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THOMAS BOBBITT, Petitioner v. NORTH CAROLINA STATE UNIVERSITY, Respondent

14983October 17, 2006No. No. COA05-1548
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Case Details

Citation
179 N.C. App. 743
Judge(s)
Judge HUDSON concurs.; Judge WYNN concurs in the result only by separate opinion.
Procedural Posture — the stage the case had reached
appeal
Circuit
4th Circuit

Related Laws

No specific laws identified for this ruling.

Claim Types

DiscriminationWrongful Termination

Outcome

Court reversed the State Personnel Commission's dismissal for lack of jurisdiction and remanded the case for the Commission to decide the merits of the employee's termination claim. The court held that a state employee alleging age or race discrimination can appeal directly to the Commission without exhausting internal grievance procedures, and that the employer waived any jurisdictional objection by failing to move to dismiss when the employee announced he was proceeding on a just-cause claim.

Excerpt

THOMAS BOBBITT, Petitioner v. NORTH CAROLINA STATE UNIVERSITY, Respondent No. COA05-1548 (Filed 17 October 2006) 1. Appeal and Error— appellate rules violations — omissions not so egregious to invoke dismissal Respondent university’s motion to dismiss petitioner state employee’s appeal from the denial of his claim for termination from employment without just cause due to discrimination, based on a failure to comply with N.C. R. App. P. 10(c), is denied because: (1) petitioner’s brief contains appropriate record references for each of his arguments; and (2) although defendant did not technically follow the rules by failing to list specific page numbers where exceptions can be found in the record and did not set out these exceptions in the brief, these omissions are not so egregious as to invoke dismissal. 2. Public Officers and Employees— career state employee— termination from employment without just cause due to discrimination — exhausting internal grievance procedure not required — waiver A de novo review revealed that the trial court’s order affirming the State Personnel Commission’s holding that it did not have jurisdiction to hear petitioner career state employee’s claim for termination from employment by respondent university without just cause due to discrimination is reversed, and the case is remanded to the Commission to decide the merits of petitioner’s claim, because: (1) petitioner’s allegations allow him to appeal directly to the Commission under N.C.G.S. § 126-36(a) without exhausting respondent’s internal grievance procedure since he sufficiently asserted his dismissal was based upon age or race discrimination; (2) the petition properly invoked jurisdiction before the Office of Administrative Hearings and the Commission on alleged race and age discrimination despite the fact that his counsel proceeded and prevailed before the ALJ on a just cause argument at the hearing; and (3) respondent’s failure to move to dismiss on jurisdictional grounds, once petitioner announced he was proceeding only on just cause, waived any required exhaustion of internal grievance procedures. Judge Wynn concurring in the result. Appeal by petitioner from order entered 1 August 2005 by Judge J.B. Allen in Wake County Superior Court. Heard in the Court of Appeals 12 September 2006. Barry Nakell, for petitioner-appellant. Attorney General Roy Cooper, by Assistant Attorney General Q. Shanté Martin, for respondent-appellee. TYSON, Judge. Thomas Bobbitt (“petitioner”) appeals from order entered affirming the decision of the State Personnel Commission (the “Commission”) to dismiss for lack of jurisdiction his petition for termination from employment without just cause due to discrimination. We reverse and remand. I. Background Petitioner was employed by North Carolina State University (“respondent”) for more than fifteen years. Petitioner’s employment was terminated on 21 November 2001. Prior to termination, petitioner was employed as a floor maintenance assistant at Reynolds Coliseum, an indoor athletic facility located on respondent’s campus. On 5 November 2001, petitioner reported to work at 4:54 p.m. and performed routine services in preparation for a basketball game scheduled that evening. During the game, petitioner was stationed at the south end goal and was instructed to sweep the floor and keep it free from debris. Petitioner took a restroom break at approximately 8:30 p.m. during the game’s half-time intermission. Petitioner testified the restroom was crowded. Petitioner relieved himself into the urinal, washed his hands, and returned to his duty station. Petitioner did not take another restroom break until approximately 1:30 a.m. Petitioner testified he used the toilet and he was alone in the restroom at the time. On 5 November 2001, employees of LPSC Cleaning Services arrived at Reynolds Coliseum to perform its contract cleaning services after the basketball game ended. One member of the cleaning crew, Jerry Williams, reported to Larry Bell of LPSC Cleaning Services that he had observed petitioner urinating on the floor in the men’s restroom. On 6 November 2001, Larry Bell reported this allegation to William Boweles, Coliseum Supervisor and Maintenance Coordinator. William Boweles reported the matter to his supervisor, Barry Joyce, petitioner’s supervisor and Director of Indoor Athletic. Facilities. An investigation into Jerry Williams’s allegations commenced. Petitioner repeatedly denied he urinated on the bathroom floor. By letter dated 21 November 2001, Barry Joyce dismissed petitioner from employment effective 23 November 2001 for “improper personal conduct.” The letter stated: In accordance with the [University’s Grievance Procedure, you have 15 work days from receipt of this letter to appeal your dismissal to the Division of Human Resources. If alleging discrimination, you may choose not to utilize the university’s grievance procedure and appeal directly to the State Personnel Commission within 30 calendar days from receipt of this letter. Six days later on 27 November 2001, petitioner filed a Petition for a Contested Case Hearing in the Office of Administrative Hearings (“OAH”). Petitioner’s petition asserted “discharge without just cause” and that his discharge was based on age and race discrimination. On 16 April 2002, the administrative law judge (“ALJ”) granted respondent’s motion for summary judgment on certain claims, but denied respondent’s motion regarding petitioner’s claims for an allegedly excessive workload based on alleged racial discrimination and/or related retaliation. Petitioner’s petition was heard in the OAH on 28 August 2002. Petitioner’s counsel gave an opening statement in which he summarized the two issues in this case as termination without just cause and workplace harassment. Respondent’s counsel stated during opening statements that those are “the two basic issues in this case.” Later