievance. From this order, respondents appeal.
___________________
Preliminarily, we address petitioner's appellate motions to
dismiss respondents' appeal, and to strike portions of respondents'
reply brief. In his motion to dismiss, petitioner argues that,
because the trial court remanded to the committee rather than
reversing the Board of Governors, respondents' appeal should be
dismissed as interlocutory. Petitioner correctly asserts that the
trial court's order was interlocutory.
See Heritage Pointe Bldrs.
v. N. C. Licensing Bd. of General Contractors, 120 N.C. App. 502,
504, 462 S.E.2d 696, 697-698 (1995),
disc. review denied , 342 N.C.
655, 467 S.E.2d 712 (1996) (where trial court vacated the Board's
decision and remanded the case for a rehearing, consistent with itsorder . . . the order requires further action to settle the
controversy, [and] it is interlocutory). This Court has generally
held that an order remanding an action to an agency for hearing .
. . is not immediately appealable because avoidance of a hearing
does not affect a substantial right.
Byers v. N. C. Savings
Institutions Division, 123 N.C. App. 689, 693, 474 S.E.2d 404, 407
(1996). However, in the case
sub judice, we find merit in certain
of respondents' substantive arguments. Therefore, in the interests
of justice and pursuant to our authority under N.C.R. App. P. 21,
we elect to treat respondents' appeal as a petition for writ of
certiorari. See N.C. R. App. P. 21 (2001)(a)(1) (The writ of
certiorari may be issued in appropriate circumstances by either
appellate court to permit review . . . when no right of appeal from
an interlocutory order exists[.]).
See also Tastee Freez
Cafeteria v. Watson, 64 N.C. App. 562, 564, 307 S.E.2d 800, 802
(1983) (granting immediate review where trial court exceeded its
scope of review by [remanding for] further findings without first
determining whether the [agency's] findings were sufficient to
support [its] conclusion).
Petitioner also filed a motion to strike portions of
respondents' reply brief. We conclude that respondents' reply
brief comports with the requirements of N.C.R. App. P. 28(h), and,
accordingly, deny petitioner's motion.
Standard of Review
The trial court's order was entered pursuant to petitioner's
appeal from a final agency decision, in this case the decision by
the Board of Governors denying further review of his grievance
against Dr. Riddle. Judicial review of a final agency decision is
governed by N.C.G.S. § 150B-51(b) (2001):
[I]n reviewing a final decision, the court may
affirm the decision of the agency or remand
the case . . . for further proceedings. It
may also reverse or modify the agency's
decision . . . [if] substantial rights of the
petitioners may have been prejudiced because
the agency's findings, inferences,
conclusions, or decisions are:
(1) In violation of constitutional provisions;
(2) In excess of the statutory authority or
jurisdiction of the agency;
(3) Made upon unlawful procedure;
(4) Affected by other error of law;
(5) Unsupported by substantial evidence . . .
in view of the entire record as submitted; or
(6) Arbitrary or capricious, or an abuse of
discretion.
The standard of review applied by the superior court reviewing
a final agency decision is determined by the type of error
asserted; errors of law are reviewed de novo, while the whole
record test is applied to allegations that the administrative
agency decision was not supported by the evidence, or was arbitrary
and capricious. Amanini v. N.C. Dept. of Human Resources, 114 N.C.
App. 668, 443 S.E.2d 114 (1994). De novo review requires a court
to consider the question anew, as if the agency has not addressed
it. Blalock v. N.C. Dep't of Health and Human Servs., 143 N.C.
App. 470, 475-76, 546 S.E.2d 177, 182 (2001).
When it applies the whole record test, the reviewing court
[must] examine all competent evidence (the 'whole record') in orderto determine whether the agency decision is supported by
'substantial evidence.' ACT-UP Triangle v. Commission for Health
Services, 345 N.C. 699, 706, 483 S.E.2d 388, 392 (1997) (citation
omitted). Substantial evidence is 'more than a scintilla' and is
'such relevant evidence as a reasonable mind might accept as
adequate to support a conclusion.' Williams v. N.C. Dep't of
Env't & Natural Res., 144 N.C. App. 479, 483, 548 S.E.2d 793, 796
(2001) (quoting Lackey v. Dept. of Human Resources, 306 N.C. 231,
238, 293 S.E.2d 171, 176 (1982)). The whole record test does not
permit the court 'to replace the [agency's] judgment as between two
reasonably conflicting views, even though the court could
justifiably have reached a different result had the matter been
before it de novo,' N.C. Dept. of Correction v. McNeely, 135 N.C.
