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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NORTH CAROLINA DEPARTMENT OF ENVIRONMENT AND NATURAL RESOURCES,
DIVISION OF PARKS AND RECREATION, Petitioner v. L. CLIFTON
CARROLL, Respondent
No. 329PA03
FILED: 13 AUGUST 2004
1. Public Officers and Employees_state employee_appeal of disciplinary action
A state employee appealing a disciplinary action must pursue the grievance procedures of
the agency and then file a contested case with the Office of Administrative Hearings.
The employee has the right to present evidence and examine witnesses, and the Administrative
Law Judge must decide the case only on the basis of evidence presented and facts officially
noticed and made a part of the record. The Administrative Law Judge must issue a decision
(formerly, and in this case, a recommended decision) with written findings and conclusions.
Appeal is to the State Personnel Commission, which issues a final agency decision. That
decision is subject to judicial review in the Superior Court, and then in the Appellate Division.
2. Administrative Law_whole record and de novo review_distinctions
Grounds for reversal or modification of an administrative agency's final decision fall into
two conceptual categories: law based inquiries and fact-based inquiries. Law-based inquires
receive de novo review, in which the trial court gives the matter new consideration and may
substitute its own judgment for that of the agency. Fact-based inquiries receive a whole record
review, in which the court examines all of the evidence in the record for substantial evidence
supporting the agency's decision, and may not substitute its judgment for that of the agency.
3. Administrative Law_de novo review_findings
Except as partially abrogated by N.C.G.S. § 150B-51(c), findings by an administrative
agency supported by substantial competent evidence in view of the entire record are binding on a
reviewing court conducting de novo review and the court lacks authority to make alternative
findings at variance with the agency's. The court is not required to issue new findings when
conducting de novo review of a question of law in a contested case (not to be confused with a de
novo hearing or trial mandated by statute).
4. Administrative Law_misapprehension of law_remand not required
When an order or judgment is entered under a misapprehension of the law, an appellate
court may remand for application of correct legal standards, but remand is not automatically
required. Here, the trial court's erroneous application of the de novo review standard did not
interfere with the Supreme Court's ability to assess how that standard should have been applied.
5. Public Officers and Employees_park ranger_speeding_not personal misconduct
sufficient for demotion
In light of the circumstances, a park ranger's conduct did not rise to a level justifying the
disciplinary actions taken where he sped for a brief time on an open stretch of road, with due
regard for the safety of others, in the reasonable belief that it was necessary because of a medical
emergency.
6. Public Officers and Employees_park ranger_demotion--use of emergency
vehicles_perceived medical emergency
A park ranger's alleged willful violation of written guidelines for the use of emergency
vehicles did not constitute just cause for his demotion where the whole record supported theconclusion that he was motivated by the reasonably perceived necessity of a medical emergency.
The trial court, conducting a whole record review, impermissibly re-weighed the credibility of
the ranger's testimony concerning his motivation. The ranger's obligation to assist those in need
did not cease to be a law enforcement function because a family member was involved.
7. Administrative Law_judicial review_scope--findings on unresolved issue
The trial court exceeded its scope by making findings and resolving a conflict not
addressed by the State Personnel Commission in a contested case involving a park ranger's
conduct in dealing with other officers. However, remand was not necessary because the alleged
conduct did not constitute just cause for demotion.
On discretionary review pursuant to N.C.G.S. § 7A-31 of
a unanimous, unpublished decision of the Court of Appeals, 157
N.C. App. 717, 580 S.E.2d 99 (2003), affirming an order entered 4
March 2002 by Judge Orlando F. Hudson, Jr., in Superior Court,
Wake County. Heard in the Supreme Court 17 February 2004.
Roy Cooper, Attorney General, by Edwin Lee Gavin II,
Assistant Attorney General, for petitioner-appellee.
The McGuinness Law Firm, by J. Michael McGuinness, for
respondent-appellant.
Richard Hendrix, on behalf of Southern States
Police Benevolent Association and North
Carolina Police Benevolent Association, amici
curiae.
MARTIN, Justice.
On 13 April 1998, petitioner North Carolina Department
of Environment and Natural Resources (DENR) demoted respondent
Ranger L. Clifton Carroll (Ranger Carroll) from Park Ranger III
to Park Ranger II and ordered a 5% reduction in his salary.
Ranger Carroll filed a petition for a contested case hearing
pursuant to N.C.G.S. § 126-34.1(a), and the case came on for
hearing before Administrative Law Judge Beecher R. Gray on 30
July 1999. On 22 October 1999, Judge Gray entered a Recommended
Decision directing that Ranger Carroll be reinstated to the
position of Ranger III with back pay from the date of his
demotion. In a Decision and Order signed 15 March 2000, theState Personnel Commission (SPC) unanimously adopted Judge Gray's
recommended findings of fact and conclusions of law and ordered
that Ranger Carroll be reinstated with back pay.
On 14 April 2000, DENR filed a petition for judicial
review in Wake County Superior Court. On 4 March 2002, the trial
court reversed the Decision and Order of the SPC. Ranger Carroll
appealed, and the Court of Appeals affirmed the trial court's
order in an unpublished opinion. N.C. Dep't of Env't & Natural
Res. v. Carroll, 157 N.C. App. 717, 580 S.E.2d 99 (2003). We
allowed Ranger Carroll's petition for discretionary review and
now reverse.
I.
Ranger Carroll has served with DENR's Parks and
Recreation Division (the Division) for almost twenty years.
Prior to his demotion on 13 April 1998, he held the position of
Park Ranger III. In that capacity, Ranger Carroll was
responsible for many facets of the operation of Fort Fisher State
Recreation Area (Fort Fisher), including hiring and supervising
summer staff, protecting natural resources, and providing law
enforcement protection. As a sworn law enforcement officer,
Ranger Carroll was trained and authorized to carry a sidearm, to
use deadly force, and to effect an arrest. Apart from his April
1998 demotion, Ranger Carroll has never been subject to any
disciplinary action by the Division.
At 8:00 a.m. on Saturday, 21 February 1998, Ranger
Carroll met with a crew of sixty volunteers at Fort Fisher to
coordinate the planting of Christmas trees along the dunes of the
beach. Ranger Carroll was supervising this project when, at
approximately 9:20 a.m., he received a call from his wifeinforming him that his eighty-five-year-old mother, who suffered
from dementia and resided in the Alzheimer's unit of a nursing
home in Southern Pines, had collapsed and was unresponsive. Just
a week prior to his mother's collapse, the nursing home, Saint
Joseph of the Pines (Saint Joseph's), had informed Ranger Carroll
that his mother was showing signs of congestive heart failure.
Ranger Carroll had a very close relationship with his mother
and considered it his obligation as her son to take care of
her.
According to Ranger Carroll, his wife called to inform
him that he needed to call [Saint Joseph's] to confirm [his]
permission to admit [his mother] to the hospital. Although his
wife had attempted to give her permission to Saint Joseph's over
the telephone, Ranger Carroll testified, there was a question in
everyone's mind . . . that [he], Clifton Carroll, her son, had to
give the permission. Nurse Linda Reynolds (Nurse Reynolds), who
placed the initial call to Ranger Carroll's wife, testified that
she had attempted to reach Ranger Carroll to obtain any necessary
authorizations, as he had the power of attorney for his mother's
health care decisions. Nurse Reynolds described the situation
with Ranger Carroll's mother as very serious.
After trying unsuccessfully to reach Saint Joseph's by
cellular telephone, Ranger Carroll resolved to return to his
personal vehicle and either begin the long drive to Southern
Pines or at least get somewhere to contact the rest home in
order to attend to his mother's medical emergency. Accordingly,
Ranger Carroll quickly relayed instructions to the volunteers in
his vicinity and two coworkers who were helping to oversee theproject, and then began the six-mile drive to Carolina Beach
Park, where his personal vehicle was parked.