during the hearing, petitioner’s counsel announced petitioner would be proceeding on the issue of termination without just cause. Respondent did not move to dismiss petitioner’s remaining discrimination claims for abandonment or lack of jurisdiction at any time during the hearing before the ALJ. The AU in his recommended decision found and concluded, “[t]he evidence in the case and at the hearing leads to no other conclusion but that it is more likely than not that the [petitioner] did not commit the offense.” The AU issued a recommended decision to the Commission to overturn petitioner’s dismissal from and re-instate his state employment. The AU ruled Barry Joyce, petitioner’s supervisor, incorrectly shifted the burden of proof to petitioner when he stated that he had no reason not to believe Jerry Williams’s allegations. In his recommended decision, the AU also concluded, “[t]he [OAH] has jurisdiction over the parties and over [petitioner’s] ‘just cause’ claim.” The Commission took no additional evidence, declined to adopt the AU’s findings of fact and conclusions of law, and addressed only whether it had jurisdiction over petitioner’s just cause claim. The Commission ordered petitioner’s petition be dismissed for lack of jurisdiction. The Commission explained its decision as follows: [N] either OAH nor the State Personnel Commission has any claim before it other than [petitioner’s] just cause claim. Nothing in the Decision of the Temporary Administrative Law Judge shows that he considered the issue of whether the Office of Administrative Hearings has subject matter jurisdiction over a just cause claim which has not been exhausted internally through agency procedures. Because subject matter jurisdiction is non-waivable, and cannot be conferred by stipulation or consent of the parties, the Commission has had to consider this threshold issue. The Commission stated that because petitioner had not exhausted available administrative remedies through respondent’s internal grievance procedure, his petition did not invoke the jurisdiction of either the OAH or the Commission. Petitioner filed a Petition for Judicial Review in the Wake County Superior Court, which affirmed the decision and order of the Commission. Petitioner appeals. II. Respondent’s Motion to Dismiss Respondent filed a motion to dismiss petitioner’s appeal with this Court. Respondent argues petitioner’s appeal should be dismissed due to petitioner’s failure to comply with Rule 10(c) of the North Carolina Rules of Appellate Procedure. Rule 10(c) states in part, “[a]n assignment of error is sufficient if it directs the attention of the appellate court to the particular error about which the question is made, with clear and specific record or transcript references.” N.C.R. App. P. 10(c)(1) (2006). Petitioner’s brief contains appropriate record references for each of his arguments. Those record references refer to the order appealed from. In Symons Corp. v. Insurance Co. of North America, we held, “[although defendant in this case did not technically follow the rules by failing to list specific page numbers where exceptions could be found in the record and did not set out these exceptions in the brief, we do not find these omissions so egregious as to invoke dismissal.” 94 N.C. App. 541, 543, 380 S.E.2d 550, 552 (1989). In Adams v. Kelly Springfield Tire Co., this Court also declined to dismiss an appeal for an identical rule violation. 123 N.C. App. 681, 682, 474 S.E.2d 793, 794 (1996). Respondent’s motion to dismiss petitioner’s appeal is denied. HI. Issues Petitioner argues he: (1) properly filed his petition asserting respondent terminated his employment without just cause directly to the OAH and the Commission pursuant to N.C. Gen. Stat.. § 125-36(a) and (2) is estopped from raising lack of subject matter jurisdiction. A. Standard of Review “Since we are reviewing a ‘review proceeding’ in the superior court and petitioners are appealing pursuant to N.C. Gen. Stat. § 7A-27, we will apply N.C. Gen. Stat. § 150B-52.” Lincoln v. N.C. Dep’t of Health & Human Servs., 172 N.C. App. 567, 569, 616 S.E.2d 622, 624 (2005). N.C. Gen. Stat. § 150B-52 (2005) states: A party to a review proceeding in a superior court may appeal to the appellate division from the final judgment of the superior court as provided in G.S. 7A-27. The scope of review to be applied by the appellate court under this section is the same as it is for other civil cases. This Court has clearly stated the standard of review applicable to appeals of administrative claims from the superior court. The proper standard of review by the trial court depends upon the particular issues presented by the appeal. If appellant argues the agency’s decision was based on an error of law, then de novo review is required. If appellant questions whether the agency’s decision was supported by the evidence or whether it was arbitrary or capricious, then the reviewing court must apply the whole record test. The reviewing court must determine whether the evidence is substantial to justify the agency’s decision. A reviewing court may not substitute its judgment for the agency’s, even if a different conclusion may result under a whole record review. As to appellate review of a superior court order regarding an agency decision, the appellate court examines the trial court’s order for error of law. The process has been described as a twofold task: (1) determining whether the trial court exercised the appropriate scope of review and, if appropriate, (2) deciding whether the court did so properly. As distinguished from the any competent evidence test and a de novo review, the whole record test gives a reviewing court the capability to determine whether an administrative decision has a rational basis in the evidence. Carillon Assisted Living, LLC v. N.C. Dep’t of Health & Human Servs., 175 N.C. App. 265, 270, 623 S.E.2d 629, 633 (internal citations and quotations omitted), disc. rev. denied, 360 N.C. 531, 633 S.E.2d 675 (2006). Here, the issues under review concern jurisdiction and the trial court’s conclusion to affirm the Commission’s ruling that it lacked jurisdiction over petitioner’s claim. “A trial court’s conclusions of law . . . are reviewable de novo.” Lincoln, 172 N.C. App. at 570, 616 S.E.2d at 624. Whether jurisdiction was properly invoked is a question of law. In re J.B., 164 N.C. App. 394, 398, 595 S.E.2d 794, 797 (2004). B. Subject Matter Jurisdiction Petitioner argues he correctly filed his petition directly with the OAH because he alleged termination from employment without just cause due to discrimination. Petitioner argues his allegations allow him to appeal directly to the Commission, pursuant to N.C. Gen. Stat. § 126-36(a) without exhausting respondent’s internal grievance procedure. We agree. The allegations are determined from the face of the petition for a contested case hearing. See, e.g., Lee v. N.C. Dep’t of Transp., 175 N.C. App. 