Martinez v. University of North Carolina
741 S.E.2d 330
N.C. Ct. App.2012Background
- Martinez, plaintiff, was provost at Winston Salem State University (WSSU), a state campus under UNC.
- In Aug 2008, Martinez agreed to resign provost and become full-time faculty under a written Settlement Agreement detailing salary terms.
- The contract provided $180,000 administrative salary from Sept 1, 2008 to June 30, 2009, then a faculty salary commensurate with peers at that time.
- In May 2009, WSSU informed Martinez his faculty salary would be $85,000/year; Martinez challenged as not commensurate with comparable senior faculty.
- Grievance procedures found the salary appropriate; appeals to provost and chancellor affirmed (Mar 2010).
- Martinez filed suit May 17, 2011 for breach of contract and Wage and Hour Act; amended to breach of contract only Sept 14, 2011; defendant moved to dismiss under Rule 12(b)(1)/(2) and 12(b)(6); trial court granted Jan 18, 2012; appeal ensued.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Sovereign immunity waiver and jurisdiction | Waiver exists because contract with state agency allows suit for breach. | State sovereign immunity prohibits suit absent express consent outside contract. | Waiver found; dismissal under 12(b)(2) improper. |
| Exhaustion of administrative remedies | Plaintiff exhausted grievance procedures before suit. | No exhaustion or proper administrative path followed. | Exhaustion proven; 12(b)(1) dismissal improper. |
| Breach of contract elements | Existence of valid contract and breach by failure to pay commensurate salary. | No breach shown within contract terms or scope. | Complaint states a valid breach; 12(b)(6) dismissal improper. |
Key Cases Cited
- Data Gen. Corp. v. Cnty. of Durham, 143 N.C. App. 97 (2001) (personal jurisdiction standard for sovereign immunity motions)
- Smith v. State, 289 N.C. 303 (1976) (contractual waiver of sovereign immunity for post-filing contract claims)
- Stahl-Rider, Inc. v. State, 48 N.C. App. 380 (1979) (state cannot be sued unless expressly consented)
- Johnson v. Univ. of N.C., 202 N.C. App. 355 (2010) (de novo review for exhaustion of administrative remedies)
- Stanback v. Stanback, 297 N.C. 181 (1979) (12(b)(6) analysis: existence of contract and breach elements)