MARSHA A. EARLY, Petitioner, v. COUNTY OF DURHAM DEPARTMENT OF
SOCIAL SERVICES, Respondent
2. Public Officers and Employees--termination--contested case petition--timeliness
DSS's motion to dismiss a terminated employee's contested case petition as untimely was
properly denied because DSS did not provide the employee with the notice required by N.C.G.S.
§ 150B-23(f). The letter sent by DSS simply reiterated facts without reaching any conclusions,
expressed sympathy for plaintiff's medical condition, and could be read as leaving open the
possibility of further negotiation.
3. Public Officers and Employees--dismissal--judicial review--standards
The decision of the State Personnel Commission is advisory to the local appointing
authority in appeals involving local government employees subject to the State Personnel Act.
The local appointing authority's final decision is subject to judicial review, with the trial court
acting in the capacity of an appellate court. The trial court here correctly first addressed the
inquiries in N.C.G.S. § 150B-51(a); as to grounds for reversal under N.C.G.S. § 150B-51(b),
some appellate inquiries receive de novo review and some are under the whole record test.
4. Administrative Law--dismissed DSS employee--standard of review--remand not
required
The standard of review for a dismissed DSS employee involved both the whole record test
and de novo review. However, even if the trial court did not apply the precise analysis required,
the case need not be remanded if it can be reasonably determined from the record whether the
dismissed employee's asserted grounds for challenging the agency's final decision warranted
reversal.
5. Public Officers and Employees--dismissal of DSS employee--final decision a DSS
responsibility--just cause not raised on appeal
The trial court's reversal of a DSS decision finding just cause to terminate an employee
was upheld. Although DSS argued that the matter should be remanded because theAdministrative Law Judge dismissed the just cause claim for lack of jurisdiction rather than
addressing it on the merits, the final decision was for DSS rather than the ALJ. Moreover, DSS
did not argue on appeal that just cause was established by the findings on which it relied.
6. Public Officers and Employees--dismissed DSS employee--back pay
N.C.G.S. § 126-37 indicates that the General Assembly intended that employees of local
appointing authorities be treated as State employees and be able to seek back pay upon prevailing
in a claim under the State Personnel Act. The trial court's determination that a dismissed DSS
employee should receive back pay was affirmed.
7. Costs_attorney fees--dismissed local employee--authority to award
A superior court is authorized by N.C.G.S. § 6-19.1 to award attorney fees to an
employee of a county Department of Social Services who has prevailed under the State Personnel
Act.
Patrice Walker for petitioner-appellee.
County Attorney S. C. Kitchen, by Deputy County Attorney
Lowell L. Siler,
for respondent-appellant.
GEER, Judge.
Respondent Durham County Department of Social Services
("DSS"), appeals from the decision of the trial court upon a
petition for judicial review, holding that DSS terminated the
employment of petitioner Marsha A. Early without just cause. DSS
argues on appeal: (1) that Early was not entitled to file a
contested case alleging a lack of just cause, (2) that Early'scontested case petition was not timely filed, (3) that this Court
should order further proceedings on the just cause claim, and (4)
that, in any event, a local governmental employee is not entitled
to recover back pay or attorneys' fees. We hold that the trial
court had subject matter jurisdiction over Early's just cause claim
and that the contested case was timely. Further, we hold that the
issue of just cause has been fully litigated and determined and DSS
has offered no justification for additional proceedings or for
reversal of the trial court's conclusion that DSS lacked just cause
for terminating Early's employment. Finally, because Early
prevailed below, we hold that the trial court could properly decide
to award her back pay and attorneys' fees. Accordingly, we affirm.
Unless an extension has been approved,
any employee who fails to report to work at
the expiration of a leave of absence, shall be
considered Absent Without Leave (AWOL) and
will be separated from the County without
notice.
Hudgins also attached a copy of the appeals process at DSS.
In accordance with that process, Early submitted a grievance
to her immediate supervisor, Hasty, within 15 days of receiving her
termination letter. On 22 December 2000, Hasty responded: "Leave
without pay is granted only with the approval of the Department
Head and supervisor and is based on the needs of the agency such as
workload, need to fill the employee's job, etc. These factors were
used in determining that we could only grant your leave without pay
request until December 13, 2000." Within five days, Early then
appealed to Hudgins. Hudgins responded in a letter dated 4 January
2001.
On 19 February 2001, Early filed a contested case petition
with the State Office of Administrative Hearings ("OAH"), alleging
(1) that she was dismissed without just cause contrary to N.C. Gen.
Stat. § 126-35(a) (2003) and (2) that she was discriminated againstbased on her gender, age, and handicapping condition. An
administrative law judge ("ALJ") denied DSS' motion to dismiss the
petition as untimely after finding that DSS had failed to follow
the required procedures outlined in
N.C. Gen. Stat. §
150B-23(f)
(2003) regarding notification of appeal rights.
