On Thursday, September 19, 2024, NC Newsline reported that concerns over ethical practices within the North Carolina Supreme Court have intensified, particularly regarding Chief Justice Paul Newby and his family’s financial interests.
The article outlines troubling implications of judicial conduct linked to financial investments held by family members of certain justices. Chief Justice Newby, who assumed office in 2021, has been at the center of scrutiny after it was revealed that his wife owns stock in Plasma Games, an educational software company that has received nearly $10 million in state funding despite documented poor performance in North Carolina schools.
Investigations by the News & Observer disclosed that Plasma Games has consistently received state funding even after education officials reported that the company’s games were ineffective, with 80% of them not even being activated by students. Newby has reported on his disclosure forms that his wife has maintained at least a $10,000 investment in Plasma Games since 2020, coinciding with the company’s receipt of state funds.
In response to inquiries, Representative Donny Lambeth, a Republican who drafts House budgets, stated he was unaware of the Newby family’s investment. Meanwhile, Democratic Representative Marcia Morey, a former judge, voiced increasing concerns about the ethical implications of this situation, suggesting that the revelations indicate a pattern of unethical behavior by the justices.
The article further highlights that Chief Justice Newby’s wife holds similar investments in numerous companies, including Duke Energy. Notably, both Justice Tamara Barringer and Court of Appeals Judge Valerie Zachary, who are also Republicans, disclosed family investments valued at over $10,000 in Duke Energy. This power company has significant influence in state politics and is currently involved in a case before the North Carolina Supreme Court regarding a price increase for its customers, which has drawn public outcry amid rising inflation.
The Supreme Court justices are faced with a decision on whether to hear Attorney General Josh Stein’s appeal against the approved price hike. If the court rules against blocking the increase, it could potentially lead to a rise in Duke Energy’s stock value, thus benefitting the Barringer and Newby families financially.
Despite these apparent conflicts of interest, there is little expectation that the Republican justices will recuse themselves from cases involving Duke Energy. Chief Justice Newby has participated in multiple cases favoring the company, raising further questions about impartiality.
Additionally, the article discusses the actions of Justice Phil Berger Jr., who has also faced scrutiny for ruling on cases involving his father, Senate President Pro Tem Phil Berger. Prior to 2023, Justice Berger Jr. had unilaterally decided to remain involved in cases concerning his father. However, following the Republican takeover of the court, he has sought collective guidance on the issue of recusal, which has led to rulings allowing him to stay on cases involving his father.
Dissenting opinions from Justices Allison Riggs and Anita Earls have pointed out that allowing Berger Jr. to rule on his father’s cases presents significant ethical dilemmas, especially as the legislation in question enhances the political power of his father.
The North Carolina Code of Judicial Conduct mandates that judges recuse themselves from cases involving immediate family members, including parents and children. The ethical guidelines also require judges to step back from cases where their spouses have financial interests in the matters being adjudicated. The ongoing situation raises concerns not only about actual bias but also about the appearance of bias in judicial proceedings.
The article emphasizes that current leadership in the state has diminished the likelihood of accountability for these ethical breaches. Chief Justice Newby, along with House Speaker Tim Moore, has influenced the composition of the Judicial Standards Commission, making it unlikely that Republican justices will face serious scrutiny for potential violations of ethical conduct.
Source: NC Newsline
