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All opinions are subject to modification and technical correction prior to official publication in the North Carolina Reports and North Carolina Court of Appeals Reports. In the event of discrepancies between the electronic version of an opinion and the
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NO. COA02-356
NORTH CAROLINA COURT OF APPEALS
Filed: 01 April 2003
SUSAN F. JOHNSON,
Plaintiff,
v
.
BOARD OF TRUSTEES OF DURHAM TECHNICAL COMMUNITY COLLEGE,
Defendant.
Appeal by plaintiff from judgment entered 12 September 2001 by
Judge Howard E. Manning, Jr. in Durham County Superior Court.
Heard in the Court of Appeals 22 January 2003.
Glenn, Mills & Fisher, P.A., by Stewart W. Fisher, for
plaintiff-appellant.
Haywood, Denny & Miller, L.L.P., by George W. Miller, III and
George W. Miller, Jr., for defendant-appellee.
The North Carolina Academy of Trial Lawyers, by Lynn Fontana,
and the American Civil Liberties Union of North Carolina, by
Seth H. Jaffe, amicus curae.
STEELMAN, Judge.
This appeal arises out of a disability discrimination claim
filed by Susan F. Johnson (plaintiff or Johnson) against the
Trustees of Durham Technical Community College (defendant or
Durham Tech) under the North Carolina Persons with Disabilities
Protection Act (NCPDPA), N.C. Gen. Stat. § 168A-1, et seq.
(2001). Plaintiff appeals the trial court's judgment dismissing
her claim with prejudice and awarding her no costs, attorney's fees
or other relief. For reasons stated herein, the judgment is
reversed, and this case is remanded to the trial court.
Since contracting polio as a young child, plaintiff has beenunable to walk without crutches, and her physical activity has been
substantially limited. In 1986, after teaching full-time for
several years, plaintiff's disability forced her to quit working on
a full-time basis, although she remained able to teach on a part-
time basis.
In 1993, plaintiff began working with Durham Tech's Adult and
Basic Skills Department as a part-time instructor for the in-house
education program for inmates of the Durham County Jail Annex (the
jail). Russ Conley (Conley), program director for Durham Tech's
Adult and Basic Skills Department, contracted with plaintiff and
supervised her work.
Plaintiff taught classes which prepared inmates to take their
high school equivalency exam under her first contract with Durham
Tech from November 1993 to February 1994. She entered seven
additional part-time teaching contracts with Durham Tech between
February 1994 and June 1995. Each of these contracts was for a
specific term determined by the duration of the class taught by
plaintiff.
Plaintiff initially was able to drive herself to and from work
and to enter the jail using only her crutches. On 8 June 1994,
plaintiff fell from her crutches as she attempted to open the
security door to enter the jail and broke her back. Plaintiff
applied for and received workers' compensation benefits for her
injuries resulting from this fall. While recovering, plaintiff did
not return to work, and defendant found a replacement teacher to
fulfill the remainder of plaintiff's contract ending in August1994.
When plaintiff returned to work for defendant under a new
contract in January 1995, she was confined to a wheelchair at all
times. She used wheelchair-accessible public transportation to
travel to and from work at the jail and taught classes from her
wheelchair. Although jail guards occasionally escorted plaintiff
and helped her open doors, she generally was able to enter the jail
and her classroom without assistance.
On 11 February 1995, plaintiff fell in the bathtub at her home
and broke her leg. She returned to work at the jail approximately
two weeks later and resumed her teaching duties from her
wheelchair.
In the spring of 1995, Art Clark (Clark), Dean of Adult and
Continuing Education at Durham Tech, and Ruth Lewis (Lewis),
Conley's direct supervisor, discussed with Conley their concerns
about plaintiff's safety and Durham Tech's liability if she were to
suffer another accident at the jail. Conley also had some concerns
at this time about plaintiff's prior absenteeism due to her
injuries. Clark encouraged Conley to speak with plaintiff and to
consider whether it would be appropriate for her to continue
working at the jail in light of her previous fall.
On 16 June 1995, Conley met with plaintiff and discussed with
her other teaching opportunities with Durham Tech that were not at
the jail. Plaintiff was not receptive to these other teaching
positions. Conley then informed plaintiff that the situation had
proved to be a liability for Durham Tech and that she would not bereturning to work for defendant at the jail. Conley testified that
Clark had made the decision not to re-hire plaintiff and that Lewis
had concurred with this decision.
