Source: https://www.employmentlawgroup.com/resources/docs/opinions-orders/paul-h-feldman-martin-l-perry-v-law-enforcement-associates-corporation/
Timestamp: 2019-04-19 13:11:26+00:00

Document:
In the opinion below, Judge W. Earl Britt of the U.S. District Court for the Eastern District of North Carolina ruled that TELG clients Paul Feldman and Martin Perry successfully stated a Sarbanes-Oxley whistleblower claim and could proceed to trial. The court held that the Sarbanes-Oxley Act (SOX) does not require that the fraudulent conduct or violation of federal securities law be committed directly by the employer that takes the retaliatory action.
Feldman and Perry discovered at their company what they believed to be business transactions that violated U.S. export controls. Because the company’s founder had been banned from making exports for five years and because he had an ownership interest in an exporter, plaintiffs maintain that it was illegal for that exporter to engage in the export business. Feldman and Perry notified their employer and then federal authorities. Their employer subsequently fired both plaintiffs.
Adopting a broad view of SOX protected conduct, the court held that SOX does not require the fraudulent conduct or violation of federal securities law to be committed by the employer that takes the retaliatory action. Therefore, reporting a third party’s fraudulent behavior to an employer constitutes protected conduct under the whistleblower provisions of SOX.
LAW ENFORCEMENT ASSOCIATES CORPORATION, et al., Defendants.
No. 5:10-CV-08-BR. March 10, 2011.
R. Scott Oswald, John T. Harrington, The Employment Law Group, Washington, DC, Michael C. Byrne, Raleigh, NC, for Plaintiffs.
Amy Jenkins, McAngus Goudelock & Courie, LLC, Charleston, SC, Tracey R. Downs, McAngus Goudelock & Courie, PLLC, Charlotte, NC, Kathleen P. Tanner Kennedy, Melissa H. Hill, Wade M. Smith, Tharrington Smith, LLP, Raleigh, NC, for Defendants.
This matter is before the court on the 21 June 2010 motion to dismiss filed by defendants Law Enforcement Associates Corporation (“LEA”), Anthony Rand (“Rand”), James J. Lindsay (“Lindsay”), Joseph A. Jordan (“Jordan”) and Paul Briggs (“Briggs”), and on the 21 June 2010 motion to dismiss filed by defendant John H. Carrington (“Carrington”). Both motions have been fully briefed and are ripe for disposition.
A motion to dismiss pursuant to Federal Rule of Civil Procedure 12(b)(6) “tests the sufficiency of a complaint” but “does not resolve contests surrounding the facts, the merits of a claim, or the applicability of defenses.” Republican Party v. Martin, 980 F.2d 943, 952 (4th Cir. 1992). In order to survive a Rule 12(b)(6) motion to dismiss, the complaint must contain “sufficient factual matter, accepted as true, to ‘state a claim to relief that is plausible on its face.'” Ashcroft v. Iqbal, 129 S. Ct. 1937, 1949 (2009) (quoting Bell Atl. Corp. v. Twombly, 550 U.S. 544, 570 (2007)). “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Id. In evaluating whether a claim is stated, “[the] court accepts all well-pled facts as true and construes these facts in the light most favorable to the plaintiff in weighing the legal sufficiency of the complaint.” Nemet Chevrolet, Ltd. v. Consumeraffairs.com. Inc., 591 F.3d 250, 255 (4th Cir. 2009). A court need not accept as true “‘unwarranted inferences, unreasonable conclusions, or arguments.'” Id. (quoting Wahi v. Charleston Area Med. Ctr., Inc., 562 F.3d 599, 615 n.26 (4th Cir. 2009)).
Both plaintiffs assert claims against LEA for violations of the Americans with Disabilities Act (“ADA”), 42 U.S.C. § 12101 et seq. The ADA prohibits discrimination “against a qualified individual on the basis of disability in regard to . . . terms, conditions, and privileges of employment.” 42 U.S.C. § 12112(a) (2011). Here, each plaintiff brings two separate claims under the ADA: (1) a claim for wrongful discharge and (2) a claim for failure to accommodate. In a wrongful discharge case under the ADA, a plaintiff establishes a prima facie case by demonstrating that “(1) he is within the ADA’s protected class; (2) he was discharged; (3) at the time of his discharge, he was performing the job at a level that met his employer’s legitimate expectations; and (4) his discharge occurred under circumstances that raise a reasonable inference of unlawful discrimination.” Haulbrook v. Michelin N. Am. Inc., 252 F.3d 696, 702 (4th Cir. 2001); see also Rhoads v. FDIC, 257 F.3d 373, 387 n.11 (4th Cir. 2001).
In a failure to accommodate case, a plaintiff establishes a prima facie case by showing (1) that he was an individual who had a disability within the meaning of the statute; (2) that the employer had notice of his disability; (3) that with reasonable accommodation he could perform the essential functions of the position; and (4) that the employer refused to make such accommodations. Haneke v. Mid-Atlantic Capital Mgmt., 131 Fed. Appx. 399, 400 (4th Cir. 2005); Rhoads, 257 F.3d at 387 n.11.
question of fact for the jury.'” Rose v. Home Depot USA, Inc., 186 F. Supp. 2d 595, 608 (D. Md. 2002) (quoting Hooven-Lewis v. Caldera, 249 F.3d 259, 268 (4th Cir. 2001) (Rehabilitation Act case)).
The ADA defines “disability” with respect to an individual as “(A) a physical or mental impairment that substantially limits one or more major life activities of such individual; (B) a record of such an impairment; or (C) being regarded as having such an impairment . . . . ” 42 U.S.C. § 12102(1) (2011). Here, there is no dispute that plaintiffs are proceeding under the first prong of the disability definition.
In 2002, the United States Supreme Court held that an impairment rises to the level of a disability only if its impact is “permanent or long term.” Toyota Motor Mfg., Ky., Inc. v. Williams, 534 U.S. 184, 198 (2002). Accordingly, under Fourth Circuit precedent, temporary, non-chronic impairments have generally not constituted disabilities. See, e.g., Pollard v. High’s of Baltimore, Inc., 281 F.3d 462, 468-69 (4th Cir. 2002) (recuperation from back surgery was a temporary impairment that did not qualify as a substantially limiting disability under the ADA). While the presumption existed that temporary impairments did not qualify as disabilities under the ADA, the Fourth Circuit determined that temporary impairments required a case-by-case evaluation. Id. at 468. A temporary impairment could be so severe or have a duration so long that to classify it as “temporary” would be improper. Id. at 469.