Ranger Carroll set out from Fort Fisher in his official
vehicle and proceeded north on U.S. Highway 421. Upon entering
the city limits of Kure Beach, however, he found himself stuck in
slow traffic behind a line of cars [traveling] bumper to bumper
in his lane. In an attempt to clear traffic, Ranger Carroll
turned on his emergency flashers and dash-mounted blue lights.
The cars ahead of him did not seem to notice, and soon traffic
returned to the posted speed limit of thirty-five miles per hour.
As traffic cleared and he left the Kure Beach city
limits, Ranger Carroll exceeded the speed limit for approximately
six-tenths of a mile by driving up to forty-five miles per hour
in a thirty-five mile per hour zone. He also exceeded the speed
limit for approximately one mile along a straight and open
stretch of Dow Road by driving up to seventy-five miles per hour
in a fifty-five mile per hour zone. Before exceeding both speed
limits, Ranger Carroll confirmed that there was no traffic ahead
of him and that there were no pedestrians or vehicles on either
side of the road. At the time he exceeded the fifty-five mile
per hour limit on Dow Road, the road ran straight and Ranger
Carroll had a clear view for a long distance ahead.
Upon arrival at the Carolina Beach State Park office,
Ranger Carroll parked his official vehicle near his personal
vehicle and ran into the office building to call Saint Joseph's.
Using the park office telephone, he successfully reached the
Alzheimer's unit and within a few minutes was speaking with Nurse
Reynolds, who updated him on his mother's condition. Unbeknownst to Ranger Carroll, three Carolina Beach
police officers arrived by patrol car at the park office while he
was talking to Nurse Reynolds. The first to arrive was Detective
William Jones, who had observed the flashing blue lights on
Ranger Carroll's vehicle while engaged in a traffic stop in Kure
Beach. Because the combined use of emergency flashers and blue
lights, sometimes referred to as running emergency traffic,
designates an emergency situation to law enforcement officers,
Detective Jones had followed Ranger Carroll to Carolina Beach to
render assistance, if needed, to a state park officer. Next on
the scene were Lieutenant Buck Jarman and Corporal Kurt Bartley,
who arrived to provide backup for Detective Jones.
The three officers inspected Ranger Carroll's vehicle
and the area around the building. Then, as Lieutenant Jarman
waited in his patrol car, Detective Jones and Corporal Bartley
walked to the park office building and knocked on the front door
approximately four different times. Ranger Carroll heard voices
outside the door but could not discern what was being said.
Intent on communicating with Nurse Reynolds about his mother, he
did not initially respond to the knocking at the door. Because
the door to the office was solid and the blinds in the office
were shut, Ranger Carroll did not see the uniformed officers
standing outside the door or their patrol cars parked outside.
After Detective Jones and Corporal Bartley knocked loudly for a
fourth time on the office door, Ranger Carroll pulled the
telephone from his mouth to respond.
The nature of Ranger Carroll's response was the subject
of conflicting testimony at the 30 July 1999 hearing. Corporal
Bartley and Detective Jones both testified that Ranger Carrollused profanity in telling them to wait until he was off the
telephone, although neither took offense at the language used.
Ranger Carroll, however, denied using profanity, testifying that
he merely yelled [w]ait a minute in a very loud, drawn-out
manner. Nurse Reynolds, who was on the telephone with Ranger
Carroll at the time, testified that she heard Ranger Carroll say
something to the effect of I'll be there in a minute and that
she didn't hear any foul language.
After responding orally to the officers' knocks, Ranger
Carroll quickly finished his conversation with Nurse Reynolds and
opened the door to the office. Ranger Carroll then explained the
situation to the officers and apologized for having caused them
to come to the park. The officers told Ranger Carroll there was
no problem and promptly left the premises, satisfied that their
presence was not required.
After the other two officers had left, Detective Jones
engaged in further discussion with Ranger Carroll. This
discussion was also the subject of conflicting testimony at the
30 July 1999 hearing. Detective Jones testified that he informed
Ranger Carroll that the officers had been concerned because of
Ranger Carroll's speed and his use of emergency flashers and blue
lights. According to Detective Jones, Ranger Carroll, who had
previously been calm, suddenly became indignant and asked in a
sarcastic tone of voice, Why, have you got a problem with me
running emergency traffic? Ranger Carroll, on the other hand,
testified that he had asked Detective Jones if there [was] a
problem in a quiet and apologetic manner. According to Ranger
Carroll, his intent was to inquire sincerely whether he had
caused [Detective Jones] a problem. Ranger Carrollacknowledged that the words he chose were awkward and didn't
flow smoothly, but insisted that despite his use of the word
problem, he did not ask the question in a confrontational
manner, as in the expression, [H]ave you got a problem with
that? After speaking with Ranger Carroll for a few more
seconds, Detective Jones reported to Lieutenant Jarman by radio
that we didn't have an incident going on there, and he too left
the scene in his patrol car.
At the time Detective Jones left the park office, he
had no intention to file a report about the incident or initiate
a misconduct charge against Ranger Carroll. After he debriefed
Lieutenant Jarman on his conversation with Ranger Carroll,
however, Detective Jones was instructed to write out a formal
incident report. Lieutenant Jarman also contacted Ranger
Carroll's supervisor, Carolina Beach State Park Superintendent
Terri Taylor, to arrange a meeting to discuss Ranger Carroll's
conduct. At the meeting, Lieutenant Jarman informed
Superintendent Taylor that he had a complaint about one of the
park rangers under her supervision. Lieutenant Jarman complained
that the ranger had exhibited a bad attitude in his interaction
with two Carolina Beach police officers and that Lieutenant
Jarman was concerned with the ranger's use of his blue lights
and emergency flashers.
After confirming that the ranger in question was Ranger
Carroll, consulting with her supervisor, and acquiring a written
statement from Ranger Carroll, Superintendent Taylor decided to
discipline Ranger Carroll by demoting him from Ranger III to
Ranger II with a 5% salary reduction. In accordance with
departmental policy, Superintendent Taylor submitted aDisciplinary Action Routing Form setting forth the reasons for
the disciplinary action taken. The principal reason offered was
that Ranger Carroll had willfully violated the Division Law
Enforcement written guidelines on the use of emergency vehicles
by willfully violat[ing] posted speed limits . . . with
activated blue lights . . . while responding to a personal
emergency. Superintendent Taylor also stated that Ranger
Carroll's actions constitute[d] a misuse of [his] authority, a
misuse of state equipment, a violation of state traffic laws, a
violation of written work rules, and caused needless endangerment
to [himself] and to the general public. The form concluded that
[Ranger Carroll's] actions both during the incident and when
confronted by officers of the Carolina Beach Police Department
constitute[d] personal conduct unbecoming a state law enforcement
officer. Ranger Carroll timely filed a petition for a contested
case hearing to challenge his demotion and salary reduction.
II .
[1] To set the stage for our discussion of the issues
presented on appeal, we begin with a brief overview of North
Carolina's statutory framework for appeals by public employees of
disciplinary actions taken against them by their employing
agencies or departments. Under the State Personnel Act (SPA),
[n]o career State employee . . . shall be discharged, suspended,
or demoted for disciplinary reasons, except for just cause.
N.C.G.S. § 126-35(a) (2003);
see also N.C.G.S. § 126-34.1(a)(1)
(2003). A career State employee is defined as a state employee
who [i]s in a permanent position appointment and [h]as been
continuously employed by the State of North Carolina in a [non-
exempt] position . . . for the immediate 24 preceding months. N.C.G.S. § 126-1.1 (2003);
see also N.C.G.S. § 126-5 (2003)
(listing exempt positions).