Following a two-day hearing, the ALJ rendered an opinion
containing 73 findings of fact. Based on those findings, the ALJ
(1) dismissed Early's just cause claim for lack of subject matter
jurisdiction on the ground that Early lacked sufficient months of
service to assert a claim for just cause and (2) concluded that
Early had failed to meet her burden of proving intentional
discrimination based on gender, age, or handicapping condition.
She, therefore, recommended that DSS' decision to discharge Early
from employment be affirmed.
On 4 February 2002, the State Personnel Commission issued an
"Amended Recommendation for Decision to Local Appointing
Authority." The Commission adopted the ALJ's 73 findings of fact
in their entirety with the addition of one sentence relating to
Early's just cause claim: "However, there is no statutory
requirement in Chapter 126 that County employees subject to the
provision of Chapter 126 work a certain amount of time before
becoming entitled to appeal a termination under Chapter 126." Based on the findings, the Commission reached the same
conclusion as the ALJ that Early had failed to prove discrimination
based on gender, age, or handicapping condition. With respect to
the just cause claim, however, the Commission concluded:
Petitioner was entitled to bring a just cause
claim. Based on Petitioner's supervisor's
statement to her "no problem" when she
discussed having the surgery with her on
October 17, 2000, it is clear that Petitioner
reasonably expected to be able to take
sufficient leave to complete the recuperation
process from the surgery. Respondent did not
have just cause to terminate her employment
for failing to return to work on December 13,
2000.
The Commission, therefore, recommended that DSS adopt the ALJ's
decision regarding Early's claims of discrimination, but that DSS
conclude "that there is jurisdiction for Petitioner's just cause
claim and that Respondent's disciplinary action with regard to the
Petitioner's employment be reversed for lack of just cause . . . ."
The Commission further recommended that DSS reinstate Early to
her former position or a comparable position with back pay and back
benefits. In the event that DSS did reinstate Early, the
Commission ordered that Early could petition for attorneys' fees,
"which shall be awarded in any amount to be determined by the
Commission upon receipt and consideration of a Petition for
Attorneys Fees and the required documentation." On 18 April 2002, DSS issued its opinion, signed by Hudgins,
stating that "[t]he Respondent does not adopt the entire
recommendation of the Office of State Personnel . . . ." DSS
specifically rejected only one sentence in the Commission's 73
findings of fact: the sentence that the Commission had added to
the ALJ's findings of fact, stating that there was no months-of-
service prerequisite to appealing a termination under the State
Personnel Act. DSS concluded that OAH lacked subject matter
jurisdiction to hear Early's just cause claim, but that, even if
jurisdiction existed, DSS had just cause to terminate Early. In
support of its decision, DSS stated that it was relying upon five
specified findings of fact of the ALJ, which it then set forth.
DSS did not mention the remaining findings of fact of the ALJ and
the State Personnel Commission. DSS made a "final decision" that:
The Petitioner failed to meet her burden with
regards to the following:
(i) that the Respondent discriminated
against her;
(ii) that the Court had jurisdiction to
consider her dismissal for just
cause;
(iii) that Respondent lacked just cause
for her dismissal.
DSS, therefore, affirmed the decision to discharge Early from
employment. On 29 May 2002, Early filed a petition for judicial review in
Wake County Superior Court. On 11 July 2002, Judge Evelyn Werth
Hill filed an order, concluding that the reasons given by DSS for
not adopting the entire recommendation of the Commission were
without merit; that Early's discharge was not supported by
substantial evidence; that her discharge was arbitrary, capricious,
and an abuse of discretion; that DSS did not have just cause to
terminate Early's employment; and that OAH had subject matter
jurisdiction to hear Early's just cause claim.
(See footnote 1)
Judge Hill ordered
DSS to reinstate Early into her former position or a comparable
position and awarded her back pay and benefits and attorneys' fees.
DSS appeals to this Court.
(1) Dismissal, demotion, or suspension
without pay based upon an alleged
violation of G.S. 126-35, if the
employee is a career State employee.
N.C. Gen. Stat. § 126-35(a) in turn provides: "No career State
employee subject to the State Personnel Act shall be discharged,
suspended, or demoted for disciplinary reasons, except for just
cause."
DSS does not dispute that N.C. Gen. Stat. § 126-35(a) applies
to the local employees specified in N.C. Gen. Stat. § 126-5(a)(2)
even though § 126-35(a) refers only to State employees or former
State employees. It argues, however, that in order for § 126-
34.1(a)(1) to apply to a local employee, that employee must meet
the same months-of-service requirement that any state employee must
meet in order to become a "career State employee." The SPA defines
a "career State employee" as "a State employee who: (1) [i]s in a
permanent position appointment; and (2) [h]as been continuously
employed by the State of North Carolina in a position subject to
the State Personnel Act for the immediate 24 preceding months."
