Frampton v. The Univ. of NC at Chapel Hill
Frampton v. The Univ. of NC at Chapel Hill
Opinion
*16 Where the plain language of a statute permits the trial court to exercise its discretion in the award of attorney's fees and where plaintiff does not establish an abuse of discretion in the court's denial of plaintiff's motion for attorney's fees, we affirm.
The background of this case is set out in
Frampton v. Univ. of N.C.
(
Frampton I
),
Upon remand, plaintiff filed a motion requesting compensation for unpaid salary and benefits as well as attorney's fees. The trial court awarded plaintiff $231,475.92 in back salary and $31,824.53 for loss of benefits, but denied the motion for attorney's fees. The trial court found "UNC-Chapel Hill did not act without substantial justification as it attempted to manage an unusual set of circumstances that were not of its own making, and that it would be unjust to require the State to pay *17 attorney fees under such special circumstances." Plaintiff now appeals the trial court's denial of his request for attorney's fees to this Court. 1
_________________________
On appeal, plaintiff argues the trial court abused its discretion by denying his motion for an award of attorney's fees, made pursuant to our General Statutes, section 6-19.1, contending the trial court improperly concluded UNC (I) acted with substantial justification (2) under special circumstances that would make the award unjust. We disagree.
The standard of review for a trial court's decision whether to award attorney's fees is abuse of discretion.
High Rock Lake Partners, LLC v. N.C. Dep't of Transp.
,
As the appellant, here, plaintiff contends the trial court abused its discretion by finding "UNC-Chapel Hill did not act without substantial justification" under special circumstances and that it would be unjust to require UNC to pay plaintiff's attorney's fees.
*865 General Statutes, section 6-19.1, specifically addresses the awarding of attorney's fees to parties defending against agency decisions.
In any civil action ... brought by a party who is contesting State action ... the court may, in its discretion, allow the prevailing party to recover reasonable attorney's fees, including attorney's fees applicable to the administrative review portion of the case ... if:
(1) The court finds that the agency acted without substantial justification in pressing its claim against the party; and *18 (2) The court finds that there are no special circumstances that would make the award of attorney's fees unjust. The party shall petition for the attorney's fees within 30 days following final disposition of the case. The petition shall be supported by an affidavit setting forth the basis for the request.
I. Substantial Justification
Plaintiff first argues that the trial court erred in concluding UNC did not act without substantial justification. We disagree.
A state agency has the initial burden before the trial court to show substantial justification existed.
Early v. Cty. of Durham, Dep't. of Soc. Servs.
,
*19
This Court has made it clear that an agency need not be "legally correct in order to avoid liability for attorney's fees."
Estate of Joyner v. N.C. Dep't of Health & Human Servs.
,
The test for substantial justification is not whether this Court ultimately upheld respondent's reasons ... but, rather, whether respondent's ... [actions were] justified to a degree that could satisfy a reasonable person under the existing law and facts known to, or reasonably believed by, respondent at the time respondent ... [acted].
S.E.T.A. UNC-CH, Inc. v. Huffines
,
Here on appeal, UNC argues that the trial court's finding, "UNC-Chapel Hill did not act without substantial justification" by deciding to place plaintiff on unpaid, personal leave instead of pursuing disciplinary action as outlined by UNC's tenure policies, was supported by the evidence before the trial court.
In
Frampton I
, this Court emphasized that the disciplinary procedures incorporated by
*866
UNC's own policies provided a method of recourse in the event a tenured professor was unable to perform the professional duties required, such as in plaintiff's case.
While we can envision scenarios in which it would be more beneficial to place a tenured faculty member on unpaid personal leave without his or her consent in order to protect the faculty member's reputation from the stigma associated with disciplinary actions-even if those proceedings result in a favorable outcome-we believe that the more reasoned interpretation of the unpaid leave policy could only support its application if the faculty member either requested it or consented to it. Moreover, the fact that there is no "mandated" appeal procedure for this type of leave suggests that ... the unpaid personal leave policy is not intended to be unilaterally imposed upon a tenured professor given the procedural protections afforded to faculty members in all other situations.
*20
In
Daily Express, Inc. v. Beatty
, after a trial court determined an agency's position was not legally correct, it awarded attorney fees to the plaintiff.
Thus, as our Court reasoned in Daily Express (notwithstanding an erroneous decision, a court must consider the existence of substantial justification), the Orange County Superior Court reasoned that "UNC-Chapel Hill did not act without substantial justification." We uphold the trial court's determination, and therefore, the court's order has met the substantial justification prong of section 6-19.1.
II. Special Circumstances
Plaintiff next argues the trial court erred in finding that there were special circumstances that would make an award of attorney's fees unjust. We disagree.
North Carolina case law is limited with regard to interpreting what qualifies as special circumstances that would make an award of attorney's fees unjust. However, our courts have looked to federal decisions applying similar laws for guidance on interpreting statutory language.
See generally
Newberne v. Dep't of Crime Control & Pub. Safety
,
*21
Interpreting "special circumstances" in the EAJA as a "safety valve" preventing unjust awards, the United States Supreme Court stated the special circumstances provisions allow "the [trial] court[s] discretion to deny awards where equitable considerations dictate an award should not be made."
Scarborough v. Principi
,
*867
Though not giving deference to UNC's basis for withholding benefits in
Frampton I
, this Court did acknowledge the uniqueness of the situation UNC faced.
Regardless, even if UNC acted without substantial justification and no special circumstances existed, the controlling statute specifically states that a trial court "may" use its discretion to decide whether to grant or deny an award of attorney's fees.
In the order denying plaintiff attorney's fees, the trial court based its conclusion that "it would be unjust to require the State to pay attorney's fees" to plaintiff on "the record in this case, the decision of the North *22 Carolina Court of Appeals [in Frampton I ], the submissions of the parties, the arguments of counsel, and the relevant-statutory and case law." Given the trial court's reasoned response and plaintiff's failure to establish that the trial court abused its discretion in reaching its decision to deny the requested award, we overrule plaintiff's argument.
Therefore, the orders entered 28 June 2016 and 3 August 2016 denying appellant's request for attorney's fees, are
AFFIRMED.
Judges STROUD and DAVIS concur.
On 30 March 2016, pursuant to the decision of this Court in Frampton I , plaintiff filed a motion seeking attorney's fees. Following the trial court's denial of the motion on 28 June 2016, plaintiff filed a motion for reconsideration of the ruling pursuant to Rules 59 and 60. In an order entered 3 August 2016, the trial court denied the motion for reconsideration. Plaintiff appeals both orders.
Case-law data current through December 31, 2025. Source: CourtListener bulk data.