A career state employee who alleges he or she has been
dismissed, demoted, or suspended without pay in violation of
N.C.G.S. § 126-35 must first pursue any grievance procedures
established by the employing agency or department. N.C.G.S. §§
126-34, -37(a) (2003);
see also Batten v. N.C. Dep't of Corr.,
326 N.C. 338, 343, 389 S.E.2d 35, 38-39 (1990),
overruled in part
on other grounds by Empire Power Co. v. N.C. Dep't of Env't,
Health & Natural Res., 337 N.C. 569, 447 S.E.2d 768 (1994). Once
such internal grievance procedures have been exhausted, the
aggrieved employee may demand a formal evidentiary hearing by
filing a petition for a contested case with the Office of
Administrative Hearings (OAH). N.C.G.S. §§ 126-34, 126-
34.1(a)(1), 150B-23 (2003), 150B-25 (2003). A contested case
is a quasi-judicial administrative proceeding to resolve the
rights, duties, or privileges of a person involved in a dispute
with an administrative agency. N.C.G.S. §§ 150B-2(2), -22
(2003).
A contested case hearing is presided over by an
Administrative Law Judge (ALJ) and is governed by Article 3 of
North Carolina's Administrative Procedure Act (APA). N.C.G.S. §§
126-4.1(a) (2003), 126-34.1(a), 150B-23(a). Among the rights
afforded to parties at a contested case hearing are the rights to
present physical evidence and to examine and cross-examine
witnesses. N.C.G.S. § 150B-25. The ALJ must decide the case
only on the basis of the evidence presented and facts officially
noticed, all of which are made part of the official record for
purposes of administrative and judicial review. N.C.G.S. §§150B-37, -41(b), -42(a)-(b), -47 (2003). After the ALJ issues a
recommended decision,
(See footnote 1)
comprised of express written findings of
fact and conclusions of law, each party is entitled to pursue an
administrative appeal by filing exceptions and written arguments
with the SPC. N.C.G.S. §§ 150B-36(a), 150B-34(a) (1999);
see
also 126-37(a).
Upon review of the parties' arguments and the materials
preserved in the official record, the SPC issues its final agency
decision. N.C.G.S. §§ 150B-36(a),(b), -37.
In addition to its
authority under the APA to review the recommended decision of the
ALJ, § 150B-36(a), the SPC is specifically authorized under the
SPA to reinstate a wrongfully terminated employee and to order a
salary adjustment or other suitable action to correct an improper
disciplinary action. N.C.G.S. § 126-37(a). Because the SPC's
decision and order constitutes a final agency decision for
purposes of the APA,
id., it is subject to judicial review upon
the
petition of either the employee or the employing agency in
the Superior Court of Wake County or the county where the
petitioner resides, N.C.G.S. §§ 126-37(b2), 150B-43 (2003).
Either party may then seek further review of the trial court's
decision in the appellate division. N.C.G.S. § 150B-52 (2003).
III.
[2] We first consider
Ranger Carroll's contention that
the trial court and Court of Appeals misapplied the applicable
standards of review. Specifically, Ranger Carroll asserts that
the trial court erred by engaging in erroneous and improper fact
finding in the course of conducting its
de novo review of
questions of law and that the Court of Appeals erred by affirming
the Superior Court. We agree.
On judicial review of an administrative agency's final
decision, the substantive nature of each assignment of error
dictates the standard of review.
ACT-UP Triangle v. Comm'n for
Health Servs., 345 N.C. 699, 706, 483 S.E.2d 388, 392 (1997);
State ex rel. Utils. Comm'n. v. Bird Oil Co., 302 N.C. 14, 21,
273 S.E.2d 232, 236 (1981);
see also Amanini v. N.C. Dep't of
Human Res., 114 N.C. App. 668, 675, 443 S.E.2d 114, 118 (1994)
(standard of review is not determined merely by the label an
appellant places upon an assignment of error; court must
determine the actual nature of the contended error)
. Under the
APA, an agency's final decision may be reversed or modified only
if the reviewing court determines that the petitioner's
substantial rights 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 . . . in view of the entire
record as submitted; or
(6) Arbitrary or capricious.
N.C.G.S. § 150B-51(b) (1999).
(See footnote 2)
As one commentator has noted, these grounds for
reversal or modification of an agency's final decision fall into
two conceptual categories. 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)
[hereinafter Daye, 79 N.C. L. Rev. 1571]. The first four grounds
for reversing or modifying an agency's decision -- that the
decision was in violation of constitutional provisions, in
excess of the statutory authority or jurisdiction of the agency,
made upon unlawful procedure, or affected by other error of
law, N.C.G.S. § 150B-51(b)(1)-(4) -- may be characterized as
law-based inquiries.
Id. The final two grounds -- that the
decision was unsupported by substantial evidence . . . in view
of the entire record or arbitrary or capricious, N.C.G.S. §
150B-51(b)(5),(6) -- may be characterized as fact-based
inquiries.
Id.
It is well settled that in cases appealed from
administrative tribunals, [q]uestions of law receive
de novo
review, whereas fact-intensive issues such as sufficiency of
the evidence to support [an agency's] decision are reviewed under
the whole-record test.
In re Greens of Pine Glen Ltd. Part.,
356 N.C. 642, 647, 576 S.E.2d 316, 319 (2003)
. Thus, where the
gravamen of an assigned error is that the agency violated
subsections 150B-51(b)(1), (2), (3), or (4) of the APA, a courtengages in
de novo review.
See Meads v. N.C. Dep't of Agric.,
349 N.C. 656, 665, 670, 509 S.E.2d 165, 171, 175 (1998);
Walker
v. Bd. of Trs. of N.C. Local Gov'tal Employees' Ret. Sys., 348
N.C. 63, 65, 499 S.E.2d 429, 430 (1998)
;
Gainey v. N.C. Dep't of
Justice, 121 N.C. App. 253, 259, 465 S.E.2d 36, 41 (1996);
Air-A-Plane Corp. v. N.C. Dep't of Env't, Health & Natural Res.,
118 N.C. App. 118, 124, 454 S.E.2d 297, 301 (1995).
Where the
substance of the alleged error implicates subsection 150B-
51(b)(5) or (6), on the other hand, the reviewing court applies
the whole record test.
Meads, 349 N.C. at 662-63, 509 S.E.2d
at 170;
ACT-UP Triangle, 345 N.C. at 706-07, 483 S.E.2d at 392;
see also Watkins v. N.C. State Bd. of Dental Exam'rs, 358 N.C.
190, 199, 593 S.E.2d 764, 769 (2004);
Mann Media, Inc. v.
Randolph Cty. Planning Bd., 356 N.C. 1, 13, 565 S.E.2d 9, 17
(2002)
.
Under the
de novo standard of review, the trial court
'consider[s] the matter anew[] and freely substitutes its own
judgment for the agency's.'
Mann Media, 356 N.C. at 13-14, 565
S.E.2d at 17 (quoting
Sutton v. N.C. Dep't of Labor, 132 N.C.
App. 387, 389, 511 S.E.2d 340, 341 (1999)). 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.
Watkins, 358 N.C. at 199,
593 S.E.2d at 769. Rather, a court must examine all the record
evidence -- 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.
Id. Substantial evidence is relevantevidence a reasonable mind might accept as adequate to support a
conclusion. N.C.G.S. § 150B-2(8b) (2003);
see also State ex
rel. Comm'r of Ins. v. N.C. Fire Ins. Rating Bureau, 292 N.C. 70,
80, 231 S.E.2d 882, 888 (1977).
[3]
In the instant case, the trial court engaged in
independent fact-finding in the course of conducting its
de
novo review of DENR's contention that Ranger Carroll committed
a job-related violation of law, which is just cause for
demotion.
The court explained that [u]nder the
de novo
standard, the Court undertakes to review all the evidence of the
record, and to make independent findings of fact, as though the
Commission had not considered the case. On the basis of its own
de novo findings of fact, the trial court concluded that Ranger
Carroll had violated the Dow Road speed limit without lawful
justification or excuse and that this violation of the law of
the State alone supported Ranger Carroll's demotion. The Court
of Appeals affirmed, stating that the issue of whether Carroll
was authorized to exceed the speed limit was a question of law
subject to
de novo review and that a trial court conducting
de
novo review of an agency's final decision must 'consider a
question anew, as if not considered or decided by the agency[]
previously . . . [and] must make its own findings of fact . . .
and cannot defer to the agency its duty to do so.'