N.C. Gen. Stat. § 126-1.1 (2003). DSS argues that since plaintiff
has worked for DSS for less than 24 months, she is not entitled to
the benefit of N.C. Gen. Stat. §§ 126-34.1(a) and 126-35. DSS' argument, however, overlooks N.C. Gen. Stat. § 126-5's
provisions regarding the scope of the SPA's coverage. As indicated
above, with respect to State employees, § 126-5(a)(1) specifies
that the provisions of Chapter 126 apply to "[a]ll State employees
not herein exempt." N.C. Gen. Stat. §§ 126-5(c), (c1), (c2), (c3),
(c7), and (c8) then specifically exempt certain categories of State
employees from coverage under various portions of the SPA. In
other words, § 126-5 specifies certain classes of State employees
and identifies what portions of the SPA, if any, apply with respect
to each class. N.C. Gen. Stat. § 126-5(c)(1) specifically exempts
"[a] State employee who is not a career State employee as defined
by this Chapter" from the SPA, with the exception of "the policies,
rules, and plans" established by the State Personnel Commission
pursuant to N.C. Gen. Stat. §§ 126-4(1)-(6) (2003) and 126-7 (2003)
and with the exception of "the provisions of Articles 6 and 7 of
this Chapter," relating to equal opportunity for employment and
compensation and the privacy of state employee personnel records.
N.C. Gen. Stat. § 126-35, the just cause provision, falls within
Article 8 _ an Article not included within the list of those
portions of the SPA applicable to non-career State employees.
By contrast, N.C. Gen. Stat. § 126-5(a)(2) asserts that the
provisions of the SPA "shall apply to . . . (2) All employees of
the following local entities," including local social servicesdepartments. It does not include any qualification of the "[a]ll
employees" language comparable to the "not herein exempt" limiting
language used for State employees. Further, none of the exemptions
set out in N.C. Gen. Stat. § 126-5 refer to any local government
employees. We are, therefore, left with the statute's
specification that "[t]he provisions of this Chapter [126] shall
apply to . . . [a]ll employees of the following local entities"
without any express limitation. The language of § 126-5(a)(2) is
straightforward in subjecting all employees of certain types of
local entities to the provisions of the SPA. The language of the
statute, moreover, does not suggest that these local employees are
state employees, but only that the provisions of the SPA apply to
them as well as to state employees.
DSS appears to be arguing that this Court should craft what
amounts to a new sub-categorization of local government employees
included in N.C. Gen. Stat. § 126-5(a)(2)'s list
based on the
categorization of State employees in N.C. Gen. Stat. § 126-1.1.
According to DSS' proposal, the class of local employees in N.C.
Gen. Stat. § 126-5(a)(2) would be subdivided into "career local
employees" and "non-career local employees," in the same way that
State employees are categorized.
(See footnote 2)
The selection by the GeneralAssembly of 24 months as the necessary length of service to be a
career employee required the weighing of policy considerations
involving State government needs and State employee interests. We
have identified no expression of intent by the General Assembly to
differentiate among local government employees in the same manner
that it chose to differentiate among State employees. Nor may this
Court engage in policymaking, as defendant requests, and, on our
initiative, decide that it would be appropriate to superimpose this
structure on local government employees.
We note that the Office of State Personnel, in its
regulations, has not adopted such an approach. Instead, the
applicable regulations divide local employees into the following
categories: permanent, probationary, trainee, time-limited,
temporary, pre-vocational student, or emergency employees. 25 N.C.
Admin. Code 1I.2002 (2005). The regulations then provide, with
respect to local government employees, that "[a]ny employee,
regardless of occupation, position, or profession may be warned,demoted, suspended or dismissed by the appointing authority. Such
actions may be taken against employees with permanent status, as
defined in 25 NCAC 1I.2002[c], only for just cause." 25 N.C.
Admin. Code 1I.2301(a) (2005). "A permanent appointment is an
appointment to a permanently established position when the
incumbent is expected to be retained on a permanent basis." 25
N.C. Admin. Code 1I.2002(c).
In short, under the Office of State Personnel regulations, the
applicability of the just cause requirement to local government
employees is determined by the permanency of employment and not by
months of service. This Court has previously looked to these
regulations for assistance in construing the SPA, including N.C.
Gen. Stat. § 126-35. See, e.g., Steeves v. Scotland County Bd. of
Health, 152 N.C. App. 400, 406-408, 567 S.E.2d 817, 821-22
(construing the phrase "just cause"), disc. review denied, 356 N.C.
444, 573 S.E.2d 157 (2002); Fuqua v. Rockingham County Bd. of Soc.
Servs., 125 N.C. App. 66, 71, 479 S.E.2d 273, 276 (1997)
(discussing when warnings are not required prior to termination for
cause).