Between 21 June and 24 June 1995, Clark received anonymous
phone calls alleging that plaintiff was a frequent drug user, had
engaged in sexual relationships with prisoners, had provided
prisoners with drugs and bullets and frequently carried a loaded
weapon. On 26 June 1995, Conley spoke to plaintiff at the jail and
informed her that her teaching position with Durham Tech would end
when her contract expired on 28 June 1995. Defendant did not offer
her another teaching position.
Plaintiff filed discrimination charges against defendant with
the North Carolina Department of Labor under the North Carolina
Retaliatory Employment Discrimination Act (REDA), N.C. Gen. Stat.
§ 95-240, et seq. (2001), and with the Equal Employment Opportunity
Commission under the Americans with Disabilities Act (ADA), 42
U.S.C. § 12101, et seq. (2002). After exhausting her
administrative remedies, plaintiff filed a complaint alleging
defendant refused to re-hire her in violation of REDA and the ADA.
On 23 December 1997, Durham County Superior Court Judge Henry
V. Barnette partially granted defendant's motion for summary
judgment and dismissed plaintiff's REDA claim. On 18 December
1998, Durham County Superior Court Judge Narley L. Cashwell granted
defendant's motion for directed verdict as to plaintiff's ADA
claim.
Plaintiff appealed both the summary judgment and directedverdict rulings. A unanimous panel of this Court affirmed Judge
Barnette's order granting defendant's summary judgment motion based
on plaintiff's retaliatory discharge claim under REDA, reversed
Judge Cashwell's decision directing a verdict based on plaintiff's
ADA claim and remanded the case for further proceedings consistent
with its opinion. Johnson v. Trustees of Durham Tech. Cmty. Coll.,
139 N.C. App. 676, 535 S.E.2d 357 (Johnson I), disc. review
denied and appeal dismissed, 353 N.C. 265, 546 S.E.2d 102 (2000).
Plaintiff amended her complaint to add a claim under the
NCPDPA alleging defendant failed to re-hire her on the basis of her
disability in violation of N.C. Gen. Stat. § 168A-5(a)(1). On 29
May 2001, plaintiff and defendant filed a stipulation in which
plaintiff voluntarily dismissed her claims under the ADA and
defendant waived the statute of limitations defense to plaintiff's
claim under the NCPDPA. This matter was tried without a jury in
accordance with N.C. Gen. Stat. § 168A-11(a).
On 12 September 2001, Durham County Superior Court Judge
Howard E. Manning, Jr., filed a judgment dismissing plaintiff's
action with prejudice. The judgment contained lengthy findings of
fact and conclusions of law, including the following:
During the [s]pring of 1995, Conley became
concerned about Johnson's safety in the jail,
and also became concerned about whether he was
putting Ms. Johnson in a situation which might
prove to be a liability for [Durham Tech].
Conley's concern was prompted as a result of
discussions with either Ruth Lewis or Dean Art
Clark during the spring of 1995. Neither
Lewis nor Clark went to the jail or conducted
an investigation first hand with respect to
Johnson's ability to function safely in a
wheelchair while carrying out her teachingresponsibilities.
In the spring[] [of] 1995[,] Conley, after
talking with Dean Clark and/or Lewis, broached
the subject with Johnson about teaching
elsewhere than at the jail. Johnson did not
want to teach elsewhere[,] and Conley did not
push the issue. Dean Clark and Lewis wanted
Johnson out of the jail environment and wanted
her to teach elsewhere for Durham Tech. Their
view was paternalistic and not based on an
investigation into the conditions at the jail
or Johnson's ability to teach there despite
her disability. While Dean Clark did not
order Conley to move Johnson from the jail and
put her somewhere else, he strongly
suggested it to Conley. They [Dean Clark
and Lewis] left the unpleasant task of
carrying out the suggestion...and the
placement of Johnson in a teaching position
outside of jail to Conley. The decision of
Clark to be carried out by Conley was made
solely on the basis of Johnson's disability
and was not based on poor job performance or
absences occasioned by her disability or
health.
...
On June 16, 1995, Conley met with Johnson at
his office to discuss Johnson's teaching at
the jail....
...
Conley was not going to offer Johnson a
contract that would permit her to remain and
teach at the jail. The basis for Conley's
decision was that his superiors at Durham Tech
were concerned about liability should
Johnson continue to teach there. This concern
was based solely upon her disability and was
without basis in fact. The jail was no more
unsafe for Johnson than any other place
because she was able to function at the
facility safely and to do her job there as she
had done since January 1995, without incident.