698, 701-02, 625 S.E.2d 567, 570, (2006). The allegations of jurisdiction must be liberally construed. Winbush v. Winston-Salem State Univ., 165 N.C. App. 520, 522-23, 598 S.E.2d 619, 621-22 (2004) (petition alleging that the employee was “relieved of [his] athletic duties and privileges” was sufficient to allege demotion and invoke jurisdiction of the OAH and the Commission). C. Career State Employee A career state employee is defined as “a [s]tate employee who is in a permanent position,” and who “has 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 (2005). Neither party contests the ALJ’s conclusion that petitioner was a career state employee. Our de novo review “is limited to questions so presented in the several briefs.” N.C.R. App. P. 28(a) (2006). A career state employee who has a grievance arising out of or due to their employment and “who does not allege unlawful harassment or discrimination” must “first discuss the problem or grievance with the employee’s supervisor and follow the grievance procedure established by the employee’s department or agency.” N.C. Gen. Stat. § 126-34 (2005). The employee may seek review directly to the Commission “if he is not satisfied with the final decision of the head of the department, or if he is unable, within a reasonable period of time, to obtain a final decision by the head of the department.” N.C. Gen. Stat. § 126-35(a) (2005). A state employee “who has reason to believe” that his dismissal based upon age or race discrimination may appeal directly to the Commission. N.C. Gen. Stat. § 126-36(a) (2005). Our Supreme Court has stated that the petitioners who allege discrimination need not exhaust internal grievances. [E]mployees whose grievances arise out of their employment, other than those who allege discrimination, must have complied with N.C.G.S. § 126-34, which requires all permanent state employees having such a grievance arising out of or due to their employment first to discuss their problem or grievance with their supervisor, then to follow the grievance procedure established by their department or agency. Batten v. N.C. Dept. of Correction, 326 N.C. 338, 343, 389 S.E.2d 35, 38-39 (1990) (emphasis supplied), overruled in part on other grounds by, Empire Power Co. v. N.C. Dept. of E.H.N.R., 337 N.C. 569, 574-75, 447 S.E.2d 768, 772 (1994); see North Carolina Department of Correction v. Earl Gibson, 308 N.C. 131, 301 S.E.2d 78 (1983). “A State employee is provided with the statutory right to appeal certain claims directly to the SPC ... without first... exhausting his employer’s internal grievance procedures ... an employee may appeal a claim of discrimination directly to the SPC.” Lee, 175 N.C. App. at 701, 625 S.E.2d at 570. Respondent argues that, “[t]his Court’s holding in Nailing is directly on point . . . the case law [is] indisputable.” Respondent quotes the following language from Nailing v. TJNC-CH.: In the present case, it is undisputed that petitioner did not follow Defendant’s grievance procedure regarding the appeal from her dismissal. Pursuant to N.C. Gen. Stat. §§ 126-37(a), -34, the OAH would not, therefore, have subject matter jurisdiction over petitioner’s appeal from her dismissal under N.C. Gen. Stat. § 126-35 for lack of “just cause.” 117 N.C. App. 318, 326, 451 S.E.2d 351, 356 (1994), disc. rev. denied, 339 N.C. 614, 454 S.E.2d 255 (1995). Respondent’s cited quote from Nailing excludes relevant and controlling language. The full quote reads: In the present case, it is undisputed that petitioner did not follow [Respondent’s] grievance procedure regarding the appeal from her dismissal. Pursuant to N.C. Gen. Stat. §§ 126-37(a), -34, the OAH would not, therefore, have subject matter jurisdiction over petitioner’s appeal from her dismissal under N.C. Gen. Stat. § 126-35 for lack of “just cause” that does not allege discrimination. Id. (emphasis supplied). In Nailing, the claim was “a series of disciplinary warnings . . . were unjust and retaliatory.” Id. The petitioner did not allege her just cause discharge claim resulted from discrimination. Here, petitioner’s petition for a contested case hearing asserts his termination was based upon “discharge without just cause.” The petition states, “[t]he following occurred due to discrimination and/or retaliation for opposition to alleged discrimination.” Petitioner checked the lines indicating he was denied “employment” and “promotion.” Petitioner checked the line indicating “termination” was forced upon him. Petitioner also checked the line next to the word “other,” and wrote “due to a lie by an outside contractor.” Petitioner also alleged race and age discrimination by checking the appropriate lines labeled “race” and “age.” Petitioner argues he has “reason to believe” his termination was based on race and age discrimination and properly filed his claim directly before the Commission. Reviewed in the light most favorable to petitioner, and taking petitioner’s allegations in his petition as true, petitioner’s allegations sufficiently assert discrimination to allow him to petition directly to the Commission without first exhausting internal grievances. Petitioner’s petition properly invoked jurisdiction before the OAH and the Commission on alleged race and age discrimination despite the fact that his counsel proceeded and prevailed before the AU on a just cause argument at the hearing. See Campbell v. N.C. Dep’t of Transp., 155 N.C. App. 652, 660, 575 S.E.2d 54, 60 (“Jurisdiction rests on the allegations of the petitioner.”), disc. rev. denied, 357 N.C. 62, 579 S.E.2d 386 (2003). N.C. Gen. Stat. § 126-36 allows direct appeal to the Commission so long as the petitioner has a “reason to believe” his termination was based on race or age discrimination. A review of N.C. Gen. Stat. § 126 and the petitioner’s petition reveals no other requirements. Petitioner’s claims in contested case no. 2196 were largely dismissed after respondent moved for and was granted summary judgment on 16 April 2002. However, petitioner’s allegations under contested case no. 2197, the petition on which termination without just cause due to discrimination was asserted, were not dismissed. Petitioner’s counsel gave an opening statement to the ALJ summarizing the two issues in this case as termination without just cause and workplace harassment. Respondent’s counsel before the ALJ acknowledged those to be the “two basic issues in this case.” In respondent’s opening statement, defense counsel advised the AU, “I do invite the Court to keep the issue narrow, and we also have a stipulation that because we’ve converted this morning to a just cause, that my witnesses can be heard first.” (Emphasis supplied). After respondent’s evidence, petitioner’s counsel announced, “[w]e will proceed only on the issue of just cause.” Respondent’s failure to move to dismiss on jurisdictional grounds, once petitioner announced he was proceeding only on just cause, waived any required