(See footnote 3)
Further, this Court has also held broadly: "Local government
employees . . . are subject to the State Personnel Act. As such,they cannot be 'discharged, suspended, or demoted for disciplinary
reasons, except for just cause.' G.S. § 126-35." Gray v. Orange
County Health Dep't, 119 N.C. App. 62, 75, 457 S.E.2d 892, 901,
disc. review denied, 341 N.C. 649, 462 S.E.2d 511 (1995). Despite
repeated decisions applying N.C. Gen. Stat. § 126-35 to local
government employees falling within N.C. Gen. Stat. § 126-5(a)(2),
this Court has never suggested that a local government employee
must have been employed for a particular period of time before N.C.
Gen. Stat. § 126-35 becomes applicable. See, e.g., Leeks v.
Cumberland County Mental Health, 154 N.C. App. 71, 76, 571 S.E.2d
684, 688 (2002); Steeves, 152 N.C. App. at 408, 567 S.E.2d at 822;
Souther v. New River Area Mental Health, 142 N.C. App. 1, 5, 541
S.E.2d 750, 753, aff'd per curiam, 354 N.C. 209, 552 S.E.2d 162
(2001).
In the absence of any indication of a contrary intent by the
General Assembly and in light of the language of the statute, the
applicable administrative regulations, and this Court's prior
decisions, we are compelled to reject DSS' request that we apply
the substance of N.C. Gen. Stat. § 126-1.1 to local government
employees. Accordingly, we overrule DSS' first assignment of
error, in which it contends that N.C. Gen. Stat. § 126-35 does not
apply to this plaintiff.
B. The Timeliness of Early's Contested Case Petition
[2] DSS also argues on appeal that the ALJ committed error in
twice denying DSS' motion to dismiss Early's contested case
petition as untimely. Under N.C. Gen. Stat. § 126-38 (2003), an
employee must file her petition with the Office of Administrative
Hearings "no later than 30 days after receipt of notice of the
decision or action which triggers the right of appeal." DSS did
not, however, base its final decision on any untimeliness; nor did
it argue this issue before the trial court.
Nevertheless, the timeliness issue is properly before us
because it goes to the question of our subject matter jurisdiction.
See Nailing v. UNC-CH, 117 N.C. App. 318, 324_25, 451 S.E.2d 351,
355 (1994) (holding that a failure to comply with the 30-day
deadline set out in N.C. Gen. Stat. § 126-38 deprives OAH, and
thus this Court, of subject matter jurisdiction), disc. review
denied, 339 N.C. 614, 454 S.E.2d 255 (1995). "The question of
subject matter jurisdiction may be raised at any time." Lemmerman
v. A. T. Williams Oil Co., 318 N.C. 577, 580, 350 S.E.2d 83, 85_86
(1986).
DSS argues that Early received Director Hudgins' letter dated
4 January 2001 on 8 January 2001 and, therefore, was required to
file her contested case by 8 February 2001. Early actually filed
her contested case petition with OAH on 19 February 2001. Thus,DSS argues, she filed 11 days late, and OAH did not have subject
matter jurisdiction to hear her contested case.
DSS was, however, required to comply with N.C. Gen. Stat. §
150B-23(f) when notifying Early of its final decision. That
provision of the Administrative Procedure Act specifies that the
time limitation for filing a contested case does not begin to run
until notice is given of the final decision. It specifies that
"[t]he notice shall be in writing, and shall set forth the agency
action, and shall inform the persons of the right, the procedure,
and the time limit to file a contested case petition." Id. If the
employer does not comply with the requirements for notice set out
in N.C. Gen. Stat. § 150B-23(f), then a motion to dismiss a
contested case petition as untimely is properly denied. Jordan v.
N.C. Dep't of Transp., 140 N.C. App. 771, 774, 538 S.E.2d 623, 625
(2000) ("The 30-day limitation period of N.C. Gen. Stat. § 126-38
does not begin to run until notice is provided in accordance with
these requirements [of N.C. Gen. Stat. § 150B-23(f)]."), disc.
review denied, 353 N.C. 376, 547 S.E.2d 412 (2001).
The 4 January 2001 letter does not meet the requirements of
N.C. Gen. Stat. § 150B-23(f). First, it did not set forth the
agency action. It simply recited as "accurate and relevant to the
present situation" general information regarding leave policies
provided to Early, the fact that she was "expected to return towork full time no later than December 13, 2000" with no work
restrictions, and the factors considered in determining that LWOP
could be granted through 13 December 2000. Nothing in the letter
explicitly stated an outcome regarding Early's appeal of her
termination or even mentioned that Early was terminated. The
letter closed with:
I sincerely hope that you will experience
a full recovery from your medical condition
and will be able to resume your activities
soon. For your information, I am enclosing
another copy of the two documents referenced
in #1 and #2 above [regarding LWOP policies].