The decision to not offer Johnson another
contract to teach a[t] the jail had been made
as of June 16, 1995, but not implemented or
carried out, as the contract period had not
expired and there was still time for Johnsonto attempt to get Durham Tech to reverse its
decision. Conley, her immediate supervisor
and department head, was not going to offer
her a contract to teach at the jail after the
present contract expired.
(emphasis added).
I.
In her first assignment of error, plaintiff contends that the
trial court erred in failing to apply the United States Supreme
Court decision in McKennon v. Nashville Banner Pub. Co., 513 U.S.
352, 130 L. Ed. 2d 852 (1995), to her employment discrimination
claim under the NCPDPA.
In McKennon, the employee claimed she was discharged by her
employer in violation of the Age Discrimination in Employment Act
(ADEA), 29 U.S.C. 621, et seq. (1988 and Supp. V). McKennon, 513
U.S. at 354-55, 130 L. Ed. 2d at 859. During the course of
discovery in the discriminatory discharge action, McKennon's
employer learned that she had copied confidential company documents
prior to her discharge. Id. at 355, 130 L. Ed. 2d at 859.
McKennon's employer stated that if it had known of her misconduct,
it would have discharged her for that reason. Id. The Sixth
Circuit Court of Appeals held that McKennon's prior misconduct was
a lawful basis for her termination and affirmed the trial court's
granting of summary judgment in favor of the employer. Id.
A unanimous United States Supreme Court reversed, deciding
McKennon's ADEA claim in the context of its prior discrimination
decision in Mt. Healthy City Sch. Dist. Bd. of Educ. v. Doyle, 429
U.S. 274, 50 L. Ed. 2d 471 (1977). The Mt. Healthy Court foundthat the employer had two motives for firing the employee, one
lawful and the other unlawful. Id. at 285, 50 L. Ed. 2d at 482.
The Court held that if the lawful reason alone would have sufficed
to justify the firing, then the employee could not prevail on a
claim against the employer based upon the unlawful motive. Id. at
285-86, 50 L. Ed. 2d at 482-83.
The McKennon Court held that unlike Mt. Healthy, there was no
mixed motive on the part of McKennon's employer at the time she
was discharged. McKennon, 513 U.S. at 359, 130 L. Ed. 2d at 862.
McKennon's misconduct was not discovered until
after she had been fired. The employer could
not have been motivated by knowledge it did
not have and it cannot now claim that the
employee was fired for the nondiscriminatory
reason. Mixed-motive cases are inapposite
here, except to the important extent they
underscore the necessity of determining the
employer's motives in ordering the discharge,
an essential element in determining whether
the employer violated the federal anti-
discrimination law.
Id. at 359-360, 130 L. Ed. 2d at 862 (emphasis added). Thus,
evidence of McKennon's misconduct discovered after her discharge,
which would have provided a lawful basis for such discharge if
discovered earlier, did not bar her discrimination claim under the
ADEA.
The McKennon Court noted that the ADEA was part of a wider
statutory scheme to protect employees which included Title VII of
the Civil Rights Act of 1964, 42 U.S.C. § 2000e, et seq. (2002),
and the ADA. Id. at 357, 130 L. Ed. 2d at 860. Since the
decision, the McKennon rule has been widely adopted in the context
of employment discrimination cases under various statutes. See,e.g., O'Neal v. City of New Albany, 293 F.3d 998 (7th Cir. 2002)
(finding that employer's belated discovery that applicant exceeded
the position's statutory age maximum would not bar an ADA claim);
Miller v. AT&T Corp., 250 F.3d 820 (4th Cir. 2001) (applying
McKennon's after-acquired evidence rule to unapproved absences in
a Family and Medical Leave Act case); Crapp v. City of Miami Beach
Police Dept., 242 F.3d 1017 (11th Cir. 2001) (applying McKennon to
employee's Title VII race discrimination claim); Russell v.
Microdyne Corp., 65 F.3d 1229 (4th Cir. 1995) (applying McKennon to
Title VII gender discrimination claim); Ricky v. Mapco, Inc., 50
F.3d 874 (10th Cir. 1995) (holding after-acquired evidence of
sexual misconduct no bar to age discrimination claim); Garrett v.
