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Litigation Among Options Weighed By Spring's Attorney

By Jenny Callison, posted Mar 5, 2015
Update: this version of the story contains comment from Gary Shipman about Ted Spring's suit against a former employer in Alabama.

Now that Ted Spring has asked -- through a letter from his attorney -- to be reinstated as president of Cape Fear Community College and alleged that the board of trustees pressured him into resigning Jan. 22, he and his attorney, Gary Shipman, await response from the college's board of trustees.

Asked what might lie ahead as a result of the request, Shipman said Thursday, “There is a range of possibilities, from nothing to everything.”

“One option is that nothing happens," he said. "A second option is, hopefully, the board will adhere to my request ... we would sit down and find a way to avoid litigation. The other option is litigation."

Wednesday, Shipman sent a letter to Jason Harris, chairman of the CFCC trustees, about the  board’s closed session Jan. 22 that led to Spring’s agreement to resign, which Shipman says, Spring did under threat of being fired immediately if he did not. In the letter, Shipman describes the termination process outlined in Spring’s employment contract and alleges that the board did not follow that process.

“The Board of Trustees could never have lawfully undertaken to terminate Dr. Spring on January 22, 2015, in open or closed session, as he had not been provided with the due process to which he was entitled, under the express provisions of his Employment Agreement and the law,” Shipman wrote.

According to Spring's employment contract, he would be entitled to written notice explaining the basis for termination and noting his right to a hearing. He would have five days to let the board know if he wished to respond. He would also have the right to appear before the board and be represented by counsel and would have the opportunity to confront and cross-examine any "adverse witnesses." There would be a hearing on the case within 10 days of that request, and the trustees' decision on the matter would be final.

If Spring had wished to terminate his employment, he would be required to give the college at least 60 days' written notice, according to contract provisions.

By press time Thursday, Harris had not returned a phone call asking for comment on Shipman's letter. A similar telephone request was made to James Norment, an attorney with the firm of Ward and Smith PA, who is mentioned in the letter as having advised the trustees on the matter involving Spring. Norment had not responded by press time.

CFCC spokesman David Hardin said that the college's attorney was reviewing the letter and could make no comment at this time.

Spring's contract outlines the duties expected of his position and states that trustees may terminate his contract if he fails substantially to perform them. Other possible causes for termination are conduct deemed to "injure the reputation or operations of" the college or breach of contract.

In the letter to Harris, Shipman also alleges that, in accepting Spring’s letter of resignation, the trustees agreed to a severance package that included six months’ pay, a “neutral recommendation” for another position and a confidentiality/non-disparagement agreement so that neither party -- Spring nor board members -- could make negative comments about the other.

“Dr. Spring accepted that offer and in reliance thereon, left the closed session, completed a letter of resignation and provided that letter of resignation to you,” Shipman wrote in his letter to Harris.

According to Shipman, however, a subsequent “Resignation and Release” document presented to Spring several days later were different from those to which he had agreed on Jan. 22. Any money that the state auditors, in published findings, found to be “in excess of the reasonable amount to which Spring was due under the Employment Agreement and applicable law,” would be deducted from his financial severance. And the “non-disparagement” provision had allegedly been changed to state that a prohibition against negative comments applied only to Spring, not to the board, Shipman said.

In his letter to Harris, Shipman said that on Feb. 20 he had submitted comments to Norment questioning the allegedly revised severance package, and in response, the original severance package was withdrawn and he was given the explanation that the board considered Shipman's edits a counter offer.

The letter also claims that CFCC trustee Louis Burney was the board member who contacted New Hanover County district attorney Ben David on Feb. 20, asking David to request an investigation of Spring by the State Bureau of Investigation. The issue to be investigated was the charge, by a CFCC employee, that she was asked, in exchange for favorable consideration regarding a promotion, to write a report for Spring to present to the board on the topic of the college’s continuing education programs.

Spring's previous suit

Asked Thursday about media reports that in 2003 Spring sued a former employer, Shelton State Community College in Alabama, for wrongful dismissal in 1999, Shipman said, “It is public record that Dr. Spring was a whistleblower in connection with a fraud going on at the college.”

Spring’s testimony, said Shipman, “resulted in the conviction and imprisonment of more than a couple of people.” Spring sued, Shipman continued, “because of the retaliatory action taken against him, and got a verdict in his favor.”

An Associated Press story from December 2003 reported that Spring was awarded $2 million  in back pay, emotional damages and punitive damages. After the school appealed, the case ended up being settled out of court for $400,000, WECT reports.

Spring, Shipman said, “is no stranger to controversy ... but just like he didn’t want the fight in Alabama, he did not want this fight, “ – alluding to the current situation with CFCC board of trustees.
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