App. 587, 592, 521 S.E.2d 730, 733 (1999) (quoting Thompson v. Wake
County Board of Education, 292 N.C. 406, 410, 233 S.E.2d 538, 541
(1977)), but merely gives a reviewing court the capability to
determine whether an administrative decision has a rational basis
in the evidence. Dept. of Correction v. Gibson, 58 N.C. App. 241,
257, 293 S.E.2d 664, 674 (1982), rev'd on other grounds, 308 N.C.
131, 301 S.E.2d 78 (1983). Thus, if the agency's findings are
supported by substantial evidence, they must be upheld. Id.
On appeal, this Court must determine whether the trial court
committed any error of law, and our review of the trial court's
order generally involves (1) determining whether the trial court
exercised the appropriate scope of review and, if appropriate, (2)
deciding whether the court did so properly. Amanini, 114 N.C.App. at 675, 443 S.E.2d at 118-19. Thus, in its order regarding an
agency decision, the trial court should state the standard of
review it applied to resolve each issue. Deep River Citizens'
Coalition v. North Carolina Dept. of Environment and Natural
Resources, 149 N.C. App. 211, 215, 560 S.E.2d 814, 817 (2002)
(citation omitted). However, if necessary, this Court's duty to
review a superior court order for errors of law can be accomplished
by addressing the dispositive issue(s) before the [agency] and the
superior court without (1) examining the scope of review utilized
by the superior court [or] (2) remanding the case if the standard
of review employed by the superior court cannot be ascertained,
provided that this Court can determine whether: (1) the [b]oard
committed any errors in law; (2) the [b]oard followed lawful
procedure; (3) the petitioner was afforded appropriate due process;
(4) the [b]oard's decision was supported by competent evidence in
the whole record; and (5) . . . the [b]oard's decision was
arbitrary and capricious. Capital Outdoor, Inc. v. Guilford
County Bd. of Adjustment (I), __ N.C. App. __, 567 S.E.2d 440
(2002) (quoting Capital Outdoor, Inc. v. Guilford County Bd. of
Adjustment (II), 146 N.C. App. 388, 390, 392, 552 S.E.2d 265, 267
(2001), (Greene, J., dissenting), rev'd per dissent, 355 N.C. 269,
559 S.E.2d 547 (2002)).
In the case sub judice, petitioner, in his appeal to superior
court, argued that the committee erred by (1) excluding testimony
by petitioner's rebuttal witness on the issue of Dr. Riddle's
scheduling of classes; (2) excluding petitioner's proffereddocumentary rebuttal evidence on the issue of whether Dr. Riddle
had recommended certain faculty members whose publications during
the previous two years would not have been enough to place them in
the top 50%; (3) requiring petitioner to show by the preponderance
of the evidence that Dr. Riddle had acted out of personal malice;
(4) failing to note the use of an impermissible criterion that
influenced Riddles's selection process; to wit, age bias; and, (5)
finding that petitioner had been treated fairly by Dr. Riddle with
regards to his recommendations to Dean Zahn regarding salary
enhancement. Petitioner also added a generalized allegation that
his substantial rights were violated because respondent's actions
were in violation of constitutional provisions, made upon unlawful
procedure, affected by other error of law, unsupported by
substantial evidence . . . in view of the entire record as
submitted, and arbitrary or capricious. However, petitioner did
not associate this broad statement with any specific finding or
decision by respondent.