Langley Federal Credit Union, 121 F. Supp. 2d 887 (E.D. Va. 2000)
(applying McKennon to federal whistleblowers' statute).
Several states also have adopted the McKennon rule, applying
it to their own discrimination statutes. See, e.g., Toyota Motor
Mfg., U.S.A., Inc. v. Epperson, 945 S.W.2d 413 (Ky. 1997)
(disability discrimination under the Kentucky Civil Rights Act);
Wright v. Restaurant Concept Management, 532 N.W.2d 889 (Mich. Ct.
App. 1995) (discrimination under Michigan civil rights statute);
Baber v. Greenville County, 488 S.E.2d 314 (S.C. 1997)
(discrimination under state whistleblower's statute); Norwood v.
Litwin Eng'rs & Constructors, 962 S.W.2d 220 (Tex. App. 1998)
(disability discrimination under Texas Commission on Human Rights
Act); Barlow v. Hester Industries, Inc., 479 S.E.2d 628 (W. Va.
1996) (retaliatory discharge under West Virginia Human Rights Act). In Johnson I, this court expressly adopted the McKennon rule
in the context of plaintiff's original claim under the ADA.
Johnson I, 139 N.C.App. at 685, 535 S.E.2d at 364 ([a]n employer
may not rely on evidence of employee misconduct which is acquired
after the employment decision in question to defend the employment
decision.) To determine whether the McKennon rationale should
apply to the NCPDPA, we look to the provisions of the statute to
ensure that McKennon is consistent with its purpose and content.
The NCPDPA is the North Carolina equivalent of the ADA,
sharing the common purpose of providing protection against
disability discrimination. 42 U.S.C. § 12101(b); N.C. Gen. Stat.
§ 168A-2. Both statutes contain rules regarding discriminatory
employment practices against disabled persons. The ADA provides
that [n]o covered entity shall discriminate against a qualified
individual with a disability because of the disability of such
individual in regard to job application procedures, the hiring,
advancement, or discharge of employees, employee compensation, job
training, and other terms, conditions and privileges of
employment. 42 U.S.C. § 12112(a). Similarly, the NCPDPA states
that [i]t is a discriminatory practice for: (1) An employer to
fail to hire or consider for employment or promotion, to discharge,
or otherwise to discriminate against a qualified person with a
disability on the basis of a disabling condition with respect to
compensation or the terms, conditions, or privileges of
employment. N.C. Gen. Stat. § 168A-5(a)(1). The ADA and the
NCPDPA also contain similar remedial provisions, including thosefor injunctive relief and back pay awards. 42 U.S.C. § 2000e-5(g)
(2002) (providing the remedial guidelines for ADA claims); N.C.
Gen. Stat. § 168A-11.
N.C. Gen. Stat. § 168A-12 provides that [a] civil action
regarding employment discrimination brought pursuant to [Chapter
168A] shall be commenced within 180 days after the date on which
the aggrieved person became aware of or, with reasonable diligence,
should have become aware of the alleged discriminatory practice or
prohibited conduct. Thus, a cause of action under the NCPDPA
accrues when the employee becomes aware of or should have become
aware of the employer's wrongful conduct. This is consistent with
McKennon, which focuses on the intent of the employer at the time
of the alleged discriminatory act. McKennon, 513 U.S. at 360, 130
L. Ed. 2d at 862.
We find nothing in the purpose or content of the NCPDPA that
is inconsistent with or contrary to the McKennon rule. Therefore,
as this Court in Johnson I adopted McKennon under the analogous ADA
provisions, we also find that the McKennon rule should be adopted
in the context of claims under the NCPDPA.
In applying McKennon to plaintiff's appeal in the instant
case, this Court is bound by the trial court's findings which are
supported by competent evidence, even if evidence exists to sustain
contrary findings. Fulcher v. Golden, 147 N.C. App. 161, 554
S.E.2d 410 (2001). Our review of the trial court's conclusions of
law is de novo. Browning v. Helff, 136 N.C. App. 420, 524 S.E.2d
95 (2000). As noted above, N.C. Gen. Stat. § 168A-5(a)(1) makes unlawful
an employer's decision not to hire or consider for employment or
otherwise to discriminate against a qualified person with a
disability on the basis of a disabling condition. Our courts have
not addressed the question of whether an employer's failure to re-
hire an employee or to renew an employee's contract is conduct
covered by this language of the NCPDPA. However, this Court
determined in Johnson I that a failure to renew a contract
constitutes actionable conduct under REDA, which broadly defines
retaliatory actions to include other adverse employment action.
