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Former CFCC trustee Ray Funderburk gets $265,000 settlement, three years after being ousted

Funderburk spoke during his removal hearing on March 8, 2023.
Megan McDeavitt
/
WHQR
Funderburk spoke during his removal hearing on March 8, 2023.

In the spring of 2023, the Cape Fear Community College trustees held a hearing to remove Ray Funderburk III, who had been at odds with the board and the college several times in his short tenure. Funderburk denied allegations levied by the trustees and filed a lawsuit, which has now settled for over a quarter-million dollars.

Note: This is a developing story. WHQR will have updates, and plans an interview with Ray Funderburk, later this week.

The check cleared this month, three years after a majority of the CFCC Board of Trustees voted to remove Ray Funderburk III from the board in March 2023. The board held a pseudo-trial hearing to remove Funderburk after making several allegations against him.

In June of that year, Funderburk filed suit, alleging his state constitutional rights of due process and free speech had been violated. Funderburk was represented by Wilmington attorney Gary Shipman. The settlement came after years of depositions and delays.

In a statement, Shipman wrote, "Once again, hundreds of thousands of dollars have been paid out because a majority of the members of the CFCC Board of Trustees simply do not understand the concept of due process. While I am glad the case is over for Ray’s benefit so that he can move on, the bad decisions that continue to be made by this board should be of concern to everyone."

The board’s investigation of Funderburk’s alleged behavior was completed with the help of President Jim Morton’s administration.

The accusations the trustees laid at Funderburk’s feet were that he attempted to get an instructor to change a high school student’s grade so that he could remain eligible to play baseball. Funderburk vehemently denied that, saying he only spoke to the instructor about generalities of high school students taking community college-level courses. The trustees also claimed Funderburk violated policy when he spoke publicly at a CFCC Black student forum.

Back in March 2023, Funderburk argued for his innocence, “I didn't do anything to try to change someone's grade. And they made it look that way without any real evidence. And I spoke up, which is protected by my First Amendment rights in this country. So someone needs to take them to task, which is why I'm doing the suit.”

Before his removal, Funderburk had a long history of disagreeing with his former colleagues, in particular, in voting down a raise for President Jim Morton because he didn’t have information that supported it. He was also the sole voice advocating for answers to questions about the removal of former Trustee Jimmy Hopkins and concerns from marine technology students over the cancellation of one of their sea education experiences.

“And if disagreements get someone thrown off a board, what do we have boards for? If everybody's thinking the same thing, then no one's thinking,” Funderburk said in 2023.

In a press release, the CFCC addressed the settlement,

"The College’s insurance carrier informed the College that Funderburk has incurred $265,000 in legal fees and that Funderburk and the insurance company were willing to settle for that amount. This action was taken to resolve the matter efficiently and does not represent any admission of liability by the Board of Trustees or anyone at the College," according to the college.

WHQR asked CFCC President Jim Morton and Board of Trustees President Lanny Wilson for comments; they have not responded. The North Carolina Community College System, which greenlit Funderburk's removal hearing, has not yet responded to requests for comment. If they do respond, their comments will be included in this or future reporting.

Also named in the suit were Vice Chair Zander Guy, Jason McLeod, Bill Cherry, Paula Sewell, Bruce Shell, and former trustees Bill Rivenbark and Bruce Moskowitz. Former trustees Jonathan Barfield, also a longtime county commissioner, Deborah Dicks Maxwell, and Deloris Rhodes were not named because they voted against his removal in 2023.

Barfield’s prediction at Funderburk’s hearing has at least partially come true — that the board’s vote to remove him would end up costing the college, or at least its insurance carrier, which paid out the $265,000.

“I think Cape Fear Community College is going to eventually lose financially,” Barfield said. “And that burden is going to be on the backs of the taxpayers here because the money’s going to come from county government."

Reporting on Funderburk and CFCC

Rachel is a graduate of UNCW's Master of Public Administration program, specializing in Urban and Regional Policy and Planning. She also received a Master of Education and two Bachelor of Arts degrees in Political Science and French Language and Literature from NC State University. She served as WHQR's News Fellow from 2017-2019. Contact her by email: rkeith@whqr.org