However, subsequent to the decision of the United States Supreme Court in Toyota Motor, Congress passed the Americans with Disabilities Act Amendments Act of 2008 (“ADAAA”), which became effective on 1 January 2009. Pub. L. No. 110-325, § 8, 122 Stat. 3553, 3559 (2008). In the ADAAA, Congress rejected the unduly restrictive approach established in Toyota Motor for analyzing whether a plaintiff suffers from a disability for purposes of the ADA. Id., § 2(b)(5), 122 Stat. at 3554. As a result, Congress mandated in the ADAAA that the definition of disability is to be construed “in favor of broad coverage of individuals . . . to the maximum extent permitted” by the law. 42 U.S.C. § 12102(4)(A).
Although the ADAAA left the ADA’s three-category definition of “disability” intact, significant changes were made regarding how these categories are to be interpreted. For example, with respect to the definition of actual disability found in 42 U.S.C. § 12102(1)(A), the ADAAA expanded the list of “major life activities.” As a result, examples of “major life activities” now include “caring for oneself, performing manual tasks, seeing, hearing, eating, sleeping, walking, standing, lifting, bending, speaking, breathing, learning, reading, concentrating, thinking, communicating, and working.” 42 U.S.C. § 12102(2)(A). In addition, Congress instructed that the term “substantially limits,” which is also found in 42 U.S.C. § 12102(1)(A), “shall be interpreted consistently with the findings and purposes of the [ADAAA].” 42 U.S.C. § 12102(4)(B).
Noting that the courts had “created an inappropriately high level of limitation necessary to obtain coverage under the ADA,” the ADAAA states that “it is the intent of Congress that the primary object of attention in cases brought under the ADA should be whether entities covered under the ADA have complied with their obligations . . . .” Pub. L. No. 110-325, § 2(b)(5), 122 Stat. at 3554. As a result, “the question of whether an individual’s impairment is a disability under the ADA should not demand extensive analysis.” Id.
when active.” 42 U.S.C. § 12102(4)(D). Thus, the ADAAA “make[s] it easier for a plaintiff with an episodic condition . . . to establish that he is an ‘individual with a disability.'” Carmona v. Southwest Airlines Co., 604 F.3d 848, 855 (5th Cir. 2010) (citation omitted). Because none of the parties appear to dispute that MS, when active, constitutes a disability, this court finds that Perry has sufficiently stated a claim that he was disabled under the ADAAA. Cf. Hoffman v. Carefirst of Fort Wayne, Inc., 737 F. Supp. 2d 976, 985-86 (N.D. Ind. 2010) (finding that the clear wording of 42 U.S.C. § 12102(4)(D) rendered plaintiff’s renal cancer, which was in remission, a disability under the ADAAA).
Interpreting the definition of disability broadly and without extensive analysis as required under the [ADAAA], some types of impairments will consistently meet the definition of disability. Because of certain characteristics associated with these impairments, the individualized assessment of the limitations on a person can be conducted quickly and easily, and will consistently result in a determination that the person is substantially limited in a major life activity.
Id. at 48441 (to be codified at 29 C.F.R. § 1630.2(j)(5)(i)). The proposed regulations then list MS as an impairment that will consistently meet the definition of disability. Id. (to be codified at 29 C.F.R. § 1630.2(j)(5)(i)(G) (MS “substantially limit[s] major life activities including neurological functions, walking, performing manual tasks, seeing, speaking, or thinking”)).
Thus, the court’s conclusion that Perry has sufficiently alleged a disability is bolstered by the interpretative guidance of the EEOC.
LEA also contends that Perry did not have a disability because he was able to engage in many activities in spite of his alleged impairment, such as leaving the house, going to doctor appointments, and contacting a lawyer. (See Mem. Supp. Defs.’ Mot. Dismiss, DE # 41, at 5, 10.) It may not even be necessary to consider this argument given that the court has already found that Perry’s episodic impairment falls within the clear language of 42 U.S.C. § 12102(4)(D). In any event, the language of the ADAAA also addresses this issue. It provides that “[a]n impairment that substantially limits one major life activity need not limit other major life activities in order to be considered a disability.” 42 U.S.C. § 12102(4)(C).5 Here, the complaint alleges that Perry’s impairment was so severe that he was unable to work for period of time. (Am. Compl. ¶¶ 163, 228.) “Working” is considered to be a major life activity under the ADAAA. 42 U.S.C. § 12102(2)(A). Thus, the complaint sufficiently alleges that Perry’s impairment “substantially limit[ed] a major life activity.” 42 U.S.C. § 12102(1)(A).
inclusive standard.” Munoz, 2010 WL 2838356, at *12 (citing Pub. L. No. 110-325, § 2(b)(4), 122 Stat. at 3554).
LEA also contends that Feldman’s wrongful discharge claim under the ADA fails because it is beyond the scope of his EEOC charge. As a result, LEA claims, Feldman has failed to exhaust his administrative remedies before filing suit in federal court. Specifically, LEA argues that Feldman’s EEOC charge included a failure to accommodate claim relating to the Board’s refusal to postpone the 27 August 2009 Board meeting, but it did not include a wrongful discharge claim.
Before a plaintiff can bring an action under the ADA, he must first exhaust his administrative remedies by filing an administrative charge with the EEOC. See 42 U.S.C. § 12117(a). Furthermore, the scope of a plaintiff’s right to file a federal lawsuit under the ADA is determined by the contents of the EEOC charge. See Jones v. Calvert Grp., Ltd., 551 F.3d 297, 300 (4th Cir. 2009) (discussing Title VII).7 Only those discrimination claims stated in the initial charge, those reasonably related to the initial charge, and those developed by reasonable investigation of the initial charge may be maintained in a subsequent civil action. Id.; see also Evans v. Techs. Applications & Serv. Co., 80 F.3d 954, 963 (4th Cir. 1996). Because lawyers do not typically complete administrative charges, courts construe the charges liberally. Chacko v. Patuxent Inst., 429 F.3d 505, 509 (4th Cir. 2005).Here, in the last paragraph of the EEOC charge, Feldman alleges that “LEA violated [the ADA], when it failed to reasonably accommodate my disability.” (Pls.’ Mem. Opp’n Defs.’ Mot. Dismiss, Ex. 11, DE # 48-11, ¶ 19.)8 The prior paragraph of the charge states: “During the August 27, 2009 meeting of the Board, the Board voted to immediately terminate my employment as President of LEA.” (Id. ¶ 18 (emphasis added).) The narrative of the EEOC charge generally describes the actions and practices complained of by Feldman, including his termination, which is mentioned in the charge several times. (See Id. ¶¶ 5-6.) The wrongful discharge claim in this case is linked to the alleged failure to accommodate because Feldman asserts that the Board refused his request to postpone the 27 August 2009 Board meeting and then immediately terminated him. While the wrongful discharge claim could have been better stated, the EEOC charge does contain the factual basis for such a claim. Because of the continuous nature of the conduct in this case, the court rejects LEA’s contention that the wrongful discharge claim should be dismissed for failure to exhaust administrative remedies. As LEA does not challenge any other aspect of this claim for the purposes of the motion to dismiss, Feldman’s wrongful discharge claim under the ADA is allowed to proceed.