N.C. Dep't
of Env't & Natural Res. v. Carroll, No. COA02-714, 2003 N.C. App.
LEXIS 953, at *11-12 (unpublished opinion) (citations omitted).
We disagree with this articulation of the
de novo
standard of appellate review. This Court has never stated that a
trial court should issue new findings of fact in a contested casewhen conducting
de novo review of a question of law.
(See footnote 3)
The Court
of Appeals has referred to such a rule, however, on at least five
occasions, all within the past four years.
See N.C. Forestry
Ass'n v. N.C. Dep't of Env't & Natural Res., 162 N.C. App. 467,
____, 591 S.E.2d 549, 555 (February 3, 2004);
N.C. Dep't of Corr.
v. Brunson, 152 N.C. App. 430, 435, 567 S.E.2d 416, 420 (2002)
;
Smith v. Richmond Cty. Bd. of Educ., 150 N.C. App. 291, 295, 563
S.E.2d 258, 263 (2002);
In re Roberts, 150 N.C. App. 86, 90, 563
S.E.2d 37, 41 (2002),
cert. denied, ___ U.S. ___, 157 L. Ed. 2d
38 (2003);
Jordan v. Civil Serv. Bd., 137 N.C. App. 575, 577, 528
S.E.2d 927, 929 (2000). The progenitor of this line of cases
appears to be
Jordan v. Civil Service Board, in which the Court
of Appeals stated,
Because '
[d]e novo' review requires a court
to consider a question anew, as if not
considered or decided by the agency
previously (
Amanini v. N.C. Dept. of HumanResources, 114 N.C. App. 668, 674, 443 S.E.2d
114, 118 (1994)), the trial court must make
its own findings of fact and conclusions of
law and cannot defer to the agency its duty
to do so.
137 N.C. App. at 577, 528 S.E.2d at 929.
Notably,
Jordan cites no direct authority for the
proposition that a court exercising
de novo review should, as a
general rule, eschew an agency's findings of fact in favor of its
own. Instead,
Jordan appears to rely on the assumption that a
court's obligation to consider a question anew
necessarily
implies an obligation to make independent findings of fact based
on a review of the record evidence.
Id. This assumption,
however, distorts the very nature of the
de novo standard of
appellate review applicable to contested cases arising under the
APA.
When the trial court exercises judicial review over an
agency's final decision, it acts in the capacity of an appellate
court.
Mann Media, 356 N.C. at 12, 565 S.E.2d at 17;
Avant v.
Sandhills Ctr. for Mental Health, 132 N.C. App. 542, 545, 513
S.E.2d 79, 82 (1999)
. It is the traditional function of
appellate courts to review the decisions of lower tribunals for
errors of law or procedure,
see N.C. Const. art. IV, § 12,
N.C.G.S. § 7A-27(b) (2003),
N.C. R. App. P. 16(a),
while
generally deferring
to the latter's unchallenged superiority to
act as finders of fact,
Salve Regina Coll. v. Russell, 499 U.S.
225, 233, 113 L. Ed. 2d 190, 199 (1991);
see also State v.
Braxton, 344 N.C. 702, 709, 477 S.E.2d 172, 176 (1996) (If
supported by competent evidence, the trial court's findings of
fact are conclusive on appeal.)
. In a contested case under the
APA, as in a legal proceeding initiated in District or SuperiorCourt, there is but one fact-finding hearing of record when
witness demeanor may be directly observed. Julian Mann III,
Administrative Justice: No Longer Just a Recommendation, 79 N.C.
L. Rev. 1639, 1653 (2001) [hereinafter, Mann, 79 N.C. L. Rev.
1639]
. Thus, the ALJ who conducts a contested case hearing
possesses those institutional advantages,
Salve Regina Coll.,
499 U.S. at 233, 113 L. Ed. 2d at 199, that make it appropriate
for a reviewing court to defer to his or her findings of fact.
Moreover, the
Jordan rule would render an administrative agency's
statutory responsibility to find facts in contested cases
a
pointless formality, at least in cases where errors of law are
alleged.
The judicial review provisions of the APA should not be
construed to substantially undermine the General Assembly's
judgment that administrative agencies, not courts, should perform
the primary fact-finding function in contested cases.
See
N.C.G.S. §§ 150B-34(a), -36(b) (ALJ and agency decisions to
include express findings of fact);
cf. Watson v. N.C. Real Estate
Comm'n, 87 N.C. App. 637, 640, 362 S.E.2d 294, 296 (1987)
(stating that whole record standard of review is not intended
to encourage judicial duplication of administrative findings).
We observe that newly enacted subsection 150B-51(c)
requires a reviewing court to engage in independent
de novo
fact-finding in all contested cases commenced on or after 1
January 2001 where the agency fails to adopt the ALJ's initial
decision. Ch. 190, sec. 11,
2000 N.C. Sess. Laws at 1290-91
(codified as
N.C.G.S. § 150B-51(c) (2003))
;
Cape Med. Transp.,
Inc. v. N.C. Dep't of Health & Human Servs., 162 N.C. App. 14,
21, 590 S.E.2d 8, 13
(2004);
Town of Wallace v. N.C. Dep't of
Env't & Natural Res., 160 N.C. App. 49, 54 n.1, 584 S.E.2d 809,813-14 n.1 (2003)
. Subsection 150B-51(c) provides, in pertinent
part:
In reviewing a final decision in a
contested case in which an administrative law
judge made a decision, in accordance with
G.S. 150B-34(a), and the agency does not
adopt the administrative law judge's
decision, the court
shall review the official
record, de novo, and shall make findings of
fact and conclusions of law. In reviewing
the case, the court shall not give deference
to any prior decision made in the case and
shall not be bound by the findings of fact or
the conclusions of law contained in the
agency's final decision.
N.C.G.S. § 150B-51(c) (2003) (emphasis added).
This subsection
requires courts to engage in independent fact-finding but only
when the agency rejects the ALJ's decision.
Id. It does not
redefine the
de novo standard governing judicial review over
questions of law.
See Mann
, 79 N.C. L. Rev. 1639, 1654-55
(describing the addition of section 150B-51(c) as a substantial
departure from previous statutory law, but noting that [w]hen
the agency adopts the ALJ decision, there is very little change
in the appellate review standards); Daye, 79 N.C. L. Rev. 1571,
1589 (When the agency adopts the ALJ's decision, the scope of
the review will be the traditional one: limited substantial
evidence review of facts and de novo review of questions of
law.). Moreover, because subsection 150B-51(c) applies only to
contested cases commenced on or after 1 January 2001, it has no
application to the instant case.
Prior to the enactment of N.C.G.S. § 150B-51(c), this
Court consistently held that where the findings of fact of an
administrative agency are supported by substantial competent
evidence in view of the entire record, they are binding on the
reviewing court, and that court lacks authority to makealternative findings at variance with the agency's.
In re Appeal
of AMP, Inc., 287 N.C. 547, 561, 215 S.E.2d 752, 761 (1975);
In
re Appeal of Reeves Broad. Corp., 273 N.C. 571, 579, 160 S.E.2d
728, 733 (1968);
In re Property of Pine Raleigh Corp., 258 N.C.
398, 404-05, 128 S.E.2d 855, 860 (1963);
In re Berman, 245 N.C.
612, 616-17, 97 S.E.2d 232, 235 (1957). Except insofar as it has
been partially abrogated by N.C.G.S. § 150B-51(c), we now
reaffirm this longstanding principle. To the extent that cases
such as
Jordan and its progeny suggest otherwise, they are
overruled.
[4] When an 'order or judgment appealed from was
entered under a misapprehension of the applicable law,' an
appellate court may remand for application of the correct legal
standards.
