Justia North Carolina Supreme Court Opinion Summaries

In this dispute concerning the manner in which the cost of pensions for certain retirees should be funded, the Supreme Court held that the Administrative Procedure Act's (APA) rulemaking procedures bind how the Retirement System's Board of Trustees adopt "cap factors" under the anti-pension spiking provision at issue in this case.In order to calculate the retirement benefit cap applicable to each retiree, the Act to Enact Anti-Pension-Spiking Legislation by Establishing a Contribution-Based Benefit Cap directs the Retirement System's Board of Trustees to adopt a contribution-based benefit cap factor recommended by an actuary, which the Board had traditionally adopted by resolution. Here, the Retirement System determined that Dr. Barry Shepherd's pension benefits were subject the contribution-based benefit cap. The trial court concluded that the Board of Trustees' adoption of the cap factor was void because the action was subject to rulemaking under the APA. The Supreme Court affirmed, holding (1) the Board of Trustees was required to adopt the statutorily mandated cap factor utilizing the rulemaking procedures required by the APA; and (2) the Retirement System erred by billing the Board of Education an additional amount relating to Dr. Shepherd's pension, in light of the Board of Trustees' failure to adopt the necessary cap factor in an appropriate manner. View "Cabarrus County Board of Education v. Department of State Treasurer" on Justia Law

The Supreme Court reversed the decision of the court of appeals invalidating a decision by an administrative law judge (ALJ) to award back pay and attorneys' fees to a local government employee protected under the North Carolina Human Resources Act who prevailed in a wrongful termination proceeding before the Office of Administrative Hearings, holding that N.C. Gen. Stat. 126-34.02 explicitly provides that an ALJ has the authority to award back pay and attorneys' fees to any protected state and local government employee.Petitioner was dismissed from her employment with Forsyth County Department of Social Services on the grounds of grossly inefficient job performance and unacceptable personal conduct. An ALJ reversed the Department's decision to terminate Petitioner's employment on the grounds that the Department had violated Petitioner's procedural rights and lacked just cause to dismiss Petitioner from its employment. The ALJ then ordered the Department to reinstate Petitioner to her former position, with all applicable back pay and benefits, and to pay Petitioners' attorneys' fees. The court of appeals vacated the ALJ's decision in part, concluding that the ALJ lacked the authority to award back pay and attorneys' fees. The Supreme Court reversed, holding that the ALJ had sufficient express statutory authority to award back pay and attorneys' fees to Petitioner. View "Rouse v. Forsyth County Department of Social Services" on Justia Law

The Supreme Court reversed the decision of the Court of Appeals affirming the decision of the North Carolina Industrial Commission awarding Plaintiff ongoing disability compensation and medical compensation for her medical conditions and remanded this case for further proceedings before the Commission, holding that it could not be determined from the record if the Commission, as the Court of Appeals concluded, made findings of causation independent of the application of any presumption.In affirming the Commission’s award of benefits, the Court of Appeals concluded that the Commission made adequate findings that Plaintiff met her burden of proving causation with a presumption of causation and therefore had an alternative factual basis for its award. The Supreme Court reversed, holding that the Court of Appeals erred by failing to remand this case to the Commission for additional findings and conclusions because the Court could not determine from the record the extent to which the Commission relied on a presumption of causation or whether it had an independent, alternate basis for its determination of causation. View "Pine v. Wal-Mart Associates, Inc." on Justia Law

Plaintiff, a police officer, adequately stated a claim that his rights under Article I, Section 1 of the North Carolina Constitution were violated when his employer, the City of Wilmington, refused to consider Plaintiff’s appeal regarding the validity of an examination required for a promotion.Upon seeking promotion, Plaintiff took a written examination, a required step in the promotional process, but did not receive a passing score. Plaintiff filed a grievance regarding the test answers, but the City Manager informed him that the test answers were not a grievance item. Plaintiff filed a complaint, arguing that the City arbitrarily and irrationally deprived him of enjoyment of the fruits of his own labor, in violation of the Constitution. The trial court granted the City’s motion for judgment on the pleadings, in which the City argued that Plaintiff did not have a property interest that could support his claims. The court of appeals reversed. The Supreme Court affirmed in part and reversed in part, holding (1) the trial court erred in dismissing Plaintiff’s claim arising under Article I, Section 1 of the North Carolina Constitution; but (2) Plaintiff did not state a valid claim under Article I, Section 19. View "Tully v. City of Wilmington" on Justia Law

