Shook v. NCG: Counselors' Wrongful Termination Suit Revived

In Shook v. NCG Acquisition, LLC, the U.S. Court of Appeals for the Fourth Circuit addressed wrongful termination claims filed by three licensed substance use disorder professionals. The court reversed a district court’s dismissal of the case, finding that the plaintiffs had sufficiently alleged that their termination violated North Carolina public policy as outlined in the state’s Substance Use Disorder Professional Practice Act (SUDPPA).

Conflict Over Client Care and Employer’s Response

Kim Shook, Kylie Scolaro-Conti, and John Szwyd were licensed substance use disorder professionals employed by NCG Acquisition, LLC, which operates mental health and substance use treatment facilities in North Carolina. Their role included providing crisis intervention and determining appropriate levels of care for clients.

In March 2021, Shook and Scolaro-Conti developed a crisis intervention plan for a client in severe distress. After the client refused to comply with intensive outpatient treatment, they determined that inpatient hospitalization was necessary. However, their employer required administrative approval for such recommendations. When the counselors submitted the necessary letter for approval, a supervisor altered the wording to suggest only a “different” level of care rather than a “higher” level of care.

As a result, the client was unable to transition to inpatient treatment. Three days later, the client died from a drug overdose. Following the incident, the counselors raised concerns about the handling of the case and the modifications made to their clinical recommendation. Shortly after bringing their concerns to management, all three were terminated.

Court Finds Public Policy Violations in Termination

The plaintiffs filed a lawsuit alleging that their termination violated North Carolina’s public policy protecting the integrity of licensed substance use disorder professionals. Specifically, they cited the SUDPPA and its regulations, which mandate that professionals act in the best interest of client welfare, provide accurate clinical assessments, and report unethical conduct.

Initially, the district court dismissed the case, finding that the plaintiffs had not sufficiently connected their termination to a specific violation of public policy. However, the Fourth Circuit disagreed. It ruled that North Carolina law explicitly sets standards for substance use disorder professionals, and the plaintiffs had plausibly alleged that their termination was in retaliation for adhering to those standards.

Case Remanded for Further Proceedings

With the Fourth Circuit’s decision, the case will return to the district court for further litigation. The ruling reinforces legal protections for licensed professionals who prioritize patient care over administrative directives and highlights the legal consequences for employers who interfere with clinical decision-making.

Employment Law Representation

If you believe you have been wrongfully terminated in violation of public policy, our labor and employment law team at Whitcomb, Selinsky, PC can provide experienced legal counsel. Contact us to discuss your case and explore your legal options.