Peace v. Employment SEC. Com'n of North Carolina

507 S.E.2d 272, 349 N.C. 315
CourtSupreme Court of North Carolina
DecidedDecember 4, 1998
Docket599A97
StatusPublished
Cited by78 cases

This text of 507 S.E.2d 272 (Peace v. Employment SEC. Com'n of North Carolina) is published on Counsel Stack Legal Research, covering Supreme Court of North Carolina primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Peace v. Employment SEC. Com'n of North Carolina, 507 S.E.2d 272, 349 N.C. 315 (N.C. 1998).

Opinions

LAKE, Justice.

The essential question presented for review is whether the Court of Appeals erred in affirming the trial court’s determination that the State Personnel Commission improperly placed the burden of proof on the Employment Security Commission of North Carolina (ESC) in a claim for “just cause” termination pursuant to N.C.G.S. § 126-35. For the reasons discussed herein, we conclude that allocating the burden of proof to the disciplined employee does not violate that employee’s rights to due process. Accordingly, we affirm the Court of Appeals.

Petitioner, William H. Peace, III, was hired by respondent ESC on 5 October 1985 as its Equal Employment Opportunity (EEO) officer. Petitioner was responsible for the direction of the employee relations section, and his duties included the administration of both internal and external EEO programs. During his employee orientation in 1985, petitioner learned that the ESC office employees maintained a petty fund, with monthly dues of $2.00. Petitioner also learned that participation in the petty fund entitled participants to an occasional cup of coffee from the personnel file room. Petitioner chose to participate in the fund, paid his monthly dues, and occasionally obtained coffee from the file room. However, petitioner’s normal habit was to obtain coffee each morning from the agency cafeteria.

Generally, petitioner did not attend the staff meetings where the employees discussed office policies, including the petty fund. At some point following petitioner’s 1985 orientation, a local commer[318]*318cial coffee service was contracted with, and a new and separate coffee fund, with monthly dues of $3.40, was established. The office employees maintained the new coffee fund separate from and in addition to the office petty fund. Petitioner was not aware of the new coffee fund, and he was not asked to participate in or contribute to the new fund.

On 10 April 1991, petitioner was involved in an incident with a coworker, Ms. Catherine High, concerning access to coffee from the personnel file room. As was his normal custom, petitioner went to the agency cafeteria the morning of 10 April 1991 to obtain a cup of coffee. However, the cafeteria was out of coffee, so petitioner proceeded to obtain coffee from the personnel file room. As he was leaving the file room, Ms. High confronted petitioner and stated, “[Y]ou are going to have to pay me for that coffee.” Petitioner refused to pay for the coffee, and a heated exchange ensued. Following the exchange, petitioner alleged that Ms. High stated, “If you get another cup of coffee and do not pay me, I’m going to get a cup of coffee and scald you with it.” Several other office employees witnessed the argument between petitioner and Ms. High. Ms. High also informed her supervisor of the incident.

Petitioner contacted the magistrate’s office on the afternoon of 10 April 1991 concerning the alleged threat made by his co-worker, Ms. High. The magistrate advised petitioner that if he believed Ms. High to be capable of carrying out her threat, he should take out a warrant. Petitioner approached Ms. High following his discussion with the magistrate, seeking an apology for her earlier actions and statements. Ms. High refused to provide an apology for the morning coffee incident. Later that same afternoon, petitioner again contacted the Wake County magistrate’s office and formally filed criminal charges against his co-worker for communicating a threat. On 21 May 1991, the trial court dismissed the charge as frivolous and ordered petitioner to pay court costs.

Petitioner’s supervisors did not contact or question petitioner about the coffee incident pending resolution of the criminal charges. On 5 June 1991, petitioner’s immediate supervisor, Gene Baker, informed petitioner by written memorandum of a 6 June 1991 predismissal conference. The conference culminated in a decision to discharge petitioner from employment for “unacceptable personal conduct.” A 7 June 1991 letter from Ann Q. Duncan, chairperson of ESC, further explained petitioner’s dismissal. The 7 June letter reaffirmed [319]*319the dismissal for “unacceptable personal conduct,” including the taking of coffee without payment and the filing of frivolous charges against a co-worker. The letter explained that the “unacceptable personal conduct” diminished petitioner’s respect among fellow employees and called into question his reputation as the EEO officer for the ESC.

Petitioner filed two appeals from the ESC’s decision to discharge him from employment. Petitioner contended (1) that the ESC lacked “just cause” to dismiss him pursuant to N.C.G.S. § 126-35; and (2) that he had been terminated in retaliation for a discrimination complaint he filed against the ESC in 1989, for violation of title VII, section 704(a) of the Civil Rights Act of 1964, 42 U.S.C. § 2000e-3 (1988).

The Civil Rights Division of the Office of Administrative Hearings (OAH) investigated petitioner’s retaliatory discharge claim pursuant to N.C.G.S. § 7A-759. The OAH found that there was reasonable cause to believe that a title VII violation had occurred. The OAH determined that petitioner could select one of three options: (1) receive a right-to-sue letter, (2) commence a contested-case hearing in OAH, or (3) do nothing. Petitioner decided to pursue his retaliatory discharge claim by commencing a contested-case hearing. As for his claim that the ESC lacked “just cause” to dismiss him, petitioner filed another petition for contested-case hearing pursuant to N.C.G.S. § 126-35.

A consolidated hearing was conducted on petitioner’s two administrative appeals by Administrative Law Judge (ALJ) Sammie Chess, Jr. on 12-14 July 1993. ALJ Chess determined that under the applicable “just cause” termination statute, the ESC bears the ultimate burden of persuasion to demonstrate the validity of the termination. In his recommended decision to the State Personnel Commission (SPC), the AU concluded that the ESC had failed to meet its burden of proof and recommended petitioner’s reinstatement with back pay.

In determining petitioner’s claim as to retaliatory discharge under title VII, ALJ Chess again put the burden of proof on the ESC. The ALJ then found petitioner was the victim of a retaliatory discharge, and he therefore ordered reinstatement.

The SPC adopted the AU’s recommendation for petitioner’s “just cause” claim with slight modification by an order dated 3 November 1994. The SPC agreed that the ESC bore the burden of proof in a “just cause” termination and affirmed the order reinstating petitioner with back pay.

[320]*320The ESC petitioned for judicial review of the SPC decision and the AU decision separately, pursuant to N.C.G.S. § 150B-50. In a 12 August 1994 order, Superior Court Judge Narley L. Cashwell upheld the ALJ’s final decision as to petitioner’s retaliatory discharge claim. By order dated 13 March 1995, Superior Court Judge Wiley E Bowen reversed the SPC’s decision with prejudice and dismissed petitioner’s “just cause” claim on the basis of two prejudicial errors of law: (1) that the SPC inappropriately placed the burden of proof on the ESC, and (2) that the SPC incorrectly concluded that petitioner was dismissed without “just cause.”

The ESC then appealed to the Court of Appeals Judge Cashwell’s order affirming the decision concerning petitioner’s retaliatory discharge claim.

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Bluebook (online)
507 S.E.2d 272, 349 N.C. 315, Counsel Stack Legal Research, https://law.counselstack.com/opinion/peace-v-employment-sec-comn-of-north-carolina-nc-1998.