Howerton v. Arai Helmet, Ltd., 358 N.C. 440, 469, 597
S.E.2d 674, 693 (2004) (quoting
Concerned Citizens of Brunswick
Cty. Taxpayers Ass'n v. Holden Beach Enters., 329 N.C. 37, 54-55,
404 S.E.2d 677, 688 (1991));
see also State v. McDowell, 310 N.C.
61, 74, 310 S.E.2d 301, 310 (1984),
habeas proceeding at McDowell
v. Dixon, 858 F.2d 945 (4th Cir. 1988). This Court has also
recognized, however, that in cases appealed from administrative
tribunals, the trial court's erroneous application of the
appropriate standard of review does not automatically necessitate
remand.
See, e.g.,
Mann Media, 356 N.C. at 15-16, 565 S.E.2d at
18-19 (declining to remand for proper application of the
appropriate standard of review in the interests of judicial
economy);
Brooks v. McWhirter Grading Co., 303 N.C. 573, 579-80,
281 S.E.2d 24, 28-29 (1981) (applying the appropriate provisions
of N.C.G.S. § 150A-51(b) based on the nature of the errors
alleged on appeal without considering the standards of reviewapplied by the trial court and Court of Appeals);
N.C. Savings &
Loan League v. N.C. Credit Union Comm'n, 302 N.C. 458, 464-65,
276 S.E.2d 404, 409-10 (1981) (exercising
de novo review pursuant
to N.C.G.S. § 150A-51(4) based on the nature of the issues
presented on appeal, despite the fact the proper standard of
review has nowhere been addressed in the lower courts);
Bird
Oil Co., 302 N.C. at 19-22, 273 S.E.2d at 234-36 (reviewing
issues on appeal from administrative agency under the standard of
review the Court of Appeals and trial court
should have applied).
In
Capital Outdoor, Inc. v. Guilford County Board of
Adjustment, a divided panel of the Court of Appeals remanded to
the trial court because it could not determine what standard of
review the trial court had utilized to review the decision of the
Guilford County Board of Adjustment. 146 N.C. App. 388, 391-92,
552 S.E.2d 265, 268 (2001). In explaining this disposition, the
Court of Appeals majority stated that to speculate which
standard of review the superior court utilized presents a
dangerous path which we are not inclined to travel.
Id. at 391,
552 S.E.2d at 268. In dissent, Judge Greene stated that remand
was unnecessary because an appellate court's obligation to review
for errors of law,
see N.C.G.S. §§ 7A-27(b), 150B-52,
N.C. R.
App. P. 16(a), can be accomplished by addressing the dispositive
issue(s) before the agency and the superior court and
determining how the trial court
should have decided the case upon
application of the appropriate standards of review.
Id. at 392,
552 S.E.2d at 268 (Greene, J., dissenting). On appeal, this
Court
reverse[d] the decision of the Court of Appeals as to the
standard of review for the reasons stated in Judge Greene's
dissenting opinion, thereby adopting Judge Greene's analysis ofthe standard of review issue for precedential purposes.
Capital
Outdoor, Inc. v. Guilford Cty. Bd. of Adjust., 355 N.C. 269, 559
S.E.2d 547 (2002). Accordingly, in cases appealed from an
administrative tribunal under the APA, it is well settled that
the trial court's erroneous application of the standard of review
does not automatically necessitate remand, provided the appellate
court 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).
Shackleford-
Moten v. Lenoir Cty. DSS, 155 N.C. App. 568, 572, 573 S.E.2d 767,
770 (2002)
.
In the present case, the trial court's erroneous
articulation and application of the
de novo standard of review in
no way interferes with our ability to assess how that standard
should have been applied to the particular facts of this case.
Moreover, the status of Ranger Carroll's employment and salary
has remained unsettled during the past six years of ongoing
litigation. Thus, in the interests of judicial economy and
fairness to the parties, we proceed to consider the substantive
issues on appeal.
IV .
[5] The dispositive issue before this Court is whether
the Court of Appeals erred in affirming the trial court's
judgment that Ranger Carroll had engaged in unacceptable
personal conduct constituting just cause for his demotion
under N.C.G.S. § 126-35 and 25 NCAC 1J .0604(b) (June 2004).
Determining 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].
Sanders v. Parker
Drilling Co., 911 F.2d 191, 194 (9th Cir. 1990),
cert. denied,
500 U.S. 917, 114 L. Ed. 2d 101 (1991). Because the first of
these inquiries is a question of fact, the SPC's factual findings
as to the conduct alleged are reviewed under the whole record
test.
See Skinner v. N.C. Dep't of Corr., 154 N.C. App. 270,
274-78, 572 S.E.2d 184, 188-90 (2002);
Kea v. Department of
Health & Human Servs., 153 N.C. App. 595, 606, 570 S.E.2d 919,
926 (2002),
aff'd per curiam, 357 N.C. 654, 588 S.E.2d 467
(2003).
Because the latter inquiry is a question of law, the
SPC's conclusion as to whether the employee's conduct gave rise
to just cause for the disciplinary action taken is reviewed
de
novo.
See Skinner, 154 N.C. App. at 280, 572 S.E.2d at 191;
Gainey, 121 N.C. App. at 259 n.2, 465 S.E.2d at 41 n.2;
Daye,
79
N.C. L. Rev. 1571, 1592-93. In all contested cases commenced
prior to 1 January 2001, the aggrieved employee bears the burden
of proving that he was disciplined without just cause.
See Peace
v. Employment Sec. Comm'n, 349 N.C. 315, 328, 507 S.E.2d 272, 281
(1998) (noting that the burden of proof was not expressly
addressed in the SPA and 'judicially allocat[ing]' that burden
to the employee 'on considerations of policy, fairness, and
common sense' (quoting 1 Kenneth S. Broun, Brandis & Broun on
North Carolina Evidence § 37 (4th ed. 1993)).
But see Ch. 190,
sec. 13, 2000 N.C. Sess. Laws at 1292 (codified as N.C.G.S. §
126-35(d) (2003)) (providing that for all contested cases
commenced on or after 1 January 2001, the burden of proving thatan employee was disciplined for just cause shall rest[] with
the department or agency employer).
By statute, just cause for the dismissal, suspension,
or demotion of a career state employee may be established only on
the basis of unsatisfactory job performance or unacceptable
personal conduct. N.C.G.S. § 126-35(a),(b);
see also 25 NCAC 1J
.0604, .0612 (June 2004).
Here, it is undisputed that Ranger
Carroll is a career state employee subject to the protections
of N.C.G.S. § 126-35(a), and at no stage of these proceedings has
DENR alleged that his job performance with the Division has been
anything but satisfactory. Accordingly, Ranger Carroll's
demotion can be sustained only on the ground of unacceptable
personal conduct.
Neither just cause nor unacceptable personal
conduct is defined by statute. Pursuant to its rule-making
authority, however, the SPC has defined unacceptable personal
conduct to include, in pertinent part,
(1)
conduct for which no reasonable person
should expect to receive prior warning; or
(2) job-related conduct which constitutes a
violation of state or federal law; or
. . . .
(4) the willful violation of known or written
work rules; or
(5) conduct unbecoming a state employee that
is detrimental to state service.
25 NCAC 1J .0614(i)(1),(2),(4),(5) (June 2004).
In the present case, the ALJ and the SPC both concluded
that Ranger Carroll had demonstrated that DENR lacked just
cause for imposing discipline on the basis of unacceptable
personal conduct. Specifically, the SPC concluded that RangerCarroll's reasonable belief that he could treat the medical
emergency with his mother as one of necessity authorizing him
to use his vehicle's emergency devices and to exceed the speed
limit along an open section of road prevented his actions from
constituting conduct for which no reasonable person should
expect to receive prior warning. 25 NCAC 1J .0614(i)(1). The
SPC further concluded that Ranger Carroll did not engage in
unacceptable personal conduct on the basis of his alleged
violations of State law and willful violation of written work
rules. The SPC stated that [w]hile this may be a close
question, justice would appear to support the proposition that
[Ranger Carroll] could, under the immediate press of what he had
been told about his mother's collapse, proceed under the same
privilege or exception to [the Division's] policies and
guidelines as he could for some other person involved in a health
related situation deemed an emergency . . . .