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LEE WOODBURN, Petitioner v. NORTH CAROLINA STATE UNIVERSITY, Respondent No. COA02-262 (Filed 18 March 2003) 1. Appeal and Error— briefs — motion to strike appendix A motion to strike an appendix to a brief was granted by the Court of Appeals where the appendix contained various State Personnel Commission and administrative law judge opinions that had not been agreed upon by the parties as part of the record, had not been submitted pursuant to a motion to amend the record, and were not necessary to the resolution of the issues in the case. 2. Administrative Law— dismissal of claim — standard of review — de novo De novo review was the proper standard for the trial court to use when reviewing an administrative law judge’s dismissal of a claim as untimely. 3. Administrative Law— exempt position — employment discrimination claim — no OAH jurisdiction A university employee in an exempt position bringing a discrimination claim did not have a right to a hearing before the Office of Administrative Hearings. N.C.G.S. § 126-16 (employment discrimination) applies to all state employees without regard to position or status, but that statute neither addresses procedural avenues nor entitles a petitioner to choose a review scheme from which she is otherwise excluded by N.C.G.S. § 126-5. Exempt university employees have available review procedures which begin with university grievance committees and lead to review by a superior court judge and an appellate court. Appeal by petitioner from order entered 3 December 2001 by Judge Henry W. Hight, Jr. in Wake County Superior Court. Heard in the Court of Appeals 16 October 2002. McSurely & Osment, by Ashley Osment, for petitioner-appellant. Attorney General Roy Cooper, by Assistant Attorney General Joyce Rutledge, for respondent-appellees. LEVINSON, Judge. Petitioner (Lee Woodburn) appeals from an order dismissing her petition for a contested case hearing before the Office of Administrative Hearings (OAH). We affirm. Petitioner was hired by respondent North Carolina State University (the university) in August, 2000, as assistant director of the university’s Office of Disability Services for Students. Shortly after accepting the position, petitioner learned that she was pregnant. Due to medical complications from her pregnancy, petitioner missed work for most of October and November, 2000. On 19 December 2000, the university sent petitioner a certified letter informing her that she was being fired, and giving her 30 days notice. Petitioner received the letter on 2 January 2001, and on 16 February 2001, she filed a petition with OAH for a contested case hearing against the university. She alleged that she was terminated by the university without just cause, and that her termination was due to illegal discrimination based on gender and on a handicapping condition (pregnancy). The university moved to dismiss the petition for lack of subject matter jurisdiction, alleging that (1) OAH lacked jurisdiction over petitioner’s “just cause” claim, because petitioner was not a career state employee and therefore the “just cause” provisions of N.C.G.S. § 126-35(a) were inapplicable to her, and; (2) OAH lacked jurisdiction over petitioner’s discrimination grievance, because it was brought under Article 8 of Chapter 126, from which EPA non-faculty professional positions at the university were expressly exempted. The Administrative Law Judge (ALJ) dismissed petitioner’s “just cause” claim, which is not before this Court. However, the ALJ denied respondent’s motion to dismiss the discrimination claim, concluding that Chapter 126 afforded petitioner the right to bring her discrimination claim before the OAH. Respondent then filed a new motion to dismiss petitioner’s claim as untimely filed. The ALJ granted this motion, from which petitioner sought review in superior court. Respondent cross-excepted to the ALJ’s denial of its motion to dismiss the discrimination claim. On 3 December 2001, the trial court affirmed the dismissal of petitioner’s contested case for lack of subject matter jurisdiction, on the grounds that her OAH petition was untimely. The court also concluded that petitioner’s assertion of a right under Article 8 of Chapter 126 to bring a contested case before the OAH was “unavailing,” although it did not enter an order expressly ruling on this issue. Plaintiff appealed from the trial court’s order, while respondent cross-assigned as error the trial court’s failure to rule on the issue of OAH jurisdiction over discrimination claims brought by EPA employees. On 13 March 2002, petitioner filed a petition for discretionary review by the North Carolina Supreme Court, seeking to bypass this Court. Her petition was denied on 4 April 2002. We first address respondent’s motion to strike petitioner’s appendix. The Record on Appeal was settled 11 February 2002. In April, 2002, petitioner served her brief on respondent, consisting of 35 pages of text, and a 71 page “appendix” containing various SPC and AU opinions. On 10 May 2002, respondent filed a motion to strike the appendix. Respondent argues that the petitioner violated N.C.R. App. P. 9 and 28, by filing documents that were neither agreed on by the parties to be part of the record, nor submitted by petitioner to this Court pursuant to a motion to amend the record. We agree. Further, we do not find the materials in the proposed appendix necessary to our resolution of the issues presented herein. Respondent’s motion to strike appendix is therefore granted. Standard of Review Petitioner appealed to the trial court from the ALJ’s pre-hearing dismissal of her claim as untimely. “An order of the ALJ issued pursuant to a written pre-hearing motion granting a party’s requested relief for failure of