LEA’s argument incorrectly presumes that Feldman’s only essential job function was to impact and potentially alter the Board’s decision-making process with respect to his termination. To the contrary, Feldman’s mere presence at the Board meeting was an essential function of his employment as President of LEA. See Tyndall v. Nat. Educ. Ctrs., Inc. of Cal., 31 F.3d 209, 213 (4th Cir. 1994) (“a regular and reliable level of attendance is a necessary element of most jobs”). Furthermore, the reasonableness of Feldman’s requested accommodation is a question of fact. See Pandazides v. Va. Bd. of Educ., 13 F.3d 823, 833 (4th Cir. 1994) (Rehabilitation Act case). A Rule 12(b)(6) motion emphatically “does not resolve contests surrounding the facts, the merits of a claim, or the applicability of defenses.” Republican Party v. Martin, 980 F.2d 943, 952 (4th Cir. 1992). Here, Feldman has sufficiently pled a failure to accommodate claim under the ADA, and issues concerning the reasonableness of the requested accommodation are questions of fact that are more properly resolved at the summary judgment stage or at trial. Because LEA does not challenge any of the other elements of Feldman’s failure to accommodate claim, the claim survives the motion to dismiss.
The court first notes that, at this stage of the proceedings, LEA’s only challenge to Perry’s wrongful discharge claim is that he has not sufficiently alleged that he had a disability under the ADA. Because the court has already decided this issue in Perry’s favor, his wrongful discharge claim against LEA is allowed to proceed.
LEA does assert additional challenges to Perry’s failure to accommodate claim under the ADA. LEA alleges that Perry cannot meet the fourth element of his failure to accommodate claim because he has not sufficiently pled that LEA refused to make an accommodation. Specifically, LEA argues that Perry has made an insufficient allegation regarding this element of his claim because he only asserts the denial of interactive process. Both the courts and the federal regulations implementing the ADA recognize that the ADA contemplates an “interactive process,” through which both the employer and the employee seek to identify a reasonable accommodation of the employee’s disability. See 29 C.F.R. § 1630.2(o)(3); Haneke v. Mid- Atlantic Capital Mgmt., 131 Fed. Appx. 399, 400 (4th Cir. 2005). “However, an employee cannot base a reasonable accommodation claim solely on the allegation that the employer failed to engage in an interactive process.” Walter v. United Airlines, Inc., 232 F.3d 892 (Table), No. 99-2622, 2000 WL 1587489, at *4 (4th Cir. Oct. 25, 2000) (citing Rehling v. City of Chicago, 207 F.3d 1009, 1016 (7th Cir. 2000)). “Rather, the employee must demonstrate that the employer’s failure to engage in the interactive process resulted in the failure to identify an appropriate accommodation for the disabled employee.” Id. Thus, if an employer reasonably accommodates an employee’s disability, the employer’s alleged failure to engage in an interactive process is of “no consequence.” Id. at *5.
Here, LEA mischaracterizes Perry’s allegations. The amended complaint specifically states that “LEA refused to engage with Perry in a good faith interactive process to reasonably accommodate his disability as Perry had requested, or to identify another reasonable accommodation.” (Am. Compl. ¶ 231 (emphasis added).) This allegation explicitly asserts that LEA’s failure to participate in an interactive process resulted in the failure to identify an appropriate accommodation. Thus, Perry has sufficiently alleged that LEA refused to make an accommodation.
Finally, LEA contends that Perry himself failed to engage in the interactive process because he “turned off his phone and computer and never personally responded to LEA’s attempts to communicate with him even though he was able to leave the house, go to the doctor, and speak with a lawyer.” (Mem. Supp. Defs.’ Mot. Dismiss, DE # 41, at 12-13.) However, the Fourth Circuit Court of Appeals has held that “a request for accommodation need not, in all cases, ‘be in writing, be made by the employee, or formally invoke the magic words reasonable accommodation.'” Parkinson v. Anne Arundel Med. Ctr., 79 Fed. Appx. 602, 604-05 (4th Cir. 2003) (quoting Taylor v. Phoenixville Sch. Dist., 184 F.3d 296, 313 (3d Cir. 1999)) (internal quotation marks omitted). In this case, while Perry himself did not specifically request a reasonable accommodation from LEA, requests were made on his behalf on the occasions when his wife and his attorney informed LEA that Perry needed to take medical leave. (See Am. Compl. ¶¶ 144, 149, 159-60.) These requests made on Perry’s behalf are sufficient to withstand LEA’s contention that Perry failed to engage in the interactive process. Cf. Corbett v. Nat. Prods. Co., Civ. A. No. 94-2652, 1995 WL 133614, at *4 (E.D. Pa. Mar. 27, 1995) (where employee’s wife called employer regarding employee’s entry into a treatment program, jury could have reasonably inferred that employer knew that employee wanted to keep his job while in rehabilitation even if employee did not specifically request that employer provide him with such accommodation).
In summary, the court finds that both Feldman and Perry have pled sufficient claims for wrongful discharge and for failure to accommodate under the ADA.
(1) to provide information . . . regarding any conduct which the employee reasonably believes constitutes a violation of section 1341 [mail fraud], 1343 [wire fraud], 1344 [bank fraud], or 1348 [securities fraud], any rule or regulation of the Securities and Exchange Commission, or any provision of Federal law relating to fraud against shareholders, when the information . . . is provided to . . .
(C) a person with supervisory authority over the employee . . . .18 U.S.C. § 1514A(a).
In order to make a prima facie showing of a SOX violation, an employee’s complaint must allege that: (1) the employee engaged in activity protected by SOX; (2) the employer knew, actually or constructively, of the protected activity; (3) the employee suffered an unfavorable personnel action; and (4) the circumstances raise an inference that the protected activity was a contributing factor in the personnel action. Welch, 536 F.3d at 275 (citing 29 C.F.R. § 1980.104(b)(1)). In their motion to dismiss, LEA, Rand, Lindsay, Jordan and Briggs (“the SOX defendants”) do not challenge the second, third or fourth elements of plaintiffs’ SOX claims. (See Mem. Supp. Defs.’ Mot. Dismiss, DE # 41, at 17-19.) As a result, for the purposes of the present motion, the court will only address the first element of plaintiffs’ claims, i.e., whether they have sufficiently pled that they engaged in protected activity under SOX.