The trial court reversed the SPC's final decision,
concluding that Ranger Carroll had engaged in unacceptable
personal conduct by (1) violating the posted speed limit on Dow
Road without lawful justification or excuse, (2) willfully
violating the Division's written guidelines for the use of
emergency vehicles, and (3) engaging in conduct unbecoming a
State employee, and . . . detrimental to State service in his
interaction with Detective Jones and Corporal Bartley. The Court
of Appeals affirmed the trial court's judgment on the first
ground alone, holding that Ranger Carroll's violation of the
speed limit on Dow Road constituted unacceptable personal conduct
providing just cause for his demotion pursuant to 25 NCAC 1J
.0614(i)(2). In the interest of achieving finality in theinstant case, we consider each of the asserted grounds for DENR's
demotion of Ranger Carroll.
First, DENR argues, and the Court of Appeals held, that
Ranger Carroll violated state law by exceeding the speed limit on
Dow Road, thus engaging in unacceptable personal conduct
constituting just cause for his demotion.
See 25 NCAC 1J
.0614(i)(2). The Court of Appeals stated that section 20-145 of
the Motor Vehicle Act suspends application of speed limitations
to law enforcement officers only when an officer is in the chase
or apprehension of violators of the law or of persons charged
with or suspected of any such violation. N.C.G.S. § 20-145
(2003). Because Ranger Carroll was neither chasing nor
apprehending violators of the law at the time he exceeded the Dow
Road speed limit, the Court of Appeals reasoned, his decision to
exceed the speed limit violated state law, thus constituting
unacceptable personal conduct under N.C.G.S. § 126-35 and 25
NCAC 1J .0614(i)(2).
We disagree, however, with the premise that N.C.G.S. §
20-145 necessarily sets forth the
exclusive conditions under
which a law enforcement officer may be legally entitled to exceed
a posted speed limit.
See Parish v. Hill, 350 N.C. 231, 238, 513
S.E.2d 547, 551 (1999) (noting that N.C.G.S. § 20-145 establishes
a general standard of care for police officers involved in
motor vehicle pursuits rather than an exemption from speed
laws);
cf. Collins v. Christenberry, 6 N.C. App. 504, 509, 170
S.E.2d 515, 518 (1969) (rejecting argument that specificity of
N.C.G.S. § 20-145 reflects legislative intent
not to exempt law
enforcement officers, under any circumstances, from other
provisions of the Motor Vehicle Act). The speed limit laws ofthis state were enacted for the protection of persons and
property and in the interest of public safety, and the
preservation of human life.
State v. Norris, 242 N.C. 47, 53,
86 S.E.2d 916, 920 (1955). Following the Court of Appeals'
reasoning, a police officer who exceeds the speed limit while
rushing a wounded partner to a nearby emergency room,
or while
racing to render assistance at the scene of a fire, would
necessarily be in violation of state law and subject to demotion
or termination at the election of his or her public employer
. We
do not believe the General Assembly intended to impose such a
rigid restriction on law enforcement officers' vital discretion
to make split-second decisions in matters affecting public
safety.
Cf. Whitley v. Albers, 475 U.S. 312, 320, 89 L. Ed. 2d
251, 261 (1986) (noting that courts are appropriately hesitant
to critique in hindsight [law enforcement] decisions necessarily
made in haste, under pressure, and frequently without the luxury
of a second chance)
.
We need not decide, however, under what circumstances a
law enforcement officer may legally exceed the speed limit, or
whether Ranger Carroll was legally entitled to do so on the facts
of the instant case. Even assuming Ranger Carroll lacked legal
justification or excuse for exceeding the Dow Road speed limit
,
in light of all the facts and circumstances of this case, his
conduct did not warrant demotion under the just cause standard.
We acknowledge that SPC regulations define just cause to
include unacceptable personal conduct and unacceptable
personal conduct to include job-related conduct which
constitutes a violation of state or federal law. 25 NCAC 1J
.0604(b)(2), .0614(i)(2). Nonetheless, the fundamental questionin a case brought under N.C.G.S. § 126-35 is whether the
disciplinary action taken was just. Inevitably, this inquiry
requires an irreducible act of judgment that cannot always be
satisfied by the mechanical application of rules and regulations.
Just cause, like justice itself, is not susceptible
of precise definition.
See, e.g., 1 Isidore Silver,
Public
Employee Discharge and Discipline, § 3.01, at 237 (3d ed. 2001);
Roger I. Abrams & Dennis R. Nolan,
Toward a Theory of Just
Cause in Employee Discipline Cases, 1985 Duke L.J. 594, 599
(1985); Warren Martin,
Employment at Will: Just Cause Protection
through Mandatory Arbitration, 62 Wash. L. Rev. 151, 164 (1987).
It is a 'flexible concept, embodying notions of equity and
fairness,' that can only be determined upon an examination of
the facts and circumstances of each individual case.
Crider v.
Spectrulite Consortium, Inc., 130 F.3d 1238, 1242 (7th Cir. 1997)
(quoting
Arch of Ill. v. Dist. 12, UMW, 85 F.3d 1289, 1294 (7th
Cir. 1996));
see also IMC-Agrico Co. v. Int'l Chem. Workers
Council, 171 F.3d 1322, 1327-28 (11th Cir. 1999) (employee's
infraction of work rules did not automatically establish just
cause for termination under collective bargaining agreement;
arbitrator acted within his discretion in considering
seriousness of the offense and the employee's work record).
Thus, not
every violation of law gives rise to just cause for
employee discipline.
See Steeves v. Scotland Cty. Bd. of Health,
152 N.C. App. 400, 408-09, 567 S.E.2d 817, 822-23 (2002)
(rejecting contention that any violation of state law necessarily
constitutes unacceptable personal conduct for purposes of the
SPA),
disc. rev. denied, 356 N.C. 444, 573 S.E.2d 512 (2002);
accord State ex rel. Ashley v. Civil Serv. Comm'n, 183 W. Va.364, 367-68, 395 S.E.2d 787, 790-91 (1990) (per curiam) (stating
that just cause provision in state civil service act requires
'misconduct of a substantial nature' and does not encompass
'technical violations of statute or official duty without a
wrongful intention' (citations omitted)).
In the instant case, we cannot conclude that DENR had
just cause to demote Ranger Carroll.
(See footnote 4)
It is undisputed that
Ranger Carroll has been a reliable and valued employee of DENR's
Division of Parks and Recreation for almost twenty years with no
prior history of disciplinary actions against him.
Superintendent Taylor, his direct supervisor, testified that
Ranger Carroll had always been a very good employee who
comported himself with honesty, integrity, and respect for
others. When asked whether he set a good example as a law
enforcement officer, Superintendent Taylor responded that she
kn[ew] of no situations where he has been anything other than
what he was supposed to be. Moreover, the SPC found that Ranger
Carroll was told that his permission was needed to admit [his
mother] to the hospital and that he exceeded the speed limit
because of his reasonable belief that he could treat the
emergency situation with his mother as one of necessity.
Finally, it is undisputed that Ranger Carroll exceeded the speedlimit on Dow Road for just over one mile, and only after he had
determined that the road ran straight and there were no vehicles
or pedestrians ahead of him. The fact that Ranger Carroll
employed the blue lights and emergency flashers on his vehicle
during this brief interval further demonstrates his concern for
public safety. In light of these somewhat unusual facts and
circumstances, Ranger Carroll's decision to exceed the posted
speed limit for a brief period on an open stretch of road, while
exercising due regard for the safety of others and in the
reasonable belief that such action was necessitated by a medical
emergency, did not rise to the level of personal misconduct that
would justify the substantial disciplinary actions taken against
him.