the other party to comply with procedural requirements is a final decision . . . entitling petitioner] to immediate judicial review[.]” Lincoln Cty. DSS v. Hovis, 150 N.C. App. 697, 700, 564 S.E.2d 619, 621 (2002). Judicial review of administrative agency decisions is governed by the North Carolina Administrative Procedure Act (APA), Chapter 150B of the N.C. General Statutes. N.C.G.S. § 150B-43 (2001) (“[a]ny person who is aggrieved by the final decision in a contested case, and who has exhausted all administrative remedies made available to him by statute or agency rule, is entitled to judicial review of the decision . . .”). N.C.G.S. § 150B-51(b) (2001) authorizes the trial court to reverse or modify an agency’s final decision if “substantial rights” of the petitioner may have been prejudiced because the agency’s findings, inferences, conclusions, or decisions were: (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 [or] capricious. . . . N.C.G.S. § 150B-51(b). “The standard of review employed by the reviewing court is determined by the type of error asserted; errors of law are reviewed de novo, while the ‘whole record’ test is applied to allegations that the administrative agency decision was not supported by the evidence, or was arbitrary and capricious.” Zimmerman v. Appalachian State Univ., 149 N.C. App. 121, 129, 560 S.E.2d 374, 379-80 (2002) (citing Amanini v. N. C. Dept. of Human Resources, 114 N.C. App. 668, 443 S.E.2d 114 (1994)). “De novo review requires a court to consider the question anew, as if the agency has not addressed it.” Blalock v. N.C. Dep’t of Health and Human Servs., 143 N.C. App. 470, 475-76, 546 S.E.2d 177, 182 (2001). Under the whole record test, “ ‘the reviewing court [must] examine all competent evidence (the ‘whole record’) in order to determine whether the agency decision is supported by “substantial evidence.’ ” ACT-UP Triangle v. Commission for Health Senices, 345 N.C. 699, 706, 483 S.E.2d 388, 392 (1997) (quoting Amanini, 114 N.C. App. at 674, 443 S.E.2d at 118). In the instant case, the trial court stated that it was applying de novo review, which we conclude was the proper standard of review. We next determine whether the trial court correctly applied de novo review. Petitioner argues that the trial court erred by holding that Article 8 of Chapter 126 of the North Carolina General Statutes is inapplicable to petitioner. We disagree. Chapter 126 of the General Statutes governs the State Personnel System. The scope of the chapter’s authority is set out in N.C.G.S. § 126-5 (2001), which states that “[t]he provisions of this Chapter shall apply to [a]ll State employees not herein exempt[.]” G.S. § 126-5(a)(l) (emphasis added). The statute further states that: (c) Except as to . . . Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to: (1) A State employee who is not a career State employee as defined by this Chapter. . . . (cl) Except as to the provisions of Articles 6 and 7 of this Chapter, the provisions of this Chapter shall not apply to:. . . . (8) Instructional and research staff, physicians, and dentists of The University of North Carolina. N.C.G.S. § 126-5(c)(l) and (d)(8) (2001). Petitioner is not a “career state employee,” as the term is defined by N.C.G.S. § 126-1.1 (an employee of the State who is “in a permanent position appointment” and who has held “a position subject to the State Personnel Act for the immediate 24 preceding months”). Further, her position is classified as “instructional and research staff ... of the University of North Carolina.” Petitioner is therefore exempt from the ambit of Chapter 126 by either of the statutory criteria. Moreover, the university expressly categorizes her position as “EPA” or “exempt from SPA.” Indeed, petitioner concedes her status as an EPA employee, and characterizes the dispositive issue in this case as “whether EPA employees can ever bring contested cases.” We conclude that petitioner’s position, as a university EPA employee, is explicitly exempted from Chapter 126, with the sole exception of Articles 6 and 7. Article 6 of Chapter 126 sets out the State policy regarding discrimination in employment. Petitioner’s claim alleges a violation of a provision of Article 6, N.C.G.S. § 126-16 (2001), which provides in relevant part that “[a]ll State departments and agencies . . . shall give equal opportunity for employment and compensation, without regard to race, religion, color, creed, national origin, sex, age, or handicapping condition. . . [.]” Article 6 applies to petitioner and, like any other state employee without regard to position or status, she is entitled to enforce the rights implicated by G.S. § 126-16. However, G.S. § 126-16 neither addresses which procedural avenues are available to particular categories of state employees, nor entitles petitioner to choose a review scheme from which she is otherwise excluded. “ ‘[W]here one statute deals with certain subject matter in particular terms and another deals with the same subject matter in more general terms, the particular statute will be viewed as controlling in the particular circumstances absent clear legislative intent to the contrary.’ ” Bryant v. Adams, 116 N.C. App. 448, 457, 448 S.E.2d 832, 836-37 (1994) (quoting State Ex Rel. Utilities Comm. v. Thornburg, 84 N.C. App. 482, 353 S.E.2d 413, disc. review denied, 320 N.C. 517, 358 S.E.2d 533 (1987)), disc. review denied, 339 N.C. 736, 454 S.E.2d 647 (1995). Our Court in Conran v. New Bern Police Dept., 122 N.C. App. 116, 468 S.E.2d 258 (1996) previously held: N.C.G.S. § 126-5 states in particular terms which employees are covered by Chapter 126. On the other hand, N.C.G.S. § 126-16 . . . address[es] the same subject matter in general terms. Moreover,.. . N.C.G.S. § 126-16 ... [does not] affirmatively grant[] a remedy to a[n] . . . employee . . . who is not otherwise covered by Chapter 126. In short, N.C.G.S. § 126-5 controls which employees are subject to Chapter 126. The petitioner is not within that class of employees. Id. at 119, 468 S.E.2d at 260 (emphasis added). We find Conran applicable to the present case, and reiterate that the exemptions in N.C.G.S. § 126-5 foreclose petitioner’s reliance on any of the provisions in Chapter 126, except for Articles 6 and 7. Notwithstanding N.C.G.S. § 126-5, petitioner asserts a right to a hearing before the OAH on a provision of Article 8 of Chapter 126, N.C.G.S. § 126-34.1, which states in pertinent part that: A State employee or former State employee may file in the Office of Administrative Hearings a contested case under Article 3 of Chapter 150B ... as to the following personnel actions or issues . . . [a]n alleged unlawful State employment practice constituting discrimination, as proscribed by G.S. 126-36, including . . . termination of an employee . . . on account of the employee’s . . . sex, ... or handicapping condition^] N.C.G.S. § 126-34.1(a)(2)(b) (2001). Petitioner essentially argues that, because the statute refers to state employees without adding “except those already exempted,” that all state employees are included. She urges this Court “construe” Article 6, § 126-16, with § 126-34.1(a)(2), and to hold that § 126-34.1 applies to all state employees, including those expressly excluded from the purview of Chapter 126. Petitioner’s proposed construction of the statute would require us to ignore the plain and definite exclusion of petitioner’s job from Chapter 126. This we decline to do. Further, we disagree with petitioner that there is any “inconsistency” between G.S. § 126-34 and G.S. § 126-5; the legislature, having specifically excluded various classes of state employees from all of Chapter 126 except Articles 6 and 7, in N.C.G.S. § 126-5, had no need to repeat the same list of excluded employees in other parts of Chapter 126. This Court has previously ruled on this issue, and rejected the position taken by petitioner. In Hillis v. Winston-Salem State Univ., 144 N.C. App. 441, 549 S.E.2d 556 (2001), a non-faculty EPA university employee sought redress for alleged grievances through the OAH. The plaintiff filed a contested case with the OAH, based on G.S. § 126-34.1. The Court noted that N.C.G.S. § 126-5(cl)(8) specifically exempts the “ [instructional and research staff ... of the University of North Carolina” from all “provisions of [Chapter 126 except] Articles 6 and 7” and that, like the present petitioner, the plaintiffs position was exempt from the SPA. This Court held: while N.C.G.S. § 126-16 is in Article 6 and therefore is applicable to otherwise exempt University of North Carolina employees, N.C.G.S. § 126-34.1 is in Article 8 and therefore is explicitly not applicable. It follows that OAH lacks jurisdiction to hear a contested case brought under Article 8 by exempt employees of the University of North Carolina[.] ... As our Court has stated, ‘[i]f the Legislature desired to establish a public policy entitling [UNC faculty] to the protection [of the grievance procedures] of G.S., Chap. 126, it could have done so.’ Hillis at 443-44, 549 S.E.2d at 557 (quoting Walter v. Vance County, 90 N.C. App. 636, 641, 369 S.E.2d 631, 634 (1988)). Hillis is on point, and controls the resolution of the present case. Petitioner asks this Court to reverse our decision in Hillis. This we may not do. In the Matter of Appeal from Civil Penalty, 324 N.C. 373, 384, 379 S.E.2d 30, 37 (1989) (“Where a panel of the Court of Appeals has decided the same issue, albeit in a different case, a subsequent panel of the same court is bound by that precedent, unless it has been overturned by a higher court.”). Nor do we agree with petitioner that Hillis should be reversed. Petitioner argues that in Hillis, this Court “with one fatal stroke” effectively “stripped” employees of their right to a hearing on “discrimination in the workplace,” and “transformed the substantial rights guarded by Article 6 for a quarter of a century to a mirage [.]” Petitioner’s assertions ignore the review procedures available to her as an EPA employee of the university. These include: (1) a hearing before a University grievance committee; (2) opportunity to respond in writing to the Chancellor’s preliminary decision; (3) appeal from the Chancellor’s decision to the Board of Trustees of NCSU; (4) appeal to Board of Governors from the Board of Trustees; (5) judicial review by a superior court judge; and (6) appeal to this Court. Thus, it is apparent that a university EPA employee is not without recourse in the event of discrimination. We conclude that, because N.C.G.S. § 126-5(cl)(8) expressly exempts petitioner from all of Chapter 126 except Articles 6 and 7, that the trial court did not err by holding that Article 8 of Chapter 126 does not apply to her. This assignment of error is overruled. Petitioner also argues that the trial court erred by concluding that she had not timely filed her contested case claim. However, as we conclude that petitioner had no right to a contested case hearing before the OAH, the issue of the timeliness of her petition need not be addressed. We hold that the OAH does not have jurisdiction over employees whose positions or departments are statutorily excluded from its reach. Because petitioner’s position as an EPA employee of the University of North Carolina is exempt from the SPA, Article 8 of Chapter 126 is inapplicable to her, and OAH has no subject matter jurisdiction to consider her contested case. ■ For the reasons discussed above, the order entered by the trial court affirming the ALJ’s dismissal of her contested case claim is Affirmed. Judges McGEE and HUDSON concur.