Johnson I, 139 N.C. App. at 682, 535 S.E.2d at 362 (citing N.C.
Gen. Stat. § 95-240(2) (1999)) (emphasis in original). We find
plaintiff has an actionable claim under the similarly broad
language of the NCPDPA for employment discrimination based on
defendant's failure to re-hire plaintiff or offer her another
contract.
Here, the trial court specifically found that plaintiff's
disability was the determining factor in the June 16, 1995[,]
decision announced by Conley to not offer her another contract to
teach at the jail and that defendant's decision was made solely
on the basis of [plaintiff's] disability and was not based on poor
job performance or absences occasioned by her disability or
health. Defendant's decision not to renew plaintiff's contract
was made solely for motives unlawful under the NCPDPA.
The plaintiff first became aware that she would not be offered
another contract to teach for defendant on 16 June 1995. UnderN.C. Gen. Stat. § 168A-12, plaintiff's cause of action accrued on
16 June 1995. The trial court's conclusion that the decision not
to re-hire plaintiff was not implemented until 26 June 1995 was
error. Once it was determined that discriminatory conduct took
place on 16 June 1995, it was improper for the trial court to have
considered the after-acquired allegations of wrongdoing by
plaintiff as a basis for defendant's motive in discharging
plaintiff. Based on the trial court's findings, judgment should
have been entered for plaintiff, finding that her discharge
violated the provisions of NCPDPA.
II.
In her second assignment of error, plaintiff contends that the
trial court erred in denying her relief despite having found that
defendant terminated her employment solely based upon her
disability. She specifically argues that this Court should apply
the
McKennon rule to determine the appropriate remedy in light of
after-acquired evidence of alleged employee misconduct.
In
McKennon, the United States Supreme Court held that while
after-acquired evidence of employee misconduct could not bar an
employer's liability for discriminatory discharge, such evidence
may be relevant to determining the relief available to the
employee.
McKennon, 513 U.S. at 360, 130 L. Ed. 2d at 862. If the
employer establishes that the wrongdoing was of such severity that
the employee in fact would have been terminated on those grounds
alone if the employer had known of it at the time of the
discharge, then the employee's relief may be limited by the trialcourt.
Id. at 362-63, 130 L. Ed. 2d at 864. Where such a showing
is made by the employer, neither reinstatement nor front pay is an
appropriate remedy.
Id. at 362, 130 L. Ed. 2d at 863.
Under N.C. Gen. Stat. § 168A-11(b), the trial court is allowed
to order declaratory and injunctive relief. In a civil action, the
trial court also may award back pay, which is expressly limited to
a period of two years prior to the filing of this action. N.C.
Gen. Stat. § 168A-11(b). Any interim earnings of the plaintiff or
amounts earnable with reasonable diligence by the plaintiff shall
operate to reduce any back pay award.
Id. N.C. Gen. Stat. §
168A-11(d) provides that the trial court, in its discretion, may
award reasonable attorney's fees to the substantially prevailing
party as part of the costs.
As discussed above in Section I,
supra, the remedial
provisions of the NCPDPA are similar to those in the ADA. Based on
this similarity, we find the structure and content of the NCPDPA is
consistent with the application of the
McKennon rule for
determining remedies in cases under Chapter 168A and should be
applied to determine the appropriate remedy in this case.
Although after-acquired evidence of pre-discharge employee
misconduct will not bar a discrimination claim under NCPDPA, such
evidence may be used to bar the specific remedy of reinstatement if
the employer establishes that it would have made the same
employment decision had it known of the misconduct at the time of
the discharge. If an employer can show that its discovery of the
employee's pre-discharge misconduct was inevitable and independentof its employment decision, back pay shall be limited to the time
between the discharge and the time of discovery.
See Massey v.
Trump's Castle Hotel & Casino, 828 F. Supp. 314 (D.N.J. 1993).
Upon remand, the trial court shall enter judgment for
plaintiff against defendant. The trial court shall then conduct an
evidentiary hearing to determine the amount of damages, costs and
attorney's fees that should be awarded to plaintiff in accordance
with N.C. Gen. Stat. § 168A-11 and
McKennon.
REVERSED AND REMANDED.
Judges MARTIN and GEER concur.
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