[6] We next address whether
Ranger Carroll's alleged
willful violation of the Division's written guidelines for the
use of emergency vehicles constituted just cause for his
demotion. By SPC regulation, unacceptable personal conduct may
be predicated upon a willful violation of known or written work
rules. 25 NCAC 1J .0614(i)(4). Citing this rule, DENR asserts
that Ranger Carroll willfully violated the Division's written
work guidelines for the use of emergency vehicles. The relevant
portions of these guidelines are excerpted below:
12.1.1 Operation of an emergency vehicle
with emergency devices activated
may occur:
12.1.1.1 Only when the vehicle is
operated by a commissioned
employee performing law
enforcement functions. At such
times, when in the reasonable
belief of the operator, an
emergency is imminent or exists
and the activation of emergency
warning devices is necessary inorder to protect life or render
assistance.
. . . .
12.1.4 Emergency vehicles may be operated
to a maximum of 30 MPH in excess of
the posted or prima facie speed
limit.
Guideline 12.1.1.1 permits a law enforcement officer to use
emergency warning devices when the officer has a reasonable
belief that an emergency situation exists. The guidelines do
not demand certainty; nor do they provide any objective
definition of the word emergency. Thus, it is immaterial
whether Ranger Carroll's permission was in fact required to admit
his mother to the hospital, so long as he had a reasonable
belief that his assistance was required to protect life or
render assistance. In the present case, the SPC found as a fact
that Ranger Carroll had such a reasonable belief. On the basis
of this finding, the SPC concluded that Ranger Carroll's conduct
did not constitute a willful violation of work rules.
The trial court reviewed the SPC's findings regarding
Ranger Carroll's motivations for his conduct under the whole
record test. Because Ranger Carroll's subjective state of mind
is manifestly a question of fact, this was the correct standard
of review to apply. See Kea, 153 N.C. App. at 606, 570 S.E.2d at
926 (applying whole record test to factual issues in public
employee discipline case). The trial court erred, however, in
its application of that test.
Based on its own review of the record evidence, the
trial court rejected the SPC's finding that Ranger Carroll had a
reasonable belief that he could treat the situation as one ofmedical necessity. The court observed that (1) Ranger Carroll's
wife did not testify at the hearing and (2) other evidence in the
record suggested that his mother was already being transported to
the hospital by the time Saint Joseph's attempted to contact him.
In light of this evidence, the court concluded that Ranger
Carroll's hearing testimony, that he was required to give
permission for his mother to be admitted to the hospital, [was]
of insubstantial weight to support [the SPC's] finding. The
court then stated, Under the whole record review standard, the
Court is authorized to find, and finds that the facts are that
Ranger Carroll, when he exceeded the Dow Road speed limit [and
used his blue lights and emergency flashers], did so because he
desired to obtain further information on his mother. Because
this purpose did not give Ranger Carroll authority to exceed the
speed limit or employ the emergency devices on his vehicle, the
trial court concluded, Ranger Carroll's willful noncompliance
with the guidelines justified DENR's decision to demote him.
On appeal, the Court of Appeals declined to uphold
Ranger Carroll's demotion on these grounds, stating that the
trial court incorrectly performed whole record review by making
unwarranted new findings of fact. We agree.
It is well settled that it is for the administrative
body, in an adjudicatory proceeding, to determine the weight and
sufficiency of the evidence and the credibility of the witnesses,
to draw inferences from the facts, and to appraise conflicting
and circumstantial evidence[,] if any. State ex rel. Utils.
Comm'n v. Duke Power Co., 305 N.C. 1, 21, 287 S.E.2d 786, 798
(1982). Accordingly, a reviewing court applying the whole record
test may not independently weigh the evidence of record orsubstitute its evaluation of the evidence for that of the
adjudicating agency. In re Appeal of AMP, Inc., 287 N.C. at 561-
62, 215 S.E.2d at 761. Rather, a court must review all the
evidence of record to determine whether the agency's findings
have a rational basis in the record. In re Rogers, 297 N.C.
48, 65, 253 S.E.2d 912, 922 (1979).
In the present case, the trial court impermissibly re-
weighed the credibility of Ranger Carroll's testimony concerning
his motivations for speeding and operating the blue lights and
emergency flashers on his vehicle. Although the trial court,
reviewing a cold record, did not find Ranger Carroll's testimony
credible, the ALJ, who had the opportunity to observe witness
demeanor, apparently did. In addition, the trial court ignored
the corroborating testimony of Nurse Reynolds, who testified that
she sought to contact Ranger Carroll in order to obtain any
necessary authorizations, as well as Ranger Carroll's written
statement that he held the power of attorney for his mother's
health care decisions. In sum, the evidence of record, taken as
a whole, supports a reasonable conclusion that Ranger Carroll was
motivated by his reasonable belief that his conduct was
necessitated by a medical emergency. Accordingly, the trial
court's independent findings of fact concerning Ranger Carroll's
motivation for his conduct, and the conclusions of law based
thereon, were in error.
(See footnote 5)
DENR argues, however, that even if Ranger Carroll
reasonably believed that an emergency existed, he was not
authorized under Guideline 12.1.1.1 to exceed the speed limit or
to use the emergency devices on his vehicle. Guideline 12.1.1.1
permits the use of emergency devices [o]nly when the vehicle is
operated by a commissioned employee performing law enforcement
functions. According to DENR, the emergency situation with
Ranger Carroll's mother was a personal emergency, not a work-
related one, and thus Ranger Carroll's actions in tending to his
mother's needs were not a law enforcement function. We
disagree.
Aiding citizens in distress is one of the many
important ways in which law enforcement officers serve the
citizens of this state. I ndeed, North Carolina law enforcement
officers are specifically trained to render assistance to persons
in need of medical attention. See N.C. Justice Acad., Basic Law
Enforcement Training: Instructor Notebook, § .09.01A, at 1-44
(1985). While the circumstances presented here certainly
imparted a personal dimension to Ranger Carroll's concerns, his
professional obligation to assist those in need of emergency
medical care did not cease to be a law enforcement function
simply because the person in distress happened to be a member of
his family. In addition, a reasonable officer could interpret
guideline 12.1.4, concerning the maximum speed at which an
emergency vehicle may be operated, to authorize an officer to
exceed the speed limit by up to thirty miles per hour whenever,
in the officer's reasonable belief, an emergency situation was
present. Because the SPC found that Ranger Carroll had such a
reasonable belief, Ranger Carroll's decision to speed, even
assuming it was technically in violation of the Division's
guidelines, was not a willful violation for purposes of 25 NCAC
1J .0614(i)(4).
[7] Finally, we consider the trial court's conclusion
that DENR had just cause to demote Ranger Carroll because Ranger
Carroll engaged in conduct unbecoming a state employee that is
detrimental to state service, 25 NCAC 1J .0614(i)(5), in his
interaction with Detective Jones and Corporal Bartley .
The trial court purported to apply the whole record
test in reviewing DENR's contention that Ranger Carroll engaged
in unprofessional behavior towards members of the Carolina Beach
Police Department. Although the SPC made no express finding as
to whether Officer Carroll had behaved inappropriately in his
interaction with Officer Jones, the trial court found that
Ranger Carroll lashed out at Officer Jones, because he was angry
and embarrassed that he was reminded that he had improperly run
emergency traffic. On this basis, the court concluded that
Ranger Carroll's lashing out was conduct unbecoming a State
employee, and . . . detrimental to State service upon which the
SPC should have sustained Ranger Carroll's demotion.
As we stated in In re Rogers, the 'whole record' test
is not a tool of judicial intrusion; instead, it merely gives areviewing court the capability to determine whether an
administrative decision has a rational basis in the evidence.