Defendant Win
Huang v. Ziko
14983Feb 1999

BARNEY HUANG, Plaintiff v. THOMAS J. ZIKO, BECKY R. FRENCH, BRUCE R. POULTON, THE BOARD OF GOVERNORS OF THE UNIVERSITY OF NORTH CAROLINA AND CONSTITUENT INSTITUTION, NORTH CAROLINA STATE UNIVERSITY, Defendants No. COA98-352 (Filed 16 February 1999) Statute of Limitations— tolling — federal action The trial court did not err by allowing defendant’s motion for summary judgment on the basis of the statute of limitations where plaintiff pursued through the state and federal courts claims arising from his dismissal as a university professor following charges of attempted second-degree rape and assault on a female; assuming that plaintiffs claims accrued when defendant Board affirmed his dismissal on 9 February 1990, plaintiff ordinarily would have had until 9 February 1993 to file his complaint in state court; plaintiff did not file his claim in state court until 22 May 1996 and his claims were time barred unless the statute of limitations was tolled; no statute or rule provides for the exclusion of the time during which the federal action was pending from the limitations period; and, because North Carolina has no applicable “grace period” longer than the thirty-day period set out in 28 U.S.C.A. § 1367, the statute of limitations was tolled while the federal action was pending and for thirty days thereafter. Plaintiff could have filed his complaint in state court at any time during the pendency of the federal action and up to thirty days after the United States Court of Appeals reached its decision on 7 December 1995. Appeal by plaintiff from judgment entered 16 February 1998 by Judge Stafford G. Bullock in Wake County Superior Court. Heard in the Court of Appeals 25 January 1999. Kenneth N. Barnes for plaintiff-appellant. Attorney General Michael F. Easley, by Special Deputy Attorney General David Roy Blackwell, for defendants-appellees. TIMMONS-GOODSON, Judge. Prior to his dismissal, plaintiff was a tenured professor in the Department of Biological and Agricultural Engineering at North Carolina State University (hereinafter “defendant University”). In June 1988, plaintiff was charged with attempted second-degree rape and assault on a female. On 14 July 1988, defendant Bruce R. Poulton, then chancellor of defendant University, issued a notice of intent to discharge letter to plaintiff suspending him from his duties and terminating his salary as of 1 January 1989. Plaintiff requested a hearing on his dismissal pursuant to the Code of the Board of Governors of the University of North Carolina (hereinafter “defendant Board”). Following a hearing and recommendation by a Faculty Hearing Committee that plaintiff be removed from the faculty, defendant Poulton dismissed plaintiff effective 7 February 1989. Plaintiff appealed to defendant University’s Board of Trustees and, then, to defendant Board. Defendant Board ultimately affirmed the Board of Trustees’ decision on 9 February 1990. Plaintiff appealed to the superior court, which reversed his dismissal. This Court affirmed the superior court’s reversal of plaintiff’s dismissal, but the Supreme Court reversed this Court’s decision and upheld plaintiff’s dismissal. In re Dismissal of Huang, 336 N.C. 67, 441 S.E.2d 696 (1994). Prior to exhausting his administrative remedies, plaintiff filed a complaint in superior court against defendant University and defendant Poulton for breach of contract and intentional infliction of emotional distress. The trial court granted summary judgment for defendants on the emotional distress claim and for plaintiff on the contract claim. Defendants appealed to this Court, which reversed the trial court’s summary judgment for plaintiff on the ground that he had an adequate remedy for breach of contract in the administrative appeal of his discharge. Huang v. N.C. State University, 107 N.C. App. 710, 421 S.E.2d 812 (1992). On 21 June 1991, plaintiff filed a complaint in the United States District Court for the Eastern District of North Carolina against defendants Thomas J. Ziko, Becky R. French, Poulton, Board, and University. In the complaint, he alleged federal claims of civil rights violations, Title VII violations, free speech violations, and age discrimination. He alleged state claims of due process and equal protection. Defendants filed a motion for summary judgment. On 11 January 1993, the United States District Court granted defendants’ motion for summary judgment with respect to all federal claims. As to plaintiff’s state claims, the court ruled as follows: Because all the federal claims have been dismissed against defendants in this action, the court dismisses without prejudice the remaining pendent state claims plaintiff has asserted under the North Carolina Constitution. In view of this, the court is divested of jurisdiction to entertain these claims, and plaintiff is left to pursue these matters in state court. Plaintiff appealed to the United States Court of Appeals for the Fourth Circuit. On 7 December 1995, the Court of Appeals affirmed the lower court’s decision in an unpublished per curiam opinion. Huang v. French, 73 F.3d 357 (4th Cir. 1995). On 22 April 1996, the United States Supreme Court denied plaintiffs petition for a writ of certiorari. Huang v. French, 517 U.S. 1157, 134 L. Ed. 2d 649 (1996). On 22 May 1996, plaintiff filed a complaint in the superior court seeking compensatory and punitive damages from defendants for breach of contract, due process violations, malicious prosecution, intentional infliction of emotional distress, civil conspiracy, and constructive fraud. Defendants subsequently filed an answer that included a motion to dismiss and alternative motion for summary judgment. Defendants asserted as an affirmative defense that each of plaintiffs claims was barred by a three-year statute of limitations. On 16 February 1998, the trial court granted defendants’ motion for summary judgment. The trial court ruled that “[t]he statute of limitations bars each and every one of the Plaintiff’s claims.” Plaintiff appeals. Plaintiff argues that the trial court