In its order, the trial court concluded that a de novo review
is appropriate for its consideration of each of Petitioner's
assignments of error, because the [c]ourt views each of
Petitioner's assignments of error as alleging errors of law. This
conclusion was correct as regards the evidentiary issues, the
proper burden of proof, and the committee's failure to reach the
issue of age bias. However, petitioner's challenge to the
committee's finding of fact, that Dr. Riddle had treated petitionerfairly in making his recommendations to Dean Zahn, requires
application of the whole record standard.
Although the trial court erred by failing to conduct whole
record review of this issue, [w]e do not believe a remand is
necessary, however, because the central issue presented . . . is
whether there was competent, material, and substantial evidence to
support [the committee's] decision . . . and the entire record of
the hearing is before us. Mann Media, Inc. v. Randolph County
Planning Bd., 356 N.C. 1, 15, 565 S.E.2d 9, 18 (2002) (reviewing
issue despite trial court's failure to properly delineate the
standard of review it employed).
I.
Respondents argue that the trial court erred by ignoring and
misinterpreting agency regulations bearing on the faculty
grievance proceedings. We agree.
We first review the relevant agency regulations. Under
N.C.G.S. § 116-11(2) (2001) the UNC Board of Governors is
responsible for the general . . . control, supervision, management
and governance of ... the constituent institutions[, and f]or this
purpose . . . may adopt such policies and regulations as it may
deem wise. Accordingly, the Board of Governors has directed that
the Chancellor of each constituent institution shall provide for
the establishment of a faculty grievance committee (Board of
Governors Code § 607) and has authorized the various Boards of
Trustees to adopt personnel policies not otherwise prescribed by
state law[.] (Board of Governors Code, Appendix 1). NCSUregulations governing its grievance procedures are found in its
Faculty Handbook, § 24.01, Grievance Procedure for Faculty, and in
its NCSU Grievance Committee Manual. Under the university's
grievance procedures, the trial court's review of the Board of
Governors' decision not to hear petitioner's appeal was the fourth
level of appeal by petitioner from Dr. Riddle's determination that
petitioner should not be recommended for a discretionary pay raise.
The earlier stages of the university's grievance process are
summarized below:
1. The grievance committee conducts a hearing
to determine whether the petitioner has shown
by a preponderance of the evidence that a
decision which has adversely affected a
[grievant's] professional or academic
capacity, has been reached improperly or
unfairly. The committee has no power to
reverse an administrative decision but can
only recommend a reassessment of that
decision[.]
2. Based upon a review of the complete record
of the committee, the Chancellor makes the
decision whether to accept the committee's
recommendation.
3. The President of UNC reviews the
Chancellor's decision to determine whether
the process in reaching [the] decision[] was
correctly followed and that the final
conclusion reached had an evidentiary basis in
the record.
4. The Board of Governors examines the record
to determine if significant procedural or
substantive errors below require review.
NCSU Grievance Manual, III.A.; NCSU Grievance Procedure, 24.01.10
and 13; Board of Governors, Appellate Review Policies and
Procedures. Before conducting a hearing, the grievance committee
must ascertain whether the alleged grievance meets its
jurisdictional requirements. The committee may conduct a hearingonly if the petitioner asserts that an administrative decision was
reached improperly or unfairly, as those terms are defined by the
university:
Improperly means in violation of a specific
university rule, regulation, policy, or
practice pertaining to the employment
relationship between the grievant and the
university. Unfairly means in an arbitrary or
capricious manner or in an unlawfully
discriminatory manner.
NCSU Grievance Procedure, 24.01.2.1. Moreover, the grievance
procedure cannot be used for . . . discretionary actions, such as
salary adjustments . . . except to determine (1) whether the
discretionary action was made in accordance with relevant
university rules, regulations, policies, practices, procedures, or
criteria; and (2) whether the action constitutes a clear abuse of
discretion. NCSU Grievance Procedure, 2401.2.2.b. Thus, if the
grievance contains allegations that are not grievable, those
allegations must be dismissed. NCSU Grievance Manual, IV.A.2.a.
Further, the grievant bears the burden of establishing the
jurisdictional grounds . . . and the burden of proving by a
preponderance of the evidence [the] grounds for the grievance.
NCSU Grievance Manual, III.A; IV.I.2.