Here, plaintiffs allege that they engaged in protected activities when: (1) they provided information to LEA’s Board and to federal investigators regarding Carrington’s ownership interest in SAFE Source and regarding LEA’s export business relationship with Carrington and SAFE Source (Am. Compl. ¶¶ 247-48); (2) they provided information to federal investigators regarding their beliefs about insider trading (Id. ¶ 249); (3) they objected to the appointment of Finkelstein as LEA’s Board attorney (Id. ¶ 250); (4) they objected to LEA’s falsification of Board meeting minutes (Id. ¶ 251); (5) they refused to divulge information to the Board regarding their reports to federal investigators after they discovered that the Board was leaking information to Carrington (Id. ¶ 252); (6) they attempted to obtain affirmations from all Board members stating that they had not improperly leaked information to Carrington (Id. ¶ 253); (7) on 30 September 2009, they sent an email and letter to the SEC reporting that LEA filed a false 8K regarding Perry’s termination (Id. ¶ 254); (8) on 2 October 2009, they emailed LEA’s independent auditor and informed him that LEA had filed a false 8K regarding Perry’s termination; that LEA had misrepresented the circumstances of Feldman’s firing when it filed an 8K regarding that event; and that LEA had refused Feldman’s request for documents (Id. ¶ 255); (9) on 13 November 2009, they objected to misstatements, misrepresentations and omissions in the 10Q prepared by LEA for the quarter ending September 30, 2009 (Id. ¶ 256); and (10) on several dates in November and December 2009, they sent letters to and filed complaints with OSHA regarding all of the protected actions that they had taken (Id. ¶¶ 257-58).
Disclosures made by employees concerning reasonably perceived violations of SEC rules governing internal control standards can constitute protected conduct under SOX. See, e.g., Hemphill v. Celanese Corp., No. 3:08-CV-2131-B, 2010 WL 2473845, at *5 (N.D. Tex. June 16, 2010) (denying summary judgment and finding triable issue of fact where plaintiff produced evidence that he reported conduct constituting a violation of 15 U.S.C. § 78m(b)(5) of the Exchange Act of 1934); Smith v. Corning Inc., 496 F. Supp. 2d 244, 248-49 (W.D.N.Y. 2007) (denying Rule 12(b)(6) motion to dismiss where plaintiff alleged that employer had violated 15 U.S.C. § 78m(b)(2)(B)(ii) by implementing a financial reporting program that did not comply with General Accepted Accounting Principles, which, in turn, generated incorrect reports that could have misled investors); Collins v. Beazer Homes USA, Inc., 334 F. Supp. 2d 1365, 1378 (N.D. Ga. 2004) (denying summary judgment and finding triable issue of fact as to whether complaints about violations of the company’s “internal accounting controls” constituted protected activity). Thus, plaintiffs have sufficiently alleged that they engaged in protected SOX activity when they reported LEA’s involvement with SAFE Source and Carrington.
Third, the SOX defendants argue that plaintiffs’ post-employment conduct cannot constitute protected activity under the statute. In other words, the SOX defendants maintain that the whistleblower protections of SOX apply only to actions taken by the complainant while the complainant is an employee of the public-traded company in question. See Pittman v. Siemans AG, Case No. 2007-SOX-0015, 2007 WL 7135797, ALJ’s Decision and Order, at *3 (Dep’t of Labor July 26, 2007) (Siemans AG was not subject to SOX because it did not employ the complainant); Harvey v. The Home Depot, Inc., Case No. 2004 SOX 36, 2004 WL 5840284, ALJ’s Initial Decision and Order, at *3 (Dep’t of Labor May 28, 2004) (“[W]ith the exception of blacklisting or other active interference with subsequent employment, the SOX employee protection provisions essentially shelter an employee from employment discrimination in retaliation for his or her protected activities, while the complainant is an employee of the respondent.” (emphasis in original) (footnote omitted)).
Throughout their amended complaint, plaintiffs allege that Feldman was discharged from his employment with LEA on 27 August 2009 and that Perry was discharged on 23 September 2009. (See Am. Compl. ¶¶ 111, 138, 162, 166, 221-25, 232.) However, some of the SOX activity that plaintiffs allegedly engaged in occurred after their dates of termination. (See Id. ¶¶ 254-58.) Plaintiffs admit that the SOX defendants “are correct that post-employment actions cannot constitute protected activity under SOX.” (Pls.’ Mem. Opp’n Defs.’ Mot. Dismiss, DE # 48, at 10 (internal quotation marks omitted).) Nonetheless, plaintiffs attempt to circumvent the consequences of their admission by contending that they remained employees of LEA until 3 December 2009, the date that they were removed as directors of the corporation. (Id.) A director of a corporation may or may not be an employee of the corporation, since the term “employee” has no particular, restricted meaning and may have different meanings in different contexts. Phoenix Sav. & Loan, Inc. v. Aetna Cas. & Sur. Co., 427 F.2d 862, 871 (4th Cir. 1970). Here, plaintiffs argue that the question of whether they remained employees of LEA until 3 December 2009 is an issue of fact that cannot be decided at this stage of the proceedings.
Next, plaintiffs argue that LEA, Rand, Lindsay and Jordan (“the LEA defendants”) wrongfully discharged them from their employment in violation of North Carolina public policy.14 North Carolina is an “at-will” employment state, which means that in the absence of a contractual agreement between the employee and the employer establishing a definite term of employment, the relationship is presumed to be terminable at the will of either party at any time and without reason. Kurtzman v. Applied Analytical Indus., Inc., 493 S.E.2d 420, 422 (N.C. 1997). However, there is a limited public policy exception to this doctrine, which provides that while there may be “a right to terminate a contract at will for no reason, or for an arbitrary or irrational reason, there can be no right to terminate such a contract for an unlawful reason or purpose that contravenes public policy.” Coman v. Thomas Mfg. Co. Inc., 381 S.E.2d 445, 447 (N.C. 1989) (citation omitted).
