Nix v. Department of Administration

417 S.E.2d 823, 106 N.C. App. 664, 1992 N.C. App. LEXIS 543
CourtCourt of Appeals of North Carolina
DecidedJuly 7, 1992
DocketNo. 9110SC500
StatusPublished
Cited by6 cases

This text of 417 S.E.2d 823 (Nix v. Department of Administration) is published on Counsel Stack Legal Research, covering Court of Appeals of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Nix v. Department of Administration, 417 S.E.2d 823, 106 N.C. App. 664, 1992 N.C. App. LEXIS 543 (N.C. Ct. App. 1992).

Opinion

LEWIS, Judge.

In this case, we review the 1986 dismissal of petitioner, a permanent State employee. Petitioner originally brought this action to the Office of State Personnel, requesting a hearing before an Administrative Law Judge and seeking reinstatement to his former or an equivalent position, back pay, and restoration of benefits. The recommended decision of the Administrative Law Judge was in petitioner’s favor. The State Personnel Commission declined to fully adopt the recommended decision, and in its decision and order found for respondent. Upon the Superior Court’s affirmation of the decision and order, petitioner appealed to this Court.

Petitioner was employed as a Management Engineer by the North Carolina Department of Administration [“DOA”] from 1 October 1980 until 31 August 1986. In 1984, petitioner began receiving psychiatric treatment for profound and severe depression, and was hospitalized at Holly Hill Hospital for a period of over one month in the fall of that year.

Apparently, petitioner’s condition was such that he was unable, during 1985 and 1986, to function at full capacity in his job, and in fact petitioner does not have a clear memory of those years. He continued to receive medical treatment, and was prescribed medication to treat the depression. In January of 1986, petitioner was assigned to a “project commensurate with his position” in an effort to accommodate his diminished work capacity. In May 1986 petitioner was hospitalized again at Holly Hill for a series of electric shock treatments, which temporarily improved his condition.

In August 1986 petitioner was hospitalized for treatment, this time at Duke University Hospital. Against the advice of doctors, petitioner left the hospital on 8 August, fearing for his job should he remain away any longer. On 26 August, petitioner was readmitted at Holly Hill for profound depression. Given his condition and his frequent hospitalization, petitioner experienced difficulty meeting the demands of his job. For that reason, petitioner’s supervisor gave him an oral warning on 27 June 1986. On 9 July 1986 petitioner received from his supervisor a written warning. This written warning noted petitioner’s inability since November 1984 to fulfill satisfactorily the responsibilities of his position. The letter also indicated that petitioner’s job performance was to be monitored [666]*666until 15 September 1986, at which time petitioner was to be reevaluated. Petitioner did not make it until 15 September, however.

While petitioner was at Holly Hill receiving treatment, he received a letter from his supervisor dated 28 August 1986. This letter informed petitioner that his employment “will be terminated on September 15, 1986,” to be actually effective 31 August. The letter did not inform petitioner of his right to appeal his dismissal. It did, however, “encourage” him to consider disability retirement. On 8 September 1986, petitioner did in fact complete and sign the application for said disability retirement benefits. Petitioner then received disability retirement benefits for twenty-eight months and began work at the North Carolina Department of Revenue in September 1987.

We are asked to decide, given the foregoing facts, whether the respondent properly complied with N.C.G.S. § 126-35 (1991). We hold that respondent did not.

Because petitioner was a permanent State employee, it is well-settled that he enjoyed a “property interest of continued employment created by state law and protected by the Due Process Clause of the United States Constitution.” Leiphart v. North Carolina Sch. of the Arts, 80 N.C. App. 339, 348, 342 S.E.2d 914, 921, cert. denied, 318 N.C. 507, 349 S.E.2d 862 (1986), (citing Board of Regents v. Roth, 408 U.S. 564, 33 L.Ed. 2d 548, 92 S. Ct. 2701 (1972) and Faulkner v. North Carolina Dep’t of Corrections, 428 F. Supp. 100 (W.D.N.C. 1977)). As a consequence, respondent could not rightfully take away this interest without first complying with appropriate procedural safeguards. Leiphart, 80 N.C. App. at 348-49, 342 S.E.2d at 921. These procedural safeguards include adequate notice pursuant to N.C.G.S. § 126-35.

Under N.C.G.S. § 126-35, a permanent employee may be discharged for “just cause,” but only after he is “furnished with a statement in writing setting forth . . . the specific acts or omissions that are the reasons for the disciplinary action and the employee’s appeal rights.” N.C.G.S. § 126-35. Regulations adopted in connection with this statutory provision require a permanent employee be given three administrative warnings and a pre-dismissal conference before being dismissed for unsatisfactory job performance. 25 N.C. A. C. 1J.0605, .0606 (1991); see also Jones v. Department of Human Resources, 300 N.C. 687, 690-91, 268 S.E.2d 500, 502-03 (1980).

[667]*667Petitioner argues that DOA failed to comply with the statutory requirements in several ways. First, petitioner received only two warnings prior to the 28 August 1986 letter which terminated his employment. Second, the 28 August 1986 letter itself was inadequate in that it lacked the requisite specificity in stating the reasons for his dismissal. Third, the letter did not inform him of his right to appeal.

As a threshold matter, we note that the statutory provisions of N.C.G.S. § 126-35 apply in this instance. Even if the action precipitating this lawsuit were not disciplinary in nature, as respondent argues, it is clear that the action was taken “in response to the vicissitudes of a department’s personnel needs.” Batten v. North Carolina Dep’t of Correction, 326 N.C. 338, 345, 389 S.E.2d 35, 40 (1990). Therefore, the procedures outlined in N.C.G.S. § 126-35 are applicable.

We find an earlier decision of this Court to be dispositive of petitioner’s first claim and instructive on his second. In Leiphart v. North Carolina Sch. of the Arts, 80 N.C. App. 339, 342 S.E.2d 914, cert, denied, 318 N.C. 507, 349 S.E.2d 862 (1986), we held that notice given simultaneously with disciplinary action is sufficient so long as the employee is also provided with a written statement of the reasons for his discharge. Id. at 351, 342 S.E.2d at 922.

In this case, respondent’s 28 August 1986 letter stated that petitioner was being terminated because he “had not been performing at the level expected by [his] position classification,” and because there had been no “marked improvement” since the oral and the written warnings of earlier that year. The 9 July 1986 warning letter had stated that petitioner had been “unable to satisfactorily fulfill the overall responsibilities required in [his] current position.” The 28 August 1986 letter also mentioned as a reason for his termination that petitioner had exhausted his vacation and sick leave as of 31 August 1986. We find this to be a sufficiently specific statement of reasons under Leiphart, particularly since petitioner was already on notice due to the previous two warnings that he was not performing at the expected level.

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Bluebook (online)
417 S.E.2d 823, 106 N.C. App. 664, 1992 N.C. App. LEXIS 543, Counsel Stack Legal Research, https://law.counselstack.com/opinion/nix-v-department-of-administration-ncctapp-1992.