In short, the letter simply reiterated facts that Hudgins
believed pertinent without reaching any conclusions and expressed
sympathy for plaintiff's medical condition. The letter did not
finally resolve the grievance by stating that Early's dismissal was
being upheld, but rather could be read as leaving open the
possibility for further negotiation. This vagueness, while perhaps
an understandable human response in delivering the bad news of a
harsh result, cannot be reconciled with the requirements of N.C.
Gen. Stat. § 150B-23(f).
As the Fourth Circuit held in construing N.C. Gen. Stat. §
150B-23(f):
To satisfy these requirements, the written
notice must communicate that the agency has
acted and that this action is one that
triggers the right to file . . . a contested
case petition. . . . Unless the [agency does]this, [petitioners,] who will often have
already engaged in lengthy negotiations with
the [agency], will likely (and understandably)
conclude that [the agency] is simply stating
its present bargaining posture, which is open
to further negotiation and does not trigger
any limitations period.
CM v. Bd. of Educ. of Henderson County, 241 F.3d 374, 386 (4th
Cir.), cert. denied, 534 U.S. 818, 151 L. Ed. 2d 18, 122 S. Ct. 48
(2001). A petitioner "cannot be expected to divine that such
correspondence communicates conclusive agency action, . . . which
triggers a short limitations period to pursue such a challenge."
Id. We agree and accordingly hold that the 4 January 2001 letter
did not constitute sufficient "notice of the decision or action
which triggers the right of appeal" for purposes of N.C. Gen. Stat.
§ 126-38.
Further, that letter did not inform Early "of the right, the
procedure, and the time limit to file a contested case petition."
While DSS contends that it provided this information in its first
13 December 2000 letter, N.C. Gen. Stat. § 150B-23(f) requires that
it be contained in the decision triggering the running of the 30-
day time limit. If we were to adopt DSS' position, we would, in
effect, be holding that an employer need only notify an employee at
some point during her employment of her appeal rights in order to
comply with N.C. Gen. Stat. § 150B-23(f). That is not, however,
what the statute provides. In any event, the material attached to the 13 December 2000
letter stated only that "[i]f the results are not satisfactory
[after the internal grievance procedure], the employee may then
appeal to the State Personnel Commission within 30 days." While
this statement provided notice of the right to further review and
the time limit, it cannot be considered by any stretch to be
notification of "the procedure" to file a contested case petition.
Compare Gray v. N.C. Dep't of Env't, Health & Natural Res., 149
N.C. App. 374, 379, 560 S.E.2d 394, 398 (2002) (holding that agency
did not comply with § 150B-23(f) when it specified that the
petitioner had 30 days to file a contested case petition with OAH
pursuant to N.C. Gen. Stat. § 130A-24, but gave an incorrect
address for OAH).
In sum, DSS failed to provide Early with the notice required
under N.C. Gen. Stat. § 150B-23(f). Accordingly, the ALJ properly
denied DSS' motion to dismiss. Both OAH and this Court have
subject matter jurisdiction over Early's claims.
The local appointing authority's final decision is then "subject to
judicial review pursuant to Article 4 of Chapter 150B of the
General Statutes."
N.C. Gen. Stat. §
126-37(b2) (2003).
Article 4 of Chapter 150B is entitled "Judicial Review" and
N.C. Gen. Stat. §
150B-51 (2003), within that Article, sets forth
the "[s]cope and standard of review":
(a) In reviewing a final decision in a
contested case in which an administrative law
judge made a recommended decision and the
State Personnel Commission made an advisory
decision in accordance with G.S. 126-37(b1),
the court shall make two initial
determinations. First, the court shall
determine whether the applicable appointing
authority heard new evidence after receiving
the recommended decision. . . . Second, if
the applicable appointing authority did not
adopt the recommended decision, the court
shall determine whether the applicable
appointing authority's decision states thespecific reasons why the applicable appointing
authority did not adopt the recommended
decision. . . .
. . . .
(b) . . . [I]n reviewing a final
decision, the court may affirm the decision of
the agency or remand the case to the agency or
to the administrative law judge for further
proceedings. It may also reverse or modify
the agency's decision, or adopt the
administrative law judge's decision if the
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
admissible under G.S. 150B-29(a),
150B-30, or 150B-31 in view of the entire
record as submitted; or
(6) Arbitrary, capricious, or an abuse of
discretion.
As our Supreme Court recently observed, "[w]hen the trial court
exercises judicial review over an agency's final decision, it acts
in the capacity of an appellate court." N.C. Dep't of Env't &
Natural Res. v. Carroll, 358 N.C. 649, 662, 599 S.E.2d 888, 896
(2004).
The trial court below correctly first addressed the inquiries in
N.C. Gen. Stat. §
150B-51(a). The court found and the record
reflects that DSS did not hear any new evidence in reaching its
final decision. Likewise, we agree with the trial court that DSS'
final decision states the specific reasons why it did not adopt the
State Personnel Commission's recommended decision.
