108 F. Supp. 3d 331
E.D.N.C.2015Background
- Plaintiffs Stephanie Yarbrough and Stephanie Williams sued East Wake Academy (EWA), a North Carolina charter school, and Michael Lester (board president) alleging sexual harassment/assault by headmaster Brandon Smith and multiple state and federal claims; defendants removed to federal court.
- Smith had prior sexual-harassment litigation before hiring at EWA; complaints about Smith at EWA were raised repeatedly beginning in 2005; plaintiffs allege repeated unwelcome sexual comments and contact by Smith from 2010–2012.
- Plaintiffs submitted written complaints to Lester and to the board; plaintiffs allege Lester downplayed/suppressed complaints, sanctioned board members who raised concerns, and showed plaintiffs’ complaints to Smith.
- Police charged Smith in 2012; EWA later terminated Smith; Smith was convicted in 2013 of sexual battery and assault on Yarbrough.
- Plaintiffs pleaded multiple state tort claims, Title VII claims, and North Carolina constitutional claims; court considered defendants’ partial motion to dismiss and jurisdictional challenges grounded in governmental immunity.
Issues
| Issue | Plaintiff's Argument | Defendant's Argument | Held |
|---|---|---|---|
| Whether charter schools enjoy North Carolina governmental immunity | Charter schools are not entitled to sovereign immunity; statute language and legislative history do not show intent to extend immunity | Charter schools are public schools by statute and should receive the same governmental immunity as traditional public schools | Court predicts NC Supreme Court would extend governmental immunity to charter schools; EWA enjoys immunity |
| Whether EWA waived immunity by purchasing liability insurance | Purchase of required insurance cannot be used to bar claims; statute does not permit private policy terms to negate waiver | Statute waives immunity only "to the extent of indemnification by insurance"; EWA's policies contain nonwaiver endorsements excluding coverage where immunity applies | Nonwaiver endorsements upheld; EWA did not waive immunity and court lacks jurisdiction over NC tort claims against EWA |
| Sufficiency of negligent infliction of emotional distress (NIED) claims against Lester individually | Plaintiffs allege board president’s conduct (protecting Smith, covering up) caused severe emotional distress; pleadings suffice | Allegations describe intentional conduct; NIED requires negligence not intentional wrongdoing | Court dismisses NIED claims against Lester because pleadings allege intentional acts, not negligence |
| Viability of North Carolina Constitution (art. I, §§ 18 & 19) claims against EWA | Plaintiffs claim denial of due process and remedies under §§ 18 and 19 based on EWA’s handling of complaints | Defendants argue plaintiffs have inadequate allegations of being barred from judicial relief or of deprivation that shocks the conscience or denies equal protection | Court dismisses constitutional claims for failure to plausibly allege §18 or §19 violations |
Key Cases Cited
- Steelman v. City of New Bern, 279 N.C. 589 (1971) (recognition of governmental immunity as public policy)
- Twin City Fire Ins. Co. v. Ben Arnold-Sunbelt Beverage Co. of S.C., 433 F.3d 365 (4th Cir. 2005) (predictive tool for state-law questions)
- Ashcroft v. Iqbal, 556 U.S. 662 (2009) (plausibility standard for Rule 12(b)(6))
- Bell Atlantic Corp. v. Twombly, 550 U.S. 544 (2007) (pleading must be plausible, not speculative)
- Andersen v. Baccus, 335 N.C. 526 (1994) (elements of NIED under North Carolina law)
- Corum v. Univ. of N.C., 330 N.C. 761 (1992) (availability of direct constitutional claims and need to show no adequate state remedy)