In the case sub judice, petitioner alleges neither a violation
of a specific university rule, regulation, policy, or practice,
nor that he was the victim of discrimination. Rather, his
grievance alleged that Dr. Riddle's decisions regarding scheduling
of petitioner's classes for Spring, 1996, and his recommendations
to Dean Zahn for salary enhancement both were unfairly based onpurely personal reasons. Petitioner's allegations, if proven,
could constitute a clear abuse of discretion and, thus, the
committee properly granted petitioner a hearing.
In its order the trial court concluded that the committee did
not properly perform its official duties. The court did not
specify which official duty the committee had neglected. We
have, therefore, reviewed each of the issues raised by petitioner
in his appeal to superior court, to determine whether the
resolution of these issues provides support for the trial court's
conclusion.
In his appeal to superior court, petitioner excepted to the
committee's findings that he was treated fairly with regard to the
salary enhancement issue. We disagree with petitioner.
The committee is the only fact-finding body in the grievance
procedure; it is charged with resolving conflicting testimony,
and must evaluate the evidence and determine the truth of material
evidence. NCSU Grievance Manual, IV.D.2. In the case before us,
the committee's report to the Chancellor stated that the committee
was unanimous in concluding that [petitioner] was treated fairly.
After remanding to take Dean Zahn's testimony on the record, the
committee prepared an addendum to their report, stating that
[o]nce again, the [c]ommittee concludes that [petitioner] was
treated fairly and properly with regard to the manner by which he
was evaluated in 1996 for a salary enhancement. Finally, in its
memorandum to Chancellor Fox clarifying certain evidentiary
rulings, the committee agreed unanimously and without reservation,that Dr. Riddle's recommendation was indeed reflective of a
reasonable determination. We conclude that the committee's
findings of fact in this regard were supported by substantial
evidence in view of the whole record.
At the hearing, Dr. Riddle testified that he had not based his
recommendations to Dean Zahn on personal animus, and had weighed
many factors. The testimony of other university professors and
administrators tended to show that Dr. Riddle was directed to
employ multiple criteria in his determinations, and that he was
generally fair in making administrative decisions. Petitioner's
testimony indicated that Dr. Riddle's recommendations were to be
based on the number of publications for the previous three years,
and that if factors other than the number of publications were
excluded, he might have been in the top 50%. The committee was
thus required to resolve conflicting testimony. An appellate
court may not . . . disturb an agency's assessment of the
credibility of the witnesses and the weight and sufficiency to be
given to the testimony, . . . and may not override decisions within
the agency's discretion if made in good faith and in accordance
with the law. Teague v. Western Carolina University, 108 N.C.
App. 689, 692, 424 S.E.2d 684, 686, disc. review denied, 333 N.C.
466, 427 S.E.2d 627 (1993) (citing Jarrett v. N.C. Dep't of
Cultural Resources, 101 N.C. App. 475, 479, 400 S.E.2d 66, 68
(1991)). Further, the university has expressly admonished the
committee to understand the limits of their role. A Committee
does not replace management[,] . . . [and] may not support agrievance where reasonable persons could have differed and improper
factors and improper procedures were not involved. We conclude
that the committee's finding that petitioner had been treated
fairly was supported by substantial competent evidence, and must be
upheld.
Petitioner also argued on appeal to superior court that the
committee erred by requiring him to prove deliberate personal
malice. Two issues are presented: the appropriate burden of proof,
and the committee's use of the term deliberate personal malice.
Regarding the burden of proof, university regulations are clear
that petitioner had the burden of proving his allegations by a
preponderance of the evidence. NCSU Grievance Manual, III.A;
IV.I.2. In the instant case, therefore, petitioner had the burden
to prove his allegations that Dr. Riddle had unfairly treated him
with regards to scheduling; that this unfair treatment was
deliberate; and that Dr. Riddle deliberately overlooked [him]
when recommending faculty for [salary] increases, again for purely
personal reasons. Regarding the committee's use of the term
personal malice, we note that the Code of the Board of Governors,
applicable to its constituent institutions, see N.C.G.S. § 116-
11(2) and (14), and N.C.G.S. § 116-34, defines personal malice as
dislike, animosity, [or] ill-will . . . based on personal
characteristics, [or] traits . . . of an individual that are not
relevant to valid University decision-making. Board of Governors,
Appellate Review III-I-15. Petitioner's assertions that Dr.