With respect to the grounds for reversal or modification in
N.C. Gen. Stat. § 150B-51(b), Carroll observes that subsections
(b)(1)_(4) involve "'law-based' inquiries," whereas the grounds
listed in subsections (b)(5) and (6) involve "'fact-based'
inquiries." Carroll, 358 N.C. at 659, 599 S.E.2d at 894 (quoting
Charles E. Daye, Powers of Administrative Law Judges, Agencies, and
Courts: An Analytical and Empirical Assessment, 79 N.C. L. Rev.
1571, 1592 n.79 (2001)). As such, appellate inquiries under N.C.
Gen. Stat. § 150B-51(b)(1)_(4) receive de novo review and inquiries
under N.C. Gen. Stat. § 150B-51(b)(5) and (6) receive review under
the "whole record test." Id. at 659_60, 599 S.E.2d at 895.
Carroll explains each of these separate standards of review in
greater detail:
Under the de novo standard of review, the
trial court considers the matter anew and
freely substitutes its own judgment for the
agency's. When the trial court applies the
whole record test, however, it may not
substitute its judgment for the agency's as
between two conflicting views, even though it
could reasonably have reached a different
result had it reviewed the matter de novo.
Rather, a court must examine all the recordevidence _ that which detracts from the
agency's findings and conclusions as well as
that which tends to support them _ to
determine whether there is substantial
evidence to justify the agency's decision.
Substantial evidence is relevant evidence a
reasonable mind might accept as adequate to
support a conclusion.
Id. at 660, 599 S.E.2d at 895 (internal citations and quotation
marks omitted).
B. The Just Cause Determination
[4] In arguing that the trial court erred in concluding that
it lacked just cause to terminate Early, DSS first contends that
the trial court applied the wrong standard of review.
Specifically, DSS contends that Judge Hill erred by addressing both
de novo review and the whole record test. Carroll, however,
confirms that such a dual standard of review is appropriate when
considering the question whether an employee was fired for just
cause.
Our Supreme Court held in Carroll that "[d]etermining whether
a public employer had just cause to discipline its employee
requires two separate inquiries: first, whether the employee
engaged in the conduct the employer alleges, and second, whether
that conduct constitutes just cause for [the disciplinary action
taken.]" 358 N.C. at 665, 599 S.E.2d at 898 (internal quotation
marks omitted). The first half of the inquiry, Carroll instructs
us, is a question of fact to be examined under the whole recordtest. Id. at 665-66, 599 S.E.2d at 898. The second half, by
contrast, is a question of law to be examined de novo. Id. The
trial court, therefore, was correct to apply both tests.
Even if the trial court's order could be viewed as not
applying Carroll's precise analysis, reversal is not necessarily
required or appropriate. Id. at 665, 599 S.E.2d at 898. According
to Carroll, the task for this Court is simply to "'address[] the
dispositive issue(s) before the agency and the superior court' and
determin[e] how the trial court should have decided the case upon
application of the appropriate standards of review." Id. at
664_65, 599 S.E.2d at 898 (quoting Capital Outdoor, Inc. v.
Guilford County Bd. of Adjustment, 146 N.C. App. 388, 392, 552
S.E.2d 265, 268 (2001) (Greene, J., dissenting), adopted per curiam
by 355 N.C. 269, 559 S.E.2d 547 (2002)). We need not remand for
reconsideration if we can "reasonably determine from the record
whether the petitioner's asserted grounds for challenging the
agency's final decision warrant reversal or modification of that
decision under the applicable provisions of N.C.G.S. § 150B-51(b)."
Id. at 665, 599 S.E.2d at 898.
[5] DSS next argues that the trial court should not have
rendered a decision on the issue whether Early was terminated for
just cause because the ALJ dismissed the claim rather than
addressing it on the merits. DSS requests: "[I]f this Courtconcludes that there is jurisdiction to hear this case, this matter
should be remanded back to the OAH for the receipt of evidence and
the preparation of findings of fact[], conclusions of law and a
recommended decision on the issue of whether there was just cause
to terminate the Petitioner."
Contrary to DSS' contention, the trial court not only
appropriately considered the issue of just cause; it was, in fact,
required to do so. The decision being reviewed by the trial court
was not the ALJ's decision, but rather DSS' final decision. DSS
specifically decided that "even if the Office of Administrative
Hearings had subject matter jurisdiction to hear Petitioner's just
cause claim, there was just cause to terminate Petitioner." DSS
then recited the five findings of fact of the State Personnel
Commission upon which it relied in support of this conclusion. In
a section of the decision entitled "Final Decision," DSS stated
"[t]he Petitioner failed to meet her burden with regards to the
following: . . . (iii) that Respondent lacked just cause for her
dismissal." Since Early specifically challenged this determination
in its petition for judicial review, the issue was squarely before
the trial court.