Although there is no specific list of actions that constitute a violation of public policy, wrongful discharge claims based on violations of public policy have been recognized in North Carolina where the employee was discharged (1) for refusing to violate the law at the employer’s request, (2) for engaging in a legally protected activity, or (3) based on some activity by the employer contrary to law or public policy. Whiting v. Wolfson Casing Corp., 618 S.E.2d 750, 753 (N.C. Ct. App. 2005); Imes v. City of Asheville, 594 S.E.2d 397, 399 (N.C. Ct. App. 2004);Ridenhour v. IBM Corp., 512 S.E.2d 774, 778 (N.C. Ct. App. 1999). Nevertheless, this exception to the at-will employment doctrine is a narrow one. Roberts v. First-Citizens Bank & Trust Co., 478 S.E.2d 809, 814 (N.C. Ct. App. 1996). Furthermore, “[t]he public policy exception to the at-will employment doctrine is confined to the express statements contained within [North Carolina’s] General Statutes or [the State’s] Constitution.” Whiting, 618 S.E.2d at 753.
First, plaintiffs contend that they were discharged for refusing to violate the law at the request of the LEA defendants. Specifically, plaintiffs assert that the LEA defendants terminated their employment in violation of the public policy of North Carolina as it expressed in N.C. Gen. Stat. § 55-8-42. Pursuant to this statutory provision, an officer of a corporation with discretionary authority must discharge his duties in good faith, conform to a reasonable standard of care, and act in a manner he reasonably believes is in the best interests of the corporation. N.C. Gen. Stat. § 55-8-42(a). Here, plaintiffs allege that the LEA defendants terminated them “because they discharged their duties as officers of LEA as required by N.C. Gen. Stat. § 55-8- 42, in that they reported LEA’s possibly illegal exporting relationship with Carrington, and possible insider trading involving LEA stock, to federal investigators and cooperated in investigations of their reports.” (Pls.’ Mem. Opp’n Defs.’ Mot. Dismiss, DE # 48, at 23 (emphasis in original).) In other words, laintiffs insist that they were terminated because they refused to violate their duties as corporate officers.
As a second theory in support of their wrongful discharge claims, plaintiffs contend that the LEA defendants violated North Carolina public policy by obstructing justice. Specifically, plaintiffs argue that the LEA defendants repeatedly attempted to intimidate them and obstruct their cooperation as witnesses in federal investigations and then terminated them in order to obstruct their cooperation in the same investigations. In their amended complaint, plaintiffs allege that the LEA defendants violated federal obstruction of justice statutes, including 18 U.S.C. §§ 1503, 1512, and 1513. (Am. Compl. ¶¶ 307-10.) However, “where the defendant’s conduct allegedly violating North Carolina public policy is only a claimed violation of a federal statute, that alleged fact, ‘in and of itself is not sufficient to constitute an express statement of [North Carolina] public policy.'” Belton v. Dodson Bros. Exterminating Co., Inc., No. 1:09-CV- 106, 2009 WL 3200035, at *5 (M.D.N.C. Sept. 30, 2009) (quoting McDonnell v. Guilford Cnty. Tradewind Airlines, Inc., 670 S.E.2d 302, 306 (N.C. Ct. App. 2009)) (alteration in original); see also Leach v. N. Telecom, Inc., 141 F.R.D. 420, 426 (E.D.N.C. 1991) (“no North Carolina case has ever held that a wrongful discharge claim can be grounded on a violation of federal public policy”). Thus, plaintiffs may not rely solely on the alleged violations of the cited federal statutes to state a claim for wrongful discharge in violation of North Carolina public policy.
If any person shall by threats, menaces or in any other manner intimidate or attempt to intimidate any person who is summoned or acting as a witness in any of the courts of this State, or prevent or deter, or attempt to prevent or deter any person summoned or acting as such witness from attendance upon such court, he shall be guilty of a Class H felony.
Plaintiffs’ argument calls to mind an image of trying to force a square peg into a round hole. Because plaintiffs cannot rely solely on the alleged violations of federal obstruction of justice statutes to support their claims for wrongful discharge in violation of North Carolina public policy, they have artfully attempted to invoke state law where no basis for such invocation exists. Here, plaintiffs have not alleged any facts that would support either a statutory or common law claim for obstruction of justice under North Carolina law.17 Plaintiffs were not acting as actual or potential witnesses in a North Carolina court proceeding or investigation at the time of the LEA defendants’ alleged obstruction of justice. Rather, it is clear that the facts alleged by plaintiffs support only a possible claim of interference with a federal investigation. To highlight just one of many examples contained in the amended complaint with respect to this issue, plaintiffs allege that they were terminated because they “disclosed information to federal authorities and participated in investigations by federal authorities about conduct by LEA that [they] reasonably believed violated rules of the [SEC], federal laws, rules and regulations relating to securities fraud and fraud against the shareholders, and various other federal laws.” (Am. Compl. ¶¶ 2-3 (emphases added).) Thus, plaintiffs’ attempt to rely on North Carolina obstruction of justice law as a basis for their wrongful discharge claims is futile.
Accordingly, the court concludes that plaintiffs have failed to state a claim upon which relief can be granted. As a result, the court need not address the LEA defendants’ argument that plaintiffs cannot assert a wrongful discharge claim against the individual LEA defendants.
For a civil conspiracy claim to survive a Rule 12(b)(6) motion to dismiss, a plaintiff must adequately plead the following elements: (1) an agreement between two or more persons to commit a wrongful act; (2) an overt act in furtherance of the agreement; and (3) damage to the plaintiff as a result of the wrongful act. Suntrust Mortg. Inc. v. Busby, 651 F. Supp. 2d 472, 488 (W.D.N.C. 2009); Pleasant Valley Promenade v. Lechmere, Inc., 464 S.E.2d 47, 54 (N.C. Ct. App. 1995). Furthermore, “[b]ecause liability attaches as a result of the wrongful act committed, not the agreement itself, the existence of an underlying tortious act is the key to establishing a civil conspiracy.” Eli Research, Inc. v. United Commc’ns Grp., LLC, 312 F. Supp. 2d 748, 763 (M.D.N.C. 2004). Thus, it undisputed that there is no independent cause of action for civil conspiracy in North Carolina. Shope v. Boyer, 150 S.E.2d 771, 774 (N.C. 1966); Sellers v. Morton, 661 S.E.2d 915, 922 (N.C. Ct. App. 2008) (“Only where there is an underlying claim for unlawful conduct can a plaintiff state a claim for civil conspiracy . . . .” (citation and internal quotation marks omitted)). Here, the conspiracy defendants have moved to dismiss the civil conspiracy claim on the ground that plaintiffs have failed to allege a viable underlying claim for unlawful conduct.