Riddle, e.g., deliberately overlooked [him] when recommendingfaculty for increases, again for purely personal reasons would
appear to fall within the Board of Governors definition of
personal malice, as the term is used in university proceedings.
Moreover, although the committee used the term personal malice in
a memorandum clarifying one of its evidentiary rulings, the
committee's written submissions to university administrators all
stated affirmatively that Dr. Riddle's recommendation was
reflective of a reasonable determination, and that petitioner was
treated fairly. We hold that the committee did not err by
requiring petitioner to prove his allegations by the preponderance
of the evidence, and that petitioner was not subjected to a
heightened standard by the committee's reference to petitioner's
specific allegations, that Dr. Riddle's scheduling and salary
enhancement decisions were based on purely personal reasons, by
the more general term personal malice.
Petitioner's appeal to superior court also challenged two of
the committee's evidentiary rulings. We first note that the
committee is authorized to exercise complete control over the
hearing, including the determination of whether information or
testimony is material and relevant to the issues involved in the
grievance. It may rule that certain presentations not be
considered[,] and in so doing, the committee is not bound by
strict rules of legal evidence although its rulings must be
[c]onsistent with the principles of impartiality and equity[.]
NCSU Grievance Procedures, § 24.01.8. In the present case, the committee excluded certain testimony
regarding scheduling of classes, on the basis that the witness was
not involved in the decision making process . . . [and] was not
privy to [petitioner's] interactions with Dr. Riddle regarding
scheduling issues. We conclude that this determination was within
the scope of the committee's authority, and was not error.
The committee also excluded documents offered by petitioner in
rebuttal to Dean Zahn's testimony. These documents were intended
to show that Dr. Riddle had recommended certain faculty to Dean
Zahn despite the fact that the number of publications by these
faculty in the past two years would not, standing alone, have
placed them in the top 50%. In excluding this evidence, the
committee rejected petitioner's basic premise _ that Dr. Riddle's
recommendations for salary increases were supposed to be based
primarily upon how many publications each faculty member had within
a certain time period, so that evidence that in several cases Dr.
Riddle's recommendations did not correspond to the faculty member's
rank according to number of publications would tend to show
unfairness on Dr. Riddle's part. Instead, the committee, as fact-
finder, determined that Dr. Riddle was directed to base his
recommendations largely on a subjective assessment of many factors,
in order to determine whether a faculty member was likely to
receive an competitive offer from another institution, and on Dr.
Riddle's evaluation of the faculty member's relative value to his
department. The committee concluded that, even assuming Dr.
Riddle made an inadvertent error in his tabulation of the numberof publications for the two or three previous years, this would
not, without more evidence, have established deliberate personal
malice. The committee found that there was no other evidence that
Dr. Riddle acted for personal reasons, and that Dr. Riddle's
recommendation reflected a reasonable determination of
[petitioner's] relative value to his department. The committee
therefore excluded petitioner's proffered rebuttal evidence on
the basis that it was irrelevant and unnecessary to their
determination of whether Dr. Riddle's failure to recommend
petitioner for a raise was deliberately based upon purely
personal reasons as alleged by petitioner. We hold that the
committee's decision not to consider petitioner's rebuttal evidence
was within its authority, and was not inconsistent with the
principles of impartiality and equity that the university
requires the committee to apply.
For the reasons discussed above, we are unable to discern any
basis in the issues presented by petitioner to the trial court, for
the trial court's conclusion that the committee did not properly
perform its official duties. Accordingly, respondents' assignment
of error that the trial court erred in interpreting relevant agency
regulations is upheld.
II.
Respondents also argue that the trial court erred by
concluding that petitioner was denied due process because
petitioner's grievance implicates no interest protected by due
process rights. Specifically, respondents contend that thediscretionary salary enhancement did not give rise to any property
right of petitioner's invoking his right to due process. We agree.