(See footnote 4)
Further, there is no need to remand for a new evidentiary
hearing, additional findings of fact and conclusions of law, or a
recommended decision. DSS does not argue that it was in any way
prevented from fully litigating the issue of just cause before the
ALJ and does not explain why additional evidence is necessary.
Moreover, the State Personnel Commission disagreed with the ALJ on
the jurisdictional question and, therefore, actually made findings
of fact and conclusions of law regarding just cause. It then
submitted an advisory opinion to DSS on that issue. The State
Personnel Commission was not, of course, bound by the ALJ's
findings or conclusions:
"It is well established that an agency has the
ability to reject the recommended decision of
an administrative law judge. . . . Even
though the administrative law judge ha[s]
already made findings of fact and conclusions
of law, the Personnel Commission ha[s] the
ability to make its own findings of fact and
conclusions of law if it cho[oses] to do so."
Eury v. N.C. Employment Sec. Comm'n, 115 N.C. App. 590, 597, 446
S.E.2d 383, 388 (quoting Davis v. N.C. Dep't of Human Res., 110
N.C. App. 730, 737, 432 S.E.2d 132, 136 (1993)), appeal dismissed
and disc. review denied, 338 N.C. 309, 451 S.E.2d 635 (1994). Here, the State Personnel Commission adopted the ALJ's findings of
fact and reiterated them as its own, but then concluded that those
facts did not establish just cause _ an issue that was a question
of law, as Carroll indicates. The trial court then agreed with the
State Personnel Commission's analysis.
As Early points out, nowhere in its brief on appeal does DSS
present any argument that the trial court erred in deciding as a
matter of law that the conduct set forth in the State Personnel
Commission's findings of fact did not amount to just cause or that
those findings of fact _ which have not been specifically rejected
by DSS at any time _ were incorrect. Further, DSS does not attempt
to defend its own determination regarding whether just cause
existed by explaining to the Court why the findings of fact upon
which it relied were sufficient to establish just cause. While DSS
contended in oral argument that it had just cause, we are precluded
from addressing this issue since its brief contained no such
argument. See N.C.R. App. P. 28(a) ("Review is limited to
questions so presented in the several briefs. Questions raised by
assignments of error in appeals from trial tribunals but not then
presented and discussed in a party's brief, are deemed
abandoned.").
DSS does, in requesting a remand to OAH, state generally in
its brief that "[t]here was conflicting evidence on the issue ofjust cause." DSS, however, had the opportunity in its final
decision to resolve any conflict in the evidence by rejecting the
State Personnel Commission's findings of fact and making its own
findings based on the record. It chose not to do so and instead
relied, in support of its determination that Early's dismissal was
supported by just cause, on only five findings of fact of the State
Personnel Commission. Four of those findings relate only to the
fact that Early was notified that she was fired and that her
termination was then upheld through the appeal process, while the
fifth relates to a meeting that occurred within DSS one to two
weeks after Early's surgery and does not address (1) what DSS told
Early, (2) whether Early reasonably believed that her request for
leave had been granted, or (3) DSS' acknowledgment before OAH that
the leave had originally been granted through 17 January 2001.
DSS does not make any argument on appeal that these findings
of fact establish just cause. DSS' brief, in fact, cites no
authority suggesting that it had just cause to terminate Early or
that it should be given an opportunity to supplement its existing
findings of fact. Under Rule 28(b)(6) of the Rules of Appellate
Procedure, "[a]ssignments of error . . . in support of which no
reason or argument is stated or authority cited, will be taken as
abandoned." While it might be tempting to address the question whether DSS
had just cause to terminate Early, our Supreme Court has recently
held:
"It is not the role of the appellate courts, however, to
create an appeal for an appellant. As this case illustrates, the
Rules of Appellate Procedure must be consistently applied;
otherwise, the Rules become meaningless, and an appellee is left
without notice of the basis upon which an appellate court might
rule." Viar v. N.C. Dep't of Transp., 359 N.C. 400, 402, 610
S.E.2d 360, 361 (2005) (per curiam).
We, therefore, uphold the
trial court's reversal of DSS' decision that it possessed just
cause to terminate Early.
C. Back Pay and Attorneys' Fees
[6] DSS' final assignment of error pertains to the trial
court's award of back pay and attorneys' fees. In addition to
reiterating its contention that a local government employee is not
entitled to challenge her termination based on a lack of just
cause, an argument rejected above, DSS also contends "that it was
never the intention of the legislature to award back pay and
attorney's fees to local DSS employees." DSS further argues:
"[The] ALJ and the [State Personnel] Commission render advisory
opinions. Neither they, nor Superior Court Judges have the
authority to award back pay and attorney fees to local governmentemployees pursuant to N.C.G.S. Chapter 126 or the North Carolina
Administrative Code."