The conspiracy defendants first point out that “instead of asserting an underlying claim or unlawful act as a separate count, [plaintiffs] include within the conspiracy count the allegation that Carrington and the other defendants violated three federal criminal statutes . . . and an evidentiary rule . . . .” (Mem. Supp. Carrington’s Mot. Dismiss, DE # 40, at 11 (emphasis in original); see also Mem. Supp. Defs.’ Mot. Dismiss, DE # 41, at 21.) Thus, the conspiracy defendants appear to contend that plaintiffs were required to set out the wrongful conduct underlying the civil conspiracy claim in a separate and independent count of the amended complaint.
It may not be necessary for a plaintiff who brings a civil conspiracy claim to set out the underlying wrongful acts in a separate count of the complaint. See, e.g., Henry v. Deen, 310 S.E.2d 326, 330, 334 (N.C. 1984) (plaintiff’s pleadings, which did not contain a separate obstruction of justice count, stated a claim for civil conspiracy based on common law obstruction of justice if the trial court, on remand, allowed plaintiff’s motion to amend to allege injury from the conspiracy). However, even if plaintiffs were not required to plead the underlying wrongful acts in a separate count of the complaint, a viable underlying claim for unlawful conduct is still necessary in order for them to proceed on the claim for civil conspiracy. See Barber v. Countrywide Home Loans, Inc., No. 2:09-CV-40-GCM, 2010 WL 398915, at *6 (W.D.N.C. Jan. 25, 2010) (A civil conspiracy claim “cannot be brought independent of properly-alleged claims for underlying wrongdoing, making such claim subject to dismissal if the underlying claims for wrongful conduct are dismissed.”); MDS Grp. Assocs. Inc. v. Emerald Isle Realty, Inc., No. 2:07-CV-48-D, 2008 WL 2641271, at *5 (E.D.N.C. July 1, 2008) (“Where there is no viable underlying predicate claim, a civil conspiracy claim fails.”); Riley v. Dow Corning Corp., 767 F. Supp. 735, 740 (M.D.N.C. 1991) (“Because no separate and distinct civil conspiracy tort exists, liability attaches only if one of the conspirators is liable for an underlying tort.”).
The court notes that plaintiffs rely heavily on the case of Henry v. Deen, 310 S.E.2d 326 (N.C. 1984), to support their argument that the civil conspiracy claim should survive the conspiracy defendants’ motions to dismiss. In Henry, the plaintiff was an administrator of a decedent’s estate who sued two physicians and a physician’s assistant for the wrongful death of the decedent and for a civil conspiracy to destroy, falsify and fabricate the decedent’s medical records. Id. at 328, 333. The court held that if the defendants were found to have committed the acts alleged by plaintiff, such acts would “obstruct, impede or hinder public or legal justice and would amount to the common law offense of obstructing public justice.” Id. at 334. Therefore, even though plaintiff’s original complaint did not contain a separate count for obstruction of justice, it adequately alleged a conspiracy among the defendants and wrongful acts committed by the defendants in furtherance thereof. Id.
In this case, plaintiffs allege that their civil conspiracy claim should survive for the “same reason” that the claim survived in Henry, i.e., because plaintiffs have alleged “‘obstruction of justice’ in the form of violations of 18 U.S.C. §§ 1503, 1512(b), 1512(d), and 1513(e) . . . .” (Pls.’ Mem. Opp’n Defs.’ Mot. Dismiss, DE # 48, at 29.) However, plaintiffs fail to recognize that, in Henry, the wrongful acts that demonstrated a conspiracy were acts constituting common law obstruction of justice under North Carolina law. Here, plaintiffs have not brought a common law claim for obstruction of justice against the conspiracy defendants. Furthermore, as the court has already discussed in Section II.C., supra, with respect to the public policy wrongful discharge claims, plaintiffs have not alleged any facts that would support a common law claim for obstruction of justice under North Carolina law. As a result, plaintiffs’ reliance on Henry is misplaced.
As a result, the alleged violation of N.C. Gen. Stat. § 55-8-30 is insufficient to support a claim for civil conspiracy. Because plaintiffs have failed to allege any viable underlying cause of action against the conspiracy defendants, their civil conspiracy claim must be dismissed. See Burnette v. Nicolet, Inc., 818 F.2d 1098, 1101 (4th Cir. 1986) (dismissing civil conspiracy claim where underlying claim of fraudulent concealment was dismissed); Precision Components, Inc. v. C.W. Bearing USA, Inc., 630 F. Supp. 2d 635, 645 (W.D.N.C. 2008) (civil conspiracy claim failed where both underlying claims were dismissed); Byrd v. Hopson, 265 F. Supp. 2d 594, 599 (W.D.N.C. 2003) (“[W]here the underlying claim has been dismissed, the civil conspiracy claim must also be dismissed.”).
amount to more than mere suspicion or conjecture.” Id.
While it is true that plaintiffs need not prove the existence of a conspiracy agreement at this stage of the proceedings, the holdings of the United States Supreme Court in Ashcroft v. Iqbal, 129 S. Ct. 1937 (2009), and Bell Atlantic Corporation v. Twombly, 550 U.S. 544 (2007), require more than claims from which mere possibility can be inferred; they require facts showing plausibility. “A claim has facial plausibility when the plaintiff pleads factual content that allows the court to draw the reasonable inference that the defendant is liable for the misconduct alleged.” Iqbal, 129 S. Ct. at 1949. Unless the plaintiffs’ well-pleaded allegations of fact have “nudged their claims across the line from conceivable to plausible, their complaint must be dismissed.” Twombly, 550 U.S. at 570; see also Iqbal, 129 S.Ct. at 1950-51.
Determining whether a complaint states a plausible claim for relief will . . . be a context-specific task that requires the reviewing court to draw on its judicial experience and common sense.” Iqbal, 129 S. Ct. at 1950. If “the well-pleaded facts do not permit the court to infer more than the mere possibility of misconduct, the complaint has alleged- but it has not ‘show[n]’- ‘that the pleader is entitled to relief.'” Id. (quoting Fed. R. Civ. P. 8(a)(2)). “Factual allegations must be enough to raise a right to relief above the speculative level, . . . on the assumption that all the allegations in the complaint are true . . . .” Twombly, 550 U.S. at 555 (emphasis omitted). Furthermore, a court need not accept as true “‘unwarranted inferences, unreasonable conclusions, or arguments.'” Nemet Chevrolet, Ltd. v. Consumeraffairs.com. Inc., 591 F.3d 250, 255 (4th Cir. 2009) (quoting Wahi v. Charleston Area Med. Ctr., Inc., 562 F.3d 599, 615 n.26 (4th Cir. 2009)).
