Judge Throws out NC State Employees Lawsuit

June 1, 2001 (PLANSPONSOR.com) - The lawsuit filed by the State Employees Association of North Carolina (SEANC) to prevent the Governor Mike Easley from withholding $151 million of state workers' pension contributions to offset a budget deficit, has been dismissed.

The suit, filed against the state, charged that an emergency budget declaration issued by Easley in February is a breach of contract and violated state and federal constitutional provisions

The declaration, issued in the form of an executive order, included measures to address a budget shortfall, one of which was to suspend $151 million in retirement contributions as well as payments to other state funds.

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Judge Narley Cashwell ruled that SEANC had “failed to show that it or its members will suffer irreparable harm if temporary or preliminary injunctive relief is not issued.”

Further, the court ruled that SEANC had not shown that it is a party to the alleged contracts. The judge added that not all parties to the alleged contract were a part of the legal action and that the plaintiff therefore lacked standing and could not pursue the contract violation allegation.

– Camilla Klein                            editors@plansponsor.com

Read more at: NC State Employees Sue Governor