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1. Employer and Employee_whistleblower claim_cooperating with SBI investigation
The trial court did not abuse its discretion by denying defendants' motions for a directed
verdict and judgment nov on a whistleblower claim where the evidence showed that plaintiff had
engaged in protected activity in cooperating with an SBI investigation of corruption in DMV, that
he was terminated after his supervisors learned of his actions, that there was more than a scintilla
of evidence that his alleged job misconduct was merely a pretext for termination, and that the
protected activities were a substantial or motivating factor in that termination. N.C.G.S. § 126-
85.
2. Judgments_interest_refiled complaint_back pay
Interest on a judgment should not have been awarded for the time between the voluntary
dismissal of a complaint and the refiling of the compliant, and should not have been awarded on
a back pay award against the State.
Attorney General Roy Cooper, by Assistant Attorney General
Allison A. Pluchos and Special Deputy Attorney General Hal F.
Askins, for the State.
Biggers & Hunter, P.L.L.C., by John C. Hunter, for plaintiff-
appellee.
HUDSON, Judge.
Plaintiff alleged violations of N.C. Gen. Stat. §§ 126-84, 5
(the whistleblower statute) and sought injunctive relief and
monetary damages. The jury found for the plaintiff. Defendants
moved for judgment notwithstanding the verdict, which motion thecourt denied. Defendants appeal. As discussed below, we affirm
in part, reverse in part and remand.
Plaintiff began working for the Department of Motor Vehicles
(DMV) in June 1979 and rose to the position of lieutenant in
District VIII of the DMV. In August 2000, plaintiff's supervisor
Captain Gary Ramsey reported to Lieutenant Colonel Mike Sizemore at
DMV headquarters in Raleigh that plaintiff had falsified documents
and misused state property. Lt. Col. Sizemore then requested
Internal Affairs Captain Carl Pigford to investigate the charges
against plaintiff. Capt. Pigford completed the investigation and
reported his results to a DMV executive management team. Capt.
Pigford determined that plaintiff violated DMV policy and state law
by: using his official position to solicit services, gifts and
gratuities; altering, voiding and reducing an overweight citation
as a favor for the vehicle's owner; using a state-owned vehicle for
private purposes; conducting personal business while on state time;
taking unauthorized leave from work; failing to report to work
properly dressed; and falsifying time documents.
On 6 October 2000, Lt. Col. Sizemore held a pre-disciplinary
hearing with plaintiff. Plaintiff admitted to using his official
position to solicit services, gifts and gratuities, using a state-
owned vehicle for personal purposes, and conducting personal
business on state time. The executive management team recommended
that plaintiff be terminated. Plaintiff received notice of the
decision on 11 October 2000; he filed no internal grievance or
appeal in connection with his termination. On 10 October 2001, plaintiff filed the underlying action
alleging that he was terminated as retaliation for engaging in
activity protected under the whistleblower statute, specifically
for cooperating with a State Bureau of Investigation (SBI)
investigation into corruption in District VIII of the DMV. On 24
October 2002, following discovery and trial preparation, plaintiff
filed a voluntary dismissal without prejudice. On 23 October 2003,
plaintiff timely re-filed the complaint against the present
defendants. In October 2004, the jury returned a verdict in favor
of plaintiff on the issue: whether or not plaintiff was terminated
from DMV because he talked to the SBI? The court ordered that
plaintiff be reinstated to his former position with back pay and
benefits, and awarded interest and attorney's fees.
[1] Defendants first argue that the court abused its
discretion by denying their motion for a directed verdict at the
close of all evidence. We disagree.
The standard of review on denial of a directed verdict is
well-established:
On appeal, the standard of review on a motion
for directed verdict is whether, 'upon
examination of all the evidence in the light
most favorable to the nonmoving party, and
that party being given the benefit of every
reasonable inference drawn therefrom, the
evidence is sufficient to be submitted to the
jury.' Stamm v. Salomon, 144 N.C. App. 672,
679, 551 S.E.2d 152, 157 (2001) (quoting Fulk
v. Piedmont Music Ctr., 138 N.C. App. 425,
429, 531 S.E.2d 476, 479 (2000)). The party
moving for a directed verdict bears a heavy
burden in North Carolina. Edwards v. West,
128 N.C. App. 570, 573, 495 S.E.2d 920, 923
(1998). A motion for directed verdict should
be denied where 'there is more than ascintilla of evidence supporting each element
of the plaintiff's case.' Stamm, 144 N.C.
App. at 679, 551 S.E.2d at 157 (quoting Little
v. Matthewson, 114 N.C. App. 562, 565, 442
S.E.2d 567, 569 (1994), aff'd, 340 N.C. 102,
455 S.E.2d 160 (1995)). In addition, when the
decision to grant a motion for directed
verdict is a close one, the better practice
is for the trial judge to reserve his decision
on the motion and submit the case to the
jury.
Wilson v. Burch Farms, Inc., 176 N.C. App. 629, 636, 627 S.E.2d
249, 255 (2006). Here, plaintiff contends that he was terminated
in violation of the whistleblower statute, which provides in
pertinent part:
(a) No head of any State department, agency or
institution or other State employee exercising
supervisory authority shall discharge,
threaten or otherwise discriminate against a
State employee regarding the State employee's
compensation, terms, conditions, location, or
privileges of employment because the State
employee, or a person acting on behalf of the
employee, reports or is about to report,
verbally or in writing, any activity described
in G.S. 126-84, unless the State employee
knows or has reason to believe that the report
is inaccurate.