Despite the lack of details provided regarding the substance of the 27 December 2007 meeting, plaintiffs argue that quite a number of inferences can be reasonably drawn from the mere fact that a meeting took place between two of the four individual conspiracy defendants. While the court agrees with plaintiffs that, given the timing of the meeting, it might be possible to infer that “Rand and Finkelstein informed Carrington of Feldman’s and Perry’s intention to report Carrington’s new criminal activities[,]” the court cannot agree that it can also reasonably infer that, during the meeting, Rand and Finkelstein “discussed ways in which they could, at the very least, monitor Plaintiffs’ reports and feed information back to Carrington.” (Pls.’ Mem. Opp’n Carrington’s Mot. Dismiss, DE # 49, at 6.) This conclusion is pure speculation on the part of plaintiffs. Plaintiffs also maintain that it is “reasonable to infer that Rand told his co-directors, Lindsay and Jordan, about the details of the meeting.” (Id.) However, the mere fact that a meeting occurred does not create a reasonable inference that the participants in the meeting told anyone else about it. There are simply no facts alleged in the amended complaint which show that Lindsay and Jordan knew about the 27 December 2007 meeting or that they participated in any other meeting or discussion relating to the alleged conspiracy.
It is not necessary to detail all of the unwarranted inferences that plaintiffs have asked the court to make in this case. However, one additional example of such a request will be provided for the purpose of illustration. Plaintiffs assert that Carrington’s criminal attorneys, who are not parties to this lawsuit, made several telephone calls to Feldman and his attorney in the weeks immediately prior to Feldman’s termination in August 2009 and pressured them to share information regarding plaintiffs’ contacts with federal investigators. (Am. Compl. ¶¶ 114-128.) Plaintiffs maintain that these allegations allow this court to reasonably infer (1) that Carrington told Rand, Lindsay, Jordan or Finkelstein about the “improper” telephone calls made by his attorneys, and (2) that Carrington “conspired with Rand, Lindsay, and Jordan, a short time after his last attempt to obstruct justice, to have Feldman and Perry fired.” (Pls.’ Mem. Opp’n Defs.’ Mot. Dismiss, DE # 48, at 27.) Such inferences, however, “exceed even the generous construction of the facts to which [plaintiffs are] entitled.” Reed v. Buckeye Fire Equip., 241 Fed. Appx. 917, 928 (4th Cir. 2007). There is absolutely no factual basis in the amended complaint to support plaintiffs’ suggested inference that Carrington’s criminal attorneys agreed to assist him in conspiring to obstruct justice. Furthermore, even if the court accepted this inference, there are no facts alleged in the amended complaint to suggest that Carrington told any of the other conspiracy defendants about the calls made by his attorneys. Similarly, there is no factual basis to suggest that Carrington ever discussed terminating plaintiffs’ employment with the other conspiracy defendants, much less reached an agreement to do so.
In summary, the facts pled by plaintiffs do not reasonably lead to anything other than “mere suspicion or conjecture” that there was a underlying agreement among the conspiracy defendants. Pleasant Valley Promenade, 464 S.E.2d at 54. Plaintiffs’ attenuated chain of conspiracy fails to nudge their claim across the line from conceivable to plausible. See Twombly, 550 U.S. at 570. As a result, the conspiracy defendants’ motions to dismiss the civil conspiracy claim will be allowed.
of contract claim for wages allegedly owed.
“The Wage and Hour Act . . . does not expressly preclude common law remedies.” Amos v. Oakdale Knitting Co., 416 S.E.2d 166, 172 (N.C. 1992). Furthermore, LEA concedes that no North Carolina court, or any federal court applying North Carolina law, has directly held that the NCWHA preempts claims for breach of contract. (Mem. Supp. Defs.’ Mot. Dismiss, DE # 41, at 29.) Thus, the court cannot conclude that Perry is precluded from alternatively pleading a breach of contract claim. Accordingly, the court denies the motion to dismiss Perry’s breach of contract claim.
Based on the foregoing reasons, the motion to dismiss filed by LEA, Rand, Lindsay, Jordan and Briggs (DE # 37) is GRANTED IN PART and DENIED IN PART. Carrington’s motion to dismiss plaintiffs’ civil conspiracy claim (DE # 39) is GRANTED. The claims remaining in this case are (1) both plaintiffs’ ADA claims for wrongful discharge and failure to accommodate; (2) both plaintiffs’ SOX claims to the extent that they rely on actions taken by Feldman prior to 27 August 2009 or actions taken by Perry prior to 23 September 2009; (3) Perry’s NCWHA claim; and (4) Perry’s breach of contract claim. Finally, plaintiffs’ motion for oral argument (DE # 54) is DENIED AS MOOT.
2LEA, Rand, Lindsay, Jordan and Briggs filed a consolidated motion to dismiss. Carrington filed a separate motion to dismiss on the same day as the other defendants.
3LEA contends that it has cited ADAAA case law to supports its arguments. However, all of the cases cited by LEA, even those cases decided after the effective date of the ADAAA, involved alleged discrimination that took place before the ADAAA went into effect. See Bryson v. Mau, Inc., No. 8:09-321-HMH-BHH, 2010 WL 1542506, at *3 (D.S.C. Mar. 25, 2010) (involving discrimination that allegedly occurred in 2006); Anderson v. E & J Greer, Inc., No. 4:08-CV-39-BR, 2009 WL 3756945 (E.D.N.C. Nov. 5, 2009) (same). Because the ADAAA has been found not to apply retroactively to pre-amendment conduct, pre-ADAAA case law was applied in these actions. As a result, the cases cited by LEA carry little, if any, precedential weight with respect to the issue of whether the plaintiffs in this case were disabled under the ADAAA.
4The court recognizes that the EEOC regulations are merely proposed regulations at this point in time and that the persuasive authority of EEOC regulations in interpreting the ADA has not been resolved by the United States Supreme Court or by the Fourth Circuit Court of Appeals. See, e.g., Pollard, 281 F.3d at 468 n.2. However, the court includes a discussion of the EEOC’s proposed interpretation of the ADAAA as another tool to glean the intended meaning of the statutory amendments. See Hoffman, 737 F. Supp. 2d at 985 n.1.
5The proposed EEOC regulations also address this issue: “In determining whether an individual has a disability, the focus is on how a major life activity is substantially limited, not on what an individual can do in spite of an impairment.” 74 Fed. Reg. at 48440 (to be codified at 29 C.F.R. § 1630.2(j)(2)(vi)).