In analyzing a due process claim, we [must] first . . .
determine whether a constitutionally protected property interest
exists. To demonstrate a property interest under the Fourteenth
Amendment, a party must show more than a mere expectation; he must
have a legitimate claim of entitlement. McDonald's Corp. v.
Dwyer, 338 N.C. 445, 447, 450 S.E.2d 888, 890 (1994) (citing Board
of Regents v. Roth, 408 U.S. 564, 33 L. Ed.2d 548 (1972)). A
'legitimate claim of entitlement' requires more than a 'unilateral
expectation' of a property interest[.] Chapman v. Byrd, 124 N.C.
App. 13, 18, 475 S.E.2d 734, 738 (1996), disc. review denied, 345
N.C. 751, 485 S.E.2d 50 (1997) (quoting Roth, 408 U.S. 564, 577, 33
L. Ed.2d 548, 561 (1972)).
Although North Carolina appellate courts have not addressed
this issue in the context of a discretionary salary increase,
appellate cases from other jurisdictions have held there is no
property interest in discretionary decisions about employment.
See, e.g., Leventhal v. Knapek, 266 F. 3d 64, 67 (2nd Cir. (N.Y.)
2001) (discretionary salary increase was not a form of property
protected by the Constitution against deprivation without due
process of law); Temple v. Inhabitants of City of Belfast, 30 F.
Supp.2d 60, 67 FN5 (D. Me. 1998) (no property interest in raise
absent evidence of entitlement, e.g., facts indicating that such
raises were provided for by statute, regulation, rule, or
contractual provision); Day v. Board of Regents of University ofNebraska, 911 F. Supp. 1228, 1241 (D. Neb. 1995), aff'd, 83 F.3d
1040 (8th Cir. (Neb.) 1996) (no property interest in salary raise
where plaintiff claims that he has not received salary increases
which he believes his academic record merits, [but] he has offered
no evidence of any statute, regulation, rule, or contractual
provision [that] would entitle him to receive any raise, let alone
one of a specific amount).
In the case sub judice, petitioner does not cite any statute
or university regulation that would entitle him to be recommended
for the salary enhancement. Moreover, as discussed above, the
committee found that Dr. Riddle was directed to base his
recommendations on an array of factors, both objective and
subjective. These findings of fact establish that an individual
faculty member could have no more than a unilateral expectation
that he or she would be recommended by Dr. Riddle. We hold that
petitioner's Due Process rights were not implicated in Dr. Riddle's
recommendations to Dean Zahn, and that the trial court erred by
concluding that petitioner had a contractual right to be
recommended for a raise, or that his Due Process rights were
violated.
III.
Finally, respondents argue that the trial court erred in
reaching the issue of age discrimination. Again, we agree.
The trial court concluded that the Board of Trustees, the
Dean, and Dr. Riddle were all influenced illegally by age bias[,]
and that the committee ignored substantial evidence of agediscrimination. University regulations strictly limit a grievance
committee to consideration of issues alleged in petitioner's
grievance letter, or which the committee has unanimously consented
to consider by later amendment of the grievance. NCSU Grievance
Procedure, 3.1.1; 8.1.11.
In the instant case, it is undisputed that petitioner did not
raise the issue of age discrimination in his request for a
grievance hearing, did not request an amendment of his grievance,
and did not even raise the issue at the hearing. Therefore, this
issue was never presented at petitioner's grievance hearing, and
thus was not properly before the trial court on appeal.
See Tate
Terrace Realty Investors, Inc. v. Currituck County, 127 N.C. App.
212, 224, 488 S.E.2d 845, 852,
disc. review denied, 347 N.C. 409,
496 S.E.2d 394 (1997) (superior court in its posture of an
appellate court, . . . may not consider a matter not addressed by
the [agency]) (citation omitted). Therefore, the trial court
erred by addressing the issue on appeal.
For the reasons discussed above, we conclude that the trial
court's order, reversing respondents' decision dismissing
petitioner's grievance, was erroneous and must be
Reversed.
Judges WALKER and THOMAS concur.
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