N.C. Gen. Stat. § 126-85 (2006). To establish a prima facie case
under N.C. Gen. Stat. § 126-85, a plaintiff must establish that
(1) [plaintiff] engaged in protected activity, (2) followed by an
adverse employment action, and (3) that the protected conduct was
a substantial or motivating factor in the adverse action. Kennedy
v. Guilford Tech. Community College, 115 N.C. App. 581, 584, 448
S.E.2d 280, 282 (1994), overruled in non-pertinent part, Newberne
v. Dep't of Crime Control & Pub. Safety, 359 N.C. 782, 618 S.E.2d
201 (2005) (quoting McCauley v. Greensboro City Bd. of Educ., 714F. Supp. 146, 151 (M.D.N.C. 1987)). Once a defendant presents
evidence that a plaintiff's termination is based on a legitimate
non-retaliatory motive, the burden shifts to the plaintiff to
present evidence . . . that his actions under the Act were a
substantial causative factor in the termination. Hanton v.
Gilbert, 126 N.C. App. 561, 571-72, 486 S.E.2d 432, 439, disc.
review denied, 347 N.C. 266, 493 S.E.2d 454 (1997) (quoting Aune v.
University of North Carolina, 120 N.C. App. 430, 434-35, 462 S.E.2d
678, 682 (1995), disc. review denied, 342 N.C. 893, 467 S.E.2d 901
(1996)).
Here, the evidence showed that plaintiff engaged in protected
activity in cooperating with the SBI's investigation of corruption
in the DMV, and was terminated after his supervisors learned of
this activity. We therefore consider whether plaintiff presented
more than a scintilla of evidence that the protected conduct was a
substantial or motivating factor in his termination. Plaintiff
presented evidence that in his twenty years of employment with the
DMV, he had received regular promotions and received satisfactory
or better performance reviews. He also presented evidence of the
following: that the allegation of personal use of a state-owned
vehicle was based on an incident which the DMV was aware of for
eight months, but that the DMV took no action until after learning
of the protected activity; that the charge of falsifying his time
card by three hours was merely an error; that the charge of
altering an overweight citation was actually correction of a
mathematical error; that the solicitation of gifts and gratuitieswas directed by his supervisor, Capt. Ramsey; that other DMV
employees benefitted from funds raised by these solicitations and
no action was taken to stop the solicitations until after plaintiff
was terminated; that the DMV ignored plaintiff's statements that
Capt. Ramsey controlled these solicitations; and that no other DMV
employees were subject to investigation or action related to these
solicitations for two years following plaintiff's termination.
Defendants presented no evidence other than what they could elicit
during cross-examination of plaintiff's witnesses.
This evidence constituted more than a scintilla of evidence
that plaintiff's alleged job misconduct was merely a pretext for
his termination, and that plaintiff's protected activities were a
substantial or motivating factor in that termination. In the light
most favorable to plaintiff, and giving him the benefit of every
reasonable inference drawn therefrom, the evidence was sufficient
to be submitted to the jury. Thus, the court did not err in
denying defendants' motion for directed verdict. We overrule this
assignment of error.
Defendants also argue that the court abused its discretion in
denying their motion for JNOV. We disagree.
Because a motion for JNOV is essentially a renewal of a
motion for a directed verdict . . . . [t]he standard to be employed
by a trial judge in determining whether to grant a judgment
notwithstanding the verdict is the same standard employed in ruling
on a motion for a directed verdict. State Props. v. Ray, 155 N.C.
App. 65, 72, 574 S.E.2d 180, 185-86 (2002) (internal citationsquotation marks omitted). Thus, for the reasons discussed supra,
we overrule this assignment of error.
[2] Defendants next argue that the court abused its discretion
in ordering payment of interest on the judgment sum from 10 January
2001 and on back pay. We agree.
Defendants contend that because plaintiff voluntarily
dismissed his complaint on 24 October 2002 and did not re-file
until 23 October 2003, no lawsuit was pending between the parties
during that period. Pursuant to N.C. Gen. Stat. § 24-5 any
portion of a money judgment designated by the fact finder as
compensatory damages bears interest from the date the action is
commenced until the judgment is satisfied. N.C. Gen. Stat. §
24-5(b) (2003); Porter v. Grimsley, 98 N.C. 550, 4 S.E. 529 (1887)
(It is conceded that interest can only be charged from demand . .
. with interest from the date of the summons). Plaintiff's case
commenced on 23 October 2003 when the complaint before us was
filed; the case was not pending during the period after plaintiff
had voluntarily dismissed his case and before he refiled as
permitted by N.C. R. Civ. P., Rule 41 (2003). Thus, the trial
court erred in awarding interest from the date of the original
complaint rather than from 23 October 2003. In addition, the North
Carolina Administrative Code states that [t]he state shall not be
required to pay interest on any back pay award. N.C. Admin. Code
Tit. 25, 1B.0425 (2003). Plaintiff cites no authority countering
defendants' argument that the N.C. Administrative Code and N.C.
Gen. Stat. § 24-5(b) bar an award of interest on plaintiff's backpay award. We reverse the award of interest on the judgment from
10 January 2001 and the award of interest on back pay, and remand
for entry of corrected judgment.
Affirmed in part, reversed in part and remanded.
Judges WYNN and TYSON concur.
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