6Plaintiffs also argue that Congress, in amending the ADA, stressed that an impairment is covered unless it is both “transitory and minor.” 42 U.S.C. § 12102(3)(B). Plaintiffs’ reliance on this language from the amended statute is flawed. As previously stated, to fall within the definition of a disability under the ADA, a plaintiff must either have an actual disability, have a record of disability, or be regarded as having a disability. See 42 U.S.C. § 12102(1). The ADAAA clearly states that the “transitory and minor” language applies only to situations where a plaintiff alleges that he was perceived or “regarded as” having a disability. See 42 U.S.C. § 12102(3). In this case, plaintiffs do not assert “regarded as” disability claims; rather, they allege that each of them suffered from an actual disability. As a result, the “transitory and minor” language of the ADAAA does not apply to this case.
7The enforcement provisions of the ADA are essentially identical to those of Title VII of the Civil Rights Act of 1964. See EEOC v. Waffle House, Inc., 534 U.S. 279, 285 (2002).
8The court may consider Feldman’s EEOC charge without converting the motion to dismiss into one for summary judgment. While the primary considerations in a Rule 12(b)(6) motion are the allegations in the complaint, the court “is not limited to the four corners of the complaint . . . .” 5B Charles Alan Wright & Arthur R. Miller, Federal Practice and Procedure § 1357 (3d ed. 2004). The matters which a court may consider on a Rule 12(b)(6) motion without converting it into one for summary judgment include documents appearing in the record of the case, matters of public record, items subject to judicial notice, matters incorporated by reference into the complaint, and exhibits attached to the complaint whose authenticity is unquestioned. See 5B Wright & Miller, supra, § 1357; see, e.g., Tellabs, Inc. v. Makor Issues & Rights, Ltd., 551 U.S. 308, 322 (2007); Witthohn v. Fed. Ins. Co., 164 Fed. Appx. 395, 396-97 (4th Cir. 2006); In re FAC Realty Sec. Litig., 990 F. Supp. 416, 420 (E.D.N.C. 1997). These matters may properly be considered because “a lack of notice for the nonmoving party is not implicated.” In re FAC Realty Sec. Litig., 990 F. Supp. at 420.
9To the extent that LEA’s argument can be construed as a challenge to the third element of Perry’s failure to accommodate claim, i.e., that the accommodation he requested was unreasonable, the argument is without merit. The court cannot say that the duration of the leave requested by Perry was unreasonable per se. Rather, the question of whether Perry’s requested accommodation was reasonable is a factual question that may be appropriately addressed at the summary judgment stage or at trial. See Pandazides, 13 F.3d at 833.
10In a footnote contained in their memorandum in support of their motion to dismiss, the SOX defendants state that “[t]here is an increasing body of law finding that if a plaintiff attempts to establish a SOX claim by alleging activities falling within categories 1-5 under the statute, the plaintiff must also show fraud on the shareholders (category 6).” (Mem. Supp. Defs.’ Mot. Dismiss, DE # 41, at 17 n.18.) Although the wording of this argument is somewhat confusing, the court construes it to mean that the SOX defendants are alleging that a showing of fraud is an essential element of all whistleblower claims made under SOX. However, as the SOX defendants’ memorandum makes clear, the Fourth Circuit Court of Appeals has not definitively ruled on the question of whether fraud is a required element for all whistleblower claims. See Welch, 536 F.3d at 276 n.3 (labeling the appellate court’s prior discussion of the fraud issue in Livingston as “dicta”); Livingston, 520 F.3d at 351 n.1. Even if a showing of fraud were required, the court construes the complaint to meet this standard, since it alleges that plaintiffs reasonably believed that the SOX defendants were violating 15 U.S.C. §§ 78j(b), 78m(b)(2)(B)(ii) and 78m(b)(5), 17 C.F.R. § 229.303(3) and related SEC regulations and that they believed that these provisions related to fraud against shareholders. (See, e.g., Am. Compl. ¶¶ 243-46, 259-60, 262.) See Smith v. Corning, Inc., 496 F. Supp. 2d 244, 248-49 (W.D.N.Y. 2007).
14This court has authority to exercise supplemental jurisdiction over plaintiffs’ state law claims pursuant to 28 U.S.C. § 1367(a).
15In their memorandum in opposition to the motion to dismiss, plaintiffs contend that they “refused to violate their duties as corporate officers under N.C. Gen. Stat. § 55-8-42 when Defendants instructed them to do so.” (Pls.’ Mem. Opp’n Defs.’ Mot. Dismiss, DE # 48, at 23 (emphasis omitted).) However, this bald assertion contains no citation to the amended complaint. This allegation is not contained in plaintiffs’ amended complaint, and none of the facts pled in this case support such an allegation.
16Furthermore, N.C. Gen. Stat. § 55-8-42 does not expressly declare a public policy for purposes of the wrongful discharge exception to the at-will employment rule in North Carolina. See SmithKline Beecham Corp., 2009 WL 1851180, at *4.
17Furthermore, the court emphasizes that “[t]he public policy exception to the at-will employment doctrine is confined to the express statements contained within [North Carolina’s] General Statutes or [the State’s] Constitution.” Whiting, 618 S.E.2d at 753; see also Considine v. Compass Group USA, Inc., 551 S.E.2d 179, 184 (N.C. Ct. App. 2001) (“The complaint does not allege that defendant’s conduct violated any explicit statutory or constitutional provision[.]”). Thus, even if plaintiffs had alleged facts to support a claim for common law obstruction of justice, they cannot rely on North Carolina common law to support their wrongful discharge claims.
18Furthermore, plaintiffs have failed to allege facts that would establish the required elements of at least some of the federal obstruction of justice offenses at issue. For example, the United States Supreme Court has interpreted 18 U.S.C. § 1503 to apply only to situations where the obstruction of justice can be closely tied to a pending judicial proceeding. United States v. Aguilar, 515 U.S. 593, 599 (1995); see also United States v. Littleton, 76 F.3d 614, 619 (4th Cir. 1996). Here, plaintiffs have not alleged that there was a judicial proceeding pending at the time of the relevant events described in the amended complaint.
20In this case, plaintiffs must show that Carrington was a participant in the civil conspiracy. If Carrington was not a participant in the conspiracy, plaintiffs would be unable to show “an agreement between two or more individuals” because the remaining conspiracy defendants “constitute a single legal entity under the intracorporate immunity doctrine.” Iglesias v. Wolford, 539 F. Supp. 2d 831, 835 (E.D.N.C. 2008) (citation and internal quotation marks omitted). “A corporation’s officers, employees, or agents are mere extensions of the corporation, and an agreement between such personnel (or between such personnel and the corporation they serve) is therefore not a conspiracy.” Id. at 836.

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