The Supreme Court reversed the judgment of the court of appeals reversing the North Carolina Industrial Commission’s decision to award Plaintiff benefits arising out of a 2009 automobile accident. The court of appeals concluded that Plaintiff was barred from pursuing compensation for his personal injury claim under the Workers’ Compensation Act because he had elected to settle his claim against the third-party tortfeasor without the consent of Defendant, the City of Charlotte, and had received disbursement of the settlement proceedings. The Supreme Court disagreed, holding (1) the Act protects both the employer’s lien against third-party proceeds and the employee’s right to pursue workers’ compensation benefits under these circumstances; and (2) therefore, the Commission correctly concluded that Plaintiff had not waived his right to compensation under the Act. View "Easter-Rozzelle v. City of Charlotte" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming the determination of the Industrial Commission that Plaintiff was not entitled to any compensation for permanent partial disability under N.C. Gen. Stat. 97-31. Plaintiff suffered a compensable accident and sustained injuries while he was walking at his job site. During the years after his work-related accident, Plaintiff continued to have neck pain. Plaintiff later sought permanent partial disability benefits. After a remand from the Supreme Court, the Commission entered an amended opinion and award denying benefits. The court of appeals affirmed, concluding that the Commission did not err in concluding that Plaintiff was not entitled to any compensation for permanent partial disability. The Supreme Court reversed and remanded, holding that the Commission failed to carry out the court of appeals’ mandate that it make additional findings of fact and conclusions of law on the issue of Plaintiff’s entitlement to benefits under section 97-31. View "Harrison v. Gemma Power Systems, LLC" on Justia Law

The Supreme Court reversed the decision of the court of appeals affirming the determination of the Industrial Commission that Plaintiff was not entitled to any compensation for permanent partial disability under N.C. Gen. Stat. 97-31. Plaintiff suffered a compensable accident and sustained injuries while he was walking at his job site. During the years after his work-related accident, Plaintiff continued to have neck pain. Plaintiff later sought permanent partial disability benefits. After a remand from the Supreme Court, the Commission entered an amended opinion and award denying benefits. The court of appeals affirmed, concluding that the Commission did not err in concluding that Plaintiff was not entitled to any compensation for permanent partial disability. The Supreme Court reversed and remanded, holding that the Commission failed to carry out the court of appeals’ mandate that it make additional findings of fact and conclusions of law on the issue of Plaintiff’s entitlement to benefits under section 97-31. View "Harrison v. Gemma Power Systems, LLC" on Justia Law

Plaintiff was injured while working for Defendant. The North Carolina Industrial Commission accepted Plaintiff’s claim as compensable under the Workers’ Compensation Act, and Defendant began paying Plaintiff compensation for temporary total disability. Plaintiff later filed a Form 33 requesting a medical motion hearing regarding his symptoms. The Commission concluded that Plaintiff failed to meet his burden of establishing that his anxiety and depression were a result of his work-related accident and that Plaintiff was not entitled to disability payments made after January 2011. The court of appeals (1) vacated and remanded in part, ruling that, on remand, the Commission should give Plaintiff the benefit of a presumption that his anxiety and depression were related to his injuries; and (2) reversed in part, ruling that Plaintiff had met his burden of establishing disability. The Supreme Court affirmed as modified and remanded for further proceedings, holding (1) Plaintiff was entitled a presumption of compensability in regard to his continued medical treatment; and (2) the Commission failed to address the effects of Plaintiff’s tinnitus in determining whether Plaintiff lost wage-earning capacity. View "Wilkes v. City of Greenville" on Justia Law

After his employment with Scenera Research LLC ended, Robert Morris (Plaintiff) sued Scenera and its CEO (collectively, Defendants), alleging Defendants owed him $210,000 in bonuses and that he was fired in retaliation for threatening to bring a lawsuit. Defendants filed a counterclaim for a declaratory judgment that Scenera owned all inventions Plaintiff developed during his employment and that Plaintiff was not entitled to bonuses for patent applications filed or patents issued after a certain date. The trial court court granted Defendants’ motion for a directed verdict with respect to the issue of patent ownership. The jury then awarded patent bonuses under the North Carolina Wage and Hour Act (WHA) and damages for violations of the North Carolina Retaliatory Employment Discrimination Act (REDA). The trial court awarded attorneys’ fees and liquidated damages for patents that have already issued. The Court of Appeals largely affirmed. The Supreme Court affirmed in part and reversed in part, holding (1) the trial court properly submitted to the jury the issue of whether Plaintiff was entitled to issuance bonuses and properly denied Defendants’ motion for judgment notwithstanding the verdict; (2) calculability of wages under the WHA is a question of fact to be submitted to the jury; (3) Plaintiff was not entitled to liquidated damages based on the WHA or treble damages based on REDA; and (4) Plaintiff may pursue rescission. View "Morris v. Scenera Research LLC" on Justia Law

Plaintiff’s employment as a deputy sheriff was terminated following the reelection of Defendant to the office of Sheriff of Mecklenburg County. Plaintiff filed suit alleging wrongful termination in violation of N.C. Gen. Stat. 153A-99 and N.C. Const. art. I, 14 and 36. The trial court granted summary judgment in favor of Defendants. The Court of Appeals affirmed, concluding that Plaintiff could not establish a claim for wrongful termination in violation of section 153A-99 and that Plaintiff’s state constitutional claims lacked merit. The Supreme Court affirmed, holding (1) Plaintiff was not a county employee as defined in section 153A-99, and therefore, Plaintiff was not entitled to the protections provided in that statute; and (2) Defendant’s actions did not violate Plaintiff’s right to freedom of speech. View "Young v. Bailey" on Justia Law