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University resolves suit: Helm not wrongfully dismissed, suit concludes for Peacock |
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Tuesday, 09 October 2007 |
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by NICK IANNIELLO
News Reporter
A civil lawsuit brought against Appalachian State University and Chancellor Kenneth E. Peacock in his official capacity was dismissed in Superior Court Aug. 20.
Former Vice Chancellor of Business Affairs Jane Helm brought the suit against Peacock and Appalachian claiming she had been wrongfully dismissed from her position at the university.
Helm’s lawsuit claimed that under the North Carolina State Whistleblower Act and North Carolina General Statue 126, she was improperly fired.
The Whistleblower Act provides that retaliation may not be taken against a state employee who
“reports or is about to report” misconduct, including “misappropriation of funds.”
North Carolina General Statute 126 states that retaliation cannot be taken against a “state employee
that who has refused to carry out a directive which in fact constitutes a violation of state or federal rule,
law or regulation.”
In the beginning of May 2006, Peacock ordered Helm to issue Michael Cash a $10,000 check to
purchase an option to buy nearly 11 acres of property near the Broyhill Inn and Conference Center,
according to court records.
The planned option stated that the university would pay $475,000 for the property by Sept. 1, 2006, and
the $10,000 option was to be credited against the price of the property.
The money for the purchase was to come from the university’s Endowment Fund.
Cash had earlier approached Board of Trustees Chair James M. Deal about selling the property.
According to the lawsuit, Helm informed Peacock there were not enough funds to purchase the
property, and that doing so would be a misuse of funds.
Helm claims that Peacock told her to issue the check because “Mr. Cash needed the money to pay his
mortgage.”
Helm claimed she then complained to Associate University Attorney David Larry and that Larry told her
Peacock would “never admit to that in a court of law.”
Helm did not issue the check.
On June 2, 2006, the Endowment Committee of the Board of Trustees voted to purchase the option to
buy the property. Helm abstained from this vote.
According to the lawsuit, that same day Peacock asked Helm to resign, stating that he had been
“uncomfortable” working with her for a year and a half and that she was not a “team player.”
After e-mail correspondence with Peacock, Helm was granted three months paid administrative leave,
with benefits, so that she was eligible for early retirement.
Appalachian purchased the property from Cash on Dec. 19, 2006, for the agreed upon $475,000.
The case was dismissed under the North Carolina Rules of Civil Procedure Rule 12.
According to the ruling, Helm failed to state a claim upon which relief can be granted, and had a lack of
subject matter jurisdiction.
The motion to dismiss also stated that “defendants are entitled to sovereign immunity on Plaintiff’s
claims brought pursuant to the North Carolina State Constitution.”
Associate Vice Chancellor for University Communications and Cultural Affairs Lynn E. Drury said
Appalachian had sufficient money to purchase the property throughout the duration of the transaction.
Chancellor Peacock declined to comment through an interview and Helm could not be reached as of
press time.
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