erred by granting defendants’ motion for summary judgment. He contends that the statute of limitations had not run at the time he filed his complaint. We disagree. The parties agree that each of plaintiff’s claims was subject to a three-year statute of limitations. Assuming arguendo that plaintiff’s claims accrued when defendant Board affirmed his dismissal on 9 February 1990, plaintiff ordinarily would have had until 9 February 1993 to file his complaint in state court. Because plaintiff did not file his complaint in state court until 22 May 1996, his claims were time-barred, unless the statute of limitations was tolled. As the parties recognize, “filing an action in federal court which is based on state substantive law . . . toll[s] the statute of limitations while that action is pending.” Clark v. Velsicol Chemical Corp., 110 N.C. App. 803, 808, 431 S.E.2d 227, 229 (1993), aff’d per curiam, 336 N.C. 599, 444 S.E.2d 223 (1994). The parties agree that plaintiff’s federal action was no longer pending for the purpose of tolling the statute of limitations when the United States Court of Appeals reached its decision on 7 December 1995. See Clark, 110 N.C. App. 803, 431 S.E.2d 227 (holding that because a petition for writ of cer-tiorari to the United States Supreme Court is not an appeal of right, the federal action is not alive for the purpose of tolling the statute of limitations while a decision to allow or deny such a petition is pending). However, the parties disagree as to whether plaintiff had additional time to file his complaint in state court after the United States Court of Appeals reached its decision. Plaintiff contends that once the federal action was no longer pending, the time for filing his complaint in state court should have been extended for the portion of the three-year limitations period that had not been used when he filed the federal action. Since less than a year and a half had passed when plaintiff filed his federal action, he would have had more than a year and a half after 7 December 1995 to file his complaint in state court. Plaintiff’s contention is untenable. The rule which plaintiff would have this Court adopt is contrary to the policy in favor of prompt prosecution of legal claims. Furthermore, such a rule is contrary to the general rule that “[i]n the absence of statute, a party cannot deduct from the period of the statute of limitations applicable to his case the time consumed by the pendency of an action in which he sought to have the matter adjudicated, but which was dismissed without prejudice as to him[.]” 51 Am. Jur. 2d Limitation of Actions § 311 (1970). In this case, no statute or rule provides for the exclusion of the time during which the federal action was pending from the limitations period. We likewise find unpersuasive defendants’ contention that the statute of limitations was tolled only until the United States Court of Appeals reached its decision and that plaintiff had no additional time to file his complaint in state court. We believe the question presented by this appeal is controlled by 28 U.S.C.A. § 1367 (1993). See Kolani v. Gluska, 75 Cal. Rptr. 2d 257 (1998); Roden v. Wright, 611 So. 2d 333 (Ala. 1992). That federal statute provides that when a federal district court has original jurisdiction over a civil action it may also exercise “pendent” or “supplemental jurisdiction over all other claims that are so related to claims in the action within such original jurisdiction that they form part of the same case or controversy[.]” 28 U.S.C.A. § 1367(a). A federal district court may decline to exercise supplemental jurisdiction over a claim if it “has dismissed all claims over which it has original jurisdiction].]” 28 U.S.C.A. § 1367(c)(3). The statute further provides that the period of limitations for any supplemental claim “shall be tolled while the claim is pending and for a period of 30 days after it is dismissed unless State law provides for a longer tolling period.” 28 U.S.C.A. § 1367(d). Since the claims now asserted by plaintiff were supplemental claims dismissed by the United States District Court, he was entitled to thirty additional days to file his complaint in state court after the United States Court of Appeals reached its decision, unless some state statute provided for a longer period of time. Rule 41(b) of the North Carolina Rules of Civil Procedure provides a savings provision for claims that have been involuntarily dismissed: If the court specifies that the dismissal of an action commenced within the time prescribed therefor, or any claim therein, is without prejudice, it may also specify in its order that a new action based on the same claim may be commenced within one year or less after such dismissal. N.C. Gen. Stat. § 1A-1, Rule 41(b) (1990). Assuming arguendo that Rule 41(b) could apply in this case, the United States District Court did not specify in its order that a new action based on the same claims could be commenced within one year after the dismissal. See Bockweg v. Anderson, 328 N.C. 436, 402 S.E.2d 627 (1991). Therefore, the time for plaintiff to file his complaint in state court was not extended for an additional year. Because North Carolina has no applicable “grace period” longer than the thirty-day period set out in 28 U.S.C.A. § 1367, the statute of limitations was tolled while the federal action was pending and for thirty days thereafter. Plaintiff could have filed his complaint in state court at any time during the pendency of the federal action and up to thirty days after the United States Court of Appeals reached its decision on 7 December 1995. Plaintiffs complaint, filed on 22 May 1996, was not timely filed, and the trial court did not err by allowing defendants’ motion for summary judgment. The summary judgment entered by the trial court is affirmed. Affirmed. Judges GREENE and HUNTER concur.

Defendant Win
Con Ed v. NLRB
U.S. Supreme CourtDec 1938
Mixed Result
Universal Camera Corp. v. National Labor Relations Board
U.S. Supreme CourtFeb 1951
Remanded

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