297 N.C. at 65, 253 S.E.2d at 922. In the instant case, the ALJ
and the SPC set out the conflicting testimony concerning Ranger
Carroll's interaction with Detective Jones and Corporal Bartley,
but made no express findings as to whether Ranger Carroll had
used profanity or otherwise lashed out at the two officers. It
is for the agency, not a reviewing court, to determine the
weight and sufficiency of the evidence and the credibility of the
witnesses, to draw inferences from the facts, and to appraise
conflicting and circumstantial evidence[,] if any. Duke Power
Co., 305 N.C. at 21, 287 S.E.2d at 798. Thus, the trial court
exceeded the scope of its reviewing power by reaching out sua
sponte to resolve a conflict in the record evidence not addressed
by the SPC. See Dunlap v. Clarke Checks, Inc., 92 N.C. App. 581,
584-85, 375 S.E.2d 171, 174 (1989); In re Bolden, 47 N.C. App.
468, 471, 267 S.E.2d 397, 398-99 (1980).
Ordinarily, when an agency fails to make a material
finding of fact or resolve a material conflict in the evidence,
the case must be remanded to the agency for a proper finding.
Dunlap, 92 N.C. App. at 584-85, 375 S.E.2d at 174. In the
instant case, however, further proceedings are neither necessary
nor advisable. Even assuming Ranger Carroll briefly lashed out
at Detective Jones and Corporal Bartley in the stress of the
moment, such a momentary lapse in judgment does not, under all
the circumstances presented, constitute just cause for his
demotion and attendant salary reduction.
Although there is no bright line test to determine
whether an employee's conduct establishes unacceptable personalconduct and thus just cause for discipline, we draw guidance
from those prior cases where just cause has been found. Our
survey of the relevant cases indicates that unacceptable
personal conduct implies misconduct of a much more serious
nature than that alleged here. See, e.g., Kea, 153 N.C. App.
595, 570 S.E.2d 919 (employee violated known and written work
rules, disobeyed direct order from superior, and made crude and
offensive sexual advances to a co-worker); Davis v. N.C. Dep't of
Crime Control & Pub. Safety, 151 N.C. App. 513, 565 S.E.2d 716
(2002) (highway patrol officer was stopped for speeding and
driving while intoxicated); N.C. Dep't of Corr. v. McNeely, 135
N.C. App. 587, 521 S.E.2d 730 (1999) (correctional officer
abandoned post without authorization and failed to remain alert
while on duty); Gray v. Orange Cty. Health Dep't, 119 N.C. App.
62, 457 S.E.2d 892 (1995) (health department inspector engaged in
inappropriate sexually oriented behavior during inspections of
catering businesses owned by women), disc. rev. denied, 341 N.C.
649, 462 S.E.2d 511 (1995); Leiphart v. N.C. Sch. of the Arts, 80
N.C. App. 339, 342 S.E.2d 914 (1986) (division director at North
Carolina School of the Arts surreptitiously organized meetings
with other division directors to discuss complaints against their
superior), cert. denied, 318 N.C. 507, 349 S.E.2d 862 (1986). In
addition, assuming Ranger Carroll used profanity or otherwise
lashed out at two fellow law enforcement officers, he did so
under the extreme emotional stress of knowing that his mother,
who suffered from Alzheimer's disease and had recently shown
signs of congestive heart failure, was being transported to the
hospital following a sudden collapse. In determining whether
this alleged lashing out constitutes conduct unbecoming astate employee, we cannot wholly ignore the influence of the
natural bonds of filial devotion on Ranger Carroll's emotional
state. Finally, we note that Detective Jones testified that he
felt sympathy for Ranger Carroll, and both he and Corporal
Bartley testified that they did not take personal offense with
anything Ranger Carroll said or did. In light of these facts and
circumstances, the trial court's findings of fact, even if they
had been properly made, would not support a conclusion that
Ranger Carroll engaged in unacceptable personal conduct based on
conduct unbecoming a state employee.
In conclusion, we hold that, on the specific facts and
circumstances of the present case, DENR did not have just cause
to demote Ranger Carroll and reduce his salary. Accordingly, the
decision of the Court of Appeals is reversed, and the case is
remanded to that court for further remand to the Superior Court
with instructions to affirm the State Personnel Commission's
final agency decision.
REVERSED AND REMANDED.
Footnote: 1 We note that the General Assembly has recently enacted
several significant amendments to the APA, including the deletion
of the modifier recommended from the provisions cited above.
These amendments apply to all contested cases commenced on or
after 1 January 2001. See Act of July 12, 2000, ch. 190, secs.
4, 6-8, 2000 N.C. Sess. Laws 1284, 1285-99 (amending N.C.G.S. §§
150B-29, -34, -36, and -37). Because Ranger Carroll's contested
case was filed on 29 June 1998, they are inapplicable to the case
at bar.
Footnote: 2 Subsection 150B-51(b)(6) now reads, Arbitrary,
capricious, or an abuse of discretion. See Ch. 190, sec. 11,
2000 N.C. Sess. Laws at 1290-91 (amending N.C.G.S. §§ 150B-
51(b)(6) (1999)). Because this revision applies only to
contested cases commenced on or after 1 January 2001, however, it
has no application to the case at bar.
Footnote: 3 To be sure, a de novo hearing or trial conducted
pursuant to a specific statutory mandate requires judge or jury
to disregard the facts found in an earlier hearing or trial and
engage in independent fact-finding. See, e.g., N.C.G.S. §§ 1-
301.1(b) (2003) (providing a right to a trial or hearing de
novo in superior court of an order or judgment entered by the
clerk of superior court); 7A-196(b) (2003) (Upon appeal to
superior court [of judgment in criminal case entered by district
court judge without jury trial] trial shall be de novo, with jury
trial as provided by law.); 7A-228(a) (2003) (judgments of
magistrates in small claims cases subject to trial de novo in
district court); 5A-21(b2) (2003) (superior court must conduct a
hearing de novo before ordering a party imprisoned for civil
contempt); 7A-290 (2003) (Any [criminal] defendant convicted in
district court before the magistrate may appeal to the district
court for trial de novo before the district court judge.). A
trial de novo is a new trial on the entire case -- that is, on
both questions of fact and issues of law -- conducted as if there
had been no trial in the first instance. Black's Law Dictionary
1512 (7th ed. 1999). The trial de novo concept should not be
confused with the de novo standard of review that applies when
the trial court acts, as here, in the capacity of an appellate
court, see Mann Media, 356 N.C. at 12, 565 S.E.2d at 17, and
reviews an agency decision for errors of law and procedure, see
In re Greens of Pine Glen, 356 N.C. at 647, 576 S.E.2d at 319.
Footnote: 4 We emphasize that we do not necessarily condone Ranger
Carroll's conduct; nor do we hold that his decision to exceed the
speed limit was legally justified or excused. Indeed, public
employees entrusted with the maintenance or operation of state
vehicles should always be mindful of the interests of the public
in not being subjected to unreasonable risks of injury. Parish,
350 N.C. at 236, 513 S.E.2d at 550; see also Norris v. Zambito,
135 N.C. App. 288, 293-95, 520 S.E.2d 113, 117-18 (1999). Our
inquiry here, however, is limited to the issue of whether DENR
had just cause, under all the facts and circumstances, to
demote Ranger Carroll.
Footnote: 5 We observe that there is some authority for the
proposition that a reviewing court may make independent findings
of fact once it has properly determined that an agency's findings
are not supported by substantial evidence. See Beaufort Cty.
Sch. v. Roach, 114 N.C. App. 330, 335, 443 S.E.2d 339, 341
(1994), disc. rev. denied, 336 N.C. 602, 447 S.E.2d 384 (1994)
and cert. denied, 513 U.S. 989, 130 L. Ed. 2d 398 (1994); Scroggs
v. N.C. Criminal Justice Educ. & Training Standards Comm'n, 101N.C. App. 699, 702-03, 400 S.E.2d 742, 745 (1991). But see State
ex rel. Utils. Comm'n v. Mead Corp., 238 N.C. 451, 465, 78 S.E.2d
290, 300 (1953) (remanding to Utilities Commission for new
findings of fact where trial court correctly determined that
agency's initial findings were not supported by substantial
evidence in view of the entire record). Because we do not agree
with the trial court's conclusion that the SPC's findings were
unsupported by substantial evidence, we need not resolve this
question here.
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