As DSS notes, any decision by the State Personnel Commission
regarding back pay and attorneys' fees was advisory with respect to
DSS. The trial court was required to review DSS' decision to
reject that recommendation under N.C. Gen. Stat. § 150B-51. While
DSS presents arguments regarding the Commission's lack of authority
to require a "local appointing authority" to pay back pay or
attorneys' fees, it does not cite any authority for its contention
that the "the state cannot order when the County should compensate
an employee for back pay and/or attorney fees."
To the contrary,
our courts have long held that "counties[] make up the state and
are, literally, the state itself. . . . Simply stated, '[c]ounties
are creatures of the General Assembly and constituent parts of the
State government.'" Archer v. Rockingham County, 144 N.C. App.
550, 553, 548 S.E.2d 788, 790 (2001) (quoting Harris v. Bd. of
Comm'rs, 274 N.C. 343, 346, 163 S.E.2d 387, 390 (1968)), disc.
review denied, 355 N.C. 210, 559 S.E.2d 796 (2002).
The General
Assembly may, therefore, decide when a county may be sued and when
it may be required to pay back pay and attorneys' fees.
With respect to back pay, N.C. Gen. Stat. § 126-37 provides
the best indication whether the General Assembly intended for
employees of "local appointing authorit[ies]" to be treated likeState employees and be able to seek back pay upon prevailing in a
claim under the SPA. Subsection (c) of that statute states:
If the local appointing authority is other
than a board of county commissioners, the
local appointing authority must give the
county notice of the appeal taken pursuant to
subsection (a) of this section. Notice must
be given to the county manager or the chairman
of the board of county commissioners by
certified mail within 15 days of the receipt
of the notice of appeal. The county may
intervene in the appeal within 30 days of
receipt of the notice. If the action is
appealed to superior court the county may
intervene in the superior court proceeding
even if it has not intervened in the
administrative proceeding. The decision of
the superior court shall be binding on the
county even if the county does not intervene.
N.C. Gen. Stat. § 126-37(c) (emphasis added). A major reason that
a county would need to be informed and to have the opportunity to
intervene is if a monetary award could be entered that would be
paid from the county's coffers. There would also be little need
for the provision making the superior court's decision binding on
the county in the absence of the possibility of a monetary award.
Indeed, this Court has held that a county is an aggrieved
party under
the Administrative Procedure Act for purposes of
appealing to superior court an award of back wages and attorneys'
fees. In re Appeal of Brunswick County, 81 N.C. App. 391, 396, 344
S.E.2d 584, 587 (1986). Similarly, in Lincoln County Dep't of Soc.
Servs. v. Hovis, 150 N.C. App. 697, 701, 564 S.E.2d 619, 621-22(2002), this Court affirmed an ALJ's award of back pay and
attorneys' fees against a Department of Social Services as a
sanction for failure to comply with procedural requirements under
N.C. Gen. Stat. §
150B-36(c)(3).
Because DSS presents no other argument as to why local
government employees found to have been wrongfully discharged
should not have the traditional back pay remedy available to them
like other employees covered by the SPA, we hold that the trial
court properly considered whether DSS' decision to reject the State
Personnel Commission's recommendation of back pay should be
reversed.
See 25 N.C. Admin. Code 1B.0421 (2005) (discussing the
State Personnel Commission's ability to award back pay and setting
out a method for calculating it)
. Further, DSS has not offered any
argument why, under the facts of this case, Early should not
receive back pay.
Accordingly, we affirm the trial court's
determination that Early should receive back pay.
[7] With respect to attorneys' fees, DSS' contention that the
trial court had no authority to award attorneys' fees disregards
N.C. Gen. Stat. §
6-19.1 (2003). That statute provides:
In any civil action . . . brought by a
party who is contesting State action pursuant
to G.S. 150B-43 or any other appropriate
provisions of law, unless the prevailing party
is the State, the court may, in its
discretion, allow the prevailing party to
recover reasonable attorney's fees, including
attorney's fees applicable to the
administrative review portion of the case, in
contested cases arising under Article 3 ofChapter 150B, to be taxed as court costs
against the appropriate agency if:
(1) The court finds that the agency
acted without substantial
justification in pressing its claim
against the party; and
(2) The court finds that there are no
special circumstances that would
make the award of attorney's fees
unjust.
Id. This Court held in McIntyre v. Forsyth County Dep't of Soc.
Servs., 162 N.C. App. 94, 96-97, 589 S.E.2d 745, 747, disc. review
denied, 358 N.C. 377, 598 S.E.2d 136 (2004), that this statute
authorizes a superior court to award fees to the employee of a
county Department of Social Services who has prevailed under the
SPA. McIntyre, therefore, establishes the trial court's authority
in this case to award attorneys' fees.
(See footnote 5)
Affirmed.
Judges HUNTER and LEVINSON concur.
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